Boston Beer Company
SAM
#4281
Rank
C$3.41 B
Marketcap
C$320.00
Share price
0.03%
Change (1 day)
-6.37%
Change (1 year)

Boston Beer Company - 10-Q quarterly report FY


Text size:
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q


[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES AND EXCHANGE ACT OF 1934

For the quarterly period ended March 29, 1997

OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES AND EXCHANGE ACT OF 1934

For the transition period from ................to.................

Commission file number 1-14092

THE BOSTON BEER COMPANY, INC.
(Exact name of registrant as specified in its charter)

MASSACHUSETTS 04-3284048
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)

75 Arlington Street, Boston, Massachusetts 02116
(Address of principal executive offices)
(Zip Code)

(617) 368-5000
Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.

Yes X No

As of May 2, 1997, there were 16,224,755 shares outstanding of the
Registrant's Class A Common Stock ($.01 par value) and 4,107,355 shares
outstanding of the Company's Class B Common Stock ($.01 par value).
THE BOSTON BEER COMPANY, INC.

INDEX


PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Consolidated Balance Sheets
March 29, 1997 and December 28, 1996

Consolidated Statements of Income for the
Three months ended March 29, 1997 and March 30, 1996

Consolidated Statements of Cash Flows for the Three
months ended March 29, 1997 and March 30, 1996

Notes to Consolidated Financial Statements

Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Item 2. Changes in Securities

Item 3. Defaults Upon Senior Securities

Item 4. Submission of Matters to a Vote of Security Holders

Item 5. Other Information

Item 6. Exhibits and Reports on Form 8-K

Exhibit Index

Exhibit 10.23

Exhibit 11


SIGNATURES
<TABLE>

THE BOSTON BEER COMPANY, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except share data)
<CAPTION>

March 29, December 28,
1997 1996
<S> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents $ 32 $ 5,060
Short term investments 35,536 35,926
Accounts receivable 21,089 18,109
Allowance for doubtful accounts (1,953) (1,930)
Inventories 14,254 13,002
Prepaid expenses 772 674
Deferred income taxes 2,968 2,968
Other current assets 2,699 3,882
---------- ----------
Total current assets 75,397 77,691

Restricted investments 627 611
Equipment and leasehold
improvements, at cost 29,069 21,043
Accumulated depreciation (7,378) (6,412)
Deferred income taxes 151 151
Other assets 3,571 3,469
----------- ----------
Total assets $ 101,437 $ 96,553
=========== ==========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
Accounts payable $ 12,373 $ 17,783
Notes payable - Bank 9,871 -
Accrued expenses 11,739 12,064
Current maturities oflong-term debt 75 75
---------- ----------
Total current liabilities 34,058 29,922

Long-term debt, less current maturities 1,800 1,800

Commitments and Contingencies (Note I) - -


Stockholders' Equity:
Class A Common Stock, $.01 par value;
20,300,000 shares authorized;
15,969,840, and 15,972,058
issued and outstanding as of
March 28, 1997 and December 28,
1996, respectively 160 160
Class B Common Stock, $.01 par value;
4,200,000 shares authorized;
4,107,355 issued and outstanding as
of March 28, 1997 and December 28, 1996 41 41
Additional paid-in-capital 55,410 55,391
Unearned compensation (324) (363)
Unrealized loss on investments in
marketable securities (1,223) (442)
Unrealized gains (loss) on
forward exchange contract (78) 31
Retained earnings 11,593 10,013
---------- ----------
Total stockholders' equity 65,579 64,831
---------- ----------
Total liabilities and
stockholders' equity $ 101,437 $ 96,553
========= ==========


The accompanying notes are an integral part of the financial statements.
</TABLE>
<TABLE>
THE BOSTON BEER COMPANY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in thousands, except per share data)

<CAPTION>
For the Three Months Ended
--------------------------

March 29, March 30,
1997 1996
<S> <C> <C>
Sales $ 46,799 $ 48,276
Less excise taxes 4,944 5,147
----------- -----------
Net sales 41,855 43,129
Cost of sales 21,907 21,865
----------- -----------
Gross profit 19,948 21,264

Operating expenses:
Advertising, promotional and
selling expenses 14,558 14,029
General and administrative
expenses 2,930 2,983
----------- -----------
Total operating expenses 17,488 17,012
----------- -----------
Operating income 2,460 4,252

Other income (expense):
Interest income 451 498
Interest expense (108) (57)
Other income, net 7 (7)
----------- -----------
Total other income 350 434

Income before income taxes 2,810 4,686
Provision for income taxes 1,230 2,046
----------- -----------
Net income $ 1,580 $ 2,640
=========== ===========
Net income per common and
common equivalent share $ 0.08 $ 0.13
=========== ===========
Weighted average number of
common and common equivalent shares 20,313 20,366
=========== ===========

The accompanying notes are an integral part of the financial statements.
</TABLE>
<TABLE>
THE BOSTON BEER COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
<CAPTION>
For the Quarter Ended
-------------------------------
March 29, March 30,
1997 1996
<S> <C> <C>
CASH FLOWS FOR OPERATING ACTIVITIES:
Net income $ 1,580 $ 2,640
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 966 539
Bad debt expense 39 19
Stock option compensation expense 52 78
Changes in assets & liabilities:
Accounts receivable (2,996) (8,402)
Inventory (1,252) (3,428)
Prepaid expenses (98) 58
Other current assets (489) 1,393
Other assets (102) 1,262
Accounts payable (5,410) 5,394
Accrued expenses (325) (939)
---------- ----------
Total adjustments (9,615) (4,026)
---------- ----------
Net cash used by operating
activities (8,035) (1,386)
---------- ----------

CASH FLOWS FOR INVESTING ACTIVITIES:
Acquisitions and purchases of fixed assets (6,463) (2,845)
(Purchases) maturities of government
securities (390) (427)
Purchases of restricted investments (625) (614)
Maturities of restricted investments 609 597
---------- ----------
Net cash used in investing
activities (6,869) (3,289)

CASH FLOWS FROM FINANCING ACTIVITES:
Proceeds from sale under stock
purchase plan 5 -
Net borrowings under line of credit 9,871 240
---------- ----------
Net cash provided by financing
activities 9,876 240
---------- ----------

Net increase (decrease) in cash and
cash equivalents (5,028) (4,435)

Cash and cash equivalents at beginning
of period 5,060 1,877
---------- ----------
Cash and cash equivalents at end of
period $ 32 $ (2,558)
========== ==========

Supplemental disclosure of cash flow
information:
Interest paid $ 112 $ 113
Taxes paid $ 385 $ 424

The accompanying notes are an integral part of the financial statements.
</TABLE>
THE BOSTON BEER COMPANY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


A. BASIS OF PRESENTATION:
The accompanying consolidated financial statements have been prepared
by the Company, without audit, in accordance with generally accepted
accounting principles for interim financial information and pursuant
to the rules and regulations of the Securities and Exchange Commission.
Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete
financial statements and should be read in conjunction with the audited
financial statements included in the Company's Annual Report on Form 10-K
for the year ended December 28, 1996.

In the opinion of management, the accompanying unaudited financial
statements contain all adjustments, consisting only of those of a normal
recurring nature, considered necessary for a fair presentation of the
Company's financial position, results of operations and cash flows at the
dates and for the periods presented. The operating results for the interim
periods presented are not necessarily indicative of the results expected
for the full year.

Reclassifications
Beginning in 1996, certain expenses which were previously classified as
general and administrative expenses were reclassified as advertising,
promotional, and selling expenses. All prior period financial information
has been reclassified to conform with this year's presentation. Certain
other prior period amounts have also been reclassified to conform with
the current year's presentation.


B. SHORT TERM INVESTMENTS:
Short term investments include marketable equity securities having a
cost of $4,286,000 and $4,286,000 and a market value of $3,062,500 and
$3,844,000 at March 29, 1997 and December 28, 1996, respectively. This
resulted in an unrealized loss of $1,223,500 and $442,000 at March 29,
1997 and December 28, 1996, respectively. In addition, the Company has
investments in U.S. Government securities having a cost of $32,473,000
and $32,082,000 at March 29, 1997 and December 28, 1996, respectively,
which approximate fair value.


C. INVENTORIES:
Inventories, which consist principally of hops, bottles, and
packaging, are stated at the lower of cost, determined on a first-in,
first-out (FIFO) basis, or market.

Inventories consist of the following (in thousands):

March 29, December 28,
1997 1996

Raw materials, principally hops $ 13,802 $ 12,677
Work in process 264 -
Finished goods 188 325
------------ -----------
$ 14,254 $ 13,002
============ ===========
THE BOSTON BEER COMPANY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)


D. FINANCIAL INSTRUMENTS:

During the first quarter of 1997, the Company entered into several
forward exchange contracts to reduce exposure to currency movements
affecting existing foreign currency denominated assets, liabilities,
and firm commitments. The contract durations match the durations of
the currency position. The future value of the contracts and the
related currency positions are subject to offsetting market risk
resulting from foreign currency exchange rate volatility. The combined
carrying amounts of the contracts and the combined unrealized losses
recognized as a component of Stockholders' Equity totaled $5,300,925
and $77,679, respectively, at March 29, 1997. There were no realized
gains or losses on the contracts in the three months ended March 29,
1997.

E. ACQUISITION OF THE SCHOENLING BREWERY:

On March 1, 1997 the Company acquired all of the equipment and other
brewery-related personal property from The Schoenling Brewing
Company located in Cincinnati, Ohio, and leased the real estate on
which the brewery is situated. The Cincinnati facility brews alcoholic
beverages for The Boston Beer Company, Inc. as well as contract-brews
for several independent companies. The results of operations of The
Schoenling Brewing Company (d.b.a. The Samuel Adams Brewery Company)
are included in the accompanying financial statements since the date
of acquisition. The acquisition is being accounted for under the
purchase method of accounting. The total purchase price, subject to
certain purchase price adjustments, is approximately $4,433,000. When
finalized, the purchase price will be allocated to the assets acquired
based on their fair market values. Any excess in costs of the net
assets over the purchase price will be recorded as goodwill and will
be amortized on a straight-line basis over the average estimated
useful life of the assets acquired.

In addition, the Company has acquired an option to purchase the real
estate on which the Schoenling brewery is located. As of March 29,
1997, the Company has paid approximately $1,700,000 for this option.
This amount is included in fixed assets at March 29, 1997.


F. DEBT

On March 21, 1997, the Company entered into a credit agreement to
increase their existing $14,000,000 line of credit to $15,000,000
("the $15,000,000 line") and to establish an additional $30,000,000
line of credit ("the $30,000,000 line"). On March 31, 1999, the
$15,000,000 line expires and the balance outstanding under the
$30,000,000 line converts to a term note. Principal payments on the
term note are payable in twenty quarterly installments, with the final
payment due at maturity, December 31, 2003. Through March 31, 1999,
interest is payable quarterly on both the $15,000,000 and $30,000,000
lines at either the Prime Rate plus .50% or the applicable Adjusted
Libor Rate plus .25%. After March 31, 1999, interest on the term note
is payable quarterly at either the Prime Rate plus .50% or the
applicable Adjusted Libor Rate plus .50%.

At March 29, 1997, $9,871,000 and $0 are outstanding under the
$15,000,000 and $30,000,000 lines, respectively, at an interest rate
of 8.5%. The Company must pay a commitment fee of .15% per annum on
the unused portion of the total $45,000,000 commitment. Additionally,
the Company is obligated to meet certain financial covenants,
including the maintenance of specified levels of tangible net worth
and net income.
THE BOSTON BEER COMPANY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)


G. RECENT ACCOUNTING STANDARDS:

In February, 1997, the Financial Accounting Standards Board
issued Statement of Financial Accounting Standards No. 128,
"Earnings Per Share" (SFAS 128), which modifies the way in which
EPS is calculated and disclosed. Currently, the Company
discloses primary and fully diluted EPS. SFAS 128 requires the
disclosure of basic and diluted EPS for financial statements issued
for periods ending after December 15, 1997; the restatement of all prior
period EPS data presented is also required upon adoption. Basic EPS
excludes potentially dilutive securities and is computed by dividing net
income (loss) available to common stockholders by the weighted-average
number of common shares outstanding for the period. Diluted EPS, similar
to fully diluted EPS, reflects the potential dilution that could occur if
securities or other contracts to issue common stock were exercised or
converted into common stock that then shared in the earnings of the
entity. Early application of SFAS 128 is not permitted.

The following table summarizes the Company's EPS and weighted-
average common and common equivalent shares outstanding as
reported and on a pro forma basis as calculated under SFAS 128.
The pro forma results for the diluted calculation do not differ
materially from the fully diluted calculation; therefore, no pro
forma information for the diluted calculation has been presented.

<TABLE>
<CAPTION>
Three Months Ended
--------------------------------------------------
March 29, 1997 March 30, 1996
------------------- -------------------

As Reported Pro forma As Reported Pro forma
Primary Basic Primary Basic
------------ ---------- ------------- ------------
<S> <C> <C> <C> <C>
EPS:
Net income per share $ .08 $ .08 $ .13 $ .13

Weighted-average common
and common equivalent
shares outstanding (in
thousands) 20,313 20,133 20,366 19,861
======= ======= ======= =======

</TABLE>
THE BOSTON BEER COMPANY, INC.

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS


The following is a discussion of the financial condition and
results of operations of the Company for the three-month period ended
March 29, 1997 as compared to the three-month period ended March 30,
1996. It should be read in conjunction with the "Consolidated
Financial Statements" of the Company and related "Notes to the
Financial Statements" included in this Form 10-Q. On March 1, 1997,
the Company acquired all of the equipment and other brewery-related
personal property from The Schoenling Brewing Company, located in
Cincinnati, Ohio and leased the real-estate on which the brewery is
situated.


RESULTS OF OPERATIONS

Three Months Ended March 29, 1997 compared to Three Months Ended
March 30, 1996.

Sales volume increased by 2% from 276,000 barrels in the three
months ended March 30, 1996 to 281,000 barrels in the three months
ended March 29,1997. This increase was due to inclusion of 19,000
barrels, in 1997, from the Hudepohl-Schoenling brewery, which was
acquired on March 1, 1997. Net sales decreased by 3% from $43,129,000
in the three month period ended March 30, 1996 to $41,855,000 in the
three month period ended March 29, 1997. The net sales percentage
decrease was primarily due to a shift in package mix (i.e. a higher
percentage of kegs, which produce less revenue per barrel, versus
cases than the Company has historically experienced). Towards the end
of the quarter, the shift in package mix moved back toward the
Company's normal package mix. It is probable that the sales volume
during the second quarter of 1997 will be less than that of the second
quarter of 1996.

Gross profit decreased by 6% from $21,264,000 in the three months
ended March 30, 1996 to $19,948,000 in the three months ended March
29, 1997. Cost of sales increased to 52% of net sales in the three
months ended March 29, 1997 from 51% in the three months ended March
30, 1996. This increase was primarily due to increases in raw
materials costs due to product mix (i.e. higher percent of Seasonal
beers in the three months ended March 29, 1997 as compared to the
three months ended March 30, 1996), obsolescence expense, and in
depreciation (primarily due to the newly purchased Sankey kegs),
partially offset by a decrease in certain packaging material costs.

Advertising, promotional, and selling expenses in total increased
by 4% from $14,029,000 in the three months ended March 30, 1996 to
$14,558,000 in the three months ended March 29, 1997. This increase
was primarily attributable to increased promotions, salaries and
related personnel expenses due to additional sales force hires,
partially offset by a rescheduling of certain point of sale programs,
which may be a shift of expense to future quarters, and lower per case
freight due to a shift in distribution patterns. As a percentage of
net sales, total advertising, promotional, and selling expenses
increased from 33% in the three months ended March 30, 1996 to 35% in
the three months ended March 29, 1997.

General and administrative expenses decreased by 2% from
$2,983,000 in the three months ended March 30, 1996 to $2,930,000 in
the three months ended March 29, 1997. This decrease was primarily due
to decreases in consulting fees and R&D material charges, offset
somewhat by an increase in depreciation, primarily reflecting
leasehold expansion and improvements as well as an increase in
insurance. As a percentage of net sales, general and administrative
expenses remained stable at 7% for the three months ended March 30,
1996 and 7% for the three months ended March 29, 1997.
THE BOSTON BEER COMPANY, INC.


Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (Continued)

Other income (expense) net, for the three months ended March
29, 1997, was $350,000, representing a decrease of $84,000 over other
income (expense) net, for the three months ended March 30, 1996. The
decrease in other income for the three months ended March 29, 1997 is
due to a reduction in invested cash caused primarily by the purchase
of the previously mentioned assets of The Schoenling Brewing Company
as well as the interest expense related to the borrowings against the
revolving line of credit, offset by the interest income earned on the
remaining proceeds from the Company's November 1995 sales of shares of
its Class A Common Stock.

Net income decreased by 40% to $1,580,000 in the three months
ended March 29, 1997 compared to $2,640,000 in the three months ended
March 30, 1996. The combined effective tax rate increased to 43.8% in
the three months ended March 29, 1997 compared to 43.7% in the three
months ended March 30, 1996, due primarily to higher projected income
levels for 1997. It is possible that these projected income levels may
not be attained.


Liquidity and Capital Resources

During the first quarter of 1997, the Company recorded net income
of $1,580,000, while net cash used by operating activities was
$8,035,000. This $9,615,000 difference is primarily due to increases
in accounts receivable and inventory, and a reduction in accounts
payable.

During the first quarter of 1997, the Company used $6,869,000 in
investing activities. This primarily reflects the addition of fixed
assets of brewery and packaging equipment and the purchase of the
equipment and other brewery-related personal property of The
Schoenling Brewery.

During the first quarter of 1997, the Company borrowed against
its revolving line of credit. As of March 29, 1997, net borrowings
were $9,871,000.

Effective on March 21, 1997, the Company negotiated an additional
$1,000,000 on the existing $14,000,000 revolving line of credit, and
secured an additional revolving line of credit of $30,000,000 which
will convert to a term loan on March 31, 1999.

The Company believes that working capital as of March 29, 1997 of
$41,269,000 (of which 86% is in cash and equivalents and short term
investments) in conjunction with existing lines of credit should be
sufficient to meet the Company's operating, capital, and debt service
requirements during the remainder of 1997.

Recent Accounting Standards Pronouncements

In February, 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 128, "Earnings Per Share"
(SFAS 128), which modifies the way in which EPS is calculated and dis-
closed. Currently, the Company discloses primary and fully diluted EPS.
SFAS 128 requires the disclosure of basic and diluted EPS for financial
statements issued for periods ending after December 15, 1997; the
restatement of all prior period EPS data presented is also required upon
adoption. Basic EPS excludes potentially dilutive securities and is
computed by dividing net income (loss) available to common stockholders
by the weighted-average number of common shares outstanding for the period.
Diluted EPS, similar to fully diluted EPS, reflects the potential dilution
that could occur if securities or other contracts to issue common stock
were exercised or converted into common stock that then shared in the
earnings of the entity. Early application of SFAS 128 is not permitted.
THE BOSTON BEER COMPANY, INC.


Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (Continued)

Recent Accounting Standards Pronouncements (continued)

For the three months ended March 29, 1997, the as reported Primary
and the pro forma Basic earnings per share were $.08 and $.08, and the
weighted average common and common equivalent shares outstanding, in
thousands, were 20,313 and 20,133, respectively.

For the three months ended March 30, 1996, the as reported Primary
and the pro forma Basic earnings per share were $.13 and $.13, and the
weighted average common and common equivalent shares outstanding, in
thousands, were 20,366 and 19,861, respectively.

For both periods presented, the pro forma results for the diluted
calculation do not differ materially from the fully diluted calculation;
therefore, no pro forma information for the diluted calculation has been
presented.

Forward-Looking Statements

The above discussion includes forward-looking statements. Such
forward-looking statements involve known and unknown risks, uncertainties,
and other factors which may cause the actual results, performance or
achievements of the Company to be materially different from any future
results, performance, or achievements expressed or implied by such
forward-looking statements. Such factors include, among others, the
following: changes in consumer preferences; general economic and
business conditions; increasing competition in the craft-brewed beer
industry; success of operating initiatives; possible future increases
in operating costs; advertising and promotional efforts; brand awareness;
the existence or absence of adverse publicity; changes in business strategy;
quality of management; availability, terms and deployment of capital;
business abilities and judgment of personnel; availability of qualified
personnel; labor and employee benefit costs; change in, or the failure to
comply with, government regulations; and other factors.
THE BOSTON BEER COMPANY, INC.


PART II. OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS
In early 1996, Boston Brewing Company, Inc. ("Boston Brewing"),
an affiliate of both Boston Beer Company Limited Partnership
and The Boston Beer Company, Inc., had an action filed against
it by its distributor, Premier Worldwide Beers PLC ("Premier"),
such action having been filed in a court in England. Premier's
action contains a claim to damages for alleged breach of a
Distributorship Agreement between Boston Brewing and Premier.
The action is being vigorously defended and at present is in
the discovery stage.

The Company is party to certain claims and litigation in the
ordinary course of business. The Company does not believe any
of these proceedings will result, individually or in the
aggregate, in a material adverse effect upon its financial
condition or results of operations.



Item 2. CHANGES IN SECURITIES

Not Applicable

Item 3. DEFAULTS UPON SENIOR SECURITIES

Not Applicable

Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

Not Applicable

Item 5. OTHER INFORMATION

Not Applicable

Item 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits

The following is a list of exhibits filed as part of this
report:

Exhibit No. Title

3.1 Articles of Organization (incorporated by
reference to Exhibit 3.2 to the Company's
Registration Statement No. 33-96162).

3.2 By-Laws of the Company (incorporated by
reference to Exhibit 3.2 to the Company's
Registration Statement No. 33-96162).

3.3 Restated Articles of Organization
of the Company (incorporated by reference
to Exhibit 3.3 to the Company's Form 10-K
filed on April 1, 1996).
THE BOSTON BEER COMPANY, INC.


PART II. OTHER INFORMATION (continued)


Item 6. EXHIBITS AND REPORTS ON FORM 8-K (continued)

Exhibit No. Title

3.4 Amended and Restated By-Laws of the Company
(incorporated by reference to Exhibit 3.4 to
the Company's Form 10-K filed on April 1, 1996).

4.1 Form of Class A Common Stock Certificate
(incorporated by reference to Exhibit 4.1 to the
Company's Registration Statement No. 33-96164).

10.1 Revolving Credit Agreement between Fleet Bank
of Massachusetts, N.A. and Boston Beer Company
Limited Partnership (the "Partnership"), dated as
of May 2, 1995 (incorporated by reference to
Exhibit 10.2 to the Company's Registration
Statement No. 33-96162).

10.2 Loan Security and Trust Agreement, dated October
1, 1987, among Massachusetts Industrial Finance
Agency, the Partnership and The First National
Bank of Boston, as Trustee, as amended
(incorporated by reference to Exhibit 10.2 to
the Company's Registration Statement No.
33-96164).

10.3 Deferred Compensation Agreement between the
Partnership and Alfred W. Rossow, Jr., effective
December 1, 1992 (incorporated by reference
to Exhibit 10.3 to the Company's Registration
Statement No. 33-96162).

10.4 The Boston Beer Company, Inc. Employee Equity
Incentive Plan, as adopted effective November
20, 1995 and amended effective February 23, 1996
(incorporated by reference to Exhibit 4.1 to the
Company's Registration Statement No. 333-1798).

10.5 Form of Employment Agreement between the Partner-
ship and employees (incorporated by reference to
Exhibit 10.5 to the Company's Registration
Statement No. 33-96162).

10.6 Services Agreement between The Boston Beer
Company, Inc. and Chemical Mellon Shareholder
Services, dated as of October 27, 1995
(incorporated by reference to the Company's
Form 10-K, filed on April 1, 1996).

10.7 Form of Indemnification Agreement between the
Partnership and certain employees and Advisory
Committee members (incorporated by reference to
Exhibit 10.7 to the Company's Registration
Statement No. 33-96162).
THE BOSTON BEER COMPANY, INC.


PART II. OTHER INFORMATION (continued)


Item 6. EXHIBITS AND REPORTS ON FORM 8-K (continued)

Exhibit No. Title

10.8 Stockholder Rights Agreement, dated as of
December, 1995, among The Boston Beer Company,
Inc. and the initial Stockholders (incorporated
by reference to the Company's Form 10-K, filed
on April 1, 1996).

+10.9 Agreement between Boston Brewing Company, Inc.
and The Stroh Brewery Company, dated as of
January 31, 1994 (incorporated by reference
to Exhibit 10.9 to the Company's Registration
Statement No. 33-96164).

+10.10 Agreement between Boston Brewing Company, Inc.
and the Genesee Brewing Company, dated as of
July 25, 1995 (incorporated by reference to
Exhibit 10.10 to the Company's Registration
Statement No. 33-96164).

+10.11 Amended and Restated Agreement between Pittsburgh
Brewing Company and Boston Brewing Company, Inc.
dated as of February 28, 1989 (incorporated by
reference to Exhibit 10.11 to the Company's
Registration Statement No. 33-96164).

10.12 Amendment to Amended and Restated Agreement
between Pittsburgh Brewing Company, Boston
Brewing Company, Inc., and G. Heileman
Brewing Company, Inc., dated December 13,
1989 (incorporated by reference to Exhibit
10.13 to the Company's Registration Statement
No. 33-96162).

+10.13 Second Amendment to Amended and Restated Agree-
ment between Pittsburgh Brewing Company and
Boston Brewing Company, Inc. dated as of
August 3, 1992 (incorporated by reference
to Exhibit 10.13 to the Company's Registration
Statement No. 33-96164).

+10.14 Third Amendment to Amended and Restated Agreement
between Pittsburgh Brewing Company and Boston
Brewing Company, Inc. dated December 1, 1994
(incorporated by reference to Exhibit 10.14 to
the Company's Registration Statement
No. 33-96164).

10.15 Fourth Amendment to Amended and Restated Agree-
ment between Pittsburgh Brewing Company and
Boston Brewing Company, Inc. dated as of
April 7, 1995 (incorporated by reference to
Exhibit 10.16 to the Company's Registration
Statement No. 33-96162).
THE BOSTON BEER COMPANY, INC.


PART II. OTHER INFORMATION (continued)


Item 6. EXHIBITS AND REPORTS ON FORM 8-K (continued)

Exhibit No. Title

+10.16 Letter Agreement between Boston Beer Company
Limited Partnership and Joseph E. Seagram & Sons,
Inc.(incorporated by reference to Exhibit 10.17
to the Company's Registration Statement
No. 33-96162).

10.17 Services Agreement and Fee Schedule of Mellon
Bank, N.A. Escrow Agent Services for The Boston
Beer Company, Inc. dated as of October 27, 1995).

10.18 Amendment to Revolving Credit Agreement between
Fleet Bank of Massachusetts, N.A. and the
Partnership (incorporated by reference to Exhibit
10.17 to the Company's Registration Statement
No. 33-96164).

10.19 1996 Stock Option Plan for Non-Employee Directors
(incorporated by reference to the Company's Form
10-K, filed on March 28, 1997).

+10.20 Production Agreement between The Stroh Brewery
Company and Boston Beer Company Limited
Partnership, dated January 14, 1997 (incorporated
by reference to the Company's Form 10-K, filed
on March 28, 1997).

+10.21 Letter Agreement between The Stroh Brewery
Company and Boston Beer Company Limited
Partnership, dated January 14, 1997
(incorporated by reference to the Company's
Form 10-K, filed on March 28, 1997).

+10.22 Agreement between Boston Beer Company Limited
Partnership and The Schoenling Brewing Company,
dated May 22, 1996 (incorporated by reference to
the Company's Form 10-K, filed on March 28, 1997).

*10.23 Revolving Credit Agreement between Fleet Bank
of Massachusetts, N.A. and The Boston Beer Company,
Inc., dated as of March 21, 1997.

*11 Schedule of Computation of Net Earnings Per Share.

21.1 List of subsidiaries of The Boston Beer Company,
Inc. (incorporated by reference to the Company's
Form 10-K, filed on March 28, 1997).
THE BOSTON BEER COMPANY, INC.


PART II. OTHER INFORMATION (continued)


Item 6. EXHIBITS AND REPORTS ON FORM 8-K (continued)

Exhibit No. Title


* Filed with this report.

+ Portions of this Exhibit have been omitted pursuant
to an application for an order declaring confidential
treatment filed with the Securities and Exchange
Commission.



(b) Reports on Form 8-K.

Not Applicable.
THE BOSTON BEER COMPANY, INC.


EXHIBIT INDEX

Exhibit Number Description of Exhibits

10.23 Revolving Credit Agreement between Fleet Bank
of Massachusetts, N.A. and The Boston Beer
Company, Inc., dated as of March 21, 1997.

11 Schedule of Computation of Net Earnings
Per Share.
SIGNATURES




Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this Form 10-Q to be signed on its behalf
by the undersigned thereunto duly authorized.




THE BOSTON BEER COMPANY, INC.
(Registrant)




Date: May 12, 1997 By: /s/ C. JAMES KOCH
-------------------- --------------------
C. James Koch
President, Chief Executive
Officer, Clerk and Director
(principal executive officer)




Date: May 12, 1997 By: /s/ ALFRED W. ROSSOW, JR.
-------------------- --------------------------
Alfred W. Rossow, Jr.
Executive Vice President,
Chief Financial Officer
(principal financial and
accounting officer)
Treasurer, and Director