Shares of Boston Beer Hit Record Highs
During difficult economic times, people tend to savor the cheaper luxuries in life. Boston Beer Co. who makes Sam Adams, is capitalizing on this trend with their stocks rising 40% since October.
The beer industry has seen an unusual phenomenon since the recession of 2008. Even with high unemployment and tightened household budgets, beer drinkers showed a striking preference for more expensive craft beer.
Think of it this way. People don't have as much money to spend on entertainment. They aren't going to as many restaurants, concerts or sporting events. But if they have to stay home, they're at least going to do so with a beer that tastes good. So they'll pick up a craft beer as a small treat.
The trend is so apparent that even the large beer brewers are trying to develop their own craft-like beer -- or buy up craft breweries. Budweiser maker Anheuser Busch Inbev (BUD +0.79%) bought craft beer favorite Goose Island earlier this year for $38.8 million.
Image via Jenny Downing