Twisted Tea Maker Owes Nearly $200 Million to Aluminum Can Manufacturer, Court Rules

(Photo: Boston Beer Company)

Boston Beer Company, the craft brewing giant behind Samuel Adams, Twisted Tea and Angry Orchard, has been ordered to pay $191 million to an aluminum can manufacturer following a dispute over unfulfilled orders.

On May 26, a U.S. District Court entered a final judgment of $175.5 million, plus $15.5 million in pre-judgment interest, owed to Ardagh Metal Packaging USA by Boston Beer. The manufacturer first filed a lawsuit against the brewer on New Year’s Eve 2022, alleging that the Samuel Adams maker had failed or would fail to buy a contractually agreed minimum of cans between 2021 and 2025.

Boston Beer disputed the merits of the suit until the eleventh hour. In a filing dated April 6, the company denied that it had breached its contract with the can maker, adding that it intended to “pursue all available post-trial motions and appellate remedies.” In the same filing, the brewer estimated it would be forced to pay between “zero and $300 million” if the court ruled in favor of Ardagh. The ultimate figure of $191 million falls well short of the brewer’s worst-case scenario.

Neither Ardagh nor Boston Beer has publicly stated the quantity of aluminum cans at the center of the dispute. In all likelihood, Boston Beer failed to hit certain production targets after it signed on with Ardagh and was either unwilling or unable to fulfill its initial projections.

Launched to humble beginnings in 1984, Boston Beer is now the third-largest craft brewer in the country. In addition to its flagship Samuel Adams, the company is known for its ever-expanding portfolio of flavored malt beverages, including best sellers like Truly Hard Seltzer, Sun Cruiser and Hard MTN Dew.

Like much else in the alcohol industry, Boston Beer’s sales have taken a hit in recent years. The company’s annual net revenue peaked at around $2.09 billion in 2022, before falling to $2.009 billion in 2023 and $1.965 billion by 2025. So-called alternative beverages (Twisted Tea, Angry Orchard, etc.) now make up 86% of the brewer’s total volume.

“We were encouraged by early signs of improvement in the total beer category in the first quarter,” CEO Jim Koch said in a recent earnings call with investors.

“While our depletions improved and it remains early in the year, our portfolio has not yet fully matched the improvement in category trends. The operating environment is dynamic, and we are executing with focus against our summer plans, including meaningful advertising support.”