Boston Beer to pay a hefty $191m penalty to aluminium can maker Ardagh

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The Boston Beer Company, renowned for flagship brands such as Samuel Adams, Twisted Tea and Angry Orchard, has been directed by a US District Court to pay nearly USD 191 million to aluminium can manufacturer Ardagh Metal Packaging USA following a long-running contractual dispute over can purchases.

The court’s final judgment, entered on May 26, includes USD 175.5 million in damages and an additional USD 15.5 million in pre-judgment interest. The case stems from a lawsuit filed by Ardagh at the end of 2022, citing Boston Beer’s inability to meet the minimum can purchase commitments as drawn up in its 2021-2025 agreement with Ardagh.

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Until late in the proceedings, Boston Beer continued to contest the claims. In an April filing, the company denied a breach of contract, stating that it intended to pursue “all available post-trial motions and appellate remedies.”

The brewer had estimated its potential liability could range from “zero to USD 300 million” if the ruling favoured Ardagh.

The debate might be related to the production volume that went lower than expected, coupled with sales volumes that left Boston Beer unable to fulfil its original purchasing projections.

Boston Beer’s navigation through softer sales trends can be noted, as its annual net revenue has been on a declining trend for the past few years: 

• USD 1.97 billion in 2025, down 1.99 per cent Y-o-Y
• USD 2.01 billion in 2024, reporting minor development
• USD 2.01 billion in 2023, down 3.83 per cent Y-o-Y
• USD 2.09 billion in 2022

Alternative beverage brands, including Twisted Tea and Angry Orchard, now account for about 86 per cent of the company’s total sales volume.

Despite the challenges, Boston Beer remains optimistic about market conditions. Commenting on recent performance, CEO Jim Koch stated, “We were encouraged by early signs of improvement in the total beer category in the first quarter.”

He acknowledged that although the company’s “depletions improved and it remains early in the year, our portfolio has not yet fully matched the improvement in category trends.”

As the operating environment remains “dynamic”, Boston Beer’s strategy remains “executing with focus against our summer plans, including meaningful advertising support.”

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