Defective bottle recall cost Sam Adams $8.8 million
By William Brand
Wednesday, May 7th, 2008 at 10:36 am in Beer Business.
The recall of defective beer bottles by Sam Adams last month cost the company dearly. Boston Beer yesterday posted a $3.7 million loss for the three months just ended, even though sales rose a very healthy 12 percent.
The company discovered that bottles from one supplier were defective and that tiny pieces of glass could chip off and fall into the beer. The recall involved all Sam Adams bottles, embossed on the base of the bottles with the following marking: The letter “N” followed by the number “35″ followed by the letters “OI”.
The company said in a filing with the federal Securities and Exchange Commission that the net cost of the recall was $8.8 million.
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