After seven years at Boston Beer Company, CFO Frank Smalla will exit in mid-April, the company announced in an 8-K filing with the Securities and Exchange Commission.
Smalla is leaving Boston Beer to become CFO and operating officer of a KKR-backed private equity firm. Boston Beer noted in the filing that Smalla’s exit “is not related to any disagreement with the company on any matter relating to its operations, policies, or practices.”
Smalla will remain with the company through mid-April “to support an orderly transition.” Boston Beer has launched a formal search process to identify Smalla’s successor.
“I want to take this opportunity to thank Frank for his significant contributions and his leadership,” Boston Beer CEO Dave Burwick wrote in a memo to employees. “He oversaw an unprecedented era of growth and complexity, and he provided us with a steady financial hand during the pandemic. During his seven-year tenure here, we tripled our revenue as the hard seltzer category emerged and we capitalized on our strong position in beyond beer. From both a personal and professional standpoint, we will miss him, and we wish him the best as he takes on this new opportunity.”
“I’m extremely grateful to have been part of the Boston Beer growth journey for the past seven years,” Smalla added. “It has been a true honor to work with Jim and Dave and so many exceptionally talented and driven people, as we have grown and transformed the company to become a leader in the beyond beer category. I’m highly confident Boston Beer has the right plans, products and people to succeed in 2023 and well into the future.”
In the interim, Boston Beer has appointed Matt Murphy, chief accounting officer, to serve as interim treasurer CFO until the company hires a permanent replacement. Murphy has served as chief accounting officer since August 2015. He previously worked as corporate controller from September 2006 to August 2015.
Additionally, Boston Beer announced that it has entered into a 10b5-1 plan to repurchase as much as $25 million of the company’s Class A common stock between April 3 and June 30. The company said the plan is intended “to provide liquidity and investment diversification.” At the close of trading today, Boston Beer stock (SAM) was trading at $318.76.
As part of the program, chief sales officer John Geist will trade in 13,524 shares of Class A common stock.
Boston Beer’s brands include Twisted Tea, Truly Hard Seltzer, Samuel Adams, Dogfish Head, and Angry Orchard. In 2022, the company’s revenue topped $2.09 billion. However, shipments and depletions for the year declined -3.8% and 5%, respectively.