Boston Beer Co., one of the biggest US brewers, has posted a decline of 36% of the second-quarter 2003 earnings versus the second quarter of the previous year. The earnings for the period were of US$3.1 million. The results were ahead of analysts' forecasts. The company attributed the fall to increased advertising expenditure and a 4.3% drop in sales from US$58.87m to US$56.32m. Volumes were down by 6.5%, a drop attributed to an inventory build-up. Boston Beer said the inventory backlog would continue to depress volumes in the second half but expects margins to rise on the back of a US$10m reduction in brand promotion costs.

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