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How to invest in millennials' love of craft beer

In 2016, small and independent craft brewers were responsible for more than 456,373 jobs in the US.
Matthew J. Lee | The Boston Globe | Getty Images

William Blair initiated shares of Boston Beer with an outperform rating on Wednesday, telling investors to get behind the "pioneer in the fast-growing craft beer segment."

"Over the past five years, U.S. craft beer sales (at retail) increased at a compound annual rate of 20 percent and reached more than $22 billion. Despite this, craft beer still represents just 12 percent, by volume, of the overall domestic beer market, suggesting ample room for growth," analyst Ryan Sundby wrote in a research note.

Sundby believes craft beer has become the drink of choice, particularly among millennials, who desire higher quality beverages with more variety and flavor.

"These demand characteristics and industry capabilities underpin a solid secular growth opportunity, in our view," said Sundby, naming Boston Beer the "No. 1 craft beer in the United States."