You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: This is Jim Koch, Founder and Chairman.
And I'm pleased to kick off the 2020 second quarter earnings call for The Boston Beer Company.
Joining the call from Boston Beer are Dave Burwick, our CEO; and Frank Smalla, our CFO.
And then hand over to Dave who will provide an overview of our business.
As our world continues to grapple with this COVID-19 pandemic, a primary focus at Boston Beer Company continues to be on operating our breweries and our overall business safely and supporting our partners in the beer industry.
Supporting the communities in which we work and live is one of our core values.
And we're very happy that our Samuel Adams Restaurants Strong Fund has raised over $5.4 million so far to support bar and restaurant workers who are experiencing hardship in the wake of COVID-19.
Working with the Greg Hill Foundation, this fund is committed to distributing 100% of its proceeds to grants to bar and restaurant workers across the country.
While doing this, we also achieved depletions growth of 46% in the second quarter of which 42% is from Boston Beer legacy brands and 4% is from the addition of the Dogfish Head brands.
Our business in the second quarter was strong, but uncertainties due to COVID-19 do remain.
These uncertainties include our ability to continue to operate our breweries at a level of safety that meets our standards, the continued ability to distribute to off-premise retail locations and the timing of the reopening of on-premise retail locations.
We will continue to work hard through the COVID-19 pandemic and prioritize safety above all else.
I'm proud of the passion, creativity, and commitment to community that our company and coworkers have demonstrated during this pandemic.
We remain positive about the future growth of our brands and are happy that our diversified brand portfolio continues to fuel double-digit growth.
I will now pass over to Dave for a more detailed overview of our business.
Before I review our business results, I'll start with the usual disclaimer.
Now let me share a deeper look at our business performance.
Our depletions growth in the second quarter was a result of increases in our Truly Hard Seltzer and Twisted Tea brands and the addition of the Dogfish Head brands that were only partially offset by decreases in our Samuel Adams and Angry Orchard brands.
The growth of the Truly brand led by Truly Hard Lemonade has accelerated and continues to grow beyond our expectations.
Since early January, Truly has significantly grown its velocity and has sequentially grown its market share while many other hard seltzer brands have entered the category.
Truly is the only hard seltzer not introduced earlier this year to grow its share during 2020.
We'll continue to invest heavily in the Truly brand and further improve our position in the hard seltzer category as competition continues to increase.
We're excited about our new Truly advertising campaign that showcases coverage variety enjoy to hard seltzer drinkers through four different ads.
Because we delayed the premiere of this campaign to June given the consumer environments surrounding COVID-19, it's too early to know if it will resonate with drinkers.
Twisted Tea continues to generate double-digit volume growth rates that are well above full year 2019 trends.
We expect to increase our brand investments in the second half compared to the first half and see significant distribution in volume growth opportunities for our Truly, Twisted Tea and Dogfish Head brands.
Samuel Adams and Angry Orchard's volumes continue to decline as they are more deeply impacted by the effect of COVID-19 on on-premise retailers.
We're encouraged however that Samuel Adams Boston Lager and Angry Orchard Crisp Apple both have experienced double-digit growth in the measured off-premise channels during the quarter.
We continue to work on returning these brands to growth, but don't expect them to grow during 2020 because of on-premise closures.
I am pleased that our overall business has shown great momentum and depletion improvements during the first half of the year.
Given our trends for the first half and our current view of the remainder of the year, we've adjusted our expectations for higher 2020 full-year earnings, depletions and shipment growth, which is primarily driven by the strong performance of our Truly and Twisted Tea brands.
We've adjusted our business to the COVID-19 environment and continue to work to control what we can control, with our primary focus being the safety of our coworkers, distributors, retailers and drinkers.
We've deployed many safety protocols across our business and at our breweries, including entrance screening and temperature checks, face mask requirements, reorganized work spacing to increase physical distancing between and among shifts, and adding more cleaning and sanitation time to each shift.
We're slowly reopening our hospitality locations, which were closed since March, with a focus on outdoor service and takeout.
Our accelerated depletions growth has been challenging operationally.
We've been experiencing out of stocks and we expect wholesaler inventories to remain very tight for the rest of the summer.
We've been operating at capacity for many months and have further increased our usage of third-party breweries in response to the growth.
In particular, the additional Truly volumes have come at a higher incremental cost, due to an increased usage of third-party breweries, which is negatively impacting our gross margin expectation for the year.
We're investing significantly in our supply chain but do not expect these pressures to be relieved in the second half of the year.
We'll continue to invest to increase capacity as appropriate to meet the needs of our business and take full advantage of the fast-growing hard seltzer category.
We're a very competitive business, but we're optimistic for continued growth of our current brand portfolio.
We remain prepared to forsake short-term earnings, as we invest to sustain long-term profitable growth in line with the opportunities that we see.
Based on information in hand, year-to-date depletions reported to the company through the 28 weeks ended July 11, 2020, are estimated to have increased approximately 42% from the comparable weeks in 2019.
Excluding the Dogfish Head impact, depletions increased 37%.
Now, I'm going to hand it over to Frank who will provide the financial details.
For the second quarter, we reported net income of $60.1 million, an increase of $32.3 million or 116% from the second quarter of 2019.
Earnings per diluted share were $4.88, an increase of $2.52 per diluted share from the second quarter of 2019.
This increase was primarily due to increased revenue driven by shipment growth of 39.8% partly offset by lower gross margins and higher operating expenses.
We began seeing the impact of COVID-19 pandemic in our business in early March.
To-date, the direct financial impact of the pandemic has primarily shown in significantly reduced keg demand from the on-premise channel and higher labor and safety related cost at our breweries.
In the first half of 2020, we reported COVID-19 pre-tax-related reductions in net revenue and increases in other costs totally $14.1 million, of which $10 million was recorded in the first quarter and $4.1 million was recorded in the second quarter.
The total amount consists of a $5.8 million reduction in net revenue for our estimated keg returns from distributors and retailers, and $8.3 million of other COVID-19 related direct costs, of which $5.6 million are recorded in cost of goods sold and $2.7 million are recorded in operating expenses.
In addition to these direct financial impacts, COVID-19 related safety measures resulted in a reduction of brewery productivity.
This has shifted more volume to third-party breweries, which increased production costs and negatively impacted gross margins.
In April 2020, we withdrew full year fiscal 2020 financial guidance due to uncertainties around COVID-19.
Despite the continued uncertainties related to the COVID-19 pandemic, we feel our business outlook has stabilized and that it is now appropriate to give full year fiscal 2020 financial guidance.
Shipment volume was approximately 1.9 million barrels, a 39.8% increase from the second quarter of 2019.
Excluding the addition of the Dogfish Head brand beginning July 3, 2019, shipments increased 35.3%.
We believe distributor inventory as of June 27, 2020 averaged approximately 2.5 weeks on hand and was lower than prior year levels due the supply chain capacity constraints.
We expect wholesale inventory levels in terms of weeks on hand to remain lower than prior year levels for the remainder of the year.
Our second quarter 2020 gross margin of 46.4% decreased from the 49.9% margin realized in the second quarter of 2019 primarily as a result of higher processing cost due to increased production in third-party breweries, partially offset by price increases and cost-saving initiatives at company-owned breweries.
Second quarter advertising, promotional and selling expenses increased by $6.3 million in the second quarter of 2019 primarily due to increases in salaries and benefits cost, increased brand investments in media and production, the addition of Dogfish Head brand related expenses beginning July 3, 2019, and increased freight to distributors due to higher volumes partially offset by decreased investments in local marketing and national promotions due to timing of these costs compared to the prior year.
General and administrative expenses increased by $2.9 million in the second quarter of 2019, primarily due to increases in salaries and benefits cost and the addition of Dogfish Head general and administrative expenses beginning July 3, 2019, partially offset by the non-recurrence of $1.5 million in Dogfish Head transaction-related fees incurred in the second quarter of 2019.
Based on information which we're currently aware, we are now targeting full year 2020 earnings per diluted share of between $11.70 and $12.70.
However, actual results could vary significantly from this target.
This projection excludes the impact of ASU 2016-09.
Full year 2020 depletions growth including Dogfish Head is now estimated to be between 27% and 35% of which between 1% and 2% are due to the addition of the Dogfish Head brand.
We project increases in revenue per barrel of between 1% and 2%.
Full year 2020 gross margins are expected to be between 46% and 48%.
We plan to increase investments in advertising, promotional and selling expenses of between $70 million and $80 million for the full year 2020.
This does not include any increases in freight cost for the shipment of products to our distributors.
We estimate our full year 2020 non-GAAP effective tax rate to be approximately 26%, which excludes the impact of ASU 2016-09.
We are continuing to evaluate 2020 capital expenditures and currently estimate investments of between $180 million and $200 million.
The capital will be spent mostly on continued investments in our breweries and could be higher if deemed necessary to meet future growth.
We expect that our cash balance of $86.7 million as of June 27, 2020 along with our future operating cash flow and unused line of credit of $150 million will be sufficient to fund future cash requirement.
Before we do that though, I would like to remind everybody that we are still in different locations due to COVID-19.

user
q2 earnings per share $4.88.
sees fy 2020 non-gaap earnings per share $11.70 to $12.70.
began seeing impact of covid-19 pandemic on its business in early march.
began seeing the impact of the covid-19 pandemic on its business in early march.
boston beer company- direct financial impact of pandemic primarily shown in significantly reduced keg demand from on-premise channel.
boston beer- in 1st half of 2020, co recorded covid-19 related pre-tax reductions in net revenue, increases in other costs that total $14.1 million.
boston beer- given trends for 1st half of year, co adjusted expectations for higher 2020 earnings.

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