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Grocery Beer Fact Book - Beer is

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					BEER FACT BOOK




                 1
TABLE OF CONTENTS
 The Romance of Beer                Beer at Retail
     History of Beer                    Merchandising Guidelines
     Essence of Beer                    Value of Beer Displays
     The Beer Connoisseur
 Beer Numbers
     Industry Overview
     Supermarket Channel Overview
     Value of Mainstream Beer
 Beer Consumers & Shoppers
     Beer Consumers
     Grocery Shoppers
     Changing U.S. Shopper/
     Impact of Economy
     Shopper Decision Tree
     Import Shopper Insights
     Craft/Specialty Beers


                                                                   2
The Romance of
     Beer
THE HISTORY OF BEER




                      4
      Ancient History
               Historians speculate that prehistoric nomads may have made
               beer from grain & water before learning to make bread.
               4300 BC, Babylonian clay tablets detail recipes for beer.
               Beer at this time was so valued that it was sometimes used to
               pay workers as part of their daily wages.
               1600 BC Egyptian texts contain 100 medical prescriptions calling
               for beer.
               Before the Middle Ages brewing was left to women to make since
               it was considered a food as well as celebration drink.
               1000 AD hops begins to be used in the brewing process.
               1420 German brewers develop the lager method of brewing.
               1490's Columbus found Indians making beer from corn and black
               birch sap


Source: A concise timeline of beer history by Prof. Linda Raley, Texas Tech University.   5
      Renaissance History
               1516 Bavarian brewing guilds push for the Reinheitsgeobot
               purity laws make it illegal to use any ingredients but water,
               barley, and hops in the brewing of beer (they didn't know yeast
               existed).
               1553 Beck's Brewery founded & still brewing today.
               1587 the first beer brewed in New World at Sir Walter Raleigh's
               colony in Virginia--but the colonists sent requests to England for
               better beer.
               1602 Dr. Alexander Nowell discovers that ale can be stored
               longer in cork sealed, glass bottles.
               1620 Pilgrims land at Plymouth Rock because the beer supplies
               were running low.
               1674 Harvard College has its own brewhouse.

Source: A concise timeline of beer history by Prof. Linda Raley, Texas Tech University.   6
      Renaissance History (Cont.)
               1757 Washington wrote his personal recipe "To Make Small
               Beer.“
               1786 Molson brewery is founded in what is today Canada.
                       Samuel Adams operated commercial brewery.
                       Soldiers in the revolutionary army received rations of a quart of beer a
                       day.
               1789 James Madison proposes that Congress levy a low 8-cent
               duty per barrel on malt liquors to encourage "the manufacture of
               beer in every State in the Union.“
                       Beer and bread were the mainstays of the ordinary person's diets for
                       centuries.
                       Yeasts during this time were exactly the same as those used in bread.




Source: A concise timeline of beer history by Prof. Linda Raley, Texas Tech University.           7
      Modern History
               Before the 1800's most beer was really "Ale."
               1810 Munich Germany establishes Oktoberfest as an official
               celebration.
               1830's Bavarians Gabriel Sedlmayr of Munich and Anton Dreher
               of Vienna developed the lager method of beer production.
               1842 the first golden lager is produced in Pilsen, Bohemia.
               The modern era of brewing in the US began in the late 1800's
               with commercial refrigeration (1860), automatic bottling,
               pasteurization (1876), and railroad distribution.
               1870's Adolphus Busch pioneers the use of double-walled
               railcars, a network of icehouses to make Budweiser the first
               national brand.
               1876 Pasteur unraveled the secrets of yeast in the fermentation
               process, and he also developed pasteurization to stabilize beers
               22 years before the process was applied to milk

Source: A concise timeline of beer history by Prof. Linda Raley, Texas Tech University.   8
      Modern History (Cont.)
               1880 there are approximately 2,300 breweries in the US.
               1890s Pabst is the first US brewer to sell over 1 million barrels in
               a year.
               1909 Teddy Roosevelt brought over 500 gal. of beer on a safari in
               Africa.
               1914 commercial competition drives the number of operating
               breweries down to 1,400.
               January 16, 1920 – Prohibition begins.
               April 7, 1933 Prohibition ends for beer.
               1935 only 160 breweries survive Prohibition.
               1935 the beer can is introduced (American Can Co. & Kreuger
               Brewing).
               1938 Elise Miller John heads Miller Brewing for 8 years as the
               first and only woman ever to run a major brewing company.
               1965 Fritz Maytag purchases Anchor Brewing Co.

Source: A concise timeline of beer history by Prof. Linda Raley, Texas Tech University.   9
      Modern History (Cont.)
               1966 - Budweiser is the first brand to sell 10 million barrels in a year.
               1976 New Albion is the first in the rebirth of brewpubs and microbreweries in
               the US opening in California.
               1991 the US produces 20% of the world beer volume (world's largest).
               1992:
                       The US beer industry produced & sold 2.62 billion cases of beer.
                       Estimated per capita consumption was 22.7 gallons (ranked 13th worldwide).
                       Beer drinkers consumed 5.89 Billion gallons, enough to fill the Houston
                       Astrodome over 12 times or 330 oil tankers.
                       The world's largest combined-site brewer was A-B, at 1.166 Billion cases.
                       The world's largest single-site brewery was Coors Brewing - Golden, Colorado at
                       272 Million cases.
                 2006:
                       207.6 million barrels were produced domestically
                       Per capita consumption was 30.3 gallons per person (21yrs and older)


Source: A concise timeline of beer history by Prof. Linda Raley, Texas Tech University.                  10
Brewing Ingredients     Water
                     Barley Malt
                         Hops
                        Yeast
                 Adjunct Grains (Rice)
           Water:
The integrity & purity of beer
   About 92% by weight of
   beer’s ingredient profile

    It is filtered, tested and
     tasted for quality and
  consistency before entering
      the brewing process
Barley: The body & soul of beer
 Barley is responsible for giving beer its:
   Color
   Malty, sweet flavor
   Sugars needed for fermentation
   Foamy head
Barley: The body & soul of beer
  Barley Malt provides color & flavor

                Affect on Beer
      Varieties     Color               Flavor
    Pale:              golden       crisp, malty
    Specialties:
        Munich       dark amber    sweet, toasted
        Caramel       red tones   caramel, roasted
        Chocolate      brown        coffee, nutty
        Black           black      toasted, bitter
Hops: The spice of beer




                             Hop cones
                            give beer its
                          flavor balance,
                            bitterness &
                               aroma
Hops: The spice of beer
                          Grown around the
                          world between the
                           35th and 55th
                          degrees of latitude
Yeast: The life of beer




 Two basic types
of brewer’s yeast,
   Ale & Lager
THE BEER CONNOISSEUR




                       19
Beer Styles

     LAGER                            ALE
      Bottom        Yeast Type         Top
    Fermenting                      Fermenting
       Cool         Fermentation       Warm
    (50° - 60° F)   Temperature     (62° - 72° F)

      Slower        Fermentation      Faster
                        Time

   Several Weeks    Aging Time         None
     Cleaner,          Flavor      Fruity, Hoppy,
     Crisper                       Flavor Lingers

                                                    20
The Family Tree of Beer Styles
                                                  Belgian              German
                                   (pure          Witbier/            Weissbier/           Hefe-              Dunkel-          Weizen-
                                  yeasts)          White               Weizen             Weizen              Weizen            bock
                                                  Blanche
       Top-      Wheat                (lactic          Berliner
    Fermenting   Beers            fermentation)        Weisse
       Ales                                                                                                                        Other
                                  (spontaneous         Lambic           Gueuze        Faro         Kriek       Framboise            fruit
                                  fermentation)                                                                                    beers
                 Sweet        Oatmeal         Dry          Imperial
                 Stout         Stout         Stout          Stout                  Irish Red Ale           Strong Scotch Ale
                 Porter                                                                                 Belgian Brown/“Red”
                                                     S. English         N. English
                                                     Brown Ale          Brown Ale        Old Ale
                                                                                                                       Pale/Dark
                                                                             Best        Strong                         Barley
                                Pale Mild      Dark Mild       Bitter                                                    Wine
                                                                             Bitter      Bitter
                 American
                   Ale                                          Light                         India          Belgian
                                                                           Pale Ale          Pale Ale          Ale           Altbier
                                                                 Ale
                 Cream Ale
                                                               American                                     Saisons
                                                               Malt Liquor
                                                                                                            Trappist
                    Pilsner       Dortmunder/Export           Strong Lagers
     Bottom-
    Fermenting    Vienna Type           Maerzen/Oktoberfest
      Lagers
                  Munich Pale      Munich Dark        Dark Bock
                                    Rauchbier
                   Pale Bock         Dark/Pale
                                    Double Bock                                                                                             21
The Color of Beer

                        Not all Ales are Dark
                        and not all Lagers are
                        Light

              Porter       Stout
          Bock
                          Barley Wine
          Belgian Ale
                           English Bitter
          Pale Ale
                              Lager
           Pale Bock        Kolsch

              Lambic      Pilsner




                                                 22
Beer Statistics
INDUSTRY OVERVIEW – 2008




                           24
Beer Is a $99.3 Billion Dollar Category and Accounts
for Over Half of Beverage Alcohol Dollar Sales

Share of Total Beverage Alcohol                                              Share of Total Beverage Alcohol
                  Retail Dollar Sales                                                       Consumption (Gallons)

                                   Wine                                                             Beer
                                   15%
                                                                                                    85%
                Beer
                52%                 Liquor
                                     33%                                                                       Wine
                                                                                                                9%



                                                                                                      Liquor
                                          Average Past Month Consumption                                6%

                                                 Incidence Among
                                                 55%        U.S. Adults 21+
                                                             39%
                                                                          31%         28%




                                          Any Alcohol Beer              Wine        Liquor

                    More people consume Beer than either Wine or Liquor
Sources: Adams Handbook Advance 2009 (Full Year 2008 Data) & Beverage Scape Jan-Dec 2008                              25
 Industry Beer Volume Performance

                                            2004        2005    2006    2007    2008    2009
                                 220

                                                                        213.4   214.3   213.8
                                 215
          Sales                                                 210.8
                                 210
        (mm bbls)                           206.2       206.3
                                 205

                                 200

                                    6                            4.5
                                    4                                    2.6
     Sales Change                   2         1.5                                0.9
                                                        0.1
      vs. Prev Yr                   0
       (mm bbls)                   -2                                                   -0.6
                                   -4
                                   -6


       % Change
                                            +0.7%       0.0%    +2.2%   +1.2%   +0.4%   -0.3%
       vs. Prev Yr

                    The U.S. Industry beer category is
                expected to be flat (-0.3%) for Full Year 2009
Source: Internal Domestic Estimates (as of July 2009)                                           26
 Holidays are Key Selling Times for Total Alcohol


                                                                                                2008 BWL Seasonality - Servings
                                                                                                    Total U.S. - Supermarkets

   Weekly Alcohol Servings (Millions)                                                        Total A-B     All Other Beer     Wine   Liquor                                          Christmas
600.0
            Bud Bowl                         St. Pat's                                      Memorial Day              July 4th                Labor Day   Halloween   Thanksgiving   New Year's



500.0



400.0



300.0



200.0



100.0



  0.0
        1   2   3    4    5    6    7    8    9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52

                    Source: IRI InfoScan Data                                                                               Week
                    52 Weeks Ending Dec 28, 2008 - Servings Basis 12 oz Beer, 5 oz Wine, 1.5 oz Liquor




 Source: IRI InfoScan Data Total U.S. FOOD - 52 Weeks Ending Dec 30, 2008 - Servings Basis 12 oz Beer, 5 oz Wine, 1.5 oz Liquor                                                                  27
Premiums are the Industry Segment Leader in
C-Store, Supermarket, Drug and Liquor Channels
                                                              Segments by Channel                                                                 Beer
                                                                                                                                                Category
                                             (Through Q2 2009 – 26 weeks ending June 28, 2009)

                                                                                                                          1.7
           C-Store                                      54.5                                      21.7            10.5
                                                                                                                             5.5
                                                                                                                                      6.2        +1.6
      $ Share of Category
     $ Sales % Change YA                               -0.6                                       +8.3            -6.2   +9.7 +13.4      +2.0




Supermarket                                     41.8                           16.1                 20.2           7.6      8.9       5.4
                                                                                                                                                 +5.8
      $ Share of Category
     $ Sales % Change YA                       +5.7                            +9.8                  -0.0        +11.1     +14.4   -1.5



                                                                                                                             2.7          2.2
               Drug                                47.0                                 21.2                   22.1
                                                                                                                                   4.8           +6.6
      $ Share of Category
     $ Sales % Change YA                           +5.7                                +10.2                   +4.4        +12.3 +15.2 -5.5




 Package Liq                                35.1                     9.0                  31.2                    12.4       8.0       4.3       +11.8
      $ Share of Category
     $ Sales % Change YA                   +10.9                    +17.5                  +6.0                  +26.8    +19.4       +1.8


               Premium                Sub-Premium                 Imports               Micro               Specialty              A/O


Sources:   IRI InfoScan, Through 2nd Quarter 2009 (26 Weeks Ending June 28, 2009) for TUS Supermarket, TUS Drug and TUS C-Store
           IRI InfoScan RMA Sum of Total Liquor Stores, Through 2nd Quarter 2009 (26 Weeks Ending June 28, 2009) for Package Liquor                      28
Anheuser-Busch is the Industry Sales Leader in
C-Store, Supermarket, Drug and Liquor Channels
                                                                  Brewers by Channel                                                               Beer
                                                                                                                                                 Category
                                              (Through Q2 2009 – 26 weeks ending June 28, 2009)

           C-Store                                         58.2                                        26.1                5.2 3.4         7.2    +1.6
       $ Share of Category
     $ Sales % Change YA                                   +2.4                                       +0.5                 -4.9 -10.3 +10.6




Supermarket                                       42.1                                28.1                 7.4      6.6            15.8
                                                                                                                                                  +5.8
       $ Share of Category
     $ Sales % Change YA                          +8.0                                +5.4                 +0.5     -0.6           +6.3




                Drug                                45.4                                     29.2                 8.7       8.5           8.2     +6.6
       $ Share of Category
     $ Sales % Change YA                           +7.2                                      +8.3                 +4.9      +5.0          +1.7




  Package Liq                             31.4                          23.9              7.6       10.4                   26.6                   +11.8
       $ Share of Category
     $ Sales % Change YA                  +12.4                          +10.7            +4.1      +3.6                   +18.3


                A-B InBev + Alliance                 MillerCoors             Grupo Modelo                  Heineken                   A/O


Sources:   IRI InfoScan, Through 2nd Quarter 2009 (26 Weeks Ending June 28, 2009) for TUS Supermarket, TUS Drug and TUS C-Store
           IRI InfoScan RMA Sum of Total Liquor Stores, Through 2nd Quarter 2009 (26 Weeks Ending June 28, 2009) for Package Liquor                       29
SUPERMARKET CHANNEL
OVERVIEW – 2008




                      30
 Beer is also the 5th Largest
 Edible Grocery Supermarket Category

                                       Top 10 Edible Grocery Categories                                       Dollar
                                     Dollar Sales ($ Millions) Through YTD June 14, 2009                      Trend

     #1 Carbonated Beverages                                                                         $5,535   +3.8%
                                   #2 Milk                                                  $4,797            -14.0%
          #3 Fresh Bread & Rolls                                                       $4,366                 +1.4%
                     #4 Salty Snacks                                             $3,838                       +10.2%
  #5 Beer/Ale/Alcoholic Cider                                                  $3,652                         +6.1%
                 #6 Natural Cheese                                           $3,463                           +4.2%
            #7 Fz Dinners/Entrees                                      $2,935                                 -0.9%
                       #8 Cold Cereal                                  $2,899                                 +1.9%
                                  #9 Wine                          $2,518                                     +4.8%
             #10 Rfg Juices/Drinks                          $1,986                                            -2.6%


                   #30 Spirits/Liquor               $970                                                      +2.1%


Source: IRI InfoScan Total U.S. Food, YTD June 14, 2009 (24 Weeks) (Dollar Basis) – CROSS CATEGORY DATABASE            31
  Top 20 Growing Categories in
  Grocery Stores

                                           Top 20 Growing Grocery Categories                                      Dollar Sales
                                                    Dollar Trend Through YTD June 14, 2009                        Chg ($MM)

               # 1 S a lt y S na c k s                                               10 .2 %                        $355.7
                           # 2 B eer                                 6 .1%                                          $211.4
# 3 C a rbo na t e d B e v e ra ge s                  3 .8 %                                                        $202.1
           # 4 N a t ura l C he e s e                    4 .2 %                                                     $138.2
                   # 5 Dog Food                                                     9 .7 %                          $124.3
                           # 6 Wine                        4 .8 %                                                   $116.5
                  # 7 V e ge t a ble s                                              9 .9 %                           $95.8
                 # 8 F z Seafo o d                                                  9 .8 %                           $91.5
                            # 9 R ic e                                                              13 .0 %          $81.0
    # 10 M a rga rine / S pre a ds                                                                      13 .7 %      $79.4
                     # 11 F z P izza                              5 .5 %                                             $73.6
                        # 12 P a s t a                                                  10 .7 %                      $73.6
         # 13 S ho rt e ning & O il                                        6 .9 %                                    $65.1
               # 14 M a yo nna is e                                                               12 .6 %            $64.0
   # 15 F re s h B re a d & R o lls       1.4 %                                                                      $60.7
          # 16 D inne r S a us a ge                                         7 .1%                                    $55.9
        # 17 B re a k f a s t M e a t s                 4 .1%                                                        $54.0
               # 18 C o ld C e re a l       1.9 %                                                                    $53.8
       # 19 R f g M e a t / P o ult ry                                                         11.8 %                $51.8
                  # 20 C at F o o d                                5 .8 %                                            $51.8


Source: IRI InfoScan Total U.S. Food, YTD June 14, 2009 (24 Weeks) (Dollar Basis) – CROSS CATEGORY DATABASE                      32
  Through Q2 2009, Beer is the
  3rd Largest Beverage Category
   YTD 2009 Grocery Dollars
               ($ Millions)
                                                         Grocery Dollar Trend YTD 2009 vs. YTD 2008
                 $5,535            #1 Carbonated Beverages                                                        3.8%
                 $4,797                                       #2 Milk             -14.0%
               $3,652                                        #3 Beer                                                 6.1%
                 $2,518                                      #4 Wine                                               4.8%
                 $1,986                    #5 Rfg Juices/Drinks                                   -2.6%
                 $1,852                          #6 Bottled Water                           -7.0%
                 $1,673                        #7 Bottled Juices                                    -0.4%
                 $1,452                                   #8 Coffee                                              3.1%
                  $970                          #9 Spirits/Liquor                                               2.1%
                  $593                        #10 Sports Drinks                       -11.3%


                  $317                        #13 Energy Drinks                                                    4.4%
         The Beer Category is bigger than the Wine and Liquor Categories combined and has a higher
         dollar trend than either Wine or Liquor!

Source: IRI InfoScan Total U.S. Food, Through 2nd Quarter 2009 (24 Weeks Ending June 14, 2009) (Dollar Basis) – CROSS CATEGORY DATABASE   33
      Nationally, Beer is Outperforming
      Wine and Liquor
                                                           Total U.S. - FOOD
    Beer has a stronger trend than Wine or Liquor, driving the Total Alcohol category up
    Beer’s dollar gains vs. YA are more than 1.5 times greater than gains from Wine and Liquor combined

                                                                                  Dollar Sales
       Total Alcohol Dollar Share
               YTD Ending May 17, 2009
                                                                                  % Chg vs. YA
                                                                            YTD Ending May 17, 2009


                      Liquor,
                      13.7%                                               Beer                        7.0%

                                             Beer,
                Wine,                        50.0%
                36.2%                                                     Wine                5.2%



                                                                         Liquor        2.6%




Source: IRI InfoScan Grocery, Total U.S. Food, YTD Ending May 17, 2009                                       34
 Beer SKUs Have Much Higher
 Productivity than Wine and Liquor SKUs

                     100.0%

                     90.0%
                                                                                                                    Beer                Wine              Liquor
                     80.0%                                             # of SKUs                                    4,806               14,576            6,877

                     70.0%                                            # SKUs that equal 90% of Total $               458                1,787              648
      % of Dollars




                                                                      % SKUs that equal 90% of $                    9.5%                12.3%             9.4%
                     60.0%
                                                                      SKU Dollar Contribution                     $1,653,797           $343,187       $316,634
                     50.0%

                     40.0%

                     30.0%

                     20.0%

                     10.0%

                      0.0%
                              1       1,001   2,001   3,001   4,001    5,001   6,001    7,001   8,001     9,001     10,00      11,00     12,00    13,00      14,00

                                                                                       # of SKUs
                                                                                Beer     Wine    Liquor




                                  Total U.S. Grocery has 4,806 Beer SKUs, 14,576 Wine SKUs and 6,877 Liquor SKUs
                                  458 Beer SKUs Generate 90% of total beer dollars while, 1,787 Wine SKUs and 648 Liquor
                                  SKUs contribute 90% dollar sales to their respective categories

Source: IRI InfoScan Total U.S. Food Full Year 2008 Data Ending December 28, 2008                                                                                    35
Premiums Remain the Bulk of the Business,
Representing 41.8% of Category Dollar Sales

                                               Price Segment Dollar Share
                                              Supermarket Channel – Through Q2 2009




                                                                Imports 20.2%
                                                                                               SubPremium
                                                                                                 16.1%
                                    Premium
                                     41.8%                                           Super Premium
                                                                                         16.5%




                                                                                          Non-Alcohol
                                                                All Other 4.4%
                                                                                             1.0%




Source: IRI InfoScan Total U.S. Food, Through Q2 2009 (26 Weeks Ending June 28, 2009) (Dollar Basis)        36
 Premium Beer Brands Drive More Volume
 Than Imports/Micros

                  250,000,000                                                                               Premium             Sub-Premium Imports/Micro
                                                   # of Brands                                                 32                     92                   1,640
                                                  # of Brands that equal 90% of Total Cases                    5                      12                    107
                  200,000,000
                                                  Total Case Sales                                      191,703,212              96,469,906         81,496,956
                                                  Case Contribution Per Brand                               5,990,725            1,048,586             49,693
     Case Sales




                  150,000,000




                  100,000,000




                   50,000,000




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                                                                                                                                                             1,
                                                                                     # of Brands
                                                                     Premium         Sub-Premium    Imports/Micro


                  Total U.S. -FOOD has 124 Premium and Sub-Premium brands and 1,640 Imports/Micro Brands
                  While 5 Premium brands and 12 Sub-Premium brands generate 90% of segment case sales,
                  Imports/Micro require 107 brands to get to 90% of their sales
                  The Premium segment contributes 120 times more cases per brand than the Import segment


Source: IRI InfoScan Total U.S. Food Full Year 2008 Data Ending December 28, 2008                                                                                    37
     IRI Beer Industry – Supermarket Dollars
                                 Full Year 2008 – IRI Supermarket Scan Data Top 10
                                                                   (Dollar Basis)
                              % Chg                 Market Share (% of Category Dollars)          Share Chg

  Anheuser-Busch               +7.1                                                        40.8      +0.6
      MillerCoors              +5.1                                                 28.0             -0.1

    Grupo Modelo               +1.0                    7.6                                           -0.3

    Heineken USA               -0.5                  6.6                                             -0.4
     Boston Beer               +2.8          1.8                                                     -0.0
    Pabst Brewing              +9.7          1.7                                                     +0.1
    Mark Anthony               +8.9         1.2                                                      +0.0
      Brands
      Smirnoff                 -5.5         1.2                                                      -0.1

  Diageo/Guinness              -6.0         1.2                                                      -0.1
       Yuengling              +25.8        0.9                                                       +0.2

    Total Beer                +5.4


Source: IRI InfoScan – Total U.S Food – YTD ending July 26, 2009                                              38
   IRI Beer Industry – Supermarket Volume
                             Full Year 2008 – IRI Supermarket Scan Data Top 10
                                                                   (Volume Basis)
                            % Chg                 Market Share (% of Category Volume)             Share Chg

Anheuser-Busch               +3.5                                                          45.1      +0.4
    MillerCoors              +1.8                                                   32.0             -0.2

  Grupo Modelo               +2.3                 5.3                                                -0.0

  Heineken USA               -1.1               4.8                                                  -0.2
  Pabst Brewing              +1.8           2.4                                                      -0.0
   Boston Beer               -0.8         1.1                                                        -0.0
     Yuengling              +21.4        0.9                                                         +0.1

 North American              -1.3        0.9                                                         -0.0
   Breweries
    Smirnoff                 -6.4        0.8                                                         -0.1
  Mark Anthony               +7.1        0.7                                                         +0.0
    Brands
  Total Beer                +2.5


Source: IRI InfoScan – Total U.S Food – YTD ending July 26, 2009                                              39
 Top 20 Brands in
 The Supermarket Channel through Q2 2009
                                                               Dollar Sales                                       Trend
             Bud Light                                                                             $603,757,900    6.3%
           Coors Light                                                 $294,032,500                                8.9%
             Miller Lite                                              $289,839,200                                 -1.1%
            Budweiser                                               $272,390,300                                   0.8%
         Corona Extra                                  $184,426,100                                                -2.3%
         Natural Light                        $123,153,900                                                          8.3%
             Heineken                        $117,764,200                                                          -3.5%
    Michelob ULTRA                        $95,810,920                                                               6.0%
           Busch Light                    $94,334,400                                                             12.0%
      Miller High Life                  $80,344,840                                                               13.2%
                  Busch                $70,871,390                                 The Top 20 Brands              11.6%
                                                                                 Account for 65.6% of             133.9%
      Bud Light Lime                 $58,885,750
                                                                                 Category Dollar Sales
         Corona Light                $56,895,790                                                                   1.4%
                                                                                in the Grocery Channel
      Keystone Light                 $55,321,930                                                                  22.8%
Miller Genuine Draft                $53,670,680                                                                    -7.8%
                 Tecate           $40,137,250                                                                      7.8%
   Budweiser Select               $37,331,890                                                                      -2.2%
            Natural Ice           $34,780,820                                                                     12.8%
                MGD 64           $34,171,520                                                                      267.5%
                  Coors          $30,767,560                                                                      11.7%


Source: IRI InfoScan Total U.S. Food, Through Q2 2009 (26 Weeks Ending June 28, 2009) (Dollar Basis)                       40
 Top 20 Packages in
 The Supermarket Channel through Q2 2009
                                                               Dollar Sales                                             Trend
       Corona Extra 12-pack 11.2-13oz Glass                                                              $110,482,800   -6.4%
                    Bud Light 24-pack 12oz can                                                         $104,375,400     14.1%
                    Bud Light 18-pack 12oz can                                            $83,953,500                    6.1%
                   Miller Lite 24-pack 12oz can                                     $73,253,380                          3.4%
                    Bud Light 30-pack 12oz can                                    $69,335,140                           11.8%
           Bud Light 12-pack 11.2-13oz Glass                                   $64,183,700                              -3.8%
                    Bud Light 12-pack 12oz can                                $63,503,330                                7.4%
            Heineken 12-pack 11.2-13oz Glass                               $57,599,900                                   1.3%
           Bud Light 20-pack 11.2-13oz Glass                              $55,602,910                                   -4.9%
                 Coors Light 18-pack 12oz can                         $48,509,650                                        0.9%
                 Coors Light 24-pack 12oz can                         $48,367,440                                       19.8%
                 Coors Light 30-pack 12oz can                        $47,671,240                                        20.0%
                   Miller Lite 18-pack 12oz can                    $45,079,500                The Top 20 Packages       -9.0%
                  Budweiser 24-pack 12oz can                      $42,874,280                 Account for 28.5% of       5.5%
           Bud Light 18-pack 11.2-13oz Glass                      $42,816,530                 Category Dollar Sales     -0.2%
                  Budweiser 18-pack 12oz can                    $39,545,660                  in the Grocery Channel     -4.1%
       Corona Light 12-pack 11.2-13oz Glass                     $39,389,020                                             -3.2%
                 Busch Light 30-pack 12oz can                 $36,153,880                                               17.8%
  Michelob ULTRA 12-pack 11.2-13oz Glass                      $35,899,050                                               -0.9%
                  Budweiser 12-pack 12oz can                  $35,325,020                                                1.4%

Source: IRI InfoScan Total U.S. Food, Through Q2 2009 (26 Weeks Ending June 28, 2009) (Dollar Basis)                            41
Beer Statistics Summary
  Industry
     Beer Accounts For Over 1/2 Of Beverage Alcohol Dollars and 85% of
     volume
     Total volume for Beer remains flat, but dollars are growing
     Holidays Are Key Selling Periods For Total Alcohol
     A-B Is A Leader Across All Off-premise Channels
  Grocery
     Beer Is An Important Category To Grocery On Several Measures And
     Accounts For Over 1/2 Of Total Alcohol Dollar Sales In Grocery
     Beer Sku‟s Have Higher Productivity Than Wine Or Liquor
     The Beer Category is larger than both the Wine and Liquor Categories
     combined and had a higher dollar trend than either Wine or Liquor
     Premiums Account For The Bulk Of Sales In Grocery
     Premiums Drive More Volume Than Micros Or Imports
     A-B Is A Leader Of Both Brands And Packages Driving Grocery Sales

                                                                            42
VALUE OF MAINSTREAM BEER




                           43
Executive Summary
   Consumers are SHIFTING from smaller format stores to larger format stores
   Consumers consider Beer more AFFORDABLE than Wine & Liquor
   Beer Category is growing FASTER than Wine and Liquor
   Imports and Micros are in deep decline, while Mainstream beers (Premiums & Sub
    Premiums) are accelerating in their growth
   Net: Consumer buying habits are CHANGING




Opportunities exist to fine tune your strategy and take advantage of these changing
                           consumer dynamics and trends



                                                                                      44
      Shoppers Changing Where They Shop

    Consumers are shifting from smaller format stores to larger format stores
                                                      All Shopping Trips
                                                                  % Change

    10%
                More trips to large format stores…
      8%

      6%

      4%

      2%

      0%

     -2%

     -4%

     -6%

     -8%                                                                                 …at expense of small format
                                                                                                   stores
    -10%
           Supercenters            Dollar             Club                  Drug   Grocery     Liquor      C-Store



Source: Nielsen Homescan®, Excludes gas only trips. YTD 3Q08 vs. YTD 3Q07                                              45
Nationally, Mainstream Beer Posted Improved Trends in the Second
Half of 2008

                                                       Total U.S. Supermarkets
    Mainstream Beer (premiums and sub premiums) represent over 2/3 of the beer industry and have improved case
    trends in the last half of 2008
                                                                                           Variance in Volume Trend
              Case Share of Category                                                            Second Half vs. First Half 2008
                          Second Half 2008
                                                                             Premium                                                  2.3
                                                                             -1.6% to +0.7%
                                       Sub                                (1st Half to 2nd Half Trend)

                                    Premium                                    Sub
                                      22.7%                                                                                         2.1
                                                                             Premium
                Premium                             Imports
                  45.7%                                                    -0.6% to +1.5%
                                                     14.4%
                                                                                Imports                             0.2
                                                                           +0.3% to +0.5%


                                                   Micros                        Micros -1.4
                                                                         +5.4% to +4.0%
                                                    4.9%
                                  All OtherSpecialty
                                    4.7%     7.6%                          Specialty*                                                              3.5
                                                                         +16.0% to +19.5%

                                                                               *Specialty trends driven by Bud Light Lime and Bud American Ale
                                                                              Introductions, Without these brands, trend variance would be -9.5%



Source: IRI InfoScan Total U.S. Food First Half and Second Half 2008 Data (26 weeks ending June 29 and 26 weeks ending Dec 28)                     46
      Mainstream Beer Delivers More Volume per SKU
                                                             Total U.S. - FOOD
    The Premium and Sub Premium segments sell more cases per $MM ACV with fewer items

                Avg Items Per Store                                                     Avg Cases per $MM ACV
                         Full Year 2008                                                       Full Year 2008

 Premium                                                  51                                                                   544.6

   Sub
                                           31                                                               275.4
 Premium

   Imports                                                         64                               175.2


    Micros                                       38                                         59.9


Specialty                                   32                                               86.5
                                                                                              *(Avg Wkly Case Sales per $MM ACV x 52)



Source: IRI InfoScan Total U.S. - FOOD, Full Year 2008 - 52 weeks ending Dec 28, 2008                                                   47
      Share of Space Over Time
                                                       Total U.S. - FOOD
    The Premium and Sub Premium segments are losing share of shelf space from 2006 through 2008.
    Imports and Micros are gaining share of shelf space




                    -1.8
                                                       Share of Space
                                                       2006 through 2008
              42.0 40.8 40.2

                                          -1.8
                                    22.6 22.0 20.8       +1.6
                                                                                       +1.9           -1.0
                                                     15.5 16.4 17.1
                                                                             +1.1
                                                                                             8.8
                                                                       6.0 6.7 7.1   6.9 7.3       7.0 6.8 6.0


                 Premium            SubPremium         Imports           Micros       Specialty     All Other
                                                          2006        2007    2008



Source: Siebel, Internal A-B planograms                                                                          48
      Mainstream Beer is Under Spaced
                                                              Total U.S. - FOOD
    The Premium Segment contributes 45.6% of total beer category volume and has only 40.2% of the shelf space
    Sub Premiums are also under spaced

                                     Case Share of Category vs Share of Shelf Space
              50     45.6                                                  Full Year 2008
              45
                              40.2
              40                                                                     26.6% Share of Volume
              35
                                                                SPIMS                33.0% Share of Space
              30
              25                          23.0
                                                   20.8
              20                                                        17.1
                                                               14.6
              15
                                                                                              7.1    7.2     8.8
              10                                                                                                         6.0
                                                                                     4.8                           4.8
               5
               0
                       Premium           SubPremium               Imports              Micros        Specialty     All Other

                                                     Shr of Category Volume                   Shr of Space


Source: IRI InfoScan Total U.S. - FOOD, Full Year 2008 Data and Siebel, Internal A-B planograms                                49
Weekly Volume Contribution
per Ad Feature
                                                             Total U.S. - FOOD
    The Premium and Sub Premium segments deliver more cases per ad than any of the other segments


                                                                           Incremental Cases per Feature Week*
                   Share of Features                                                                 Full Year 2008
                           Full Year 2008
          Sub                                Imports                               Premium                                          1,109,722
       Premium                                28.3%
         11.6%
                                                                           Sub Premium                       331,104

                                                                                     Imports                267,356
 Premium                                                     Micros
   30.5%                                                     11.0%
                                                                                      Micros           103,296

                         All Other           Specialty                            Specialty           93,566
                           3.9%               14.7%

          (Average of Share of Any Features Across Quad Weeks)
                                                                                    *(Incrm DC Cases, Any Feature / Add, Cum Wghtd Wks, Any Feature)



Source: IRI InfoScan Total U.S. - FOOD. Food Full Year 2008 - 52 weeks ending Dec 28, 2008                                                         50
      Share of Features Over Time
                                                            Total U.S. - FOOD
    The Premium and Sub Premium segments are losing share of features from 2006 through 2008
    Micros are gaining share of features
                                                          Share of Features
                                                             2006 through 2008

                    -0.5                                       -1.4
              31.0 30.6 30.5                             29.7 29.3
                                                                      28.3


                                         -1.3                                                           +4.2
                                                                                   +0.9
                                                                                                                14.7
                                   12.9 12.2 11.6                                                        12.0
                                                                              10.1 10.8 11.0 10.5                         -1.9
                                                                                                                       5.8 5.1
                                                                                                                               3.9


                 Premium           SubPremium                Imports               Micros              Specialty        All Other

                                                                 2006        2007       2008



Source: IRI InfoScan Total U.S. - FOOD, (Average of Share of Any Features Across Quad Weeks by Year)                                 51
      Mainstream Beer is Under Featured
                                                            Total U.S. - FOOD
    The Premium Segment contributes 45.6% of total beer category volume and has only 30.5% of the features
    Sub Premiums are also under represented

                                  Case Share of Category vs Share of Any Features
                                                                         Full Year 2008


            50     45.6                                                            26.6% Share of Volume
            45                                                 SPIMS               54.0% Share of Features
            40
            35              30.5
                                                                     28.3
            30
            25
                                       23.0
            20                                              14.6                                              14.7
            15                                  11.6                                     11.0
            10                                                                                        7.2
                                                                                 4.8                                 4.8   3.9
             5
             0
                    Premium           SubPremium              Imports              Micros             Specialty      All Other
                                             Shr of Category Volume                  Shr of Any Features



Source: IRI InfoScan Total U.S. - FOOD, Full Year 2008 – (Average of Share of Any Features Across 13 Quad Weeks)                 52
 Executive Summary

     Consumers are SHIFTING from smaller format stores to larger format stores
     Consumers consider Beer more AFFORDABLE than Wine & Liquor
     Beer Category is growing FASTER than Wine and Liquor
     Imports and Micros are in deep decline, while Mainstream beers (Premiums & Sub
      Premiums) are accelerating in their growth
     Net: Consumer buying habits are CHANGING




Opportunities exist to fine tune your strategy and take advantage of these changing consumer
                                      dynamics and trends

     Allocate more Space and Ad / Features to Mainstream segments of Premium and Sub
      Premium brands to meet your shopper needs



                                                                                               53
Beer Consumers and
     Shoppers
BEER CONSUMERS




                 55
      Beer Consumer Demographic Profile
                        Beer Consumers skew towards Male, Younger, Moderately Educated, and Higher
                        Income Households.
                                                                           Full Tim e
    One Person
                                                                          Part Tim e
  Tw o Persons
                                                                             Retired
 Three Persons                                                                                     United States
                                                                  Not in Labor Force
  Four Persons                                                                                     TOTAL BEER
  Five Persons
                                                                         Blue Collar
  Six Persons +                                                         White Collar
                                                                         Gray Collar
         Males                                                         No Em ployed
       Fem ales
                                                                         Anglos/AO

   21 - 24 years                                                  African Am ericans
                                                                            Latinos
   25 - 34 years

   35 - 44 years
                                                                              Single
    45-54 years
                                                                            Married
    55-64 years
                                                                              Other
      65+ Years

                                                                      Under $10,000
  < High School                                                          $10K - $24K
    High School                                                          $25K - $49K
  Som e College                                                          $50K - $79K

   College Grad                                                               $80K +

                   0%       20%   40%          60%   80%   100%                         0%   20%   40%     60%     80%   100%



Source: Spectra Infinet 52 weeks ending 2009                                                                                    56
     The Number Of Core Beer Consumers Is
     Expected To Continue Growing
                                After bottoming out in the late 1990‟s, the core 21-27 year old beer
                                consumer demographic is projected to grow through the year 2010,
                                generating greater category sales!
                                29                               Age 21 - 27
                                28
        Population (Millions)




                                27


                                26


                                25


                                24


                                23
                                     '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10


Source: 2000 U.S. Census                                                                                                   57
Population Breakdown by Age Groups

                                          Projected Population by Age Group
                                                                  1990 - 2015
                     110

                     100

                      90

                      80
          Millions




                      70

                      60

                      50

                      40

                      30

                      20
                           '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

                                                       21-27          28-34           35-49           50+

                           The Highest Growth Rate is Projected for Age 50+
Source: U.S. Census                                                                                                                  58
 Beer is Enjoyed By All Types of Consumers


                               % of Total Beer Consumers
                                       by Demographic Segment

                      MA-27          28-34                  35-49                50+
          Age          19%           16%                    34%                  32%
                                                                                                             5-Year
                                                                                  Af
    Ethnicity
                                             White/All Others
                                                                                 Amer
                                                                                         Latino          Growth Estimate
                                                  82%                                     11%
                                                                                  7%
                                                                                                  21-27 Year Old                    +5%
                                               Male                             Female
      Gender                                   69%                               31%
                                                                                                  Latino                            +18%
                      White           Blue
                                                            Gray Collar          Other
Occupation            Collar          Collar
                                                               33%               29%              Asian                             +18%
                       18%             20%

                       <$35K                    $35K-$79K                 $80K or More
                                                                                                  50+ Population                    +15%
      Income            21%                        38%                        41%




                                             Growth of these key consumer groups will
                                             impact beer category growth.


% of Consumers Source: ABI Beer Poll, 12 months ending July 2009                  Growth Estimates Source: Spectra / Claritas and U.S. Census 59
Beer Drinkers Buy Beer Frequently


            Nearly 3 out of 10 Beer Drinkers are Frequent Beer Shoppers.


               Frequent                           3 times a week or more       10%
               Shoppers                           1 to 2 times a week
                                                                                     29%
                                                                               19%



             Occasional                           Once every 2 weeks           12%
                                                                                     50%
             Shoppers                             Once every 3-4 weeks         38%



               Infrequent
                Shoppers                          Less than once every month         21%


Source: ABI Shopper Poll, 12 months ending July 2009                                       60
GROCERY SHOPPERS




                   61
Grocery Store Beer Shopper Insights
  The key ingredients to maximizing sales and profit opportunities
  in the beer category is to have a thorough understanding of the
  beer consumer dynamics and shopper behavior. This section
  provides insightful and relevant information to meet your
  category business needs.




                                                                     62
      More Consumers Means More Dollars
                                                              US - FOOD
                             Basket Ring X Buyers = More Total Dollars spent on Beer
                         Basket Ring                                                   Buyers (MM)
                                                 $73                           33.6
                                                                                          27.3
                               $67
             $64
                                                                    X                                 10.4



            Beer             Wine             Liquor                           Beer      Wine        Liquor

                                                       Total Dollars Spent ($MM)
                                                 $2,150
                                                                   $1,829


                                                                              $759




                                                 Beer              Wine     Liquor


Source: IRI Consumer Network Panel – US - FOOD – 52 Weeks Ending 03/29/09                                     63
 Who Are Supermarket Shoppers?


                                      Beer Shoppers Are Beer Consumers



                                                                              All      Mass       Liquor   Warehouse
                                          Drug Store   C-Store   Grocery   Channels Merchandise   Store      Club

 Shopper Consumer                             99%       98%       97%        97%        96%        96%       96%
 Shopper Non-Consumer                          1%        2%        3%        3%         4%         4%         4%




                  The vast majority of beer shoppers are also beer consumers,
                  Supermarket beer shoppers are no exception
                  In-store merchandising and POS should speak to a beer
                  consumer’s mindset. In other words, go beyond price messages to
                  include lifestyle and beer occasion imagery.

Source: ABI Shopper Poll, 12 months ending July 2009                                                               64
Over one third of Adults Drink Beer Regularly…
They Buy Beer Frequently
                                                  Percent of Total Adult Population
                                                                                           Over one third of the U.S.
                                                                      38%                  Adult Population Are Regular
                                                                                           Beer Consumers
                                                     27%
                                                                                 11%

                                      Past Week Beer Drinker           Past Month Beer Drinker

                                                                            29% of Beer Drinkers are
                                                                            Frequent Beer Shoppers


                Frequent                           3 times a week or more                    11%
                                                                                                          29%
                Shoppers                           1 to 2 times a week                      18%

             Occasional                            Once every 2 weeks                       12%
                                                                                                          50%
             Shoppers                              Once every 3-4 weeks                     38%

               Infrequent                                                                                  21%
                                                   Less than once every month
                Shoppers
Source: ABI Beer Poll, ABI Shopper Poll, 12 months ending July 2009                                                       65
  Beer Shopper Mindset by Channel

                                     Reason for Going on Shopping Trip
               Liquor Store                                   94%                              6%
                                                                                                        Retailers have a big
                    C-Store                             68%                            32%
                                                                                                        opportunity in Beer
                 Drug Store                            66%                            34%               given its “destination”
               All Channels                    51%                              49%                     nature, especially in
        Mass Merchandise              27%                               73%                             Liquor Stores, C-Stores
                        Club         24%                               76%                              and Drug stores.
                    Grocery         21%                               79%

                          Primary Reason Alcohol                 Primary Reason Other Items


                                     Planned vs. Impulse Beer Purchasing
                    C-Store                            67%                          29%            4%
               Liquor Store                            64%                          33%            3%   There is a big
                        Club                      59%                           31%          10%        opportunity for in-store
               All Channels                     56%                            37%             7%       influence, particularly
                                                                                                        for Mass Merchandise,
                 Drug Store                    51%                          35%              14%
                                                                                                        Grocery and Drug
                    Grocery                  48%                            43%               9%        Stores.
        Mass Merchandise                     47%                            45%               9%

             Pre-Planned Beer, Brand, and Size                Decided Brand and/or Size In Store
             Purchased Beer on Impulse

Source: ABI Shopper Poll, 12 months ending July 2009                                                                               66
       What is the Supermarket Beer Shopper’s
       Mindset?
                                  Other Items Co-Purchased with Beer
                     Most Recent Beer Purchase                     Most Recent Beer Purchase
                           All Channels                                  at Supermarket


                                                 Purchased Beer
                                                 Only                          85%
                                    67%
                                                 Purchased Other
                                                 Items With Beer
                            33%
                                                                         15%




               Beer shoppers are valuable at Supermarket since they are highly
                 likely to purchase other items with beer. However, there is
               opportunity to drive additional co-purchasing of other categories
                                  with beer at Supermarkets.

Source: A-B Marketing Research                                                                 67
 Beer Purchasing Behavior

                                          Beer Purchasing By Day Of Week
 35%


 30%

 25%


 20%

 15%

 10%

  5%

  0%
              Monday              Tuesday              Wednesday       Thursday       Friday       Saturday       Sunday

           All Channels         Grocery        C-Store       Liquor Store    Mass Merchandise   Drug Store    Warehouse Club


          Fridays and especially Saturdays are the key beer purchasing days across all channels.



Source: ABI Shopper Poll, 12 months ending July 2009                                                                           68
 Beer Purchasing Behavior

                                          Beer Purchasing By Time of Day
 14%

 12%

 10%

  8%

  6%

  4%

  2%

  0%
        12:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00
         AM AM AM AM AM AM AM AM AM AM AM AM PM PM PM PM PM PM PM PM PM PM PM PM


                                        All Channels                                                 Grocery


          Across all Channels, beer purchases peak at 6:00pm. Overall between noon to 7 pm is the key
          purchasing time. It’s important to be fully in stock for these peak beer purchasing times.

Source: ABI Shopper Poll, 12 months ending July 2009                                                                                69
    The Beer Purchase Decision – Time Spent
                          Time Spent Shopping Beer Section
                                                                       Total Beer
                                                                       Shoppers

                              < 10                                     Grocery Store
                                            5%
                            Seconds


                             11 - 30
                                                   19%          The majority of Grocery Store Beer
                            Seconds
                                                                Shoppers Spend a Minute or More
                             31 - 60
                                                                        Shopping Beer!
                                                  13%
                            Seconds


                         1 Minute or
                                                                     62%
                           Longer




            More beer section browsing occurs in Grocery Store versus other
            channels, suggesting ample opportunity for quality POS impact.

SOURCE: Anheuser-Busch Shopper Observation Research, 2004 and 2005                                   70
    Beer Displays Can Be Stock-Up Reminders

       “How soon after purchase did you begin consuming the beer you bought?”


                       Within 1 Hour                    24%        Over Half of Grocery Beer
                                                                   buyers plan to start consuming
                                                                   Beer within 3 hours of
                            1-3 Hours                        28%   purchase.


                          4-24 Hours                         29%




                          > 24 Hours                   20%
                                                                   TUS All Channels
                                                                   TUS Grocery

          Cooler vs. warm beer space allocation (including displays) is important at Grocery, to accommodate
                                   Beer shoppers‟ varied beer temperature needs.


Source: ABI Shopper Poll, 12 months ending July 2009                                                           71
 Latino Beer Shopper Insights

                                Stores Where Latinos Most Often Buy Beer

                          Grocery                                                         49%

                   Liquor Store                              17%

                          C-Store                            16%

                    Mass Merch                          9%

             Wholesale Club                       4%
                                                                   All Beer Shoppers
                     Drug Store                    5%              Latino Beer Shoppers




         Grocery Stores are the most popular channel for Latino Beer shoppers. Versus all
         beer shoppers, they skew more towards Grocery, C-Stores, and Drug Stores.


Source: ABI Shopper Poll, 12 months ending July 2009                                            72
GROCERY SHOPPERS




                   73
Grocery Store Beer Shopper Insights
  The key ingredients to maximizing sales and profit opportunities
  in the beer category is to have a thorough understanding of the
  beer consumer dynamics and shopper behavior. This section
  provides insightful and relevant information to meet your
  category business needs.




                                                                     74
      More Consumers Means More Dollars
                                                              US - FOOD
                             Basket Ring X Buyers = More Total Dollars spent on Beer
                         Basket Ring                                                   Buyers (MM)
                                                 $73                           33.6
                                                                                          27.3
                               $67
             $64
                                                                    X                                 10.4



            Beer             Wine             Liquor                           Beer      Wine        Liquor

                                                       Total Dollars Spent ($MM)
                                                 $2,150
                                                                   $1,829


                                                                              $759




                                                 Beer              Wine     Liquor


Source: IRI Consumer Network Panel – US - FOOD – 52 Weeks Ending 03/29/09                                     75
 Who Are Supermarket Shoppers?


                                       Beer Shoppers Are Beer Consumers

                                   Warehouse             Liquor                All            Mass
                                     Club      C-Store   Store    Grocery   Channels   Drug   Merch
         Shopper
                                        99%     98%       97%      97%        97%      95%    91%
         Consumer
         Shopper Non-
                                         1%      2%       3%        3%        3%       5%      9%
         Consumer



                  The vast majority of beer shoppers are also beer consumers,
                  Supermarket beer shoppers are no exception
                  In-store merchandising and POS should speak to a beer
                  consumer’s mindset. In other words, go beyond price messages to
                  include lifestyle and beer occasion imagery.

Source: ABI Shopper Poll, 2008, Total U.S.                                                            76
Nearly 40% of Adults Drink Beer Regularly…
They Buy Beer Frequently
                                                      Percent of Total Adult Population
                                                                                           Nearly 40% of the U.S. Adult
                                                                   39%                     Population Are Regular Beer
                                                                                           Consumers
                                                       28%
                                                                                 11%

                                      Past Week Beer Drinker          Past Month Beer Drinker

                                                                            29% of Beer Drinkers are
                                                                            Frequent Beer Shoppers


                Frequent                              3 times a week or more                 11%
                                                                                                          29%
                Shoppers                              1 to 2 times a week                   18%

             Occasional                               Once every 2 weeks                    13%
                                                                                                          49%
             Shoppers                                 Once every 3-4 weeks                  36%

               Infrequent                                                                                  21%
                                                      Less than once every month
                Shoppers
Source: ABI Beer Poll, 2008; ABI Shopper Poll, 2008                                                                       77
  Beer Shopper Mindset by Channel

                                      Reason for Going on Shopping Trip
              C-Store                               69%                          31%
                                                                                                    Retailers have a big
                 Drug                          61%                             39%                  opportunity in Beer
        All Channels                         49%                           51%                      given its “destination”
                                                                                                    nature, especially in C-
                 Club         21%                               79%                                 Stores and Drug
             Grocery         18%                               82%                                  stores.
         Mass Merch          17%                              83%

                           Primary Reason Alcohol            Primary Reason Other Items


                                      Planned vs. Impulse Beer Purchasing
              C-Store                               68%                          28%           4%
        All Channels                           59%                         33%            8%        The biggest
                                                                                                    opportunities for in-
         Mass Merch                           56%                       33%             12%         store influence are in
                 Drug                         55%                        36%              9%        Grocery, Mass Merch,
                                                                                                    and Clubs.
             Grocery                         52%                      35%              13%
                 Club                   45%                          44%                12%

              Pre-Planned Beer, Brand, and Size           Decided Brand and/or Size In Store
              Purchased Beer on Impulse

Source: ABI Shopper Poll, 2008, Total U.S.                                                                                     78
       What is the Supermarket Beer Shopper’s
       Mindset?
                                  Other Items Co-Purchased with Beer
                     Most Recent Beer Purchase                     Most Recent Beer Purchase
                           All Channels                                  at Supermarket


                                                 Purchased Beer
                                                 Only                          85%
                                    67%
                                                 Purchased Other
                                                 Items With Beer
                            33%
                                                                         15%




               Beer shoppers are valuable at Supermarket since they are highly
                 likely to purchase other items with beer. However, there is
               opportunity to drive additional co-purchasing of other categories
                                  with beer at Supermarkets.

Source: A-B Marketing Research                                                                 79
Beer Purchasing Behavior

                                           Beer Purchasing By Day Of Week
40%

35%

30%

25%

20%

15%

10%

5%

0%
            Sunday               Monday           Tuesday       Wednesday      Thursday      Friday       Saturday

          All Channels         Grocery       C-Store    Liquor Store   Mass Merchandise   Drug Store   Wholesale Club


         Fridays and especially Saturdays are the key beer purchasing days across all channels



Source: ABI Shopper Poll, 2008, Total US                                                                                80
Beer Purchasing Behavior

                                           Beer Purchasing By Time of Day
16%

14%

12%

10%

8%

6%

4%

2%

0%
       12:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00
        AM AM AM AM AM AM AM AM AM AM AM AM PM PM PM PM PM PM PM PM PM PM PM PM


                                       All Channels                                                 Grocery


         Across all Channels, beer purchases peak at 6:00pm and then decline as the night goes on


Source: ABI Shopper Poll, 2008, Total US                                                                                           81
 The Beer Purchase Decision

         Cold Vs. Warm Beer Purchasing Total Beer Shoppers By Channel


                  C-Store                                             93%                                     6%

                  Grocery                                        83%                               3%    14%

              Drug Store                                        82%                                5%    13%

            All Channels                                        81%                            3%       17%

             Liquor Store                                      79%                            3%        18%

     Mass Merchandise                                       72%                         4%          24%

        Warehouse Club                   28%           2%                       70%

                                        Cold                Warm - On Display         Warm - Not On Display


                Where available, beer shoppers overwhelmingly likely to purchase beer cold.




Source: ABI Shopper Poll, 12 months ending July 2009                                                               82
    Beer Displays Can Be Stock-Up Reminders

       “How soon after purchase did you begin consuming the beer you bought?”

                                                                 About half of Grocery Beer
                       Within 1 Hour        17%                  buyers plan to start consuming
                                                                 Beer within 3 hours of
                                                                 purchase. This is lower than the
                            1-3 Hours             26%
                                                                 All-Channel beer shopper
                                                                 average.

                                                                 Over half of Grocery Beer
                           4-24 Hours             25%
                                                                 buyers can potentially wait for
                                                                 beer to chill prior to
                                                                                        TUS All Channels
                                                                 consumption.
                                                                                                TUS Grocery
                           > 24 Hours                32%




          Cooler vs. warm beer space allocation (including displays) is important at Grocery, to accommodate
                                   Beer shoppers‟ varied beer temperature needs.


SOURCE: A-B Shopper Poll, 2007                                                                                 83
THE CHANGING U.S. SHOPPER




                            84
Impact of a Recession

           January 11, 2009




                     January 16, 2009




                                        January 24, 2009




                                                           85
American Shopper is Struggling
     % of Consumers who are having
difficulty buying the groceries they need
                by Income
                                      53%
<$35K
                                       55%
                                             60% of U.S. Households
                                             earn under $55K per year
 $35-                     31%
$54.9K                          41%


 $55-               22%
$99.9K              21%
                                      Q3
                                      Q2
              12%
$100K+
              12%

                                                                        87
   Economic Transformation

            STAGE 1                        A radical rise in energy costs (gas, home, electric)
          Shocking the
                                           Food costs begin to change shopper behavior
            System
           Q1 – Q3 „08                     Shoppers react with the “lens of affordability”



            STATE II                       Food costs begin to stabilize
          A Refocus on
                                           Shoppers begin extreme belt tightening
             Impact
            Q4 2008                        Shoppers fundamentally change usage „rituals”


                                           Overall focus changes from cost to long-term survival
          STATE III                        Many rituals become permanent
     The Lasting Reality
            2009                           Brand/banner loyalty becomes redefined
                                           Manufacturers and retailers realign relationships


Source: Information Resources, Inc. 2009                                                           88
Shoppers Behavior

        Shoppers are Selectively Choosing Less And Buying
                        More of the Same                     # of Unique
                                                              UPCs per
                                                             Shopper Per
  393       400                                               Year in the
                                                            “Home Pantry”
                        386
                                    373
                                                361

                      -9%
                     Decline




 2004      2005        2006        2007        2008
                                                                            89
   The Decision To Buy...
                                                                ... at Home or in the Store?

                       100%
                        90%                                                                                  24%
                                                                                      25%
                        80%                    40%
                        70%
       % of Shoppers




                        60%
                        50%
                        40%                                                           75%                    76%
                        30%                    60%
                        20%
                        10%
                         0%
                                       Beginning of 2008                           End of 2008          2009 Decision Making
                       Source: IRI “Consumer Dynamics” Custom Survey – December 2008 – 1003 Consumers




Copyright Information Resources, Inc. 2009                                                                                     90
                 Calls To Action
                                           RETAILERS                 MANUFACTURERS

                            Focus on Shoppers                    Focus on Shoppers


                                                               Capitalize on Category
                       Get Assortments Right
                                                                   Management

                              Align Programs to                  Align Programs to
                              Shopper Insights                   Category Insights



                                               Collaborate on these Calls
                                                    to Action to WIN
Source: Information Resources, Inc. 2009                                                91
        2009                                               Trends

        Consumers are...                                   If the Economy Worsens, how Will
                                                           Shoppers Cope?
                  Making less trips
                                                                Low Income shoppers may simply
                  Spending more $$ per trip, but less $$        buy less
                  overall
                                                                Middle Income shoppers may look
                  Spending less of their disposable             at familiar value brands in select
                  income                                        categories
                  Switching to more affordable brands           Higher Income shoppers may trade
                                                                down to a more affordable luxury,
                  Experimenting less with new products
                                                                such as beer from wine and spirits
                  Making more of their purchasing               Given the above, assortment of
                  decisions at home                             brands and packages takes on
                  Doing more in-home entertaining               added significance




Source: Information Resources, Inc. 2009                                                             92
How is This Affecting
Beer Consumers & Shoppers?




                             Page 93
                                       93
       Consumer Trade-offs
              As Consumers Tighten Their Belts, Trading Down Seems to
                  Affect Alcohol Less, But the On-premise May Suffer
                                  Try to save on gas and electricity                                            67%
                           Cut down on out of home entertainment                                          56%
                                        Spend less on new clothes                                        55%
                                              Use my car less often                                     54%
                                        Cut down on take-out meals                                     53%
                                 Switch to cheaper grocery brands                                   47%
                      Delay upgrading technology (PC, mobile, etc)                            37%
                  Delay the replacement of major household items                             36%
                                      Cut down on annual vacation                          33%        Which of the
                                       Cut down on short vacations                        32%          Following
                               Cut down on at home entertainment                    25%             Actions Do you
      Look for better deals on home loans, insurance, credit cards                 24%              Take in Order to
                                 Cut down on telephone expenses                  20%                Stay Within your
                                                                                                        Budget?
                        Cut down or buy cheaper brands of alcohol             14%
                                              Cut down on smoking        9%
                                         I wouldn't take any actions   4%
Source: Nielsen Consumer Global Confidence Survey Oct 2008                                                             95
                       Shoppers are Spending Less Money
       Shoppers claim to be spending less money across many CPG categories and on social
           activities versus last year because of the economy. While shoppers claim to be
          spending less on beer, the economic impact appears much greater in other areas.
                                25%                                        38%
           Beer                                                Fast-Food
                                  33%         All Channels                   51%


                                27%                            Sit-Down     40%
           Wine                                               Restaurant       57%
                                  37%


         Hard                         31%                                  35%
                                                                 Movies
        Liquor                          39%                                   54%
                                               2007                                  2007
                                               2008                                  2008
         Soft                  23%                                          39%
                                                               Vacations
        Drinks                   33%                                           56%


                            16%                                            33%
        Coffee                                                    Music
                              26%                                            48%


                           14%                                  Home       33%
          Food                                               Improvement      49%
                                       40%
Source: A-B Shopper Poll, 2007-2008                                                         96
                Beer Is Considered “Best Value”

                    Alcohol Shoppers Perceive Beer as the Best Value for
                       Their Money – And That Has Increased in 2008
                                            All Channels


                                                           51%
                    Which            Beer
                Alcohol Type                               53%

                 is the Best
                Value for the                      27%
                                                                 2007
                   Money?           Wine
                                                   28%
                                                                 2008




                                                 22%
                                    Hard
                                   Liquor
                                                 19%




Source: A-B Shopper Poll, 2009                                             97
      Vulnerable Demos
        Latino Unemployment Is Higher By 3.3%, Impacting Their
                       Ability To Purchase Beer

         Unemployment Rates -Total US
                    Q4       Q1
                                       Jan      Feb        Mar           Apr    May          2000 – 2008
                    200      200
                                       09       09         09            09     09
                     8        9                                                                                                  Impact of enforcement
    All            6.9%
                              8.1      7.6
                                                8.1%       8.5%          8.9%   9.4%
                                                                                        14                                       measures
                                                                                                                                                 12.4
  Workers                     %        %                                                             Impact of
                                                                                                                                          11.5
                                                                                                                                                        11.9
                                                                                        12           9/11                          11.1
                             10.7      9.7      10.9                     11.3
   Latinos         8.9%
                              %        %         %
                                                          11.4%
                                                                          %
                                                                                12.7%
                                                                                                     9.4
                                                                                                                   9.8    10.2
                                                                                        10                  9.2
                                                                                              8.4
                                                                                        8


                                                                                        6
          Over 60% of all Latino deportations
          occurred in California and Arizona.                                           4
           Immigration declined for first time
                                   since 2001                                           2


                                                                                        0
                                                                                             2000   2001   2002   2003   2004     2005    2006   2007   2008


Source: Bureau of Labor Statistics: The Employment Situation, May 2009                                                                                         98
     Changing Category Dynamics
                                                Beer Pre-Planning down in key Beer channels.
                                                  Shoppers looking for deals/value in store.
           6%                 6%                4%            3%          2%                3%                             8%
                                                3%                        9%                                  11%                                         11%               Bought Beer on
           8%                                                11%                            13%                                         22%
                              15%               11%                                                           6%                                                            Impulse
                                                             6%           13%                                              19%
           12%                                                                              11%                                                           20%
                                                                                                              15%                       4%
                              13%                            13%          10%                                                                                               Decided Size AND
           11%                                                                              11%                                         14%
                                                                                                              10%          15%                                              Brand In Store
                              11%                                                                                                                         21%
                                                                                                                                        5%
                                                                                                                           12%                                              Decided Brand In
                                                                                                                                                          11%               Store
                                                82%

          63%                                                66%          67%               63%
                                                                                                              59%                       55%
                                                                                                                                                                            Decided Pack Size
                              54%
                                                                                                                           47%                                              In Store
                                                                                                                                                          37%

                                                                                                                                                                            Fully Pre-Planned
                                                                                                                                                                            (Knew Beer, Brand,
                                                                                                                                                                            and Size)
            All Channels 05


                              All Channels 09




                                                                                                                                        Super Center 05


                                                                                                                                                          Super Center 09
                                                C-Store 05


                                                             C-Store 09




                                                                          Liquor Store 05


                                                                                            Liquor Store 09




                                                                                                              Grocery 05


                                                                                                                           Grocery 09




Source: A-B Shopper Poll, 2009                                                                                                                                                                   99
Package Size Shift
        Consumers indicate they are buying larger size
          packages and products made in the USA




                                                         100
                            Packaging Shift


                         Consumers Shifting From 6 And 12 Packs To 24 And 30/36 Packs


                                40%

                                                Bud Lt
                                30%             Bud                                                                       28%
      % Change vs Last Year .




                                                Miller Lite
                                20%             Coors Lt                                       16%
                                                                                      15%                             15%
                                                Natural Lt
                                                                                                                            10%
                                10%             Industry                                                  8%
                                                                                        5%           5%
                                                                                             2%                1%
                                                                     0%          0%
                                 0%
                                                -2%                                                                 -1%
                                                      -3% -2%
                                       -5%                   -5%           -5%
                                -10%      -8%
                                             -10%
                                                               -12%

                                                                                                  -17%
                                -20%
                                              6-pk                 12-pk                     24-pk              30/36-pk
Source: IRI Total US – Food YTD through July 26th
Implications

 Despite stimulus measures, there has not yet been any clear evidence
  of a corresponding major bounce in consumer spending
     Manufacturers and Retailers need to develop marketing approaches that deliver
       and communicate better value for the money
 Polarized Beer Market – Trade-Down to Sub Premium and Growth of
  Crafts and Specialties
     Invest in marketing and sales activities in these segments as that’s where
       consumers are moving
 Large sizes are growing as shoppers seek value
     Enhance assortment and visibility of larger pack sizes
 On-premise continues slowing
     Merchandise to “Taking the party home” mindset
     Optimize shopping experience; tap into positive emotions of beer occasions
                                                                                      102
Partnering Opportunities
 Comfort Food                   Home
                               Cooking




                             Home
                           Entertaining



                                          103
 Beer Segments –
Crafts and Imports
IMPORT SHOPPER INSIGHTS




                          105
Highlights: Import Beer Shoppers
  How Do Import Sales Compare To Other Segments?
     The Import segment represents 14.6% of U.S. Grocery Beer volume.
     Although Import sales are grew in 2008 (+0.46%), they are still less than 1/3 of
     Premium sales.
  Who Are Import Beer Shoppers?
     Demographically, Import Beer shoppers are more like to be White and Gray Collar
     and higher income than Premium shoppers.
     The Import shopper is typically also the Import consumer.
  Where Do They Shop?
     More than half of Import Beer shoppers say they most often purchase Beer at
     Grocery.
     Import Beer shoppers are less than half as likely as Premium shoppers to buy
     Beer at C-Stores and Mass Merchandisers.
     When choosing a Beer destination, they are more likely to look for…
      » Beer for specific occasions (rather than replenishment)
      » Highest quality beers and a better selection of beers



                                                                                        106
Highlights: Import Beer Shoppers
  What Do They Buy?
     Corona and Heineken are the top two brands purchased by Import shoppers.
     The majority of Import Shoppers also purchase Premium Beer.
      » 4 of the top 10 brands purchased by Import Shoppers are Premiums.
     Almost 3 out of 5 Import Beer Shoppers also purchase Wine.
     They purchase 6- or 12- packs almost three quarters of the time.




                                                                                107
Highlights: Import Beer Shoppers
  How Do They Buy Imports?
      More impulsively … About 4 in 10 Import Beer buyers make brand and/or package
      size decisions in the store.
      More than a quarter of Import Beer is purchased warm, compared to less than
      one fifth of Premium Beer.
  Why Do They Buy Imports?
      Import Beer shoppers view Import brands as more sophisticated than Premiums.
      Import Shoppers believe Import Beer is higher quality and are willing to pay more
      for a unique taste.
      They are more likely to purchase beer for consumption with meals.
  When Do They Buy?
      Similar to Premium Beer, Import purchasing skews to weekends (Fridays and
      Saturdays), and throughout the week between the hours of 4 and 7 p.m.
      Import Beer shoppers purchase Beer less frequently than Premium Beer
      shoppers.



                                                                                          108
      Total U.S. Grocery

       Although Import Beer sales are growing, Premium Beer still outsells Imports by
                  a margin of more than three to one (45.6% vs. 14.6%).
                   Premium Beer is the dominant volume generator.
                                           Beer Volume by Segment
                                            (% Share of Case Sales)

                                                                TOTAL SUB
                                                                 PREMIUM        TOTAL
                                                                   23.0%      SPECIALTY
                                                                                 7.2%
                                                  TOTAL
                                                 PREMIUM                       TOTAL MICRO
                                                   45.6%                           4.8%
                                                                     TOTAL
                                                                    IMPORTS    OTHER
                                                                      14.6%     4.8%




SOURCE: IRI Total US Food – 52 Weeks Ending December 28. 2008                                109
      Total U.S. Grocery – Imports Country of
      Origin

        Mexico and Holland are the dominant countries of Origin, while Belgium Beers
                                   are growing the fastest

                   German
                    5.7%                                                        Belgium                                                24.9
             Canadian
                                   Australian
                                                                                Mexican                 2.5
               6.1%
                                     8.2%
                                                                                      Irish        2
                                             Holland
                   Irish                      20.3%                            Canadian           1.1
                   5.5%
                                                                                German 0.7

                     Mexican              Belgium                              Australian -2.8
                      45.5%                4.1%           Czech
                                                           3.6%
                                                                          -7.7 Holland

                                                                   -13            Czech
                                                       Other
                                                       1.0%       -15    -10     -5           0               5        10   15   20   25       30

                                                                                                                  $ Trend

SOURCE: IRI Total US Food – YTD ending June 28, 2009                                                                                          110
          Where They Shop:
          Import Shoppers Skew to Grocery and Clubs
                                    Store Where Shopper Most Often Buys Beer
                                                                                                 46%
                                Grocery
                                                                                                   48%
                                                                           22%
                         Liquor Store
                                                                            23%
                                                               15%
                                 C-Store
                                                            10%
                                                                                                     Most Often Buyers of
                                                           10%                                       Premium Beer
                          Mass Merch
                                                         8%
                                                                                                     Most Often Buyers of
                                                    4%                                               Imported Beer
                            Club Store
                                                         8%
                                                                           How to Read: Among Beer shoppers who say they most often
                                                   3%                      buy Import brands, 48% say Grocery is the place where they
                            Drug Store
                                                   3%                      most often buy beer.

            The majority of Import Beer shoppers choose Grocery most often for Beer.
             However, Import Beer shoppers are less likely to purchase from C-Stores
            and Mass Merch as Premium shoppers, but are twice as likely to purchase
                                     from Wholesale Clubs.
              Import shoppers are most likely to buy beer at Grocery or Liquor.
                                                                                                                                        111
SOURCE: ABI Shopper Poll, 12 mos ending Jan 2009, Total U.S. Beer Buyers
      What They Buy:
   Top Beer Brand Choices
  Stella Artois is the fastest growing brand among the top 15
                                                                   Total U.S. Supermarkets                        $ Trend
                  Corona Extra                                                                     $184,417,200      -2.3
                       Heineken                                                     $117,766,900                     -3.5
                   Corona Light                                $56,897,500                                            1.4
                          Tecate                       $40,137,740                                                    7.8
              Modelo Especial                     $29,192,200                                                        17.6
     Heineken Premium Light                       $28,182,780                                                        -7.7
       Guinness Pub Draught                      $25,372,010                                                          0.4
                    Stella Artois                $25,207,860                                                         23.9
                      Newcastle                 $21,903,260                                                          -3.1

                      Dos Equis                 $19,693,990                                                          21.6

                           Becks              $18,595,660                                                             6.0

                         Pacifico            $17,795,820                                                              4.0

                           Labatt            $16,297,340                                                             -1.5

                   Amstel Light             $15,100,680                                                              -9.4

                         Fosters           $12,755,190                                                                1.9




Source: IRI InfoScan – Total U.S. FOOD, YTD ending June 28, 2009                                                            112
    How They Buy:
    Planned vs. Impulse Beer Decisions - Grocery
                    On Most Recent Beer Purchase Occasion…
                                                                                 49%        The majority of Premium and
                     Pre-Planned Beer,                                                      Import Beer shoppers have fully
                      Brand, and Size                                              53%      pre-planned their beer purchase
                                                                                            before they enter the Grocery
                     Pre-Planned Beer                                                       store.
                                                         12%
                     and Brand … Size
                        on Impulse                        13%

                     Pre-Planned Beer                         18%
                     and Size … Brand                                      However, 51% of Import Beer
                        on Impulse                      11%                shoppers make category,
                                                                           brand and/or size decisions
                  Pre-Planned Beer …                    11%                inside the Grocery store.
                  Brand AND Size on
                        Impulse                         10%
                                                                                          Import Shoppers

                        Bought Beer on                  10%                               Premium Shoppers
                           Impulse                        13%

        Import Beer shoppers are less likely to determine all aspects of their beer
        purchase before entering the store compared to Premium Beer shoppers.
            Almost half of Grocery Import Beer purchases can be influenced
                        through in-store merchandising tactics.
                                                                                                                              113
SOURCE: ABI Shopper Poll, 12 mos ending Jan 2009, Total U.S. Beer Buyers
      How They Buy:
      Cold vs. Warm Beer Purchasing
                                                   Cold Vs. Warm Beer Purchasing
                                                  By Shoppers’ Most Often Segment

       Premium Shoppers                                                    81%                      17%




                All Shoppers                                               80%                      18%




           Import Shoppers                                                 77%                     20%



                                            Cold                Warm - On Display   Warm - Not On Display


                The majority of beer shoppers purchase beer cold. However, Import
                shoppers are more likely than Premium shoppers to buy beer warm.
               Proper cooler space management is imperative. Consider utilizing
                 warm space to add slower turning “variety” Imports, assuring
                        adequate cooler space for high velocity brands.
                                                                                                            114
SOURCE: ABI Shopper Poll, 12 mos ending Jan 2009, Total U.S. Beer Buyers
      Why They Buy:
      Different Occasions = Different Beer Choices

                                                               To have in the fridge                                       69%
               Most Recent Beer Purchase                                                                                     73%
                  Occasion Was For…                 When I'm in the mood for a beer                              56%
                                                                                                                  58%
                                                         Relax & unwind after work                       38%
                                                                                                           42%
                        5%
                                                             In case people stop by               30%
                      10%                                                                          32%
                                        67%                Relax around the house                29%
                                                                                                   32%
                       18%                                                                     25%
                                                                To have with meals       14%
                                                       While watching sports on TV            22%
                                                                                                  28%
                                                                For when I'm thirsty         20%
                  To Have On Hand At Home                                                     22%
                  For A Specific Occasion At Home                                           18%
                  To Take To Someone Else's Home                 While watching TV             24%
                  Something Else                                                         14%
                                                           Doing household chores            20%
                     Most Beer shoppers                                                  13%
                     are buying Beer for                       While cooking meals     11%       Buy Imports Most Often
                    “at home” occasions.                 On computer/Video games       11%
                                                                                       11%       Buy Premiums Most Often

             Most Beer shoppers are buying just to have beer on hand. However, Import beer
             buyers are more likely to be buying beer for food-related home occasions, while
              Premium buyers are more likely buying beer for watching TV or doing chores
                                            around the house.
               In-Store merchandising for Imports should reflect the Beer occasion.
                                                                                                                             115
SOURCE: Market Tools Online Study, February 2007
  When They Buy:
  Import Shoppers Buy Less Frequently
                      Claimed Off-Premise Beer Purchase Frequency
                                                                           25%
                                   EVERY WEEK
                                                                             30%
                            1 to 2 times per week
                                                                    16%                            Import shoppers
                                                                      20%
                                                             6%
                                                                                                  purchase beer less
                       3 or more times per week                                                frequently than Premium
                                                             7%
                                                                                                    beer shoppers.
                                                                                      51%
                                 EVERY MONTH
                                                                                     50%
                                                                12%
                             Once every 2 weeks
                                                                12%
                                                                  18%
                                    Once a month
                                                                  17%
                                                              8%
                             Once every 3 weeks
                                                             6%


                                                                      23%
               LESS THAN ONCE A MONTH
                                                                     20%
                                                                   17%
                        Less than once a month
                                                                  14%              Buy Imports Most Often
                                                             6%
                   Don’t know-buys infrequently              6%                    Buy Premiums Most Often




SOURCE: ABI Shopper Poll, 12 mos ending Jan 2009, Total U.S. Beer Buyers                                                 116
Taking Action:
Category Management Solutions for Imports
  Assortment:
      Ensure the proper Import assortment for each store‟s shopper base,
      while maintaining enough days of supply for faster-moving items.
      Not every chain, or every store within a chain, is appropriate for a wide
      assortment of Imports.
  Ads, Displays, and Merchandising:
      Import shoppers are not as price sensitive, so dealing does not need to
      be as frequent as with Premium brands, and fewer displays are
      necessary.
      Import Shoppers would be motivated by lifestyle/image-oriented ads and
      POS (for example, entertaining or food/beer pairings) over those with
      strictly a price message.
  Distribution:
      Assess the best stores for Import brand distribution based on:
       » Best demographic fit with the brand‟s target consumer
       » Good volume opportunity based on above average Beer sales


                                                                                  117
CRAFT BEERS




              118
      Craft Beer - Definition
              Craft Beer (definition):
                       Generally “all malt” domestic beers produced using 100% malted barley.
                       Craft beers that are not all-malt sometimes substitute a percentage of
                       malted wheat or malted rye.
                        » Their inspiration can be traced to British, Berman or Belgium
                          traditions or is often uniquely American. Compared with other beers,
                          their emphasis is more on flavor, and less on appealing to the mass
                          market
              The craft beer industry is defined by 4 distinct markets:
                       Microbrewery
                       Brewpub
                       Contract Brewing Company
                       Regional Craft Brewery



Source: Brewers Association www.beertown.org                                                     119
      Craft Beer - Market
              Microbrewery
                       A brewery that produces less than 15,000 barrels of beer per year with 75% or
                       more of its beer sales off premise. Microbreweries sell to the public by one or
                       more of the following methods: the traditional three-tier system, the two-tier
                       system, or directly to the consumer through carryouts and/or on-site tap-room or
                       restaurant sales.
              Brewpub
                       A restaurant-brewery that sells 25% or more of its beer on- premise. The beer is
                       brewed primarily for sale in the restaurant & bar. The beer is often dispensed
                       directly from the brewery‟s storage tanks.
              Contract Brewing Company
                       A business that hires another brewery to produce its beer. The contract brewing
                       company handles marketing, sales, and distribution of its beer, while generally
                       leaving the brewing and packaging to its producer-brewery.
              Regional Craft Brewery
                       An independent regional brewery who has either an all malt flagship or has at
                       least 50% of it‟s volume in either all malt beers or in beers which use adjuncts to
                       enhance rather than lighten flavor.


Source: Brewers Association www.beertown.org                                                                 120
        Craft Beer Industry Statistics
                  Statistics:
                            2008 – 1483 Craft Breweries
                            981 Brewpubs
                            448 Microbreweries
                            54 Regional Craft Breweries
                  Facts:
                            The Craft beer industry produced 8.6 million barrels or beer in 2008, compared to
                            8.1 million barrels in 2007
                            Growth of the craft beer industry was 5.8% by volume for 2008.
                            The fastest growing sector of the Craft brewing sector in ‟08 was Microbreweries
                            – up 13%
                            The Craft beer share as of December ‟08 is 4% by volume and 6.3% by dollars
                            The total US Craft brewing industry annual dollar volume is $6.3 billion
                  Key
                            1 Barrel = 31 Gallons = 2 “half” Barrels (15.3 Gal) kegs = 13.78 Cases of 24/12oz
                            cans

Source: Brewers Association www.beertown.org                                                                    121
                         Top 15 Micro Beers



                                                                   Total U.S. Supermarkets                 $ Trend
       Sam Adams                                                                             $75,741,140       1.9
     Sierra Nevada                                                      $37,991,020                           15.4
      New Belgium                                         $25,749,730                                         23.4
              Shiner                              $19,333,300                                                 17.5
             Widmer                          $15,547,140                                                      15.3
           Redhook                         $14,133,930                                                         2.5
         Deschutes                         $14,105,730                                                        11.3
            Pyramid                     $11,458,570                                                            1.6
          Magic Hat                $7,156,926                                                                 42.6

             Full Sail             $6,846,502                                                                 20.2

                Kona             $5,813,944                                                                   66.4

             Alaskan            $5,522,680                                                                     1.9

               Stone            $4,914,722                                                                    29.3

      Goose Island             $4,565,098                                                                     14.0

            Saranac            $4,408,040                                                                     11.7




Source: IRI InfoScan – Total U.S. FOOD, YTD ending June 28, 2009                                                     122
SPECIALTY BEERS




                  123
      Specialty Beer - Definition
              Specialty Beer (definition):
                       Specialty refers to a beer that is not brewed in a traditional beer style.
              Common Specialty Beer Categories:
                       Intentional deviations from style
                       Unusual ingredients or techniques
                       Clones of Unique Beers
                       Historical or Throwback Beers
                       Uncommon styles




Source: Brewers Association www.beertown.org                                                        124
         Top 15 Specialty Beers


 Anheuser-Busch InBev has 11 of the Top 15 Specialty Brands
 6 of the brands are growing and 5 are new within the last two years
                                                                   Total U.S. Supermarkets                 $ Trend
                   Michelob Ultra                                                            $95,823,550       6.0
                  Bud Light Lime                                              $58,892,640                    133.9
     Blue Moon Belgium White                                $28,664,820                                       11.7
                  Michelob Light                      $20,648,140                                             -17.8
                     Rolling Rock                $14,457,340                                                   0.3
      George Killians Irish Red                 $13,014,360                                                    -6.1
         Michelob Amber Bock                   $11,118,650
                                                                                       Bud Light Lime          -6.9

           Blue Moon Seasonal                 $9,910,423                                named #1 new          26.5

                      Land Shark              $9,270,984                               item in 2008 by         6.5

                       Miller Chill           $7,813,703                                 Information          -52.0

          Michelob Ultra Amber               $7,664,662                                Resources Inc.         -11.9

                         Michelob           $7,438,536                                                        -23.4

             Bud Light Chelada              $6,305,690                                                        14.2

                                            $6,240,814                                                       NEW
      Budweiser American Ale
                                           $5,625,001                                                        203.2
                      Shock Top



Source: IRI InfoScan – Total U.S. FOOD, YTD ending June 28, 2009                                                      125
Beer at Retail
MERCHANDISING
RECOMMENDATIONS




                  127
Merchandising
  Suggested Package Orientation
     All products front faced regardless of movement
     No 12pk bottles or higher on top shelf
     On top shelf 12pk cans can only go two high and 6 pack bottles can only
     go one high.
     12pks and slower moving 30 and 24pks on second shelf
     30/24 and 18‟s on bottom shelf whenever possible
  Suggested Brand / Family Merchandising
     All brand families and brands should be blocked and ribbonized
     whenever possible- but not at the expense of DOS




                                                                               128
Set Types
                          Price Flow


  Advantages
     Higher likelihood for segments to have proper space allocation
     Keeps shopper in the “segment” (i.e., more premium brands to choose
     from versus having premiums next to budget and the shopper trading
     down)
     Most chain retail management prefers this type of set
     Consistent with Consumer Decision tree
     Shoppers are more “segment loyal” than Brewer Loyal
     Higher margin items in primary traffic flow position


                                                                           129
Reset Results & Follow-Up
  Continually look at the data and trends to see if a segment or
  brands volume shift.
     Do an analysis to see what products go in the space of any removed
     items as a result in trends.
     As the beer category changes and trends shift, need to continually
     monitor the data and adjust the sets accordingly.
     New items that are introduced in between resets, will be prioritized based
     on market data.




                                                                                  130
Merchandising Guidelines

       Schematic Flow and Brand Blocking (POG)




                  Traffic Flow
                                                 131
Merchandising Guidelines

       Schematic Flow and Brand Blocking (POG)




                  Traffic Flow
                                                 132
Merchandising Guidelines

       Schematic Flow and Brand Blocking (POG)




                  Traffic Flow
                                                 133
THE VALUE OF BEER DISPLAYS




                             134
      Beer Shoppers Generally Purchase Cold

                                      On Most Recent Beer Purchase,
                                          Beer Was Purchased...

                                     C-Stores             95%               5%
                                 Liquor Stores         81%             19%
                           Grocery Stores              82%             18%
                                  Mass Merch           79%             21%
                                  Drug Stores        66%              35%
                         Wholesale Clubs 12%                 88%
                    ALL CHANNEL AVG                    80%             20%

                                                   Cold            Warm

       Adequate cooler space and management of that space is imperative…the right assortment,
         spaced appropriately to avoid out of stocks. Proper cold vs. warm beer space allocation
        (including displays) is also important to meet the varied needs of Grocery beer shoppers.


SOURCE: ABI Shopper Poll, 2007                                                                      135
   Beer Purchased Off Displays at Grocery
                                       If Beer Was Purchased From a Display,
                                               Where Was It Purchased

                                 Grocery                              57%

                          Liquor Store             19%

                                 C-Store   3%

                Mass Merchandise            4%

                    Warehouse Club         4%

                            Drug Store      5%                    All Beer

                                                                  Beer Bought From Displays
                       Other Channel         7%

         Of all beer purchased directly off of displays, more of it is purchased at Grocery
                                    than at any other channel.

SOURCE: ABI Shopper Poll, 2005                                                                136
        What’s Important to Beer Shoppers

                The attribute rated as most important by Grocery shoppers is “My preferred
                brand is available cold.” Shoppers expect to purchase their beer cold at
                Grocery. Far fewer shoppers indicate having warm beer on display is “very
                important.”
             When shopping for beer, how important is…?

  90%
                    76.5%                                                          N= 327 Grocery Shoppers
  80%                                        73.7%
  70%
                                                                     57.5%
  60%                                                                                      53.2%
  50%
  40%
                                                                                                                    27.2%
  30%
  20%
  10%
   0%
            My Preferred Brand/        My Preferred Brand/       Is Easy to Find   In a Convenient Location Has a Large Variety of
          Product is Available Cold Product is Always in Stock                            in the Store     Warm Beers on Display to
                                                                                                                Choose From




Source: 2007 A-B Grocery Study                                                                                                  137
   Category Management Basics:
   Support Key SKUs With Traffic Builder Strategies


        Strategy                                 Used To:                           Used On:

                                                                      High volume SKUs (12+ packs; key
  Traffic Builder             Draw consumers to the store or aisle
                                                                      Premium brands)

                              Drive and / or support category gross   Premium and Above Premium 6-pk
  Profit Generator
                              margins                                 Bottles
  Transaction                 Increase overall market basket / cash
                                                                      Singles
  Builder                     register ring

  Cash Generator              Drive overall cash flow                 Large sizes

                              Enhance retailer‟s consumer and
  Variety / Image                                                     Micros/Specialties/FABs
                              market appeal


         Different strategies can be used by segment / package to achieve different goals. High
             volume beer SKUs at Grocery are often supported with traffic builder strategies.

Source: ABI Category Management Training, 2007                                                           138
   Category Management Basics:
   Support Key SKUs With Traffic Builder Strategies



        Traffic Builder Strategy:                             Typical Tactics and Actions:

        Pricing                                  Very competitive with other retailers

                                                 Most frequent / highest quality to attract customers;
        Promotion
                                                 use prominent display locations

        Assortment                               Broad enough to appeal to wide base of consumers

                                                 Fast movers prominently featured;
        Placement
                                                 Ensure days of supply maximized on key items

      Tactics and actions around pricing, promotion, assortment and shelf placement
     must support strategies. Displays are a very important tactic for traffic-building Beer
                                            items.

Source: ABI Category Management Training, 2007                                                           139
     Beer Displays Can Influence the Undecided

                        Planned vs. Impulse Purchasing on Most Recent
                                       Grocery Beer Trip
                                                                   Grocery beer buyers are less
             Pre-Planned Beer,
              Brand, and Size
                                                          48%      likely to have fully pre-planned
                                                                   their beer purchase.
             Pre-Planned Beer
             and Brand … Size            14%
                on Impulse
             Pre-Planned Beer
             and Size … Brand         9%
                on Impulse
                                                       52% of Grocery Beer shoppers make
                                                       category, brand and/or size decisions
            Pre-Planned Beer
            … Brand AND Size
                                                       in the store.
                                       10%
               on Impulse

                Bought Beer on                                      TUS All Channels
                   Impulse
                                           19%
                                                                    TUS Grocery


                   There is a big opportunity to influence beer decisions in-store.
    Displays can remind shoppers of the category, and influence undecided Beer shoppers. Beer
       displays can serve as category advertising, driving shoppers to the cooler to purchase.


SOURCE: ABI Shopper Poll, 2007                                                                        140
Beer Displays Communicate to
Shoppers


                                                                  Beer displays
                                                                  and other POS
                                                                  must fit within
                                                                   a very brief
                                                                    window of
                                                                   opportunity.




   Shoppers look for cues in-store to help them make purchase decisions. A
  well-placed display can communicate brand/size availability and price points.

                                                                                    141
  Beer Displays Can Be Stock-Up Reminders

                                             How Long Does It Take For Beer To Chill?
     Starting at                             80
       Room                                  75
    Temperature                              70
        : 72o                                65                                                                                                                                 Optimal Beer
                         Degrees Farenheit



                                             60                                                                                                                                   Drinking
                                             55                                                                                                                                 Temperature:
                                             50                                                                                                                                      38o
                                             45
                                             40
                                             35
                                             30                                                                               In Fridge (Loose)                       * Create an ice bath by
                                                                                                                                                                      covering the beer bottles or
                                             25                                                                                                                       cans with ice (in a cooler or
                                             20                                                                               On Ice                                  tub) and adding a quart of
                                             15                                                                                                                       water.
                                             10                                                                               In Ice Bath*
                                              5
                                              0
                                                                     1 Hour
                                                  0
                                                      10
                                                      20
                                                           30
                                                                40
                                                                50


                                                                              70
                                                                              80
                                                                                   90
                                                                                        100
                                                                                        110


                                                                                                        130
                                                                                                        140
                                                                                                              150
                                                                                                              160
                                                                                                                    170

                                                                                                                              190
                                                                                                                                    200
                                                                                                                                          210
                                                                                                                                          220
                                                                                                                                                230

                                                                                                                                                          250
                                                                                                                                                                260
                                                                                              2 Hours




                                                                                                                          3 Hours




                                                                                                                                                      4 Hours
                                                                                        Time (in minutes)
        It doesn‟t take much time for beer to chill to optimal cold drinking temperature….less than an hour on ice! Displays
              can be used to encourage beer shoppers to go ahead and stock up on warm beer…for today or for future
                                                             consumption.


SOURCE: A-B Beer Chill Study, 2005                                                                                                                                                                    142
Use Beer Displays in Secondary Locations




   Beer displays in secondary store locations can remind shoppers of the beer
            category and draw them to the beer section to purchase.

                                                                                143
      How To Build Better Beer Displays
              Shoppers Don‟t Notice…
                       Displays that aren‟t in their traffic path or line of vision
                       Displays that signal “functionalism” and “extra stock” rather than
                       highlighting the imagery and emotions surrounding the beer
                       consumption occasion and creating category excitement
                       Displays that are just “stacks of beer”. These can be “wallpaper” to
                       shoppers. Displays that are a jumble of sensory information




Source: A-B Beer Shopper Ethnography, 2002 and 2005                                           144
How To Build Better Beer Displays
  Beer Shoppers Notice…
     Displays that are directly in their paths and lines of vision
     Displays that are unique and unexpected
     Displays that clearly communicate a price point. Some shoppers will
     notice and then buy that item from the cooler.


  Why are they noticed?
     Thematic clarity
     Emotional resonance
     Status
     Visibility – In shoppers‟ line of vision
     Entertaining, informative, enticing
     Unusual or unique
     Relevant to beer consumption!
                                                                           145
       Avoiding Beer Out-of-Stocks Is Critical

                       — What do you do if an item you want to buy is out of stock? —

                                                                            Retailer Impact

                                                                                48.1% of
                                                                            All Out-of-Stocks


                                         51.9%
                                                                                     40.1% Net lost sales
                          100.0%                              8.0%



                                                                                   38.6%


                                                                                                       1.5%

                           Total   Buy another item in   Make no purchase   Buy item at different     Other
                                        category                                   store




     Because close to 50% of shoppers report avoiding purchase when faced with an OOS, the potential impact
                                          on the retailer is significant.


Source: 2007 A-B Grocery Study                                                                                146
    Displays Ensure Shopper Satisfaction
                                    Beer Purchasing By Day of Week
     35%

     30%                                                                     29%

     25%
                                                                                                Adequate space to avoid out of
     20%
                                                                   22%
                                                                                                stocks on key fast moving beer
     15%
                                         12%           13%
                                                                                                items is often difficult to
                                                                                                achieve in the cooler alone.
                          10%
     10%
                                                                                        8%
              6%
      5%
                                                                                                Beer displays serve an
      0%

            Monday      Tuesday      Wednesday       Thursday     Friday   Saturday    Sunday
                                                                                                important inventory function, to
                                 All Channels           Grocery Stores      C-Stores
                                                                                                avoid out of stocks and ensure
                                                                                                shopper satisfaction and
      20%
                                                                                                loyalty.
      18%
                                                                                                 Fridays and Saturdays are the
      16%
      14%                                                                                         highest beer-selling days at Grocery,
      12%                                                                                         especially during the hours of 2-7
      10%                                                                                         p.m.
       8%
       6%                                                                                        It is imperative to be fully in-stock,
       4%                                                                                         especially during these days/times,
       2%
       0%
                                                                                                  and displays can help ensure that.
     2 : AM
     3 : AM
     4 : AM
     5 : AM
     6 : AM
     7 : AM
     8 : AM
     9 : AM

      :0 M




     2 : PM
     3 : PM
     4 : PM
     5 : PM
     6 : PM
     7 : PM
     8 : PM
     9 : PM

      :0 M
     1: AM




      :0 M
      :0 M
     1: PM




      :0 M
           PM
    10 0 A




    10 0 P
    11 0 A
    12 0 A




    11 0 P
        00
        00
        00
        00
        00
        00
        00
        00




        00
        00
        00
        00
        00
        00
        00
        00
         0




         0




         0
        0




        0
      :0
    12




               Total US All Channels            Total US Grocery Stores    Total US C-Stores




SOURCE: ABI Shopper Poll, 2007                                                                                                             147
There is Strategic Opportunity in Warm Beer

     Of all beer that is purchased off of a display, more is purchased
     at Grocery than in any other channel.
        High volume beer SKUs at Grocery are often supported with traffic
        builder strategies, for which displays are a very important tactic.
     Beer displays can serve many purposes in the Grocery
     environment.
        Displays can influence undecided beer shoppers and encourage impulse
        purchasing …52% of all Grocery beer category, brand, and / or size
        decisions are made in-store.
        Displays communicate brand/size availability & price points.
        Displays can encourage shoppers to stock up on warm beer.
        Beer displays in secondary store locations can remind shoppers of the
        beer category, and draw them to the beer section to purchase.
        Displays are an important vehicle for in-store excitement and help
        establish retailer imagery.
     Displays can hold excess inventory to ensure no out-of-stocks.
     Displays can improve total category sales.

                                                                                148
RETAILER REPORTS




                   149

				
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