Beer Industry Consolidation

BEER BUSINESS DAILY & Modern Brewery Age beernet.com 1

Harry SchuhmacherBeer Business Daily

“Consolidation started 10 years ago and probably has 10 more to go before it winds down.”                 -Peter Swinburn, CEO MolsonCoors

Beer is one of the biggest consumer goods categories in the world, just short of $200 billion in retail valueand 1.45 billion hectoliters in volume.

Beer is also very heavy relative to its price.

InBev's Route to Consolidation

Artois Beck's Bass Hoegaarden Labatt's

Interbrew AmBev

InBev Anheuser-Busch

AB InBev

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InBev Map

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SABMiller's Route to Consolidation

South African Breweries

Aparthied Lifted

Miller Snow Bavaria

SABMiller Molson Coors

MillerCoors

SABMiller Map

1. China2. United States 3. Germany4. Brazil5. Russia6. Japan7. UK8. Mexico9. South Africa10.Spain.

Beer Consumption Ranking by Country

Top Global Brewers

The top five global brewers already account for two-thirds of the world beer market and this could rise to 85% if InBev buys A-B.

1.  Nestle2.  Coca-Cola3.  Coca-Cola Enterprises4.  Anheuser-Busch5.  Diageo6.  SABMiller7.  InBev8.  Heineken9.  Suntory10. PepsiCo11. Pepsi Bottling Group12. Asahi13. Kirin14. Fonterra15. Pernod Ricard16. Dean Foods17. Kraft Foods18. Femsa19. Unilever20. Dairy Farmers of America

Top Beverage Companies

Out of the top 20 beverage companies, 8 are beer companies.

Secondary Consolidation

•Pabst in play•Magic Hat and Pyramid•Production deals

What Does Consolidation Mean to Control States?

•Pricing stabilized•Dedicated to system•Wholesaler Consolidation•Tied-House implications, overreaching