Beer Market.pdf

United States - Beer 0072 - 0744 - 2014

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MarketLine Industry Profile

Beer in the United States April 2015

Reference Code: 0072-0744

Publication Date: April 2015

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EXECUTIVE SUMMARY

Market value The United States beer market grew by 0.5% in 2014 to reach a value of $80,634.3 million.

Market value forecast In 2019, the United States beer market is forecast to have a value of $84,401.9 million, an i ncrease of 4.7% since 2014.

Market volume The United States beer market shrank by 0.5% in 2014 to reach a volume of 24,055.7 million liters.

Market volume forecast In 2019, the United States beer market is forecast to have a volume of 23,997.3 million lite rs, a decrease of 0.2% since

2014.

Category segmentation Standard lager is the largest segment of the beer market in the United States, accounting for 35% of the market's total

value.

Geography segmentation The United States accounts for 16.3% of the global beer market value.

Market share Anheuser-Busch InBev is the leading player in the United States beer market, generating a 50.6% share of the market's

volume.

Market rivalry The American beer market has seen an unprecedented upsurge in the production of c raft beer over the last couple of

years. Its production, in terms of market share in volumes, increased from 4.9% in 2009 to 7.8% in 2013, according to

the Brewers Association in the United States. Buyer power in this market is driven up by low switching costs and the

large size of many buyers, but tempered by buyers' need to stock a wide variety of beers in order to remain competitive.



TABLE OF CONTENTS

Executive Summary..........................................................................................................................................................................2

Market value ..................................................................................................................................................................................2

Market value forecast...................................................................................................................................................................2

Market volume...............................................................................................................................................................................2

Market volume forecast ...............................................................................................................................................................2

Category segmentation................................................................................................................................................................2

Geography segmentation ............................................................................................................................................................2

Market share..................................................................................................................................................................................2

Market rivalry .................................................................................................................................................................................2

Market Overview ...............................................................................................................................................................................7

Market definition............................................................................................................................................................................7

Market analysis .............................................................................................................................................................................7

Market Data........................................................................................................................................................................................8

Market value ..................................................................................................................................................................................8

Market volume...............................................................................................................................................................................9

Market Segmentation .....................................................................................................................................................................10

Category segmentation..............................................................................................................................................................10

Geography segmentation ..........................................................................................................................................................11

Market share................................................................................................................................................................................12

Market distribution ......................................................................................................................................................................13

Market Outlook ................................................................................................................................................................................14

Market value forecast.................................................................................................................................................................14

Market volume forecast .............................................................................................................................................................15

Five Forces Analysis ......................................................................................................................................................................16

Summary ......................................................................................................................................................................................16

Buyer power.................................................................................................................................................................................17

Supplier power ............................................................................................................................................................................18

New entrants ...............................................................................................................................................................................19

Threat of substitutes...................................................................................................................................................................20

Degree of rivalry..........................................................................................................................................................................21

Leading Companies........................................................................................................................................................................22



Anheuser-Busch InBev SA/NV .................................................................................................................................................22

Constellation Brands, Inc. .........................................................................................................................................................26

Heineken N.V. .............................................................................................................................................................................29

MillerCoors LLC ..........................................................................................................................................................................33

Macroeconomic Indicators.............................................................................................................................................................34

Country Data ...............................................................................................................................................................................34

Methodology ....................................................................................................................................................................................36

Industry associations..................................................................................................................................................................37

Related MarketLine research....................................................................................................................................................37

Appendix...........................................................................................................................................................................................38

About MarketLine........................................................................................................................................................................38



LIST OF TABLES

Table 1: United States beer market value: $ million, 2010–14 ..................................................................................................8

Table 2: United States beer market volume: million liters, 2010–14 ........................................................................................9

Table 3: United States beer market category segmentation: $ million, 2014........................................................................10

Table 4: United States beer market geography segmentation: $ million, 2014 ....................................................................11

Table 5: United States beer market share: % share, by volume, 2014..................................................................................12

Table 6: United States beer market distribution: % share, by value, 2014............................................................................13

Table 7: United States beer market value forecast: $ million, 2014–19.................................................................................14

Table 8: United States beer market volume forecast: million liters, 2014–19 .......................................................................15

Table 9: Anheuser-Busch InBev SA/NV: key facts ....................................................................................................................22

Table 10: Anheuser-Busch InBev SA/NV: key financials ($) ...................................................................................................24

Table 11: Anheuser-Busch InBev SA/NV: key financial ratios ................................................................................................24

Table 12: Constellation Brands, Inc.: key facts ..........................................................................................................................26

Table 13: Constellation Brands, Inc.: key financials ($)............................................................................................................27

Table 14: Constellation Brands, Inc.: key financial ratios.........................................................................................................27

Table 15: Heineken N.V.: key facts ..............................................................................................................................................29

Table 16: Heineken N.V.: key financials ($) ...............................................................................................................................30

Table 17: Heineken N.V.: key financials (€) ...............................................................................................................................30

Table 18: Heineken N.V.: key financial ratios.............................................................................................................................31

Table 19: MillerCoors LLC: key facts ...........................................................................................................................................33

Table 20: United States size of population (million), 2010–14 ................................................................................................34

Table 21: United States gdp (constant 2005 prices, $ billion), 2010–14 ...............................................................................34

Table 22: United States gdp (current prices, $ billion), 2010–14 ............................................................................................34

Table 23: United States inflation, 2010–14.................................................................................................................................35

Table 24: United States consumer price index (absolute), 2010–14......................................................................................35

Table 25: United States exchange rate, 2010–14 .....................................................................................................................35



LIST OF FIGURES

Figure 1: United States beer market value: $ million, 2010–14.................................................................................................8

Figure 2: United States beer market volume: million liters, 2010–14 .......................................................................................9

Figure 3: United States beer market category segmentation: % share, by value, 2014 .....................................................10

Figure 4: United States beer market geography segmentation: % share, by value, 2014..................................................11

Figure 5: United States beer market share: % share, by volume, 2014 ................................................................................12

Figure 6: United States beer market distribution: % share, by value, 2014 ..........................................................................13

Figure 7: United States beer market value forecast: $ million, 2014–19 ...............................................................................14

Figure 8: United States beer market volume forecast: million liters, 2014–19......................................................................15

Figure 9: Forces driving competition in the beer market in the United States, 2014 ...........................................................16

Figure 10: Drivers of buyer power in the beer market in the United States, 2014 ...............................................................17

Figure 11: Drivers of supplier power in the beer market in the United States, 2014 ...........................................................18

Figure 12: Factors influencing the likelihood of new entrants in the beer market in the United States, 2014 .................19

Figure 13: Factors influencing the threat of substitutes in the beer market in the United States, 2014 ...........................20

Figure 14: Drivers of degree of rivalry in the beer market in the United States, 2014.........................................................21

Figure 15: Anheuser-Busch InBev SA/NV: revenues & profitability .......................................................................................24

Figure 16: Anheuser-Busch InBev SA/NV: assets & liabilities ................................................................................................25

Figure 17: Constellation Brands, Inc.: revenues & profitability ................................................................................................28

Figure 18: Constellation Brands, Inc.: assets & liabilities.........................................................................................................28

Figure 19: Heineken N.V.: revenues & profitability....................................................................................................................31

Figure 20: Heineken N.V.: assets & liabilities.............................................................................................................................32



MARKET OVERVIEW

Market definition The beer market consists of retail sales of ales, stouts & bitters, low/no alcohol beers, premium lager, specialty beers

and standard lager. The market is valued according to retail selling price (RSP) and inc ludes any applicable taxes. Any

currency conversions used in the creation of this report have been calculated using constant 2013 annual average

exchange rates.

For the purposes of this report, North America consists of Canada, Mexico, and the United States.

South America comprises Argentina, Brazil, Colombia, and Venezuela.

Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy,

Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey, and the United

Kingdom.

Scandinavia comprises Denmark, Finland, Norway, and Sweden.

Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines,

Singapore, South Korea, Taiwan, Thailand, and Vietnam.

Middle East comprises Saudi Arabia and United Arab Emirates.

Market analysis The US beer market saw a very weak rate of value growth through the period 2010 -2014. Through the forecast period

2013-2018 this trend expected to remain, with a very slight acceleration.

The US beer market had total revenues of $80.6bn in 2014, representing a compound annual growth rate (CAGR) of

0.8% between 2010 and 2014. In comparison, the European and Asia-Pacific markets grew with compound annual

growth rate (CAGR)s of 1.5% and 5.6% respectively, over the same period, to reach respective values of $179.8bn and

$172.3bn in 2014.

Market consumption volumes declined with a compound annual rate of change (CARC) of -0.7% between 2010 and

2014, to reach a total of 24.1 billion liters in 2014. The market's volume is expected to remain practically unchanged by

the end of 2019.

According to the Brewers' Association, craft beers accounted for 11% of the US market volume in 2014, and around 20%

of its revenues. While the overall beer market barely changed in volume, the craft segment expanded by 18%, which

implies a clear decrease in volume for conventional beers and lagers.

Supermarkets / hypermarkets account for the largest proportion of sales in the US beer market in 2 014, sales through

this channel generated $50.1bn, equivalent to 62.1% of the market's overall value. Sales through the on -trade channel

generated revenues of $14.6bn in 2014, equating to 18.1% of the market's aggregate revenues.

The performance of the market is forecast to follow a similar pattern with an anticipated CAGR of 0.9% for the five -year

period 2014 - 2019, which is expected to drive the market to a value of $84.4bn by the end of 2019. Comparatively, the

European and Asia-Pacific markets will grow with CAGRs of 2% and 7.6% respectively, over the same period, to reach

respective values of $199.0bn and $248.6bn in 2019.



MARKET DATA

Market value The United States beer market grew by 0.5% in 2014 to reach a value of $80,634.3 million.

The compound annual growth rate of the market in the period 2010–14 was 0.8%.

Table 1: United States beer market value: $ million, 2010–14

Year $ million € million % Growth

2010 78,234.8 58,867.4

2011 78,592.2 59,136.3 0.5%

2012 79,490.3 59,812.1 1.1%

2013 80,198.2 60,344.8 0.9%

2014 80,634.3 60,672.9 0.5%

CAGR: 2010–14 0.8%

SOURCE: MARKETLINE M A R K E T L I N E

Figure 1: United States beer market value: $ million, 2010–14




Market volume The United States beer market shrank by 0.5% in 2014 to reach a volume of 24,055.7 million liters.

The compound annual rate of change of the market in the period 2010–14 was -0.7%.

Table 2: United States beer market volume: million liters, 2010–14

Year million liters % Growth

2010 24,722.8

2011 24,522.1 (0.8%)

2012 24,321.1 (0.8%)

2013 24,171.2 (0.6%)

2014 24,055.7 (0.5%)

CAGR: 2010–14 (0.7%)


Figure 2: United States beer market volume: million liters, 2010–14




MARKET SEGMENTATION

Category segmentation Standard lager is the largest segment of the beer market in the United States, accountin g for 35% of the market's total

value.

The Premium lager segment accounts for a further 34.1% of the market.

Table 3: United States beer market category segmentation: $ million, 2014

Category 2014 %

Standard lager 28,261.4 35.0%

Premium lager 27,469.8 34.1%

Specialty beer 21,796.5 27.0%

Ales, stouts & bitters 2,464.4 3.1%

Low/no alcohol 642.2 0.8%

Total 80,634.3 100%


Figure 3: United States beer market category segmentation: % share, by value, 2014




Geography segmentation The United States accounts for 16.3% of the global beer market value.

Europe accounts for a further 36.4% of the global market.

Table 4: United States beer market geography segmentation: $ million, 2014

Geography 2014 %

Europe 179,811.2 36.4

Asia-Pacific 172,271.3 34.8

United States 80,634.3 16.3

Rest of the World 61,667.2 12.5

Total 494,384 100%


Figure 4: United States beer market geography segmentation: % share, by value, 2014




Market share Anheuser-Busch InBev is the leading player in the United States beer market, generating a 50.6% share of the market's

volume.

MillerCoors accounts for a further 29.3% of the market.

Table 5: United States beer market share: % share, by volume, 2014

Company % Share

Anheuser-Busch InBev 50.6%

MillerCoors 29.3%

Heineken N.V. 6.1%

Constellation Brands, Inc. 4.7%

Other 9.3%

Total 100%


Figure 5: United States beer market share: % share, by volume, 2014




Market distribution Supermarkets / hypermarkets form the leading distribution channel in the United States beer market, accounting for a

62.1% share of the total market's value.

On-trade accounts for a further 18.1% of the market.

Table 6: United States beer market distribution: % share, by value, 2014

Channel % Share

Supermarkets / hypermarkets 62.1%

On-trade 18.1%

Specialist Retailers 12.3%

Service Stations 3.0%

Other 4.4%

Total 100%


Figure 6: United States beer market distribution: % share, by value, 2014




MARKET OUTLOOK

Market value forecast In 2019, the United States beer market is forecast to have a value of $84,401.9 million, an increase of 4.7% since 2014.

The compound annual growth rate of the market in the period 2014–19 is predicted to be 0.9%.

Table 7: United States beer market value forecast: $ million, 2014–19

Year $ million € million % Growth

2014 80,634.3 60,672.9 0.5%

2015 81,258.9 61,142.9 0.8%

2016 81,988.9 61,692.2 0.9%

2017 82,762.6 62,274.3 0.9%

2018 83,605.2 62,908.4 1.0%

2019 84,401.9 63,507.8 1.0%

CAGR: 2014–19 0.9%


Figure 7: United States beer market value forecast: $ million, 2014–19




Market volume forecast In 2019, the United States beer market is forecast to have a volume of 23 ,997.3 million liters, a decrease of 0.2% since

2014.

The market is therefore expected to be stagnant in the period 2014–19.

Table 8: United States beer market volume forecast: million liters, 2014–19

Year million liters % Growth

2014 24,055.7 (0.5%)

2015 24,016.8 (0.2%)

2016 23,993.8 (0.1%)

2017 23,986.2 0.0%

2018 23,998.3 0.1%

2019 23,997.3 0.0%

CAGR: 2014–19 (0.0%)


Figure 8: United States beer market volume forecast: million liters, 2014–19




FIVE FORCES ANALYSIS

The beer market will be analyzed taking brewers of beer as players. The key buyers will be taken as food and drink

retailers, and producers of ingredients for brewers as the key suppliers.

Summary

Figure 9: Forces driving competition in the beer market in the United States, 2014


The American beer market has seen an unprecedented upsurge in the production of craft beer over the last couple of

years. Its production, in terms of market share in volumes, increased from 4.9% in 2009 to 7.8% in 2013, according to

the Brewers Association in the United States. Buyer power in this market is driven up by low switching costs and the

large size of many buyers, but tempered by buyers' need to stock a wide variety of beers in order to remain competitive.

Many suppliers in this market, particularly hop growers, are small and numerous, limiting their abil ity to influence market

players. Larger breweries are usually also capable of some degree of vertical integration, weakening suppliers' positions

further. Raw materials are important to this industry though, and not all suppliers depend on the beer industr y primarily;

both of these factors strengthen supplier power.

For new entrants, the heavy investment required in production capacity constitutes one barrier, and government

regulation another. Higher-end beers can command higher prices, however, which can allow smaller players an initial

foothold in the market as a microbrewery.

Switching costs in this market are fairly low which increases the risk of substitutes, and alternatives such as wines or

spirits are often cheaper and easier to store and transport. On the other hand, most buyers will need to stock a range of

alcoholic and non-alcoholic beverages, making it difficult to forego beer completely.

Finally, in terms of rivalry, hefty fixed costs and a highly consolidated market work to drive up rivalry, w hich is

compounded by disappointing growth.



Buyer power

Figure 10: Drivers of buyer power in the beer market in the United States, 2014


Supermarkets and hypermarkets are the major buyers in the US beer market, accounting for 62.1% of sales. Such

buyers are often able to negotiate favorable terms on price with beer producers; this increases buyer power significantly.

Switching costs for buyers are low, which increases buyer power in all markets.

Beer producers can differentiate their products quite strongly in a variety of ways, not only by the overall segment (lager

or bitter, for example) but also by brand, strength, ingredients, and style, among other options.

Major buyers generally need to offer a wide range of beers to accommodate consumer preferences. This undermines

buyer power. Furthermore, producers and retailers operate in distinct businesses, with very little likelihood of forward or

backward integration. Overall, buyer power is assessed as moderate.



Supplier power

Figure 11: Drivers of supplier power in the beer market in the United States, 2014


The main inputs for beer producers are malted grain, hops and bottles or barrels. Traditionally, beer makers in the United

States operated non-vertically integrated businesses: buying hops from independent producers along with either barley

from farmers for processing at the brewery’s own malting house, or malted barley from third-party producers. Beer would

then be packaged on site. However, the scale of the dominant multinational players in the market means that some

breweries now incorporate some degree of vertical integration, weakening supplier power. Independent hop growers are

numerous, and include some fairly small operations, which further weakens supplier power. Independent barley growers

can find alternative markets, reducing their dependency on the beer market. For example, barley can be sold for animal

feed and malted barley for distillation in the production of spirits, and it is also possible to integrate forwards into beer -

making. These factors augment supplier power. Raw material quality is highly important in this business: the end product

is strongly influenced by the nature of the ingredients used. Overall, there is a moderate degree of supplier power.



New entrants

Figure 12: Factors influencing the likelihood of new entrants in the beer market in the United States, 2014


Heavy investment in production equipment is required before entry in to this market, but this can be recovered by adding

a good margin to the price of the end-product. Since high quality beers can command premium prices, i t is possible to

enter the market on a small scale, as a 'microbrewery'.

Larger companies, however, tend to rely on the mass -market production of internationally palatable lagers; here, margins

may be much lower.

Producers need to distribute their products widely, so often depend heavily upon retail channels such as supermarkets.

Despite the presence of company-owned on-trade outlets, these retail chains often have considerable buyer power,

which can force down the prices that beer producers are able to obtain. In such a market, economies of scale become

much more important. As a result, barriers to entry, such as the capital outlay on large scale production equipment, and

the need to establish reliable supply chains from multiple third-party hop and barley growers, become much higher as

players approach the mass market.

Government regulation of beer and other alcoholic beverages is stringent in many countries, which may also impact on

the ease of market entry.

Overall, the threat of new entrants to this market is assessed as moderate.



Threat of substitutes

Figure 13: Factors influencing the threat of substitutes in the beer market in the United States, 2014


The main substitutes for beer are other alcoholic beverages such as spirits, cider and wine, and in some cases non-

alcoholic beverages such as functional drinks. Switching costs are not high, and per-unit-volume prices are higher for

beer than for spirits or wine, for both consumers and distributers.

The potential benefits and drawbacks of alternatives to beer are rather difficult to pin down. Most retailers and

distributors will find they need to stock a combination of beer and its potential substitutes in order to please the widest

possible range of customers, but some restaurants for example may feel as though their wines make up a much more

important part of their menu. Conversely, for many bars, beer is indispensable, while wines and spirits seem of

secondary importance. On a practical level, alternatives such as wines and spirits may seem more attractive: beer is

comparatively heavy, bulky, and might need refrigerating before sale. This drives up distribution and storage costs.

Overall, there is a moderate threat from substitutes.



Degree of rivalry

Figure 14: Drivers of degree of rivalry in the beer market in the United States, 2014


The US beer market is consolidated, with the top four players controlling 90.7% of the m arket. Some large beer

producers have begun to employ brand management strategies in order to ensure their brand is identifiable to the public.

This is especially important because purchasers have a wide variety of beers to choose from, and incur only low

switching costs when changing brands. Major players may offer premium beers, but much of their business involves

mass-market products; this means large breweries are required, and therefore that players in this market endure high

fixed costs. At the same time, beer prices are subject to heavy downward pressure by large chain retailers, which are

often able to exert strong bargaining power.

Overall, rivalry is assessed as strong.



LEADING COMPANIES

Anheuser-Busch InBev SA/NV

Table 9: Anheuser-Busch InBev SA/NV: key facts

Head office: Brouwerijplein 1, 3000 Leuven, BEL

Telephone: 32 16 27 61 11

Fax: 32 16 50 61 11

Local office: Anheuser-Busch Cos. Inc., One Busch Place, St. Louis, Missouri 63118, USA

Telephone: 1 800 342 52 83

Fax: 1 800 342 52 83

Website: www.ab-inbev.com

Financial year-end: December

Ticker: ABI

Stock exchange: Euronext Brussels

SOURCE: COMPANY WEBSITE M A R K E T L I N E

AB InBev is engaged in the production, distribution and sale of beer and soft drinks. The company has operations in 24

countries across the world. The company offers a portfolio of over 200 brands, including global flagship brands

Budweiser, Stella Artois and Corona (except in the US) and multi -country brands Beck's, Leffe and Hoegaarden. In

addition, the company offers local brands including Bud Light, Michelob Ultra, Corona Light, Modelo Especial, Modelo

Light, Negra Modelo, Victoria, Pacifico, Skol, Brahma, Antarctica, Quilmes, Jupiler, Hasseroder, Klinskoye, Sibirskaya

Korona, Chernigivske, Harbin and Sedrin. The company also produces and distributes soft drinks, particularly in Latin

America. As of December 31, 2014, the company operated 153 beverage manufacturing facilities globally, including 123

beer production plants, 13 soft drinks production plants and 17 production plants that produce both beer and soft drinks.

Additionally, the company owns 48 production facilities that produce raw materials and packaging materials for its

beverages.

AB InBev operates through eight business segments: North America, Latin America North, Western Europe, Asia Pacific,

Latin America South, Mexico, global export and holding companies and Central and Eastern Europe.

The North American segment includes operations in the US and Canada. Some of the key global brands sold in this

zone include Budweiser, Stella Artois and Corona, and the international brands include Beck's, Hoegaarden and Leffe.

Additionally, the company sells several local brands such as Bass, Bud Light, Busch, Michelob, Goose Island, Shock

Top and Natural Light in the US and Alexander Keith's, Bass, Bud Light, Kokanee, Labatt, Lucky, Lakeport and Oland in

Canada. The company operates 21 beverage manufacturing plants through this segment.

The Latin America North segment encompasses the company's operations in Brazil, the Dominican Republic and

Guatemala. In Brazil, the company operates through its subsidiary, Companhia de Bebidas das Americas -AmBev

(AmBev), which sells local beer brands such as Antarctica, Bohemia, Brahma and Skol, amongst othe r international

brands. The segment is also engaged in the manufacture and sale of several soft drinks brands including Guarana

Antarctica, Pepsi, 7UP and Red Rock. The segment operates 30 manufacturing plants across the region.



The Latin America South segment includes operations in Bolivia, Paraguay, Uruguay, Argentina, Chile, Ecuador and

Peru. In Argentina, AB InBev operates through its subsidiary Cerveceria y Malteria Quilmes. The segment is also

engaged in the manufacture and sale of soft drinks under l icensed brand names (Pepsi, H2OH!, 7UP, Concordia, and

Triple Kola) in Argentina, Bolivia, Uruguay and Peru. The segment operates nine beverage manufacturing units in the

region that produce and sell international brands such as Hoegaarden and Leffe. The company also sells several local

brands in the region, including Andes, Brahma, Norte, Patagonia, Quilmes, Antarctica, Bohemia and Skol.

The Western Europe segment includes the company's operations primarily in Belgium, Germany and the UK. InBev

Belgium and AB InBev UK are the operating subsidiaries of the company in the respective countries, while the company

operates through Anheuser-Busch InBev Deutschland in Germany. The segment operates 12 beverage manufacturing

units in the region that produce and sell international brands such as Budweiser, Corona, Stella Artois and Beck's. The

segment also sells several local brands in the region, including Belle -Vue, Jupiler, Vieux Temps, Diebels, Franziskaner,

Haake-Beck, Hasseroder, Lowenbrau, Spaten and Gilde.

The Asia Pacific segment primarily consists of the company's operations in China through the Anheuser-Busch InBev

China subsidiary. The company has 39 beer manufacturing facilities across China that manufacture and sell several

international, multi-country and local brands including Budweiser, Stella Artois, Beck's, Hoegaarden, Leffe, Double Deer,

Harbin, Jinling, Jinlongquan, KK, Sedrin and Shiliang.

The Mexico segment primarily consists of beer and packaging businesses. The company operates seven manufacturi ng

plants through this segment. The key brands of AB InBev sold in this region include Corona, Budweiser, Bud Light,

Modelo Especial, Victoria, Pacifico, and Negra Modelo.

The global export and holding companies segment includes the export sales as well as the intra-group transactions.

The Central and Eastern Europe segment primarily comprises the company's operations in Russia and Ukraine through

SUN InBev Russia and SUN InBev Ukraine subsidiaries, respectively. Besides the international brands, the segmen t

manufactures and sells beers under several local brands such as Bagbier, Brahma, Klinskoye, Lowenbrau, Sibirskaya

Korona, T and Tolstiak in Russia. Additionally, the Ukrainian subsidiary manufactures and sells local brands of beer such

as Chernigivske, Rogan and Yantar in the country. The segment operates six beverage manufacturing plants in Russia,

and three in Ukraine.

Anheuser Busch operates 13 breweries in the US: St. Louis, Missouri; Newark, New Jersey; Los Angeles, California;

Houston, Texas; Columbus, Ohio; Jacksonville, Florida; Merrimack, New Hampshire; Williamsburg, Virginia; Fairfield,

California; Baldwinsville, New York; Fort Collins, Colorado; Cartersville, Georgia; and Chicago, Illinois. Local brands

produced and sold in the US include: Bass , Brahma, Bud Light, Busch, Michelob, Natural Light, and Goose Island 312

Urban Wheat Ale.

Key Metrics

The company recorded revenues of $43,195 million in the fiscal year ending December 2013, an increase of 8.6%

compared to fiscal 2012. Its net income was $14,394 million in fiscal 2013, compared to a net income of $7,243 million in

the preceding year.

More recent financial information was not available for this company at the time of publication.



Table 10: Anheuser-Busch InBev SA/NV: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 36,758.0 36,297.0 39,046.0 39,758.0 43,195.0

Net income (loss) 4,613.0 4,026.0 5,885.0 7,243.0 14,394.0

Total assets 112,525.0 114,342.0 112,427.0 122,621.0 141,666.0

Total liabilities 79,354.0 75,543.0 71,383.0 77,180.0 86,358.0

Employees 116,000 114,000 116,000 116,278 117,632

SOURCE: COMPANY FILINGS M A R K E T L I N E

Table 11: Anheuser-Busch InBev SA/NV: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 12.5% 11.1% 15.1% 18.2% 33.3%

Revenue growth 56.4% (1.3%) 7.6% 1.8% 8.6%

Asset growth (0.6%) 1.6% (1.7%) 9.1% 15.5%

Liabilities growth (11.2%) (4.8%) (5.5%) 8.1% 11.9%

Debt/asset ratio 70.5% 66.1% 63.5% 62.9% 61.0%

Return on assets 4.1% 3.5% 5.2% 6.2% 10.9%

Revenue per employee $316,879 $318,395 $336,603 $341,922 $367,205

Profit per employee $39,767 $35,316 $50,733 $62,290 $122,365


Figure 15: Anheuser-Busch InBev SA/NV: revenues & profi tability




Figure 16: Anheuser-Busch InBev SA/NV: assets & liabilities




Constellation Brands, Inc.

Table 12: Constellation Brands, Inc.: key facts

Head office: 207 High Point Drive, Building 100, Victor, New York 14564, USA

Telephone: 1 888 724 2169

Website: www.cbrands.com

Financial year-end: February

Ticker: STZ

Stock exchange: New York


Constellation Brands is a multi-category supplier of alcoholic beverages. The company conducts its business through

wholly-owned subsidiaries as well as through a variety of joint ventures and other entities. Th e company operates 18

wineries in the US, nine wineries in Canada, five wineries in Italy and four wineries in New Zealand.

The company operates through two business segments: wine and spirits, and beer.

Constellation Brands produces and markets premium wine brands across the table wine, sparkling wine and dessert

wine categories. It has presence across all price points: popular, premium, super-premium and fine wine. The portfolio of

super-premium and fine wines is supported by vineyard holdings in the US, Canada, New Zealand and Italy. The

company markets wine produced in the US domestically and in Canada and the UK. Wine produced in Canada is

primarily marketed domestically and wine produced in New Zealand is marketed in the US, Canada, Australia, the UK,

and domestically. The company sells wine produced in Italy in the US, Canada and domestically. Constellation Brands

also exports its wine products to other major wine consuming markets of the world.

The company's key wine brands include Robert Mondavi, Clos du Bois, Blackstone, Estancia, Arbor Mist, Toasted Head,

Simi, Mark West, Black Box, Ravenswood, Rex Goliath, Kim Crawford, Franciscan Estate, Wild Horse, Ruffino, Nobilo,

Mount Veeder, and Inniskillin. Constellation Brands also offers spirits under the Black Velvet Canadian Whisky and

Svedka Vodka brand names.

In the beer segment, the company has exclusive right to import market and sell Corona Extra, Corona Light, Modelo

Especial, Pacifico, Negra Modelo and Victoria brands in all 50 states of the US.

Constellation Brands also operates a brewery, wineries, a distilling plant and bottling plants, many of which include

warehousing and distribution facilities on the premises. Additionally, some of the company's businesses maintain office

space for sales and similar activities and offsite warehouse and distribution facilities in a variety of geographic locations.

In the US, the company operates one winery in New York, 16 wineries in California and one winery in Washington. Of

these, 16 wineries are owned and two wineries are leased. In Canada, it operates nine wineries, of which seven wineries

are owned and two wineries are leased. The company also owns and operates a distilling plant in Lethbridge, Canada. In

New Zealand, Constellation Brands owns and operates four wineries. In Italy, the company operates five leased

wineries. Constellation Brands also operates four leased warehouse, distribution and other production facilities in the US;

three owned and one leased warehouse, distribution and other production facilities in Canada; and one owned and

seven leased warehouse, distribution and other production facilities in Italy.

Key Metrics

The company recorded revenues of $4,864 million in the fiscal year ending February 2014, an increase of 74.0%

compared to fiscal 2013. Its net income was $1,943 million in fiscal 2014, compared to a net income of $388 million in

the preceding year.



Table 13: Constellation Brands, Inc.: key financials ($)

$ million 2010 2011 2012 2013 2014

Revenues 3,364.8 3,332.0 2,654.3 2,796.1 4,864.0

Net income (loss) 99.3 559.5 445.0 387.8 1,943.0

Total assets 8,094.3 7,167.6 7,109.9 7,638.1 14,302.0


Employees 6,000 4,300 4,400 4,500 6,300


Table 14: Constellation Brands, Inc.: key financial ratios

Ratio 2010 2011 2012 2013 2014

Profit margin 3.0% 16.8% 16.8% 13.9% 39.9%

Revenue growth (28.8%) (1.0%) (20.3%) 5.3% 74.0%

Asset growth 0.7% (11.4%) (0.8%) 7.4% 87.2%

Liabilities growth 44.1% (16.4%) (3.9%) 7.8% 95.1%

Debt/asset ratio 68.2% 64.4% 62.4% 62.6% 65.2%

Return on assets 1.2% 7.3% 6.2% 5.3% 17.7%






Figure 17: Constellation Brands, Inc.: revenues & profitability


Figure 18: Constellation Brands, Inc.: assets & liabilities




Heineken N.V.

Table 15: Heineken N.V.: key facts

Head office: Tweede Weteringplantsoen 21, 1017 ZD Amsterdam, NLD

Telephone: 31 20 523 92 39

Fax: 31 20 626 35 03

Website: www.theheinekencompany.com

Financial year-end: December

Ticker: HEIA

Stock exchange: NYSE, Euronext, Amsterdam


Heineken is a brewing company, with a wide international presence through a global network of distributors and

breweries. The company owns, markets and sells more than 250 beer brands including international premium, regional,

local and specialty beers. Its principal brands are Heineken, Amstel, Anchor, Birra Moretti, Cruzcampo, Desperados, Dos

Equis, Foster's, Newcastle Brown Ale, Ochota, Primus, Sagres, Sol, Star, Tecate, Tiger and Zywiec. Additionally, the

company markets several brands through joint ventures, which include Cristal and Kingfisher. In addition to its global

beer portfolio, Heineken is a large global player in the cider market, with brands such as Strongbow and Bulmers.

The company's brands are sold in about 178 countries, while it has operations in more than 70 countries across Western

Europe, Central and Eastern Europe, Africa and the Middle East, the Americas, and the Asia Pacific region. The

breweries are either owned by the company or are joint ventures in different countries.

The company operates in five segments, defined based on geographic presence: Western Europe, the Americas,

Central and Eastern Europe, Africa and the Middle East, and Asia Pacific.

Western Europe is Heineken's largest segment. In Western Europe, the company has operations in nine countries,

including the UK, France, Italy, the Netherlands, Belgium, Ireland, Portugal, Spain and Switzerland. In these regions, the

company operates through subsidiaries, joint ventures and licenses. The company also operates one export and duty-

free business in Western Europe. In this region, Heineken operates 26 breweries.

In the Americas, the company acquired the beer operations of Fomento Economico Mexicano (FEMSA) in 2010, through

which it gained access to a large market in Mexico and Brazil. The company also has significant inte rests in Compania

Cervecerias Unidas (CCU). In addition, the Heineken brand is brewed under license in a number of markets, mostly in

Canada. In all, the company has about 19 majority-owned breweries and eight joint venture breweries in the region.

For Central and Eastern European market, Heineken licenses its breweries or imports beers from other breweries under

the Heineken and Amstel brands. In this region, the company owns more than 50 breweries and has operating

companies in 14 countries, including Aus tria, Belarus, Bulgaria, the Czech Republic, Croatia, Germany, Greece,

Hungary, Macedonia, Poland, Romania, Russia, Slovakia and Serbia.

In Africa and the Middle East, Heineken operates through owned breweries. The company manufactures Heineken and

Amstel for local distribution and export, besides distributing several local brands like Fayrouz, Laziza and Harar. In this

region, Heineken's operations are spread across 23 countries.

Heineken operates in the Asia-Pacific region through Heineken Asia Pacific Pte, a Singapore-based beverage company.

The company also holds a 36.1% stake in United Breweries Limited (UBL) for Indian operations. Heineken Asia Pacific

Pte has 25 breweries in 19 countries across Asia Pacific, while UBL owns 18 breweries in India.



The company's beer production and manufacturing operations in the above segments are managed by several

subsidiaries, including Heineken Brouwerijen, the Netherlands; Heineken UK; Brau Union, Austria; Heineken France;

and Heineken USA among others.

Key Metrics

The company recorded revenues of $25,485 million in the fiscal year ending December 2013, an increase of 4.5%

compared to fiscal 2012. Its net income was $1,810 million in fiscal 2013, compared to a net income of $3,914 million in

the preceding year.

More recent financial information was not available for this company at the time of publication.

Table 16: Heineken N.V.: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 19,510.3 21,410.7 22,724.6 24,396.8 25,485.1

Net income (loss) 1,351.0 1,920.4 1,897.8 3,913.7 1,810.2

Total assets 26,781.7 35,384.2 36,001.3 47,749.2 44,242.9


Employees 55,301 65,730 64,252 76,191 80,933


Table 17: Heineken N.V.: key financials (€)

€ million 2009 2010 2011 2012 2013

Revenues 14,701.0 16,133.0 17,123.0 18,383.0 19,203.0

Net income (loss) 1,018.0 1,447.0 1,430.0 2,949.0 1,364.0

Total assets 20,180.0 26,662.0 27,127.0 35,979.0 33,337.0





Table 18: Heineken N.V.: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 6.9% 9.0% 8.4% 16.0% 7.1%

Revenue growth 2.7% 9.7% 6.1% 7.4% 4.5%

Asset growth (1.9%) 32.1% 1.7% 32.6% (7.3%)

Liabilities growth (7.8%) 10.9% 3.6% 36.3% (9.6%)

Debt/asset ratio 73.5% 61.7% 62.8% 64.5% 62.9%

Return on assets 5.0% 6.2% 5.3% 9.3% 3.9%




Figure 19: Heineken N.V.: revenues & profitability




Figure 20: Heineken N.V.: assets & liabilities




MillerCoors LLC

Table 19: MillerCoors LLC: key facts

Head office: 250 South Wacker Drive, Chicago, Illinois 60606 5888, USA

Telephone: 1 800 645 5376

Website: www.millercoors.com


MillerCoors, a joint venture between SABMiller and Molson Coors Brewing Company (MCBC), sells beer in the US

market. The company's brands include Miller Lite, Coors Banquet, Coors Light, Blue Moon Belgian, Foster's, Henry

Weinhard's, Icehouse, Keystone Premium, Leinenkugel's, Killian's Irish Red, Miller Genuine Draft, Miller High Life,

Milwaukee's Best, Molson Canadian, Peroni Nastro Azzurro, Pilsner Urquell, Red Dog.

The company operates eight breweries in the US, and Leinenkugel's craft brewery in Chippewa Falls, Wisconsin; and

two microbreweries, the Tenth Street Brewery in Milwaukee, and the Blue Moon Brewing Company at Coors Field in

Denver. MillerCoors operates in the US, where it is headquartered in Chicago, Illinois.

Key Metrics

As a joint venture between SABMiller and Molson Coors Brewing Company, MillerCoors is not obliged to publish its

financial results.



MACROECONOMIC INDICATORS

Country Data

Table 20: United States size of population (million), 2010–14

Year Population (million) % Growth

2010 309.3 0.8%

2011 311.6 0.7%

2012 313.9 0.7%

2013 316.4 0.8%

2014 318.9 0.8%


Table 21: United States gdp (constant 2005 prices, $ billion), 2010–14

Year Constant 2005 Prices, $ billion % Growth

2010 13,597.2 2.5%

2011 13,815.0 1.6%

2012 14,135.6 2.3%

2013 14,449.3 2.2%

2014 14,799.6 2.4%


Table 22: United States gdp (current prices, $ billion), 2010–14

Year Current Prices, $ billion % Growth

2010 14,964.4 3.8%

2011 15,517.9 3.7%

2012 16,163.2 4.2%

2013 16,768.1 3.7%

2014 17,420.2 3.9%




Table 23: United States inflation, 2010–14

Year Inflation Rate (%)

2010 1.6%

2011 3.2%

2012 2.1%

2013 1.5%

2014 1.8%


Table 24: United States consumer price index (absolute), 2010–14

Year Consumer Price Index (2005 = 100)

2010 111.7

2011 115.2

2012 117.6

2013 119.3

2014 121.5


Table 25: United States exchange rate, 2010–14

Year Exchange rate (€/$)

2010 1.3279

2011 1.3912

2012 1.2856

2013 1.3281

2014 1.3290




METHODOLOGY

MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross -

checked and presented in a consistent and accessible style.

Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by

analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in -house databases

provide the foundation for all related industry profiles

Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company

profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market

overview

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definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the

market and our clients

Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and

trends

MarketLine aggregates and analyzes a number of secondary information sources, including:

- National/Governmental statistics

- International data (official international sources)

- National and International trade associations

- Broker and analyst reports

- Company Annual Reports

- Business information libraries and databases

Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data to

be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can

then be refined according to specific competitive, regulatory and demand-related factors

Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date



Industry associations

Master Brewers Association of the Americas

3340 Pilot Knob Road - St. Paul, MN 55121, USA

Tel.: 1 651 454 7250

Fax: 1 651 454 0766

www.mbaa.com

Master Brewers Association of the Americas 3340 Pilot Knob Road - St. Paul, MN 55121, USA

Tel.: 1 651 454 7250

Fax: 1 651 454 0766

1 651 454 0766

Related MarketLine research

Industry Profile

Global Beer

Beer in Europe

Beer in Asia-Pacific

Beer in Canada

Beer in Mexico



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