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Hitting New Highs in the High-End Mid-Year 2014 Beer Category and Craft Beer Review Dan Wandel Principal, Beverage Alcohol Client Insights August 2014

Hitting New Highs in the High-End - Brewers Association€¦ · Hitting New Highs in the High-End Mid-Year 2014 Beer Category and Craft Beer Review Dan Wandel Principal, Beverage

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Page 1: Hitting New Highs in the High-End - Brewers Association€¦ · Hitting New Highs in the High-End Mid-Year 2014 Beer Category and Craft Beer Review Dan Wandel Principal, Beverage

Hitting New Highs in the High-EndMid-Year 2014 Beer Category and Craft Beer Review

Dan Wandel

Principal, Beverage Alcohol Client Insights

August 2014

Page 2: Hitting New Highs in the High-End - Brewers Association€¦ · Hitting New Highs in the High-End Mid-Year 2014 Beer Category and Craft Beer Review Dan Wandel Principal, Beverage

Copyright © 2014 Information Resources, Inc. (IRI). Confidential and Proprietary. 2

Beer Category YTD 2014 Off-Premise Summary

• Beer Dollar Sales trends are outpacing both Wine and Spirits in Total US MULO for

the first time in over four years.

• Beer Volume Sales in the Convenience channel are in the black this year

• The High-End Beer Segments (Craft, Super Premium, Imports, PAB’s & Cider)

continue to fuel the Beer Category’s overall sales growth

• 20 of the Top 25 Beer Vendors are generating positive Dollar Sales Growth in

Supermarkets vs Year Ago including the Top 5

• Beer Category is following up two consecutive years of exceptional sales

contributions from new products with another strong performance in 2014

• Craft’s Dollar Sales in Supermarkets have increased at an impressive +20.5%

compared to year ago

• Craft’s share of Total Beer Dollar Sales has increased by more than 2 share points

in 7 of IRI’s Top 10 Food States as ranked by Craft Dollar Sales

• 2014 is proving to be one of the best ever for new Craft product sales

Page 3: Hitting New Highs in the High-End - Brewers Association€¦ · Hitting New Highs in the High-End Mid-Year 2014 Beer Category and Craft Beer Review Dan Wandel Principal, Beverage

Copyright © 2014 Information Resources, Inc. (IRI). Confidential and Proprietary. 3

“IRI and Guest Metrics Form Exclusive Alliance to Offer First Integration of On-Premise and Off-Premise POS Data”

April 15, 2014

Page 4: Hitting New Highs in the High-End - Brewers Association€¦ · Hitting New Highs in the High-End Mid-Year 2014 Beer Category and Craft Beer Review Dan Wandel Principal, Beverage

Copyright © 2014 Information Resources, Inc. (IRI). Confidential and Proprietary. 4

Spirits sales continue to outperform Beer and Wine in the On-Premise Channel

2.0%

1.3%

0.2%

-0.4%

-1.4%

-2.0%

-1.5%

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

Food Spirits Wine Beer Non-AlcoholicBeverages

Y/Y $ Sales Growth (%) by Food & Beverage Category2014 thru 7/13/14 versus year ago

Page 5: Hitting New Highs in the High-End - Brewers Association€¦ · Hitting New Highs in the High-End Mid-Year 2014 Beer Category and Craft Beer Review Dan Wandel Principal, Beverage

Copyright © 2014 Information Resources, Inc. (IRI). Confidential and Proprietary. 5

Spirits continues to increase its share of Total Beverage Alcohol Dollar Sales at the expense of Beer primarily

0.35

-0.06

-0.29

-1.00

-0.80

-0.60

-0.40

-0.20

0.00

0.20

0.40

0.60

0.80

1.00

Spirits Wine Beer

Y/Y Change in Alcoholic Beverage Sales Mix2014 thru 7/13/14 versus year ago

Page 6: Hitting New Highs in the High-End - Brewers Association€¦ · Hitting New Highs in the High-End Mid-Year 2014 Beer Category and Craft Beer Review Dan Wandel Principal, Beverage

Copyright © 2014 Information Resources, Inc. (IRI). Confidential and Proprietary. 6

Although Beer continues to lose share, Craft continues to aggressively increase its share of TBA Dollar Sales and is nearly 2x the gains achieved by Spirits YTD

0.63

0.34

-0.06

-0.92-1.00

-0.80

-0.60

-0.40

-0.20

0.00

0.20

0.40

0.60

0.80

Beer -- Craft Spirits Wine Beer -- Other

Year-over-Year Change in Alcohol Sales Mix (points)2014 thru 7/13/14 versus year ago

Guest Metrics data reflects new definition of Total BA Craft which includes Yuengling

Page 7: Hitting New Highs in the High-End - Brewers Association€¦ · Hitting New Highs in the High-End Mid-Year 2014 Beer Category and Craft Beer Review Dan Wandel Principal, Beverage

Copyright © 2014 Information Resources, Inc. (IRI). Confidential and Proprietary. 7

Craft Beer makes up nearly 10% of Total Beverage Alcohol $ Sales and ~29% of Total Beer $ Sales

9.8%

23.4%

42.9%

23.9%

Category Mix (by Retail $ Sales) -- Alcoholic Beverages2014 thru 7/13/14

Beer -- Craft

Beer -- Other

Spirits/Cocktails

Wine

Guest Metrics data reflects new definition of Total BA Craft which includes Yuengling

Page 8: Hitting New Highs in the High-End - Brewers Association€¦ · Hitting New Highs in the High-End Mid-Year 2014 Beer Category and Craft Beer Review Dan Wandel Principal, Beverage

Copyright © 2014 Information Resources, Inc. (IRI). Confidential and Proprietary. 8

Craft and Premium Light are the two largest Beer Segments in On-Premise volume-wise

8

26.9% 26.5%

18.6%

13.3%

9.3%

3.7%

1.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Craft PremiumLight

Import Value/FMB/other

PremiumPlus

PremiumRegular

Cider

Share of Beer Category by Segment (% of total units sold)2014 thru 7/13/14

Guest Metrics data reflects new definition of Total BA Craft which includes Yuengling

Page 9: Hitting New Highs in the High-End - Brewers Association€¦ · Hitting New Highs in the High-End Mid-Year 2014 Beer Category and Craft Beer Review Dan Wandel Principal, Beverage

Copyright © 2014 Information Resources, Inc. (IRI). Confidential and Proprietary. 9

Beer volume trends have been particularly challenging in the core Bars/Clubs & Casual Dining channels

-3.8%

2.8%

-2.2%

-3.9%-4.5%

-6.0%

-5.0%

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Total Lodging Fine Dining Bar/Club Casual Dining

Beer -- y/y unit growth (%) by restaurant segment2014 thru 7/13/14 versus year ago

Page 10: Hitting New Highs in the High-End - Brewers Association€¦ · Hitting New Highs in the High-End Mid-Year 2014 Beer Category and Craft Beer Review Dan Wandel Principal, Beverage

Copyright © 2014 Information Resources, Inc. (IRI). Confidential and Proprietary. 10

2.1

0.5

-0.1 -0.2 -0.2 -0.2

-2.0

-2.5

-2.0

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

Craft Cider Premium Plus Import Value/FMB/other

PremiumRegular

PremiumLight

Y/Y Change in Beer Volume Share -- by Segment2014 thru 7/13/14 versus year ago

Craft and Cider share gains have come primarily at the expense of Premium Lights

Guest Metrics data reflects new definition of Total BA Craft which includes Yuengling

Page 11: Hitting New Highs in the High-End - Brewers Association€¦ · Hitting New Highs in the High-End Mid-Year 2014 Beer Category and Craft Beer Review Dan Wandel Principal, Beverage

Copyright © 2014 Information Resources, Inc. (IRI). Confidential and Proprietary. 11

The top gaining Beer brands in 2014 YTD have been a mix of primarily Craft, Cider, and Imports

The share gains by Angry Orchard equaled the gains of the next 2 best

performing brands combined!

Guest Metrics data reflects new definition of Total BA Craft which includes Yuengling

Page 12: Hitting New Highs in the High-End - Brewers Association€¦ · Hitting New Highs in the High-End Mid-Year 2014 Beer Category and Craft Beer Review Dan Wandel Principal, Beverage

Copyright © 2014 Information Resources, Inc. (IRI). Confidential and Proprietary. 12

18.6

%

12.6

%

11.2

%

7.3%

6.3%

5.7%

4.4%

3.8%

3.8%

2.9%

2.8%

2.7%

2.7%

2.0%

2.0%

1.9%

1.8%

1.7%

1.3%

1.2%

1.1%

0.9%

0.5%

0.4%

0.3%

0.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

IND

IA P

ALE

(ALE

)

PALE

(LA

GER

)

PALE

/ B

ITTE

R (A

LE)

BEL

GIA

N D

AR

K ST

RO

NG

(ALE

)

WH

EAT

(ALE

)

AM

BER

(LA

GER

)

OTH

ER /

UN

KNO

WN

SEA

SON

ALS

BO

CK (L

AG

ER)

GO

LDEN

/ K

OLS

CH (A

LE)

BEL

GIA

N W

IT (A

LE)

STO

UT

(ALE

)

IMPE

RIA

L IN

DIA

PA

LE (A

LE)

BR

OW

N (A

LE)

PILS

NER

(LA

GER

)

POR

TER

(ALE

)

FRU

IT /

PU

MPK

IN /

FLA

VO

RED

BEL

GIA

N O

THER

(ALE

)

SCO

TTIS

H (A

LE)

ALT

/ D

AR

K (L

AG

ER)

STR

ON

G /

BA

RLE

YWIN

E (A

LE)

SAIS

ON

(ALE

)

AM

BER

/ R

ED (A

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BEL

GIA

N G

OLD

EN S

TRO

NG

(ALE

)

MA

RZE

N /

OKT

OB

ERFE

ST (L

AG

ER)

DO

PPEL

BO

CK (L

AG

ER)

Volume Mix by Beer Style within Craft2014 thru 7/13/14

IPA’s and Pale Ales continue to be two of the most popular Craft Styles, combining for 30% of Craft Beer sales in On-Premise

12

Guest Metrics data reflects new definition of Total BA Craft which includes Yuengling

Page 13: Hitting New Highs in the High-End - Brewers Association€¦ · Hitting New Highs in the High-End Mid-Year 2014 Beer Category and Craft Beer Review Dan Wandel Principal, Beverage

13

2014 Mid-Year Off-Premise Beer Category Review

Page 14: Hitting New Highs in the High-End - Brewers Association€¦ · Hitting New Highs in the High-End Mid-Year 2014 Beer Category and Craft Beer Review Dan Wandel Principal, Beverage

Copyright © 2014 Information Resources, Inc. (IRI). Confidential and Proprietary. 14

• Price is becoming less of defining factor for Premium products with consumers

• Millennials and Baby Boomers employ different shopping strategies as it relates to

premium brand attributes. Millennials are more drawn to convenience and

attractive packaging, while Boomers are more likely to seek out quality ingredients

and brand names.

• Consumer confidence appears to be rebounding after experiencing a jump in Q1 and

maintaining that in Q2. Millennials in particular are beginning to feel more

comfortable after suffering longer than most.

• As consumers continue to develop a more positive outlook on the economy, it is

likely to lead to both increased shopping trips and spending on premium brands.

IRI MarketPulse Survey Highlights

Source: IRI MarketPulse Survey Q2, 2014

Page 15: Hitting New Highs in the High-End - Brewers Association€¦ · Hitting New Highs in the High-End Mid-Year 2014 Beer Category and Craft Beer Review Dan Wandel Principal, Beverage

Copyright © 2014 Information Resources, Inc. (IRI). Confidential and Proprietary. 15

Premium Products Primed to Perform

IMPORTANT FACTORS IN PREMIUM BRANDSBY HOUSEHOLD INCOME

25%

26%

64%

89%

31%

30%

60%

85%

23%

23%

70%

93%

15%

26%

64%

89%

Higher in Price

Attractive Packaging

Makes Life More Convenient

Quality Ingredients

Greater than $100K

$55K -$99,999K

$35K -$54,999K

Under $35K

Total Population

15% of consumers surveyed said they plan to increase their usage of premium products in the next 12 months

Source: IRI MarketPulse Survey Q2, 2014

Page 16: Hitting New Highs in the High-End - Brewers Association€¦ · Hitting New Highs in the High-End Mid-Year 2014 Beer Category and Craft Beer Review Dan Wandel Principal, Beverage

Copyright © 2014 Information Resources, Inc. (IRI). Confidential and Proprietary. 16

30%

20%

30% 31%

44%

15% 16% 16% 17%11%

Total Population Under $35K $35K -$54,999K $55K -$99,999K Greater than $100K

Currently purchase premium

brands

Plan to increase purchases of

premium brands

CURRENT PURCHASE HABITS AND FUTURE INTENTBY HOUSEHOLD INCOME

Source: IRI MarketPulse Survey Q2, 2014

Although wealthier households purchase more premium products today, increased premium purchase behavior is more prevalent across lesser-earning households.

Premium Products Primed to Perform

Page 17: Hitting New Highs in the High-End - Brewers Association€¦ · Hitting New Highs in the High-End Mid-Year 2014 Beer Category and Craft Beer Review Dan Wandel Principal, Beverage

Copyright © 2014 Information Resources, Inc. (IRI). Confidential and Proprietary. 17

Beverage Alcohol Category Four-Year Sales TrendsTotal U.S. Multi-Outlet (MULO)

Beer dollar sales trends are outpacing both Wine and Spirits for the first time in over four years.

IRI Data : YTD 2014 Ending 07.13.14

Page 18: Hitting New Highs in the High-End - Brewers Association€¦ · Hitting New Highs in the High-End Mid-Year 2014 Beer Category and Craft Beer Review Dan Wandel Principal, Beverage

Copyright © 2014 Information Resources, Inc. (IRI). Confidential and Proprietary. 18

Top 15 Bev Alc Growth Segments – Dollar Sales Change YATotal U.S. MULO

$144,561,255

$78,703,084

$72,885,181

$71,989,760

$68,641,129

$67,038,269

$50,703,529

$25,073,925

$23,497,696

$22,975,528

$22,687,912

$21,018,817

$16,935,429

$6,379,376

$5,560,586

CRAFT - BEER

DOM SUPER PREMIUM - BEER

IMPORT - BEER

($11.00-$14.99) TABLE WINE

($8.00-$10.99) TABLE WINE

WHISKEY

CIDER - BEER

DOM PREMIUM - BEER

($20.00+) TABLE WINE

($3.50-$4.99) BOX TABLE WINE

PAB's - BEER

VODKA

($15.00-$19.99) TABLE WINE

COGNAC

(<=$3.49) BOX TABLE WINE

Change vs YA Dollar Sales % Chg YA

Dollar Sales

20.6% $846,225,094

10.8% $810,514,540

5.4% $1,418,848,885

13.6% $600,062,299

6.5% $1,130,483,061

9.7% $761,236,326

68.9% $124,245,691

0.9% $2,860,032,752

15.9% $170,927,711

19.8% $138,994,390

6.9% $353,670,051

2.8% $761,998,458

7.8% $233,041,897

15.6% $47,335,939

2.3% $248,146,281

Once again, Craft is the top growing Bev Alc segment based on Actual Dollar Sales Change vs Year Ago

IRI Data : YTD 2014 Ending 07.13.14IRI definition of Craft includes Craft like brands from CBA, NAB, Goose Island, Blue Point, etc., but excludes Shock Top, Blue Moon, Yuengling

Page 19: Hitting New Highs in the High-End - Brewers Association€¦ · Hitting New Highs in the High-End Mid-Year 2014 Beer Category and Craft Beer Review Dan Wandel Principal, Beverage

Copyright © 2014 Information Resources, Inc. (IRI). Confidential and Proprietary. 19

Beer Category & Segment Trends and ShareTotal U.S. MULO and MULO + Convenience

Total US - Multi Outlet Total US - Multi Outlet + Conv

Dollar Sales % Chg YA

Dollar Share of Category

Case Sales % Chg YA

Case Share of Category

Dollar Sales % Chg YA

Dollar Share of Category

Case Sales % Chg YA

Case Share of Category

CATEGORY - BEER 5.6% 100.00 2.7% 100.00 4.4% 100.00 1.8% 100.00

DOMESTIC PREMIUM 0.9% 38.11 0.0% 44.07 0.4% 44.34 -0.3% 47.78

DOMESTIC SUB-PREMIUM 0.2% 12.93 -1.2% 19.25 -1.6% 16.02 -2.4% 22.71

DOMESTIC SUPER PREMIUM 10.8% 10.80 8.6% 8.90 12.1% 9.14 9.2% 7.23

TOTAL BA CRAFT 23.2% 9.8 19.9% 6.1 25.1% 6.1 21.7% 3.7

CRAFT (IRI DEFINITION) 20.6% 11.28 17.1% 7.11 23.3% 6.97 19.7% 4.33

IMPORT 5.4% 18.91 3.9% 14.90 8.6% 15.31 6.5% 11.59

PROGRESSIVE ADULT BEVERAGES 6.9% 4.71 4.6% 3.03 4.9% 5.10 3.6% 3.31

CIDER 69.0% 1.66 70.9% 1.04 88.4% 1.04 89.3% 0.65

DOMESTIC MALT LIQUOR 3.2% 0.71 2.2% 0.92 2.6% 1.63 0.5% 2.01

NON- ALCOHOLIC 0.7% 0.67 -2.6% 0.65 1.4% 0.33 -2.0% 0.33

Craft has the highest share gain of Total Beer Dollar Sales in the IRI Multi-Outlet channels. Craft gained +1.1 share in MULC and +1.4 share in MULO.

IRI Data : YTD 2014 Ending 07.13.14IRI’s definition of Total BA Craft excludes Yuengling

Page 20: Hitting New Highs in the High-End - Brewers Association€¦ · Hitting New Highs in the High-End Mid-Year 2014 Beer Category and Craft Beer Review Dan Wandel Principal, Beverage

Copyright © 2014 Information Resources, Inc. (IRI). Confidential and Proprietary. 20

Beverage Alcohol Sales Trends by Individual Channel

Total US - Food Total US - Drug Total US - ConvSum of Total Liquor Stores-RMA - Liquor

Dollar Sales % Chg. YA

Volume Sales % Chg YA

Dollar Sales % Chg. YA

Volume Sales % Chg YA

Dollar Sales %Chg YA

Volume Sales % Chg YA

Dollar Sales %Chg YA

Volume Sales % Chg YA

CATEGORY – BEER 4.9% 1.9% 5.2% 1.7% 3.4% 1.0% 12.2% 8.1%

DOMESTIC SUPER PREMIUM 8.5% 6.7% 10.8% 7.5% 13.6% 10.1% 10.1% 4.8%

DOMESTIC PREMIUM -0.3% -1.2% 2.0% 0.1% 0.2% -0.5% 5.7% 4.7%

DOMESTIC SUB-PREMIUM -1.4% -2.7% 0.2% -1.2% -2.6% -3.2% -0.1% -2.3%

IMPORT 3.5% 2.3% 6.2% 2.8% 13.1% 10.5% 9.6% 8.2%

TOTAL BA CRAFT 23.2% 20.0% 27.6% 22.6% 30.4% 27.3% 29.5% 29.2%

CRAFT (IRI DEFINITION) 20.5% 17.1% 24.4% 19.6% 31.6% 28.6% 27.9% 27.7%

CIDER 62.1% 63.8% 252.7% 244.6% 172.2% 170.3% 42.9% 39.9%

PAB's 4.5% 2.4% 21.5% 18.1% 3.5% 2.9% 8.3% -2.5%

DOMESTIC MALT LIQUOR 1.7% 0.9% 1.4% 0.5% 2.5% 0.0% -4.1% -6.5%

NON-ALCOHOLIC 0.6% -2.5% -8.8% -11.7% 8.7% 5.3% 13.3% 11.0%

STILL WINE 3.4% 0.9% 7.6% 2.8% 13.0% 10.5% 4.7% 1.0%

SPIRITS 1.3% -1.2% 6.1% 4.2% 16.2% 21.5% 12.7% 10.2%

CATEGORY - COOLERS 0.8% 1.6% 10.2% 8.0% 17.8% 19.1% 9.9% 7.3%

Beer Category Dollar and Volume Sales trends have increased compared to year ago across the key IRI Off-Premise channels

IRI Data : YTD 2014 Ending 07.13.14 IRI’s definition of Total BA Craft excludes Yuengling

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Copyright © 2014 Information Resources, Inc. (IRI). Confidential and Proprietary. 21

Segment Dollar Share of Beer Category 2009–2014 YTDTotal U.S. Supermarkets

High-End Beer Segments now account for more than half of Total Beer Category Dollar Sales in Supermarkets at 50.6. This is +2.0 share points from YE 2013.

IRI Data : YTD 2014 Ending 07.13.14

8.26 9.43 10.81 11.93 13.46 14.330.37 0.45 0.56 0.91 1.55 1.99

42.29 41.75 40.54 38.69 37.03 35.67

15.51 15.04 14.38 13.37 12.31 11.77

8.46 8.38 8.75 10.15 10.46 10.73

19.84 19.55 19.59 19.30 19.01 19.13

3.21 3.36 3.31 3.58 4.15 4.38

2.01 1.96 1.90 1.82 1.70 1.67

2009 2010 2011 2012 2013 YTD 2014

NA's and MALT

PAB's

IMPORT

DOM SUPER PREMIUM

DOM SUB-PREMIUM

DOM PREMIUM

CIDER

CRAFT

Page 22: Hitting New Highs in the High-End - Brewers Association€¦ · Hitting New Highs in the High-End Mid-Year 2014 Beer Category and Craft Beer Review Dan Wandel Principal, Beverage

Copyright © 2014 Information Resources, Inc. (IRI). Confidential and Proprietary. 22

Beer Category & Segments – Wks, Any Merch SupportTotal U.S. - Supermarkets

Beer Category Merchandising Support has increased this year in Supermarkets with Cider, PAB’s and Craft experiencing the largest increases over year ago.

IRI Data : YTD 2014 Ending 07.13.14

22.8

21.7

20.7

20.4

19.4

18.5

18.5

14.6

3.7

2.9

22.6

21.4

20.5

20.0

18.8

18.2

17.9

11.2

4.2

2.5

BEER

DOMESTIC PREMIUM

IMPORT

DOM SUP PREMIUM

CRAFT

DOM SUB-PREMIUM

PABs

CIDER

NON-ALCOHOLIC

DOMESTIC MALT LIQUOR

Current

Year Ago

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Copyright © 2014 Information Resources, Inc. (IRI). Confidential and Proprietary. 23

2014 Key Beer Holiday Sales RecapTotal U.S. - Supermarkets

Craft was the clear winner in terms of both Dollar and Case Sales increases compared to year ago for both the Memorial Day and 4th of July Holidays

*2 wks ending 06.01.2014 **2 wks ending 07.06.2014

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Copyright © 2014 Information Resources, Inc. (IRI). Confidential and Proprietary. 24

ANHEUSER-BUSCH INBEV (1)

MILLERCOORS BREWING (2)

CONSTELLATION BEER (3)

HEINEKEN USA INC (4)

BOSTON BEER CO (5)

DIAGEO GUINNESS USA (6)

PABST BREWING CO (7)

D G YUENGLING & SON INC (8)

MARK ANTHONY BRANDS INC (9)

SIERRA NEVADA BREWING CO (10)

NEW BELGIUM BREWING COMPANY (11)

NORTH AMERICAN BREWERIES (12)

CRAFT BREW ALLIANCE INC (13)

THE GAMBRINUS COMPANY (14)

THE LAGUNITAS BREWING COMPANY (15)

Top 15 Beer Vendors – Based on Dollar SalesTotal U.S. - Supermarkets

Dollar Sales Dollar Share of Category

Current % Chg vs YA Current Chg vs YA

$1,884,605,625 1.1% 37.19 -1.39

$1,235,831,102 2.1% 24.38 -0.66

$398,908,997 8.9% 7.87 0.29

$295,790,714 2.9% 5.84 -0.11

$167,596,952 31.5% 3.31 0.67

$102,321,054 -4.2% 2.02 -0.19

$87,266,938 -1.1% 1.72 -0.10

$72,174,665 6.3% 1.42 0.02

$71,305,800 1.6% 1.41 -0.05

$65,535,004 9.6% 1.29 0.06

$61,191,337 41.2% 1.21 0.31

$57,316,481 -6.4% 1.13 -0.14

$50,830,343 6.4% 1.00 0.01

$34,374,842 6.9% 0.68 0.01

$28,700,335 63.2% 0.57 0.20

IRI Data : YTD 2014 Ending 07.13.14

Six Vendors (ABI, MillerCoors, Constellation Beer, Boston Beer, New Belgium and Lagunitas) achieved Actual Dollar Sales Growth > $10MM vs Year Ago

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Copyright © 2014 Information Resources, Inc. (IRI). Confidential and Proprietary. 25

BUD LIGHT (1)

COORS LIGHT (2)

MILLER LITE (3)

BUDWEISER (4)

CORONA EXTRA (5)

MICHELOB ULTRA LIGHT (6)

HEINEKEN (7)

NATURAL LIGHT (8)

BUSCH LIGHT (9)

MODELO ESPECIAL (10)

MILLER HIGH LIFE (11)

CORONA LIGHT (12)

BUSCH (13)

STELLA ARTOIS LAGER (14)

BLUE MOON BELGIAN WHITE ALE (15)

Top 15 Beer Brands Based on Dollar SalesTotal U.S. – Supermarkets

Modelo Especial is the #10 Beer Brand ranked by Dollar Sales in Supermarkets, having passed Miller High Life. Corona Light also moved up one spot to #12

Dollar Sales Dollar Share of Category

Current % Chg vs YA Current Chg vs YA

$644,775,028 1.5% 12.72 -0.43

$346,363,249 -0.9% 6.83 -0.40

$292,201,975 1.6% 5.77 -0.19

$242,066,838 -1.1% 4.78 -0.29

$205,753,617 4.9% 4.06 0.00

$138,078,111 11.1% 2.72 0.15

$114,487,113 0.0% 2.26 -0.11

$109,639,019 -2.0% 2.16 -0.15

$101,999,225 5.7% 2.01 0.02

$84,392,467 25.1% 1.67 0.27

$70,279,669 -4.0% 1.39 -0.13

$68,398,948 3.5% 1.35 -0.02

$64,751,125 1.1% 1.28 -0.05

$60,319,139 9.4% 1.19 0.05

$54,446,247 2.7% 1.07 -0.02

IRI Data : YTD 2014 Ending 07.13.14

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Historical Light Beer Share of Total Beer SalesTotal U.S. MULO + Convenience

YTD 2014 Total Light Beer* Share of Beer Category Sales by Channel:

Total US Food – Light Beer Case Share = 47.8, Chg vs YA (1.5); $ Share = 40.4, Chg vs YA (1.9)

Total US Conv – Light Beer Case Share = 56.6, Chg vs YA (1.3); $ Share = 53.3, Chg vs YA (1.8)Total US Drug – Light Beer Case Share = 52.3, Chg vs YA (0.7); $ Share = 47.5, Chg vs YA (1.3)

*Total Light Beers (Excl PAB Light Brands)IRI Data : YTD 2014 Ending 07.13.14

42.00

44.00

46.00

48.00

50.00

52.00

54.00

56.00

58.00

60.00

01-3

0-1

1

02-2

7-1

1

03-2

7-1

1

04-2

4-1

1

05-2

2-1

1

06-1

9-1

1

07-1

7-1

1

08-1

4-1

1

09-1

1-1

1

10-0

9-1

1

11-0

6-1

1

12-0

4-1

1

01-0

1-1

2

01-2

9-1

2

02-2

6-1

2

03-2

5-1

2

04-2

2-1

2

05-2

0-1

2

06-1

7-1

2

07-1

5-1

2

08-1

2-1

2

09-0

9-1

2

10-0

7-1

2

11-0

4-1

2

12-0

2-1

2

12-3

0-1

2

01-2

7-1

3

02-2

4-1

3

03-2

4-1

3

04-2

1-1

3

05-1

9-1

3

06-1

6-1

3

07-1

4-1

3

08-1

1-1

3

09-0

8-1

3

10-0

6-1

3

11-0

3-1

3

12-0

1-1

3

12-2

9-1

3

Share within Total US Multi Outlet + Convenience

Dollar Share Case Share

Dollar Share of Category

Case Share of Category

52 wks ending Jan 2, 2011 54.41 57.91

52 wks ending Jan 1, 2012 53.15 56.91

52 wks ending Dec 30, 2012 52.87 56.88

52 wks ending Dec 29, 2013 50.40 55.10

2014 YTD ending July 13, 2014 48.92 53.95

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9 Beer Vendors with New Product Sales > $1MMTotal U.S. - Supermarkets

*American Vintage Beverage owned by Mark Anthony Brands

On pace to see as many as 11 Vendors achieve > $1MM in New Product Sales in 2014

IRI Data : YTD 2014 Ending 07.13.14

Total New Beer Product Case Sales = 3.9MM

Total New Beer Product Dollar Sales = $126.1MM

$47,418,883

$26,090,332

$10,960,163

$6,467,497

$5,045,640

$4,203,404

$3,545,086

$1,524,432

$1,116,575

ANHEUSER-BUSCH INBEV

MILLERCOORS BREWING

BOSTON BEER CO

MARK ANTHONY BRANDS INC

HEINEKEN USA INC

SIERRA NEVADA BREWING CO

NEW BELGIUM BREWING COMPANY

DESCHUTES BREWERY

AMERICAN VINTAGE BEVERAGE INC.

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Top 15 New Beer BrandsTotal U.S. - Supermarkets

• ABI (6) and MillerCoors (4) combine for 10 of the Top 15 new beer brands• PAB’s have 4 of the top 15 new brands, while Craft and Cider each have 3 brands

IRI Data : YTD 2014 Ending 07.13.14

$16,389,054

$16,286,206

$12,066,259

$10,218,768

$6,172,241

$5,791,204

$4,376,540

$4,182,303

$3,720,124

$2,643,943

$2,317,877

$2,192,427

$2,165,854

$1,667,588

$1,483,906

BUD LIGHT LIME MANG O RITA (1)

BUD LIGHT LIME RAZ BER RITA (2)

MILLER FORTUN SPIRITD GOLDN LAGR (3)

SAMUEL ADAMS REBEL IPA (4)

COORS LIGHT SUMMER BREW (5)

BUD LIGHT LIME MIX A RITA (6)

REDDS VARIETY PACK (7)

SIERRA NEVADA VARIETY PACK (8)

SMITH AND FORGE HARD CIDER (9)

JOHNNY APPLESEED APPLE HARD CIDR (10)

NEW BELGIUM SNAPSHOT WHEAT (11)

DOS EQUIS XX DOS A RITA (12)

STRONGBOW GOLD APPLE HARD CIDER (13)

BUSCH SIGNATURE COPPER LAGER (14)

SHOCK TOP HONEY BOURBON CASK WHT (15)

Dollar Sales

Year

# of New Beer

Brands

Total New Beer Brand Case Sales

Top New Beer Brand (Based on $ Sales)

YTD 2014 416 3,499,903 Bud Light Lime Mango Rita

2013 530 5,473,905 Bud Light Lime Straw Ber Rita

2012 415 6,953,181 Bud Light Platinum Lager

2011 362 1,382,057 Shock Top Raspberry Wheat Ale

2010 357 1,843,293 Smirnoff Blueberry & Lemonade

2009 198 2,053,440 Bud Light Golden Wheat

2008 173 4,898,477 Bud Light Lime

2007 141 2,997,697 Miller Chill

2006 193 1,380,051 CM Parrot Bay Wave Runner

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Top Gluten Sensitive Beer Brands by Dollar SalesTotal U.S. Multi-Outlet + Convenience

Gluten Sensitive Beer Dollar Sales are just over $8MM. This is +37.2% vs YA

1.4% 44.6 -15.8 104,664 -0.7% SUPER PREM

154.3% 29.0 13.4 62,722 149.9% CRAFT

112.2% 11.8 4.2 25,172 107.1% CRAFT

26.3% 4.5 -0.4 10,055 26.1% CRAFT

67.4% 3.3 0.6 5,538 68.7% IMPORT

-3.8% 1.6 -0.7 3,285 -4.9% CRAFT

154.6% 1.5 0.7 3,062 148.2% CRAFT

-23.0% 0.9 -0.7 1,371 -23.4% CRAFT

-18.7% 0.7 -0.5 1,112 -19.2% CRAFT

-28.0% 0.4 -0.4 684 -28.0% CRAFT

13.0% 0.5 -0.1 385 11.5% IMPORT

-12.4% 0.5 -0.3 364 -14.1% IMPORT

8.6% 0.4 -0.1 339 8.4% IMPORT

141.4% 0.1 0.1 221 161.7% CRAFT

461.0% 0.0 0.0 96 446.9% CRAFT

REDBRIDGE

OMISSION PALE ALE

OMISSION LAGER

LAKEFRONT NEW GRIST

ESTRELLA DAMM DAURA PREMIUM LAGR

BARDS TALE DRAGON GOLD

TWO BROTHERS PRAIRI PTH GOLDN ALE

NEW PLANET OFF GRID PALE ALE

NEW PLANET TREAD LIGHTLY ALE

NEW PLANET 3R RASPBERRY ALE

GREENS QUEST TRIPEL ALE

GREENS DISCOVERY AMBER ALE

GREENS ENDEAVOUR DUBBEL ALE

NEW PLANET BELGIAN ALE

OMISSION IPA

Dollar % Chg YA

Dollar Share

Dollar Share Chg

Case Sales

Case Sales $ Chg YA Segment

IRI Data : 26 Weeks Ending 07.06.14

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Number of Beer Brands by Segment Total U.S. Multi-Outlet + Convenience

In 2014, Craft and Cider have already surpassed their number of brands that were selling in 2013 (based on brands selling > 1 case).

57 60 63 63116 113 102 92

748 801 801 765

2669

3109

3451 3493

125 130 134 122215 220

231 216

101 144 193 197

2011 2012 2013 YTD 2014

Premium Sub Premium Import Craft Super Premium PAB Cider

Total Brands 4,577

Total Brands 4,975

Total Brands 4,948

Total Brands 4,031

IRI Data : 26 Weeks Ending 07.06.14

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Beer SKUs by Segment Total U.S. Multi-Outlet + Convenience

As of mid-year, Craft and Cider segments have also already surpassed their SKU numbers in 2013 (based on SKU’s selling > 1 case)

561 574 591 563548

529 505 481

1576 1648 1659 1568

3971

4577

5048 5065

378 398 429 415436 452

475 439

159 231 299 317

2011 2012 2013 YTD 2014

Premium Sub Prem Import Craft Sup Prem PAB Cider

Total SKUs 8,409

Total SKUs 9,006

Total SKUs 8,848

Total SKUs 7,629

IRI Data : 26 Weeks Ending 07.06.14

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Beer SKU EfficiencyTotal U.S Multi-Outlet + Convenience

Total Dollars: $15,187,832,243 Total # of SKUs: 9,499

0

10

20

30

40

50

60

70

80

90

100

1

190

379

568

757

946

1135

1324

1513

1702

1891

2080

2269

2458

2647

2836

3025

3214

3403

3592

3781

3970

4159

4348

4537

4726

4915

5104

Do

llar S

hare o

f T

ota

l

Number of SKUs

80%

IRI Data : 26 Weeks Ending 07.06.14

Share # SKUs

20 13

40 45

60 114

80 312

100 5,741

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Craft SKU EfficiencyTotal U.S. Multi Outlet + Convenience

0

10

20

30

40

50

60

70

80

90

100

1

190

379

568

757

946

1135

1324

1513

1702

1891

2080

2269

2458

2647

2836

3025

3214

3403

3592

3781

3970

4159

4348

4537

4726

4915

5104

Do

llar S

hare o

f T

ota

l

Number of SKUs

80%

Total Dollars: $1,055,036,209 Total # of SKUs: 5,279

Share # SKUs

20 10

40 41

60 132

80 418

100 4,162

IRI Data : 26 Weeks Ending 07.06.14

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34

2014 Mid-Year Off-Premise Craft Beer Review

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Beer Category & Craft Segment Historical Dollar Sales TrendsTotal U.S. - Supermarkets

Craft is on pace to achieve its 9th consecutive year of double-digit percent Dollar Sales growth in Supermarkets dating back to 2006

IRI Data : YTD 2014 Ending 07.13.14

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Top 15 BA Craft Vendors Based on Dollar SalesTotal U.S. Supermarkets

Dollar Sales % Chg YA

Dollar Share of

Craft

Dollar Share

Chg YA

12.0% 14.0% -1.1%

9.6% 9.0% -0.9%

41.2% 8.4% 1.2%

6.9% 4.7% -0.6%

63.2% 4.0% 1.0%

13.1% 3.3% -0.2%

29.8% 2.2% 0.2%

34.5% 2.1% 0.2%

39.6% 1.6% 0.2%

24.0% 1.5% 0.0%

19.0% 1.3% 0.0%

14.1% 1.1% -0.1%

5.8% 1.1% -0.1%

19.7% 1.0% 0.0%

61.2% 1.0% 0.3%

IRI Data : YTD 2014 Ending 07.13.14

New Belgium Brewing and Lagunitas Brewing are the two top Dollar Share gainers within the Top 15 BA Craft Vendors to date

$101,837,754

$65,550,458

$61,191,945

$34,372,740

$28,703,353

$23,937,805

$15,673,782

$15,300,327

$11,391,371

$10,850,357

$9,795,481

$8,056,373

$7,711,416

$7,519,435

$7,212,330

BOSTON BEER CO (1)

SIERRA NEVADA BREWING CO (2)

NEW BELGIUM BREWING COMPANY (3)

THE GAMBRINUS COMPANY (4)

THE LAGUNITAS BREWING COMPANY (5)

DESCHUTES BREWERY (6)

BELLS BREWERY INC (7)

STONE BREWING CO. (8)

SWEETWATER BREWING COMPANY LLC (9)

DOGFISH HEAD CRAFT BREWERY (10)

DUVEL USA CRAFT (11)

GREAT LAKES BREWING CO. (12)

ABITA BREWING CO INC (13)

NINKASI BREWING COMPANY (14)

FIRESTONE WALKER BREWING COMPANY (15)

Dollar Sales

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Top 15 New BA Craft Vendors Selling in IRI Tracked Supermarkets

621 Total Craft Vendors selling in Total U.S. Supermarkets YTD 2014 compared to 595 in 2013 and 484 in 2012.

IRI Data : YTD 2014 Ending 07.13.14

$84,449

$76,896

$71,128

$53,618

$45,144

$26,944

$26,211

$26,163

$24,433

$21,207

$19,073

$16,242

$14,952

$12,700

$12,502

PISGAH BREWING COMPANY

RHINEGEIST BREWERY

OLD BUST HEAD BREWING COMPANY

THE SPENCER BREWERY LLC

PRAIRIE ARTISAN ALES

GREAT RAFT BREWING

GREAT SOUTH BAY BREWERY

PIZZA PORT BREWING COMPANY

TRACK SEVEN BREWING CO

GRAPEVINE CRAFT BREWERY

WOLF HILLS BREWING CO

PETOSKEY BREWING

OCEANSIDE ALE WORKS

DESTIHL BREWERY

HOLY CITY BREWING COMPANY

Location

Black Mountain, NC

Cincinnati, OH

Warrenton, VA

Spencer, MA

Tulsa, OK

Shreveport, LA

Bay Shore, NY

Solana Beach, CA

Sacramento, CA

Farmers Branch, TX

Abingdon, VA

Petoskey, MI

Oceanside, CA

Normal, IL

North Charleston, SC

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Top 15 BA Craft Brands Based on Dollar SalesTotal U.S. - Supermarkets

Samuel Adams Rebel IPA is already a Top 10 BA Craft Brand based on Dollar Sales YTD

IRI Data : YTD 2014 Ending 07.13.14

SIERRA NEVADA PALE ALE (1)

SAMUEL ADAMS SEASONAL (2)

SAMUEL ADAMS BOSTON LAGER (3)

NEW BELGIUM FAT TIRE AMBER ALE (4)

SIERRA NEVADA TORPEDO EXTRA IPA (5)

SAMUEL ADAMS VARIETY PACK (6)

SHINER BOCK (7)

LAGUNITAS INDIA PALE ALE (8)

SAMUEL ADAMS REBEL IPA (9)

NEW BELGIUM RANGER IPA (10)

SIERRA NEVADA SEASONAL (11)

NEW BELGIUM VARIETY PACK (12)

BELLS SEASONAL (13)

NEW BELGIUM SEASONAL (14)

STONE INDIA PALE ALE (15)

Dollar Sales Dollar Share of Craft

YTD % Chg YA YTD Chg YA

$32,949,134 3.5% 4.5% -0.7%

$32,688,041 23.4% 4.5% 0.1%

$27,070,646 6.4% 3.7% -0.5%

$23,522,835 25.6% 3.2% 0.1%

$16,408,884 7.5% 2.3% -0.3%

$16,068,277 -12.4% 2.2% -0.8%

$15,673,558 8.3% 2.2% -0.2%

$13,480,385 70.9% 1.9% 0.5%

$10,218,768 1.4% 1.4%

$9,728,767 30.9% 1.3% 0.1%

$9,370,608 -6.3% 1.3% -0.4%

$8,594,734 70.7% 1.2% 0.3%

$7,574,778 22.0% 1.0% 0.0%

$7,405,039 37.8% 1.0% 0.1%

$5,579,549 17.7% 0.8% 0.0%

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Top 15 New BA Craft Beer BrandsTotal U.S. Supermarkets

Year BrandDollar Sales

YTD 2014 Samuel Adams Rebel IPA $10,218,768

2013 New Belgium Rampant Imperial IPA $3,942,500

2012 Deschutes Chain breaker White IPA $2,601,975

2011 Kona Variety Pack $2,115,495

2010 New Belgium Ranger IPA $5,495,092

2009 Sierra Nevada Torpedo Extra IPA $3,938,139

2008 Samuel Adams Irish Red $1,623,497

2007 Alaskan IPA $653,389

2006 Deschutes Inversion IPA $1,353,956

IRI Data : YTD 2014 Ending 07.13.14

Samuel Adams Rebel IPA is the best selling new craft brand over the last 10 yearsDeschutes has three of the top 15 new BA Craft Brands

$10,218,768

$4,182,303

$2,317,877

$1,072,275

$760,057

$389,219

$281,008

$253,598

$240,970

$150,978

$148,274

$135,316

$123,951

$122,255

$111,494

SAMUEL ADAMS REBEL IPA (1)

SIERRA NEVADA VARIETY PACK (2)

NEW BELGIUM SNAPSHOT WHEAT (3)

DESCHUTES FRESH SQUEEZED IPA (4)

STONE GO TO IPA (5)

OMMEGANG GAME OF THRONS FIR & BLD (6)

DOGFISH HEAD NAMASTE WITBIER (7)

CIGAR CITY INVASION PALE ALE (8)

ANCHOR IPA (9)

ROGUE HONEY CREAM ALE (10)

STONE STOCHASTCTY PRJCT GRPFRT S (11)

FLYING DOG DD RIS OLD BY SMMR ALE (12)

DESCHUTES ARMORY XPA (13)

SAMUEL ADAMS TETRAVIS ALE (14)

DESCHUTES MIRROR MRRR BRLY WN ALE (15)

Dollar Sales

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Top 15 New BA Craft Beer PackagesTotal U.S. Supermarkets

IRI Data : YTD 2014 Ending 07.13.14

Total Craft New Product Dollar Sales

YTD 2014 $32,770,451

2013 $42,021,402

2012 $42,969,648

2011 $20,637,476

2010 $15,387,487

2009 $20,750,750

Total Can sales for new products is $5.8MM for YTD 2014Total Glass bottle sales for new products is $26.8MM for YTD 2014

$6,007,075

$4,187,650

$4,181,989

$2,310,240

$1,208,330

$1,067,942

$756,961

$542,299

$441,714

$409,029

$389,219

$343,297

$281,008

$253,598

$237,860

SAMUEL ADAMS REBEL IPA 12-PACK 11-12OZ BTL

SAMUEL ADAMS REBEL IPA 6-PACK 11-12OZ BTL

SIERRA NEVADA VARIETY PACK 12-PACK 11-12OZ BTL

NEW BELGIUM SNAPSHOT WHEAT 6-PACK 11-12OZ BTL

NEW BELGIUM VARIETY PACK 12-PACK 12OZ CAN

DESCHUTES FRESH SQUEEZED IPA 6-PACK 11-12OZ BTL

STONE GO TO IPA 6-PACK 11-12OZ BTL

FOUNDERS ALL DAY IPA 15-PACK 12OZ CAN

SWEETWATER 420 PALE ALE 12-PACK 12OZ CAN

BELLS TWO HEARTED ALE 4-PACK 16OZ CAN

OMMEGANG GAME OF THRONS FIR & BLD SINGLES 25.4OZ LNBTL

BELLS SEASONAL 4-PACK 16OZ CAN

DOGFISH HEAD NAMASTE WITBIER 6-PACK 11-12OZ BTL

CIGAR CITY INVASION PALE ALE 6-PACK 12OZ CAN

FOUNDERS CENTENNIAL IPA 12-PACK 12OZ CAN

Dollar Sales

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6PK 11-12OZ GLASS

12PK 11-12OZ GLASS

SINGLES 22OZ GLASS

6PK 12OZ CAN

12PK 12OZ CAN

4-PACK 11-12OZ GLASS

SINGLES 25-26OZ GLASS

4PK 16-16.9OZ CAN

SINGLES 11-12OZ GLASS

SINGLES 24OZ GLASS

Total Craft Beer Key Pack Size Dollar Sale TrendsTotal U.S. Supermarkets

$6,326,965

$4,111,556

$4,016,454

$3,633,183

$2,646,478

SIERRA NEVADA BREWING CO

NEW BELGIUM BREWING…

BOSTON BEER CO

OSKAR BLUES BREWERY

THE GAMBRINUS COMPANY

Top 5 Can Craft Vendors YTD 2014

TTL CRAFT GLASS

$ Sales % Chg YA

$674,432,909 17.5%

TTL CRAFT CAN

$ Sales % Chg YA

$51,418,281 79.4%

IRI Data : YTD 2014 Ending 07.13.14

Craft Cans share of Total Craft Dollar Sales increased by +2.3 points and is a 7.2 share of Total Craft Dollar Sales

Dollar Sales % Chg YA

$353,592,683 16.5%

$232,522,372 16.5%

$49,975,271 22.5%

$21,582,468 89.6%

$21,066,158 79.7%

$18,424,340 24.9%

$8,703,881 39.2%

$6,147,705 39.1%

$4,507,495 89.1%

$2,192,496 17.3%

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Top 10 Craft Beer StylesTotal U.S. Supermarkets

Dollar Sales % Chg YA

Dollar Share of

Craft

43.8% 23.3%

17.0% 14.9%

11.9% 10.0%

25.4% 8.6%

12.4% 5.5%

7.7% 4.8%

17.4% 3.4%

8.5% 2.6%

14.3% 2.0%

40.2% 1.7%

IPA’s continue to be the largest share gainer in Craft Styles with a +3.8 increase vs year ago. Variety and Special Releases are the next two largest Style gainers

IRI Data : YTD 2014 Ending 07.13.14

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Beer and Craft Dollar Sales % Change vs YATotal U.S. - Supermarkets

IRI Data : YTD 2014 Ending 07.13.14

CALIFORNIA

BEER 5.8%

CRAFT 20.7%

GREAT LAKES

BEER 3.2%

CRAFT 26.1%

MID SOUTH

BEER 6.4%

CRAFT 24.9%

NORTHEAST

BEER 4.2%

CRAFT 19.1%

PLAINS

BEER 6.0%

CRAFT 23.6%

SOUTH CENTRAL

BEER 3.4%

CRAFT 18.1%

SOUTHEAST

BEER 5.9%

CRAFT 26.6%

WEST

BEER 4.5%

CRAFT12.8%

TOTAL U.S. SUPERMARKETS

BEER 4.9%

CRAFT 20.5%

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Top 10 IRI-Tracked Food States Based on Craft Dollar Sales

Top 10 IRI-Tracked Food States for

Craft

Dollar Share of Category Dollar Sales

Current Change vs YA CurrentChange vs

YACalifornia 16.8 2.1 $134,331,059 $23,005,590

Washington 31.9 1.8 $60,172,638 $5,341,435

Oregon 35.4 2.2 $43,539,658 $5,280,721

Florida 8.5 2.1 $37,845,989 $10,656,995

Ohio 17.1 4.0 $35,353,078 $10,178,001

North Carolina 13.0 2.1 $35,296,602 $7,525,574

New York 15.8 2.2 $34,613,180 $5,465,025

Virginia 13.9 1.8 $31,958,615 $5,473,704

Michigan 16.8 2.8 $29,020,937 $5,604,041

Illinois 12.3 1.5 $22,528,415 $2,452,838

IRI Data : YTD 2014 Ending 07.13.14

Craft share of Total Beer Dollar Sales are > 2.0 in Six of its Top Seven Food StatesCraft Dollar Sales have Increased by 4 share points in Ohio to date

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Ohio State Supermarkets – Beer Category Overview

ANHEUSER-BUSCH INBEV

MILLERCOORS BREWING

D G YUENGLING & SON INC

BOSTON BEER CO

CROWN IMPORTS

HEINEKEN USA INC

GREAT LAKES BREWING CO.

NORTH AMERICAN BREWERIES

DIAGEO GUINNESS USA

NEW BELGIUM BREWING COMPANY

Top 10 Beer Vendors Dollar Sales

YTD % Chg YA

$72,594,816 2.3%

$51,660,941 3.0%

$10,685,275 -7.5%

$8,957,372 24.0%

$6,671,908 9.3%

$6,647,706 2.0%

$6,414,532 11.5%

$5,680,762 -6.0%

$4,685,799 -5.7%

$3,534,415 n/a

BUD BRAND FAMILY

MILLER LITE BRAND FAMILY

YUENGLING BRAND FAMILY

BUSCH BRAND FAMILY

COORS BRAND FAMILY

GREAT LAKES BRAND FAMILY

MICHELOB BRAND FAMILY

NATURAL BRAND FAMILY

CORONA BRAND FAMILY

SAMUEL ADAMS BRAND FAMILY

Top 10 Brand Families Dollar Sales

YTD % Chg YA

$34,742,135 -0.6%

$13,809,270 4.3%

$10,384,137 -6.5%

$9,934,542 4.2%

$8,912,559 5.5%

$6,414,532 11.5%

$5,896,021 6.8%

$5,851,632 0.5%

$5,752,368 9.6%

$5,592,645 12.5%

DOM PREM

34.8%

CRAFT

17.1%

DOM SUB-

PREM

15.1% IMPORT

13.0%

DOM SUPER

PREM

11.3%

PAB's

5.0%CIDER

2.4%

NA's

0.7%

MALT LIQ

0.6%

Segment Dollar Share of Beer Category

IRI Data : YTD 2014 Ending 07.13.14

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GREAT LAKES BREWING CO.

BOSTON BEER CO

NEW BELGIUM BREWING COMPANY

SIERRA NEVADA BREWING CO

BELLS BREWERY INC

ANHEUSER-BUSCH INBEV

ALLTECH'S LEXINGTON BREWING CO.

NORTH AMERICAN BREWERIES

CRAFT BREW ALLIANCE INC

DOGFISH HEAD BREWERY

Top 10 Craft Vendors

Ohio State Supermarkets – Craft Segment Review

GREAT LAKES BRAND FAMILY

SAMUEL ADAMS BRAND FAMILY

NEW BELGIUM BRAND FAMILY

SIERRA NEVADA BRAND FAMILY

BELLS BRAND FAMILY

GOOSE ISLAND BRAND FAMILY

KENTUCKY BRAND FAMILY

MAGIC HAT BRAND FAMILY

DOGFISH HEAD BRAND FAMILY

STONE BRAND FAMILY

Top 10 Craft Brand Families

GREAT LAKES

BREWING CO.

, 18.1%

BOSTON

BEER CO ,

15.8%

NEW

BELGIUM

BREWING

COMPANY , 10.0%

SIERRA

NEVADA

BREWING CO

, 5.8%

BELLS

BREWERY INC

, 3.5%

ALL OTHER

CRAFT

VENDORS,

46.7%

Dollar Sales

YTD % Chg YA

$6,414,532 11.5%

$5,592,645 12.5%

$3,534,415

$2,061,216 12.1%

$1,234,357 28.4%

$992,573 79.5%

$880,938 24.2%

$835,841 4.5%

$808,103 22.4%

$734,844 25.0%

Dollar Sales

YTD % Chg YA

$6,414,532 11.50%

$5,592,645 12.50%

$3,534,415

$2,061,216 12.10%

$1,234,357 28.40%

$992,573 79.50%

$880,938 24.20%

$795,974 9.30%

$734,844 25.00%

$726,575 50.50%

Segment Dollar Share of Craft Beer in Ohio

IRI Data : YTD 2014 Ending 07.13.14

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Ohio State Supermarkets – Craft Segment Review

Top Pack Size/Type Dollar SalesDollar

Sales % Chg YA

CRAFT 6PK 11-12OZ GLASS $20,289,743 37.7%

CRAFT 12PK 11-12OZ GLASS $7,230,130 24.4%

CRAFT 4PK 11-12OZ GLASS $3,286,514 24.7%

CRAFT SINGLES 22OZ GLASS $1,575,219 126.4%

CRAFT 6PK 12OZ CAN $1,016,259 129.5%

CRAFT 12PK 12OZ CAN $602,594 312.3%

CRAFT SINGLES 25-26OZ GLASS $519,591 68.1%

CRAFT SINGLES 11-12OZ GLASS $393,170 55.0%

Top 5 Fastest Moving Craft Brands

Dollars per $MM

ACV

Category WtdDist

Dollar Share

of Craft

GREAT LAKES SEASONAL $137.31 91.69 7.4%

NEW BELGIUM FAT TIRE AMBER ALE $92.43 95.69 5.2%

SAMUEL ADAMS SEASONAL $88.79 97.99 5.1%

GREAT LAKES DORTMUNDER GOLD LAGR $58.87 83.50 2.8%

SAMUEL ADAMS BOSTON LAGER $55.21 97.14 3.2%

IRI Data : YTD 2014 Ending 07.13.14

Top Craft Styles Dollar SalesDollar Sales

Chg YADollar Sales % Chg YA

Dollar ShareDollar Share

Chg YA

TOTAL CRAFT SEASONAL $7,848,783 $1,971,559 33.5% 22.2% -1.0%

TOTAL CRAFT IPA $7,792,762 $3,105,158 66.2% 22.0% 3.5%

TOTAL CRAFT PALE ALE $2,833,852 $411,065 17.0% 8.0% -1.6%

TOTAL CRAFT VARIETY $2,607,314 $431,416 19.8% 7.4% -1.2%

TOTAL CRAFT AMBER ALE $2,131,979 $1,870,982 716.9% 6.0% 5.0%

TOTAL CRAFT AMBER LAGER $1,521,400 $85,475 6.0% 4.3% -1.4%

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Ohio Food Market Craft Observations

• The Dollar Sales trend for Craft in Ohio State Supermarkets is +39.9% vs year

ago compared to 20.2% in Total U.S. Supermarkets

• Of the four Ohio IRI Food Markets, Cleveland is where Craft has its largest share

of Total Beer Dollar Sales at 22.9

• Madtree Brewing and Rhinegeist Brewery, are helping to drive Craft 6-Pack 12oz

Cans to being the third best selling Craft Pack Type in Cincinnati/Dayton Supers.

They are also driving Craft Golden Ales Dollar Sales to be over $65K in this

market.

• Cans now have a 9.8 share of Total Craft Dollar Sales in Cincinnati/Dayton

Supermarkets. This is +3.4 vs YA. Columbus had the highest change vs YA for

Cans share of Total Craft Dollar Sales out of the Ohio Markets at +3.6.

• Columbus is the top selling Ohio Market for Craft Dollar Sales at $8.3MM

• Although Toledo is the smallest Ohio Market in terms of Craft’s Share of Total

Beer Dollar Sales, it has the highest sales percent change vs YA at +62%.

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Beer Category & Segment Trends and ShareTotal U.S. MULO and MULO + Convenience - 4 Weeks Ending Aug 10, 2014

Total US - Multi Outlet Total US - Multi Outlet + Conv

Dollar Sales % Chg YA

Dollar Share of Category

Case Sales % Chg YA

Case Share of Category

Dollar Sales % Chg YA

Dollar Share of Category

Case Sales % Chg YA

Case Share of Category

CATEGORY – BEER 3.5% 100.00 0.9% 100.00 2.7% 100.00 0.3% 100.00

DOMESTIC PREMIUM -0.5% 37.61 -1.1% 0.15 -1.0% 43.94 -1.6% 0.17

DOMESTIC SUB-PREMIUM -2.4% 12.14 -3.6% 0.06 -2.8% 15.25 -3.5% 0.08

DOMESTIC SUPER PREMIUM 5.1% 11.06 3.9% 0.03 6.8% 9.42 4.9% 0.03

TOTAL BA CRAFT 20.5% 9.92 17.9% 6.14 22.9% 6.15 19.9% 3.78

CRAFT (IRI DEFINITION) 17.4% 11.38 14.6% 0.02 19.6% 6.98 16.5% 0.02

IMPORT 3.9% 18.95 2.1% 0.05 7.9% 15.69 5.4% 0.04

PROGRESSIVE ADULT BEVERAGES 3.1% 5.42 1.1% 0.01 0.5% 5.56 -0.6% 0.01

CIDER 62.1% 1.89 64.1% 0.00 76.3% 1.22 78.4% 0.00

DOMESTIC MALT LIQUOR 1.7% 0.64 0.6% 0.00 1.6% 1.50 -0.7% 0.01

NON-ALCOHOLIC 0.5% 0.67 -3.0% 0.00 0.0% 0.33 -3.6% 0.00

IRI Data : 4 Weeks Ending 08.10.14

Beer Category Sales have slowed down in the latest 4 Week Period compared to the previous YTD Sales Trends in the Multi-Outlet channels

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4

Thank You!

Craft Brewers: Please continue to send me your current UPC lists and new package images to insure your products are accounted for by IRI from an Off-Premise sales perspective.

Please e-mail me at [email protected]

Dan WandelPrincipal, Beverage Alcohol Client Insights

IRI