Topics for Today

Current State of the Beer Union..

Where do I start with this crazy craft beer thing?

Pairing Beer and Food.

Beer and Food Centric programs.

Promotions.

The next level of Beer “o” logy.

Introduction

• Bios'• Adam Lambert

– VP Sales Dogfish Head Craft Brewery

• Zach Houlahan– Mid West East Regional Manager

• Senovia Ramirez– Beer Centric Food Guru

Current State of the Beer Union

• Courtesy of:• Bump Williams Consulting• Guest Metrics• IRI / Nielsen's• Brewers Association

BUMP Williams Consulting

Y/Y Growth (% ) -- Units 1Q13 2Q13 3Q13 4Q13 11/3/13 12/1/13 12/29/13Craft 3.8% 3.7% 6.0% 2.6% 3.0% 4.2% 4.2% 1.0%Premium Light -10.9% -10.2% -8.8% -12.4% -12.2% -10.9% -12.0% -14.1%Import -6.1% -7.3% -4.4% -6.0% -6.7% -5.5% -5.7% -9.0%Premium Regular -7.4% -6.5% -5.8% -8.8% -8.6% -7.2% -7.8% -11.3%Premium Plus -7.0% -6.7% -6.4% -7.2% -7.8% -6.4% -7.5% -9.7%Cider 48.9% 50.2% 56.1% 50.2% 41.2% 43.2% 43.6% 37.6%Other Tertiary Segments -3.2% -2.6% -0.3% -3.7% -6.6% -5.0% -6.0% -8.8%

Total Beer -4.0% -4.3% -1.9% -4.8% -5.2% -3.9% -4.5% -7.3%

Y/Y Growth (% ) -- Retail $ Sales 1Q13 2Q13 3Q13 4Q13 11/3/13 12/1/13 12/29/13Craft 7.1% 6.9% 9.6% 5.6% 6.2% 7.2% 7.5% 4.3%Premium Light -8.4% -7.6% -6.1% -10.0% -9.9% -8.6% -9.9% -11.5%Import -3.9% -5.1% -2.3% -3.7% -4.7% -3.6% -3.6% -6.9%Premium Regular -5.0% -5.1% -3.2% -6.2% -5.5% -4.0% -4.7% -8.0%Premium Plus -4.5% -4.2% -4.1% -4.8% -4.9% -3.6% -4.5% -6.5%Cider 48.9% 49.3% 56.3% 50.0% 41.7% 43.5% 44.3% 38.3%Other Tertiary Segments -0.2% 0.3% 3.2% -0.6% -3.8% -2.4% -3.0% -5.7%

Total Beer -0.7% -1.1% 1.6% -1.5% -1.9% -0.7% -1.1% -3.9%

Y/Y Growth (% ) -- Price/Mix 1Q13 2Q13 3Q13 4Q13 11/3/13 12/1/13 12/29/13Craft 3.3% 3.2% 3.6% 3.0% 3.2% 3.0% 3.3% 3.3%Premium Light 2.5% 2.6% 2.7% 2.4% 2.3% 2.4% 2.1% 2.6%Import 2.1% 2.2% 2.0% 2.2% 2.0% 1.9% 2.1% 2.0%Premium Regular 2.4% 1.4% 2.5% 2.6% 3.2% 3.1% 3.1% 3.4%Premium Plus 2.5% 2.5% 2.3% 2.4% 2.9% 2.8% 3.0% 3.2%Cider -0.1% -0.9% 0.2% -0.3% 0.5% 0.3% 0.7% 0.7%Other Tertiary Segments 3.1% 2.9% 3.4% 3.2% 2.8% 2.7% 3.0% 3.1%

Total Beer 3.3% 3.2% 3.5% 3.3% 3.3% 3.2% 3.4% 3.5%

4 weeks thru:

4 weeks thru:

4 weeks thru:2013

13 weeks thru:

201313 weeks thru:

201313 weeks thru:

Y/Y Growth (%) – by beer segment

Beer Segment 2013 TrendsOn-Premise

BUMP Williams Consulting

Dollar Sales TrendsYTD Ending December 29, 2013

Source: IRi Advantage YTD Ending Dec 29, 2013

Dollar Sales

$$ Sales % Chg

YA

Dollar Sales

$$ Sales % Chg

YA

Dollar Sales

$$ Sales % Chg

YA

Dollar Sales

$$ Sales % Chg

YA

Dollar Sales

$$ Sales % Chg

YABEER $29,858,283,001 3.2% $9,150,427,801 4.0% $1,245,144,520 3.3% $16,386,297,617 1.3% $559,858,949 12.1%PREMIUM $13,653,259,201 0.0% $3,392,352,887 -0.4% $566,824,526 1.2% $8,332,439,324 -0.7% $170,748,433 4.4%SUB PREMIUM $5,019,470,304 -3.7% $1,127,989,034 -4.1% $207,616,171 -3.6% $3,208,766,732 -5.2% $36,397,108 -2.8%IMPORT $4,397,827,977 5.7% $1,740,966,941 2.5% $286,039,766 5.1% $1,872,779,829 7.4% $144,558,662 9.2%SUPER PREMIUM

$2,593,123,979 8.7% $958,039,134 7.2% $86,628,057 3.5% $1,182,876,729 7.5% $45,445,730 16.0%CRAFT $1,893,742,117 19.2% $1,227,521,086 17.0% $56,354,457 16.1% $460,580,999 25.3% $131,144,708 28.8%PAB $1,464,232,260 21.0% $376,001,381 21.0% $30,000,532 85.0% $880,260,046 16.6% $14,196,238 19.4%MALT LIQUOR $491,180,543 -3.9% $78,810,412 -2.8% $6,927,875 -5.3% $394,537,627 -4.8% $3,093,059 -6.5%CIDER $212,708,824 101.2% $142,084,701 76.8% $3,407,129 266.1% $44,498,760 206.6% $11,102,245 56.5%NON ALCOHOLIC $101,266,014 -2.1% $76,676,338 -2.8% $1,271,248 -10.0% $9,131,826 -2.5% $3,154,224 11.8%

STILL WINE $8,974,477,964 5.6% $6,231,858,836 3.6% $579,540,211 7.7% $716,216,324 18.9% $764,332,020 7.6%TTL SPIRITS $5,435,933,860 5.6% $3,075,579,800 5.3% $757,953,462 6.0% $697,082,627 4.1% $1,598,910,005 11.8%COOLERS $140,850,800 9.3% $64,707,871 0.4% $3,497,345 31.4% $24,732,257 8.6% $2,119,139 4.6%

RMA-Sum of TTL LIQUORTOTAL U.S. - CONV

TOTAL U.S. - MULTI OUTLET + CONV TOTAL U.S. - FOOD TOTAL U.S. - DRUG

BUMP Williams Consulting

Beer Segment Case Share & TrendsTotal U.S. Multi Outlet + Conv

Case Share ofTotal Beer Category

Case Share of TotalBeer Category Chg YA

Beer Category Case Sales % Chg YA = +0.2%

PREMIUM48.6%

SUB PREMIUM23.5%

IMPORT11.1%

SUPER PREMIUM6.8%

CRAFT4.0%

PAB3.1%

MALT LIQUOR2.0%

CIDER0.4% NON ALCOHOLIC

0.3%

PREMIUM

SUB PREMIUM

IMPORT

SUPER PREMIUM

CRAFT

PAB

MALT LIQUOR

CIDER

NON ALCOHOLIC

(0.7)

(1.2)

0.4

0.3

0.6

0.5

(0.1)

0.2

(0.0)

Source: IRi Advantage YTD Ending Dec 29, 2013

BUMP Williams Consulting

Top 10 Craft StylesTotal U.S. Multi-Outlet + Convenience

Dollar Share ofTotal Craft Segment

Dollar Share ofTotal Craft Segment Chg YA

Craft Dollar Sales % Chg YA = +19.1%

IPA18.5%

SEASONAL17.8%

PALE ALE11.5%

VARIETY7.7%

AMBER ALE6.1%

AMBER LAGER5.8%

BOCKS4.4%

WHEAT BEER3.4%

OTHER PALE LAGERS

1.8%

SPEC RELSE/SPECLTY/COLL

1.7%

ALL OTHER CRAFT STYLES

21.4%

IPA

SEASONAL

PALE ALE

VARIETY

AMBER ALE

AMBER LAGER

BOCKS

WHEAT BEER

OTHER PALE LAGERS

SPEC RELSE/SPECLTY/COLL

3.2

-0.7

-0.4

0.0

-1.2

-0.4

-0.3

-0.2

0.3

0.1

Source: IRi Advantage, 52 Wks Ending 01/05/2014

Current State of Craft

• There are more than 2,700 craft breweries operating in the U.S., the highest total since the 1880s.

• In 2012, the most recent figures available, the industry provided an estimated 108,440 jobs in the country, according to the Brewers Association.

• Craft brewer retail dollar value in 2012 was an estimated $11.9 billion.

• Craft breweries have a few things working in their favor, perhaps the most important of which is a customer base that's financially well off. Nielsen reports that 58.9 percent of craft beer drinkers have annual incomes of $75,000 or more

Where do I start with this crazy craft beer thing?

– Starting small or diving in head first• Easing into things (The simple approach)

– Couple of beers– Right Pricing

• A little more complicated (Dipping in all your toes)– Few Breweries– Few styles– Few states

• Going all in (Take the bull by the horns!)– Dedicating Handles– Expanded bottle menu– More Styles, States, Breweries and Collecting

Where do I start with this crazy craft beer thing?

– What package size should I carry?• Draft

– Pro’s– Con’s

• Bottles and Cans– Small Format (12oz)

» Pro’s» Con’s

– Large Format (22oz and 750 ml)» Pro’s» Con’s

Where do I start with this crazy craft beer thing?

– What gives with all these styles and ABV’s• IPA’s, Pales, Amber’s Seasonal, Lagers, Wheat’s• Why care about ABV?• What’s working?

– How do I tell them I have craft beer?• Point of Sale Support

– Glassware– Signage– Menu’s

Pairing Beer and Food

• Choosing craft beer pairings that enhance one another requires attention to the dominant taste and flavor elements in each. When approaching pairing, success is often found by identifying the characteristics (taste elements, flavors, intensity and sensations) of the craft beer you plan to pair with.

Pairing Beer and Food

Pairing Beer and Food

• The dominant craft beer taste elements will contrast against the food’s taste elements, so that the beer and food flavors shine.– Sweet calms sweet - (allowing other flavors rise to the surface). Examples:

peas and carrots; milk and cookies; stout and vanilla ice cream floats.– Acidic calms salt – (acid cuts the salt and balances flavor to create a

“cleanness”). Examples: ceviche and tortilla chips; tomatoes and mozzarella cheese; pickles and a corned beef sandwich.

– Bitter calms sweet – (allowing other flavors rise to the surface). Example: the sweet of malted barley is calmed and balanced by the bitterness of hop alpha acids. Think: An India pale ale’s bitterness calms the sweetness of the icing on a carrot cake.

– Umami complements umami. Examples: mushrooms on fettuccine alfredo; parmesan cheese on spaghetti and meatballs; an aged old ale and holiday fruitcake.

Pairing Beer and Food

Beer and Food• Look for flavor bridges, where the flavors of craft beer can bridge to the flavors in

a food dish• This list represents a tiny sampling of common flavor groups, offering a suggested

pairing to help make the connections.– Group: Rosemary, juniper, pine, sprucePairing: American pale ale and rosemary-dusted

creamed chicken– Group: Brown sugar, butter, caramel, maple syrup, vanilla, coconut, toffeePairing: English-

style barley wine and blonde brownie with butterscotch sauce– Group: Mint, dill, basil, endive, coriander, fennel, parsley, lemongrass, bay leaves, oregano

Pairing: Belgian-style saison and white fish with lemon and dill– Group: Cinnamon, cumin, pepper, cardamom, ginger, clovePairing: Ginger porter with

Moroccan clove and ginger beef shish kebabs– Group: Date, fig, raisinPairing: Belgian-style strong dark ale and bacon wrapped dates– Group: Pineapple, tangerine, clementinePairing: American-style India pale ale and orange

chicken stir fry– Group: Chocolate, truffle, cocoa powderPairing: Milk stout and double chocolate cake

• Match strength with strength. Craft beer and food pairings are most successful when the intensity of the beer matches that of the dish. You don’t want the craft beer to outweigh the food and vice versa.

Beer and Food Centric Programs

– Pairings• Simple• Spring Board• Swan Dive

– Beer in food• Doing your own thing• Breweries doing their thing:

– Cheeses– Brats– Soups– Condiments– Breads

Beer and Food Centric Programs.

– Beer Dinners (In no order)• Style• Themed (Tapas, Samplings)• Chef’s Choice• Progressive• Brewery• Farm to table-Seasonality• Collaborations• Family Style-Blind Tasting• Breakfast, Lunch, Dinner, Desert• Social Media Dinners• AV Media Dinner• Wine vs. Beer Dinners

Beer Promotions.

• Why Promotions • Ideas (In No Order)

• Breweries• Style• States• Glassware• Beer Dinners• Beer Weeks• Tools of the trade (Randall’s, Mini Randall’s)• Collaborations• Music• Interactive• Flights

The next level of Beer “o” logy

• Vintage– The Art of buying old beer and serving it.

• Aging– Stashing your stash.

• Blending– Mixing different beers to make new flavors.

• Mixing– Craft spirits and craft beer.

Questions?

• Many thanks for your time and energy!• Cheers• Adam, Zach and Senovia