IRI Large Audience Template

CRAFT BEER U.S. MARKET REVIEW TO INFINITY AND BEYOND…

Dan Wandel Principle, Beverage Alcohol March, 5 2015 AGENDA

• Beer Category Off-Premise Overview

• Beer Category & Craft On-Premise Overview

• Craft Beer Off-Premise Review

• Craft IPA Style Deep Dive

• OND Sales Recap

• Beer Category Dollar and Case Sales increased in IRI’s Multi-Outlet Off- Premise universe, but at a slightly slower rate compared to 2013. Beer Sales Trends outpaced both Wine and Spirits for the first time since 2008 • In On-Premise, Beer sales trends were outpaced by both Spirits and Wine. • ABI continued its expansion into the Craft Segment by acquiring both 10 Barrel Brewing and Elysian Brewing. • News of ESOP’s and Private Equity investments amongst Craft Brewers were prevalent throughout 2014. • Number of Craft Vendors selling in IRI-tracked Supermarkets increased significantly again • Best ever Craft Brand Intro led to record year for new Craft product sales • Craft Can sales growth continued to increase dramatically in the Off-Premise • IPA sales and offerings showed no signs of slowing • Craft continues to win key holiday sales periods

 Beer Dollar Sales trends outpaced both Wine and Spirits sales trends for the first time since 2008. Dollar Trends

10.8% 5.2% 5.5% 6.7% 6.6% 4.5% 5.0% 5.1% 4.3% 5.7% 2.5% 2.7%

2011 2012 2013 2014 2011 2012 2013 2014 2011 2012 2013 2014

BEER TOTAL WINE SPIRITS Note: Spirits sold in WA State starting in 2012

Dollar Share of Bev Alc 2013 Dollar Share of Bev Alc 2014

SPIRITS SPIRITS 18.4% 18.2% BEER BEER TOTAL 49.0% TOTAL 49.1% WINE WINE 32.6% 32.7%

Source: IRI Infoscan Total US Multi-Outlet 52 Weeks Ending Jan 4, 2015 TOP 15 BEVERAGE ALCOHOL SALES GROWTH SEGMENTS ACTUAL DOLLAR SALES CHANGE VS YEAR AGO

 For the second straight year, Craft Beer led all Beverage Alcohol Segments in Dollar Sales Growth in Total US MULO Dollar Sales % Dollar Sales Chg YA

CRAFT - BEER $269,541,064 18.5% $1,729,698,215

($11.00-$14.99) TABLE WINE $163,549,860 15.1% $1,246,595,717 ($8.00-$10.99) TABLE WINE $140,013,294 6.7% $2,224,762,394 WHISKEY $127,677,286 9.1% $1,534,594,707

IMPORT - BEER $121,327,214 4.7% $2,683,566,938 SUPER PREMIUM - BEER $100,501,844 7.0% $1,528,782,507 CIDER - BEER $99,803,099 57.9% $272,133,422

($20.00+) TABLE WINE $50,653,788 16.3% $362,347,763 ($3.50-$4.99) BOX TABLE WINE $47,898,870 20.6% $280,854,342 PAB's - BEER $43,999,478 7.3% $643,226,253

($15.00-$19.99) TABLE WINE $38,968,528 9.0% $470,169,410 VODKA $38,052,972 2.7% $1,460,740,051

($8.00 - $12.99) SPARKLING WINE $32,703,399 9.5% $378,631,270 ($13.00 - $17.99) SPARKLING WINE $21,144,617 21.1% $121,273,488 COGNAC $12,199,582 14.7% $95,295,960

Source: IRI Infoscan Total US Multi-Outlet 52 Weeks Ending Jan 4, 2015 BEER CATEGORY & SEGMENT TRENDS AND SHARE TOTAL U.S. MULO AND MULO + CONVENIENCE

 Craft’s Dollar Share gains of Total Beer Sales achieved in 2014 were even more pronounced than those it achieved in 2013. Craft gained +1.5 in Total US MULO and +1.0 in Total US MULC in 2014 vs year ago.

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

Dollar Dollar Case Case Dollar Dollar Case Case Sales % Share of Sales % Share of Sales % Share of Sales % Share of Chg YA Category Chg YA Category Chg YA Category Chg YA Category

CATEGORY – BEER 4.5% 100.00 1.8% 100.00 3.7% 100.00 1.2% 100.00 CRAFT - BA DEFINITION* 21.3% 10.75 18.2% 6.68 23.3% 6.62 20.1% 4.07 CRAFT - IRI DEFINITION 18.5% 12.14 15.1% 7.64 20.5% 7.40 17.1% 4.61 CIDER 57.9% 1.91 59.3% 1.21 72.4% 1.20 73.5% 0.76 DOMESTIC MALT LIQUOR 2.0% 0.70 0.6% 0.90 2.6% 1.61 0.4% 2.00 DOMESTIC PREMIUM 0.1% 37.67 -0.6% 43.88 0.0% 44.04 -0.7% 47.61 DOMESTIC SUB-PREMIUM -1.5% 12.58 -2.7% 18.86 -2.5% 15.73 -3.4% 22.36 DOMESTIC SUPER PREMIUM 7.0% 10.73 5.5% 8.87 9.0% 9.19 7.0% 7.29 IMPORT 4.7% 18.84 3.4% 14.93 8.4% 15.39 6.5% 11.72 NON-ALCOHOLIC 1.0% 0.66 -2.3% 0.64 1.1% 0.33 -2.2% 0.32 PROGRESSIVE ADULT BEVERAGES 7.3% 4.52 4.8% 2.92 4.8% 5.00 3.6% 3.27

*BA Craft does not include the following Vendors: CBA, ABI, NAB, World Brews, Mendocino Brewing, Portland Brewing Co, D G Yuengling & Son. IRI’s Craft Definition also does not include D G Yuengling & Son.

Source: IRI Infoscan Total US Multi-Outlet and Total US Multi-Outlet + Convenience 52 Weeks Ending Jan 4, 2015 BEVERAGE ALCOHOL SALES TRENDS BY INDIVIDUAL CHANNEL

 Craft and Cider Segments achieved double-digit Dollar and Case Sales percent increases across all four channels

Sum Of Total Liquor Total US - Food Total US - Drug Total US - Conv Stores-RMA - Liquor

Dollar Dollar Dollar Dollar Case Sales Case Sales Case Sales Case Sales Sales % Sales % Sales % Sales % % Chg YA % Chg YA % Chg YA % Chg YA Chg YA Chg YA Chg YA Chg YA

CATEGORY – BEER 4.0% 1.0% 0.8% -2.5% 3.1% 0.7% 11.1% 7.6% CRAFT - BA DEFINITION 21.4% 18.4% 25.7% 21.1% 29.0% 25.9% 24.4% 21.9% CRAFT – IRI DEFINITION 18.3% 15.0% 22.9% 18.5% 26.6% 23.4% 23.2% 20.7% CIDER 49.3% 50.6% 202.0% 200.2% 123.4% 125.3% 36.7% 39.4% DOMESTIC MALT LIQUOR 0.3% -0.9% -1.1% -2.2% 2.8% 0.3% 4.7% 3.7% DOMESTIC PREMIUM -1.2% -1.9% -3.4% -5.1% -0.1% -0.7% 5.6% 4.9% DOMESTIC SUB-PREMIUM -3.0% -4.1% -4.7% -6.1% -3.0% -3.8% 2.7% 0.8% DOMESTIC SUPER PREMIUM 5.6% 4.5% 5.6% 3.3% 11.3% 8.8% 7.8% 3.6% IMPORT 3.3% 2.1% 3.4% 1.0% 13.3% 10.9% 7.7% 6.5% NON-ALCOHOLIC 1.1% -1.9% -7.8% -11.5% 1.7% -0.6% 11.0% 8.6% PROGRESSIVE ADULT BEVERAGES 5.6% 3.4% 14.3% 11.2% 3.2% 2.7% 10.1% 0.7%

TOTAL WINE 4.3% 1.4% 5.2% 1.4% 7.2% 5.7% 4.9% 2.0% SPIRITS 1.9% -1.1% 4.9% 2.3% 14.2% 16.0% 12.2% 10.7% COOLERS -0.1% 0.3% 1.3% -0.7% 6.6% 8.2% 11.4% 8.4%

Source: IRI Infoscan by channel 52 Weeks Ending Jan 4, 2015 SEGMENT DOLLAR SHARE OF BEER CATEGORY 2010 – 2014 TOTAL U.S. SUPERMARKETS

 Craft achieved nearly a +2 point increase in Share of Total Beer Dollar Sales gain vs YA. This topped its share increase of +1.5 achieved in 2013 vs 2012

1.95 1.90 1.82 1.69 1.64 NA's and MALT 3.36 3.30 3.58 4.16 4.23

PAB's 19.61 19.66 19.39 19.13 19.00

IMPORT 8.38 8.76 10.14 10.47 10.64

SUPER PREMIUM 15.02 14.33 13.34 12.23 11.40

SUB-PREMIUM

35.11 36.96 PREMIUM 41.73 40.51 38.67

2.26 CIDER 0.91 1.56 0.45 0.56 13.47 15.36 9.43 10.82 11.91 CRAFT

2010 2011 2012 2013 2014

Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 BEER CATEGORY & SEGMENTS’ MERCHANDISING SUPPORT TOTAL U.S. SUPERMARKETS

 Cider, Craft, PAB’s and Super Premium received the highest increases in merchandising support in 2014.

Weighted Weeks, Any Change vs YA Merch

CATEGORY - BEER 42.30 CATEGORY - BEER (0.01)

DOMESTIC PREMIUM 40.42 DOMESTIC PREMIUM 0.21

IMPORT 38.55 IMPORT 0.23

DOMESTIC SUP PREM 38.30 DOMESTIC SUP PREM 0.56

CRAFT CRAFT 36.34 0.77

PAB's 0.60 PAB's 34.67 DOMESTIC SUB-PREM (0.83) DOMESTIC SUB-PREM 33.32 CIDER 5.27 CIDER 28.71 NA's (0.72) NA's 6.69 MALT LIQUOR 0.12 MALT LIQUOR 5.25

Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 TOP 10 BEER VENDORS 2014 RANKED BY DOLLAR SALES TOTAL U.S. SUPERMARKETS

 Boston Beer and Constellation Beer achieved the largest Dollar Share gains amongst the Top 10 Beer Vendors in 2014

Dollar Dollar Dollar Dollar Sales Sales % Share Share Chg YA Chg YA

ANHEUSER-BUSCH INBEV $3,521,747,111 0.4% 36.49 -1.29

MILLERCOORS BREWING $2,329,829,230 0.4% 24.14 -0.85

CONSTELLATION BEER $753,328,443 7.1% 7.80 0.23

HEINEKEN USA INC $560,233,777 2.8% 5.80 -0.07

BOSTON BEER CO $354,342,671 21.9% 3.67 0.54

DIAGEO GUINNESS USA $186,069,406 -2.4% 1.93 -0.13

PABST BREWING CO $162,821,328 -2.6% 1.69 -0.11

D G YUENGLING & SON INC $137,036,321 6.7% 1.42 0.04

SIERRA NEVADA BREWING CO $132,047,262 13.1% 1.37 0.11

MARK ANTHONY BRANDS INC $131,289,375 0.3% 1.36 -0.05

Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 TOP 15 BEER BRANDS 2014 RANKED BY DOLLAR SALES TOTAL U.S. SUPERMARKETS

 Modelo Especial cracked the Top 10 Beer Brands by surpassing Miller High Life  Corona Light and Stella Artois both moved up one spot to #12 and #13

Dollar Dollar Dollar Dollar Sales Sales % Share Share Chg YA Chg YA BUD LIGHT $1,208,438,308 0.5% 12.52 -0.43 COORS LIGHT $654,003,217 -2.0% 6.78 -0.42 MILLER LITE $554,648,994 1.1% 5.75 -0.16 BUDWEISER $447,351,590 -2.5% 4.63 -0.31 CORONA EXTRA $381,877,352 2.7% 3.96 -0.05 MICHELOB ULTRA LIGHT $264,451,049 10.2% 2.74 0.15 HEINEKEN $218,697,055 1.1% 2.27 -0.06 NATURAL LIGHT $203,335,773 -2.5% 2.11 -0.14 BUSCH LIGHT $183,692,149 0.1% 1.90 -0.07 MODELO ESPECIAL $170,887,173 22.2% 1.77 0.26 MILLER HIGH LIFE $132,401,911 -3.2% 1.37 -0.10 CORONA LIGHT $124,464,863 2.1% 1.29 -0.02 STELLA ARTOIS LAGER $119,037,734 9.9% 1.23 0.07 BUSCH $118,509,234 -2.1% 1.23 -0.08 BLUE MOON BELGIAN WHITE ALE $103,508,682 1.9% 1.07 -0.02

Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 TOP BEER VENDORS - NEW PRODUCT DOLLAR SALES IN 2014 TOTAL U.S. SUPERMARKETS

 A record 18 Vendors generated over $1MM in new product sales in 2014

Dollar Sales

ANHEUSER-BUSCH INBEV $93,209,058 MILLERCOORS BREWING $57,725,908 BOSTON BEER CO $23,663,167 MARK ANTHONY BRANDS INC $15,364,914 SIERRA NEVADA BREWING CO $12,486,115 HEINEKEN USA INC $8,863,243 NEW BELGIUM BREWING COMPANY $8,320,550 DIAGEO GUINNESS USA $5,377,634 DESCHUTES BREWERY $4,578,654 CRAFT BREW ALLIANCE INC $4,049,406 • Total New Beer Product Sales NORTH AMERICAN BREWERIES $3,300,355 Case Sales = 8.7MM FOUNDERS BREWING CO $2,974,335 STONE BREWING CO. $2,907,173 SWEETWATER BREWING COMPANY LLC $2,655,667 • Total New Beer Product Sales AMERICAN VINTAGE BEVERAGE INC. $2,332,052 Dollar Sales = $281.5MM BELLS BREWERY INC $2,019,612 DUVEL MOORTGAT USA $1,228,251 CROSBY LAKE SPIRITS COMPANY $1,225,526

Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 CLASS OF 2014 TOP 15 NEW BEER BRANDS – DOLLAR SALES TOTAL U.S. - SUPERMARKETS

 ABI had the top selling new beer brand for the 4th year in a row  Samuel Adams Rebel IPA and Sierra Nevada Variety Pack were the top two new Craft Brands

Dollar Sales

BUD LIGHT LIME MANG O RITA $32,336,953 BUD LIGHT LIME RAZ BER RITA $27,451,132 SAMUEL ADAMS REBEL IPA $21,115,842 MILLER FORTUN SPIRITD GOLDN LAGR $18,617,215 SIERRA NEVADA VARIETY PACK $11,374,248 # of New Total New Top New Beer Brand REDDS VARIETY PACK $10,099,778 Year Beer Beer Brand (Based on $ Sales) Brands Case Sales COORS LIGHT SUMMER BREW $9,774,599 SMITH AND FORGE HARD CIDER $9,758,753 2014 612 7,403,257 Bud Light Lime Mang O Rita REDDS WICKED APPLE ALE $7,952,905 2013 530 5,473,905 Bud Light Lime Straw Ber Rita

JOHNNY APPLESEED APPLE HARD CIDR $7,802,765 2012 415 6,953,181 Bud Light Platinum Lager

BUD LIGHT LIME MIX A RITA $7,532,473 2011 362 1,382,057 Shock Top Raspberry Wheat Ale NEW BELGIUM SNAPSHOT WHEAT $4,530,928 2010 357 1,843,293 Smirnoff Blueberry & Lemonade GUINNESS BLONDE AMERICAN LAGER $4,260,432 2009 198 2,053,440 Bud Light Golden Wheat DOS EQUIS XX DOS A RITA $4,083,194 2008 173 4,898,477 Bud Light Lime BUSCH SIGNATURE COPPER LAGER $3,440,432

Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 CLASS OF 2011 BEER BRANDS REVISITED TOTAL U.S. SUPERMARKETS  Shock Top Seasonal has the highest Dollar Sales over the past three years  Only two of these brands had positive Dollar Sales trends in 2014

2014 Dollar Dollar Sales 2011 3 Year (2012-2014) Sales % (000’s) Dollar Sales (000’s) Chg. YA SHOCK TOP RASPBERRY WHEAT ALE $6,451 SHOCK TOP SEASONAL $13,001 -38.70% MIKES HARD RASPBERRY LEMONADE $2,634 SHOCK TOP VARIETY PACK $9,359 17.30% MGD LIGHT 64 LEMONADE $2,280 KONA ISLAND HOPPER VARIETY PACK $6,877 25.10% KONA VARIETY PACK $2,116 SHOCK TOP RASPBERRY WHEAT ALE $6,454 -25.40% SHOCK TOP SEASONAL $2,005 MIKES HARD BLK RASPBERRY… $2,463 -19.30% JEREMIAH WEED ROADHOUSE TEA $1,862 BRIDGEPORT KINGPIN DOUBLE RD… $1,056 -5.40% MARGARITAVILLE SPIKED LEMONADE $1,638 DOUBLE TAKE IPA $869 -47.10% MARGARITAVILLE SPIKED TEA $1,238 DOUBLE TAKE AMBER ALE $546 -51.30% DOUBLE TAKE IPA $1,203 SIERRA NEVADA BEER CAMP BEERS $116 -38.70% BRIDGEPORT KINGPIN DOUBLE RD ALE $1,070 JEREMIAH WEED ROADHOUSE TEA $5 -93.90% JEREMIAH WEED SPIKED COLA $1,036 MARGARITAVILLE SPIKED LEMONADE $2 -99.00% DOUBLE TAKE AMBER ALE $908 JEREMIAH WEED SPIKED COLA $2 -95.10% NEW BELGIUM BELGO IPA $591 MARGARITAVILLE SPIKED TEA $1 -99.30% SIERRA NEVADA BEER CAMP BEERS $522 NEW BELGIUM BELGO IPA $0 -100.00% SHOCK TOP VARIETY PACK $497 MGD LIGHT 64 LEMONADE $0 n/a

Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 ON-PREMISE CHANNEL OVERVIEW SPIRITS OUTPERFORMED OTHER ALCOHOL CATEGORIES, BUT ALL THREE ALCOHOL CATEGORIES LAGGED FOOD SALES

Y/Y $ Sales Growth by Food & Beverage Category (2014) 4%

3% 2.7% 1.8% 2% 1% 0.6% 0.1% 0% -1% -0.4%

-2% Food Spirits Wine Beer Non-Alc Bev

Source: GuestMetrics Full Year Ending Dec 31, 2014 SPIRITS TOOK SHARE FROM BEER, WHILE WINE SHARE WAS FLATTISH VERSUS THE PRIOR YEAR

Y/Y $ Share Change in Alcoholic Beverage Mix (2014) 0.4 0.4 0.3 0.2 0.1 0.0 -0.1 -0.1 -0.2 -0.3 -0.3 -0.4 Spirits Wine Beer

Source: GuestMetrics Full Year Ending Dec 31, 2014 HOWEVER… WHILE OVERALL BEER CONTINUES TO LOSE SHARE, CRAFT BEER CONTINUES TO AGGRESSIVELY INCREASE ITS SHARE OF TBA DOLLAR SALES AND IS NEARLY 2X THE GAINS ACHIEVED BY SPIRITS DURING 2014

Y/Y Change Alcohol Sales Mix (points) (2014 vs. 2013)

0.8 0.67 0.6 0.38 0.4 0.2 0.0 -0.2 -0.09 -0.4 -0.6 -0.8 -1.0 -0.95 -1.2 Beer -- Craft Spirits Wine Beer -- Other

GuestMetrics data reflects new definition of Total BA Craft which includes Yuengling

Source: GuestMetrics Full Year Ending Dec 31, 2014 CRAFT BEER MAKES UP NEARLY 10% OF TOTAL BEVERAGE ALCOHOL $ SALES AND ~27% OF TOTAL BEER $ SALES

Category Mix (by Retail $ Sales) -- Alcoholic Beverages (2014)

9.8% Beer -- Craft

Beer -- Other 42.8% 23.5%

Wine

Spirits 24.0%

GuestMetrics data reflects new definition of Total BA Craft which includes Yuengling

Source: GuestMetrics Full Year Ending Dec 31, 2014 CRAFT AND PREMIUM LIGHT ARE THE TWO LARGEST BEER SEGMENTS IN ON-PREMISE VOLUME-WISE

Share of Beer Category by Segment (% of total units sold, 2014) 30% 26.5% 26.3% 25%

20% 18.2%

15% 13.6%

9.9% 10%

5% 3.6% 1.9%

0% CRAFT PREMIUM IMPORT VALUE / PREMIUM PREMIUM CIDER LIGHT FMB / PLUS REGULAR OTHER

GuestMetrics data reflects new definition of Total BA Craft which includes Yuengling

Source: GuestMetrics Full Year Ending Dec 31, 2014 CRAFT AND CIDER SHARE GAINS HAVE COME PRIMARILY AT THE EXPENSE OF PREMIUM LIGHTS

Y/Y Change in Beer Volume Share -- by Segment (2014 vs. 2013)

2.5 2.1 2.0 1.5 1.0 0.5 0.5 0.0 -0.5 -0.1 -0.2 -0.2 -0.3 -1.0 -1.5 -2.0 -1.8 -2.5 CRAFT CIDER VALUE / PREMIUM IMPORT PREMIUM PREMIUM FMB / REGULAR PLUS LIGHT OTHER

GuestMetrics data reflects new definition of Total BA Craft which includes Yuengling

Source: GuestMetrics Full Year Ending Dec 31, 2014 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

Volume Mix by Style within Craft (2014)

25%

20% 19.2%

15%

11.2% 10.6%

10%

6.4%

5.7%

5.2%

4.6%

4.3%

3.8%

3.1%

2.8% 2.8%

5% 2.7%

2.1%

2.0%

1.9%

1.5%

1.2%

1.1%

0.9%

0.4%

0.2% 0.0%

SEASONALS

STOUT (ALE) STOUT

WHEAT (ALE)WHEAT

SAISON (ALE) SAISON

BROWN(ALE)

PALE(LAGER)

PORTER (ALE) PORTER

BOCK (LAGER) BOCK

SCOTTISH(ALE)

AMBER (LAGER)

(LAGER)

INDIA PALE (ALE) INDIA

PILSNER (LAGER) PILSNER

BELGIAN WIT (ALE) BELGIANWIT

AMBER / RED(ALE) AMBER /

OTHER / UNKNOWN

PALE / BITTER(ALE) PALE/ DARK (LAGER) ALT/

BELGIAN SOUR (ALE) BELGIANSOUR

BELGIAN OTHER (ALE) BELGIAN OTHER

DOPPELBOCK (LAGER) DOPPELBOCK

GOLDEN / KOLSCH (ALE) / KOLSCH GOLDEN

MARZEN / OKTOBERFEST / MARZEN

IMPERIAL INDIA PALE(ALE) INDIA IMPERIAL

STRONG / BARLEYWINE (ALE) STRONG/ BARLEYWINE

FRUIT/ PUMPKIN FLAVORED /

BELGIAN DARK STRONG (ALE) BELGIANDARK BELGIAN GOLDEN STRONG (ALE) BELGIANSTRONG GOLDEN

GuestMetrics data reflects new definition of Total BA Craft which includes Yuengling

Source: GuestMetrics Full Year Ending Dec 31, 2014 SPIRITS DOMINATES LATE NIGHT, WINE IMPORTANT AT DINNER

Alcohol $ Sales Mix by Day Part (2014) 100% 90% 80% 39% 40% 39% 70% 59% 60% Spirits 50% 20% 22% 30% Wine 40% 11% Beer 30% 20% 41% 39% 31% 30% 10% 0% Lunch Happy Hour Dinner Late Night

Source: GuestMetrics Full Year Ending Dec 31, 2014 CRAFT BEER REVIEW

 Craft’s momentum continued as it achieved its highest positive sales percent increase vs a prior year in 2014

Dollar Sales % Chg YA 20.0% 18.3% 18.0% 17.0% 15.6% 16.0% 15.1% 14.7%

14.0% 12.7% 12.0% 11.0%

10.0%

8.0%

6.0% 4.4% 4.1% 3.9% 4.0% 4.0% 4.0%

2.0% 0.9% 0.9% 0.0% 2008 2009 2010 2011 2012 2013 2014

CRAFT BEER

Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 TOP 15 BA CRAFT VENDORS BASED ON DOLLAR SALES TOTAL U.S. SUPERMARKETS  Sweetwater moved up three spots and entered the Top 10 at #9  Founders and Firestone Walker both entered the Top 15 BA Craft Vendors

Dollar Dollar Dollar Dollar Sales Sales % Share of Share Chg YA Craft Chg YA BOSTON BEER CO $215,850,731 7.3% 14.5% -1.5% SIERRA NEVADA BREWING CO $132,046,825 13.1% 8.9% -0.4% NEW BELGIUM BREWING COMPANY $117,292,305 29.4% 7.9% 0.7% THE GAMBRINUS COMPANY $66,676,517 5.8% 4.5% -0.5% THE LAGUNITAS BREWING COMPANY $59,785,186 58.7% 4.0% 1.0% DESCHUTES BREWERY $46,691,169 12.9% 3.1% -0.2% STONE BREWING CO. $31,891,195 38.7% 2.1% 0.3% BELLS BREWERY INC $28,797,395 27.6% 1.9% 0.1% SWEETWATER BREWING COMPANY LLC $23,097,454 38.8% 1.6% 0.2% DOGFISH HEAD CRAFT BREWERY $21,685,356 21.7% 1.5% 0.0% GREAT LAKES BREWING CO. $20,198,168 7.6% 1.4% -0.1% DUVEL MOORTGAT USA $18,601,362 11.0% 1.3% -0.1% FIRESTONE WALKER BREWING COMPANY $14,537,417 52.0% 1.0% 0.2% NINKASI BREWING COMPANY $14,295,008 11.3% 1.0% -0.1% FOUNDERS BREWING CO $13,971,248 68.9% 0.9% 0.3%

Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 TOP 10 NEW BA CRAFT VENDORS SELLING IN IRI TRACKED SUPERMARKETS

 The number of Craft Vendors selling in IRI-tracked Supermarkets increased sharply again in 2014 to 735 compared to 595 in 2013 and 484 in 2012

Dollar Sales Location

RHINEGEIST BREWERY $782,539 Cincinnati, OH

GRIFFIN CLAW BREWING COMPANY $570,128 Birmingham, MI

SMALL TOWN BREWERY $413,540 Wauconda, IL

GILGAMESH BREWING $304,454 Salem, OR

EXILE BREWING COMPANY $264,785 Des Moines, IA

BELCHING BEAVER BREWERY $225,979 Vista, CA

OLD BUST HEAD BREWING COMPANY $208,175 Warrenton, VA

EVERYBODYS BREWING $177,344 White Salmon, WA

PISGAH BREWING COMPANY $132,695 Black Mountain, NC

GRAPEVINE CRAFT BREWERY $131,133 Farmers Branch, TX

Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 2014 TOP 15 NEW BA CRAFT BEER BRANDS TOTAL U.S. SUPERMARKETS

 Boston Beer’s Samuel Adams Rebel IPA generated an impressive $21MM during its first year of sales. By far the best new Craft intro tracked by IRI.  Sierra Nevada’s Variety Pack also generated over $11MM in sales.

Dollar Sales

SAMUEL ADAMS REBEL IPA $21,116,309 SIERRA NEVADA VARIETY PACK $11,374,208 NEW BELGIUM SNAPSHOT WHEAT $4,530,783 DESCHUTES FRESH SQUEEZED IPA $3,065,053 STONE GO TO IPA $2,019,261 NEW BELGIUM SPECIAL RELEASE $753,641 SIERRA NEVADA BEER CAMP ACROSS AMERICA $722,419 Year Brand Dollar Sales ANCHOR IPA $698,488 2014 Samuel Adams Rebel IPA $21,116,309 DOGFISH HEAD NAMASTE WITBIER $667,338 2013 New Belgium Rampant Imperial IPA $3,942,500 CIGAR CITY INVASION PALE ALE $542,432 2012 Deschutes Chainbreaker White IPA $2,601,975 OMMEGANG GAME OF THRONS FIR & BLD $423,127 2011 Kona Variety Pack $2,115,495 OMMEGANG GM OF THRNS VLR MORGHLS $414,994 2010 New Belgium Ranger IPA $5,495,092 SMALL TOWN NT YR FATHRS RT BEER $413,540 2009 Sierra Nevada Torpedo Extra IPA $3,938,139 BALLAST POINT GRAPEFRT SCULPN IPA $378,418 2008 Samuel Adams Irish Red $1,623,497 RHINEGEIST TRUTH IPA $363,303

Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 2014 TOP 10 NEW BA CRAFT BEER PACKAGES TOTAL U.S. SUPERMARKETS

Led by Samuel Adams Rebel IPA, 2014 was a record revenue year for new Craft product Dollar Sales (More than 2x the past two record years combined) Total Craft new Can package sales totaled $20.9MM Total Craft new Glass package sales totaled $70.5MM

Dollar Sales

SAMUEL ADAMS REBEL IPA 12-PACK 11-12OZ BTL $12,879,872

SIERRA NEVADA VARIETY PACK 12-PACK 11-12OZ BTL $11,373,044

SAMUEL ADAMS REBEL IPA 6-PACK 11-12OZ BTL $8,166,532

NEW BELGIUM SNAPSHOT WHEAT 6-PACK 11-12OZ BTL $4,481,783 Total Craft New Product DESCHUTES FRESH SQUEEZED IPA 6-PACK 11-12OZ BTL $3,049,712 Dollar Sales

NEW BELGIUM VARIETY PACK 12-PACK 12OZ CAN $3,003,318 2014 $92,203,800

FOUNDERS ALL DAY IPA 15-PACK 12OZ CAN $2,250,736 2013 $42,021,402 2012 $42,969,648 STONE GO TO IPA 6-PACK 11-12OZ BTL $2,010,518 2011 $20,637,476 SWEETWATER 420 PALE ALE 12-PACK 12OZ CAN $1,335,689 2010 $15,387,487

BELLS TWO HEARTED ALE 4-PACK 16OZ CAN $1,166,208 2009 $20,750,750

Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 TOTAL CRAFT BEER KEY PACK SIZE DOLLAR SALE TRENDS TOTAL U.S. SUPERMARKETS

 Total Craft Can Sales nearly doubled in 2014 vs $62MM in 2013

Dollar Sales % Chg YA TOTAL CRAFT GLASS

6-PACK 11-12OZ BTL $708,124,353 13.9% $ Sales % Chg. YA $1,367,359,160 15.16% 12-PACK 11-12OZ BTL $474,053,611 14.3%

SINGLES 22OZ BTL $102,614,871 17.8% TOTAL CRAFT CAN $ Sales % Chg. YA 6-PACK 12OZ CAN $53,633,464 96.6% $119,233,783 78.95% 12-PACK 12OZ CAN $45,591,853 64.4%

4-PACK 11-12OZ BTL $38,158,922 24.6% Top 5 Craft Can Vendors

SINGLES 25.4OZ BTL $16,796,487 29.9% SIERRA NEVADA BREWING CO $12,527,472

4-PACK 16OZ CAN $13,246,556 50.6% BOSTON BEER CO $8,602,072 NEW BELGIUM BREWING COMPANY $8,499,572 SINGLES 11-12OZ BTL $10,078,797 82.9% OSKAR BLUES BREWERY $7,621,200

SINGLES 24OZ BTL $4,624,543 32.7% THE GAMBRINUS COMPANY $5,251,957

Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 BEER CATEGORY AND CRAFT DOLLAR SALES % CHANGE VS. YA EIGHT IRI SUPERMARKET REGIONS

3.2%

1.3% 15.2% 4.4% 4.6% 22.9% 12.6% 20.7% 5.4% 5.0% 19.5% 22.5%

2.8% 5.2% Beer Dollar Trend 15.8% 21.3% Craft Dollar Trend

Source: IRI Infoscan IRI FOOD REGIONS 52 Weeks Ending Jan 4, 2015 TOTAL CRAFT DOLLAR SALES REGIONAL BREAKDOWN EIGHT IRI SUPERMARKET REGIONS

 Great Lakes led all Regions again in Total Craft actual Case and Dollar Sales Chg vs YA  Mid-South moved up two spots compared to last year’s ranking based on Dollar Sales Chg

Weighted Weighted Avg Price Dollar Sales Case Sales Avg Price Weeks, Weeks, any Dollar Sales Case Sales per Case Chg. YA Chg. YA per Case any merch Chg Chg YA merch YA

Great Lakes $234,782,442 $43,746,949 6,586,885 1,069,535 $35.64 $1.02 43.21 0.79

California $264,119,887 $43,031,710 7,389,288 1,025,349 $35.74 $1.00 45.99 0.34

Mid-South $180,971,209 $33,224,074 5,106,245 825,359 $35.44 $0.93 34.67 0.77

West $295,582,543 $32,993,742 8,599,585 716,743 $34.37 $1.06 39.83 1.07

Southeast $143,987,614 $25,305,058 4,195,130 690,571 $34.32 $0.46 43.01 1.02

Northeast $174,128,435 $23,027,298 4,845,132 511,596 $35.94 $1.07 22.88 0.55

South Central $126,169,935 $17,216,217 3,831,272 447,746 $32.93 $0.73 36.58 0.41

Plains $63,040,790 $10,801,850 1,855,861 252,653 $33.97 $1.38 27.27 0.91

Source: IRI Infoscan IRI FOOD REGIONS 52 Weeks Ending Jan 4, 2015 TOP 10 CRAFT BEER STYLES TOTAL U.S. SUPERMARKETS

 Craft IPA increased it’s share of Total Craft Dollar Sales by +3.7 in 2014.  Craft Special Release moved up to #9 based on double-digit growth at +37.4%

Dollar Dollar Dollar Dollar Sales Sales % Share of Share Chg YA Craft Chg YA

CRAFT IPA $342,173,636 41.0% 23.1% 3.7%

CRAFT SEASONAL $253,533,887 12.6% 17.1% -0.9%

CRAFT PALE ALE $139,664,870 9.3% 9.4% -0.8%

CRAFT VARIETY $132,926,892 26.0% 9.0% 0.5%

CRAFT AMBER ALE $75,550,043 8.4% 5.1% -0.5%

CRAFT AMBER LAGER $63,678,170 1.4% 4.3% -0.7%

CRAFT WHEAT BEER $45,788,387 10.2% 3.1% -0.2%

CRAFT BOCKS $36,646,614 7.3% 2.5% -0.3%

CRAFT SPEC RELSE/SPECLTY/COLL $34,516,720 37.4% 2.3% 0.3%

CRAFT OTHER PALE LAGERS $28,027,353 6.2% 1.9% -0.2%

Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 To Infinity and Beyond…

perdurable

absolute

Total Craft IPA Dollar Sales = $342MM 741 Craft IPA Brands Selling 1,165 Craft IPA Packages Selling

Source: IRI Infoscan by channel 52 Weeks Ending Jan 4, 2015 BREWER ASSOCIATION’S IPA STYLE DEFINITIONS

AMERICAN IPA Color is gold to copper or red/brown. Medium maltiness is present. Hop flavor is strong, characterized by fruity, citrus-like piney, resinous or sulfur-like American-variety hop character. Hop bitterness is medium-high to very high. Fruity-ester flavors are moderate to very high. IBUs: 50-70, ABV: 6.3%-7.6%

IMPERIAL IPA Color is gold to light brown. Hop aroma is very high. Malt character is medium to high. Hop flavor is very high, and should be fresh and lively and should not be harsh in quality, deriving from any variety of hops. Hop bitterness is very high but not harsh. Alcohol content is medium-high to high and notably evident. Fruity ester flavor is high. IBUs: 65-100, ABV: 7.6%-10.6%

SESSION IPA Color of the classic IPA to a lower strength. Session India Pale Ales are gold to copper. There is a balance between the IPA character and a lower alcohol content. Drinkability is a character of the overall balance of this style. Must not exceed 5.0% ABV.

ENGLISH IPA Gold to copper colored. Fruity-ester aromas are moderate to very strong. Hop aroma is medium to high, often flowery. Medium malt flavor is present. Earthy and herbal English-variety hop character is the perceived end. Hop bitterness is medium to high. Fruity-ester flavors are moderate to very strong. Most traditional interpretations are characterized by medium to medium-high alcohol content. Hops of other origins may be used for bitterness or approximating traditional English character. ABV: 5.1%-7.1% BELGIAN/WHITE IPA Color is gold to light brown. Chili haze may be evident. Hop aroma is medium to very high. Hop bitterness is medium to very high. Fruity-ester flavor should be medium to high. Yeast derived characters such as banana, berry, apple, sometimes coriander spice-like and/or smoky-phenolic characters should be portrayed with balance of hops and malt character when fermented with Belgian yeasts. Diacetyl, sulfur-like yeast character, and Brettanomyces character should be absent. These beers can be IPA made with Belgian yeast, or Belgian witbier made with lots of American hops. IBUs and AVB: varies BLACK IPA American black-ale styled IPA. Color is very dark to black. Hop aroma is medium-high to high, with fruity, floral, herbal or other hop aroma from hops of all origins. Medium caramel malt and dark roasted malt flavors are evident. High astringency and high degree of burnt roast malt should be absent. Hop flavor is medium-high, with fruity, floral, herbal or other hop flavor. Hop bitterness is medium-high to high. ABV:6.3%- 7.6% Other IPA consists primarily of Rye, Red and Brown IPA’s IPA’s that are solely included in either Seasonal or Variety packs are not accounted for in this analysis

Source: Brewers Association 2014 Beer Styles Guidelines http://www.brewersassociation.org/wp-content/uploads/2014/06/2014_BA_Beer_Style_Guidelines_FINAL.pdf Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. CRAFT IPA STYLE SALES TRENDS BY INDIVIDUAL CHANNEL

Source: IRI Infoscan by channel 52 Weeks Ending Jan 4, 2015 CRAFT IPA STYLES DOLLAR SALES & TRENDS TOTAL U.S. SUPERMARKETS

 Total Craft IPA Dollar Sales were $342.2MM; +41.0% Change vs Year Ago

Dollar Sales (000s) % Chg vs YA

AMERICAN IPAs $217,147 42.3%

IMPERIAL IPAs $85,845 20.9%

SESSION IPAs $11,440 338.8%

ENGLISH IPAs $7,185 22.5%

BELGIAN/WHITE IPAs $2,145 -21.5%

OTHER IPAs $1,758 -12.2%

BLACK IPAs $1,402 6.3%

Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 NUMBER OF IPA BRANDS SELLING TOTAL U.S. SUPERMARKETS

Count of IPA Brands

741 636 520

388 292 215

2009 2010 2011 2012 2013 2014

2009 2010 2011 2012 2013 2014 AMERICAN 142 185 236 302 371 421 IMPERIAL 47 73 101 141 171 199 SESSION 3 3 5 7 14 28 ENGLISH 16 19 24 28 29 29 BELGIAN/WHITE 3 5 8 12 14 19 BLACK 2 3 9 16 20 25 OTHER 2 4 5 14 17 20 TOTAL 215 292 388 520 636 741

Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 TOP 15 NEW CRAFT IPA BRANDS TOTAL U.S. SUPERMARKETS

 Total Craft IPA Dollar Sales was $342.2MM  Total New Craft IPA Dollar Sales was $35.4MM

Dollar Sales

SAMUEL ADAMS REBEL IPA $21,116,347 DESCHUTES FRESH SQUEEZED IPA $3,065,214 WIDMER BROS UPHEAVAL IPA $2,431,615 STONE GO TO IPA $2,019,258 ANCHOR IPA $698,488 117 New Craft IPA Brands BALLAST POINT GRAPEFRT SCULPN IPA $378,418 RHINEGEIST TRUTH IPA $363,303 • 57 American HANGAR 24 BETTY IPA $239,082 • 32 Imperial TERRAPIN HI 5 IPA $228,269 • 14 Session • 5 Black BALLAST POINT HABANER SCULPN IPA $224,560 • 5 Belgian/White GRIFFIN CLAW NRMS RAGGDY ASS IPA $218,961 • 4 Other FAT HEADS SUNSHIN DAYDRM SESSN ALE $168,827 GOOSE ISLAND ILLINS IMPERL IPA $153,258 BALLAST POINT EVEN KL SESSN IPA $144,746 ALASKAN HOP O THERMIA DOUBLE IPA $135,821 *American IPA *Session IPA *Imperial IPA

Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 CRAFT IPA STYLES PACK SIZE BREAKDOWN TOTAL U.S. SUPERMARKETS

 Craft IPA 12-Pack Sales have their highest share in the American and Session Styles. 4-Packs have their highest share of sales in Imperial IPAs, while Singles have the highest share of sales in Belgian/White.

2.6% 8.5% 13.8% 24.0% 24.9%

42.6% 46.4%

82.2% 65.8% 22.4% 5.8% 72.5%

39.3% 32.5% 1.9% 8.3% 0.1% 0.1% 2.5% 3.9% AMERICAN IPAs IMPERIAL IPAs BELGIAN/WHITE SESSION IPAs ENGLISH IPAs IPAs 12-PACK 6-PACK 4-PACK SINGLES *Session 12-Packs include 15-Packs

Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 CRAFT STYLES IPA PRICING TOTAL U.S. SUPERMARKETS

TOTAL $47.35 CRAFT IPAs $42.21 $38.80 $37.12 $35.11 $35.06 $34.18

BELGIAN/WHITE IMPERIAL IPAs BLACK IPAs AMERICAN IPAs SESSION IPAs ENGLISH IPAs IPAs

Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 CRAFT STYLES IPA MERCHANDISING SUPPORT TOTAL U.S. SUPERMARKETS

 American and Session IPAs received the highest Merch Support increase in 2014

Number of Category Weighted Weeks, Any Merchandising & Change vs YA

3.9 5.0 Total Craft 0.5 46.1

1.9

37.8 35.3

22.8 0.8 3.4 1.1 0.2

5.5 5.5 1.9 1.0

TOTAL CRAFT IPA AMERICAN IPAs IMPERIAL IPAs ENGLISH IPAs SESSION IPAsBELGIAN/WHITE IPAs BLACK IPAs

Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 CRAFT IPA & IPA STYLES REGIONAL OVERVIEW 8 IRI REGIONS - SUPERMARKETS

SOUTH Dollar Sales CALIFORNIA WEST GREAK LAKES MID-SOUTH NORTHEAST SOUTHEAST PLAINS CENTRAL TOTAL CRAFT IPA $84,556,787 $80,546,862 $48,337,170 $37,859,644 $32,193,041 $33,486,860 $15,010,584 $11,111,326 CRAFT AMERICAN IPAs $45,601,039 $56,072,563 $26,140,183 $27,147,530 $22,790,330 $24,231,573 $9,234,715 $6,305,721 CRAFT IMPERIAL IPAs $25,081,520 $19,380,681 $9,688,159 $9,120,825 $7,007,458 $8,095,572 $5,205,518 $2,275,961 CRAFT SESSION IPAs $2,367,266 $1,082,356 $3,833,013 $825,504 $1,187,232 $178,280 $576,019 $827,794 CRAFT BELGIAN/WHITE IPAs $703,769 $107,619 $493,371 $122,651 $270,262 $113,109 $244,980 $89,032 CRAFT ENGLISH IPAs $684,070 $486,838 $1,130,993 $1,057,749 $1,985,045 $1,245,951 $209,921 $384,671 CRAFT BLACK IPAs $414,817 $271,828 $302,020 $184,527 $149,513 $10,472 $16,488 $52,732

SOUTH % Chg vs YA CALIFORNIA WEST GREAK LAKES MID-SOUTH NORTHEAST SOUTHEAST PLAINS CENTRAL TOTAL CRAFT IPA 40.6% 26.9% 59.3% 42.1% 53.5% 41.9% 44.9% 51.1% CRAFT AMERICAN IPAs 41.7% 27.4% 58.6% 45.5% 47.1% 54.9% 47.0% 61.3% CRAFT IMPERIAL IPAs 20.7% 11.7% 34.9% 25.0% 31.4% 11.1% 25.4% 38.8% CRAFT SESSION IPAs 6328.8% 417.9% 182.3% 552.9% 355.2% 159.8% 715.5% 137.2% CRAFT BELGIAN/WHITE IPAs 51.3% -46.0% -0.7% -71.6% -24.5% -69.2% -10.6% -37.1% CRAFT ENGLISH IPAs 139.7% 80.1% 7.6% 19.1% 5.9% 24.3% 32.6% 14.3% CRAFT BLACK IPAs 16.2% -25.8% 40.2% -3.9% 39.1% -55.8% 259.5% -0.9%

Source: IRI Infoscan IRI FOOD REGIONS 52 Weeks Ending Jan 4, 2015 CRAFT IPA & IPA STYLES REGIONAL OVERVIEW 8 IRI REGIONS - SUPERMARKETS

Dollar Share* of Craft IPAs SOUTH CALIFORNIA WEST GREAK LAKES MID-SOUTH NORTHEAST SOUTHEAST PLAINS CENTRAL CRAFT AMERICAN IPAs 60.9% 72.4% 62.9% 70.6% 68.3% 71.5% 59.6% 63.5% CRAFT IMPERIAL IPAs 33.5% 25.0% 23.3% 23.7% 21.0% 23.9% 33.6% 22.9% CRAFT SESSION IPAs 3.2% 1.4% 9.2% 2.1% 3.6% 0.5% 3.7% 8.3% CRAFT BELGIAN/WHITE IPAs 0.9% 0.1% 1.2% 0.3% 0.8% 0.3% 1.6% 0.9% CRAFT ENGLISH IPAs 0.9% 0.6% 2.7% 2.8% 5.9% 3.7% 1.4% 3.9% CRAFT BLACK IPAs 0.6% 0.4% 0.7% 0.5% 0.4% 0.0% 0.1% 0.5%

SOUTH Share Chg vs YA CALIFORNIA WEST GREAK LAKES MID-SOUTH NORTHEAST SOUTHEAST PLAINS CENTRAL CRAFT AMERICAN IPAs 1.4 1.9 1.3 3.0 2.1 7.4 2.2 2.7 CRAFT IMPERIAL IPAs (4.9) (2.8) (3.5) (2.7) (1.8) (6.0) (4.3) (2.6) CRAFT SESSION IPAs 3.1 1.1 4.1 1.7 2.4 0.2 3.1 2.9 CRAFT BELGIAN/WHITE IPAs 0.1 (0.2) (0.7) (1.2) (0.7) (1.2) (0.9) (1.3) CRAFT ENGLISH IPAs 0.4 0.2 (1.2) (0.5) (2.1) (0.4) (0.1) (1.4) CRAFT BLACK IPAs (0.1) (0.2) (0.1) (0.2) (0.0) (0.1) 0.1 (0.3)

* Share is calculated from the total of the 6 IPA Styles highlighted

Source: IRI Infoscan IRI FOOD REGIONS 52 Weeks Ending Jan 4, 2015 TOP 15 FOOD MARKETS FOR TOTAL CRAFT IPA DOLLAR SALES

Number % Change Dollar Sales (000s) of IPAs in vs YA Market

1. Los Angeles, CA - Food $22,206 1 50.8% 151 2. Portland, OR - Food $22,141 2 29.8% 210 3. Seattle/Tacoma, WA - Food $20,247 3 21.8% 205 4. San Francisco/Oakland, CA - Food $19,172 4 27.5% 145 5. San Diego, CA - Food $16,533 5 43.4% 161 6. Chicago, IL - Food $9,753 6 50.5% 192 7. New England - Food $8,705 7 51.0% 124 8. Baltimore, MD/Washington D.C. - Food $8,391 8 30.0% 161 9. Sacramento, CA - Food $7,110 9 40.5% 159 10. Atlanta, GA - Food $6,929 10 56.1% 94 11. Raleigh/Greensboro, NC - Food $6,546 11 34.1% 123 12. Phoenix/Tucson, AZ - Food $6,484 12 47.2% 141 13. New York, NY - Food $5,938 13 49.9% 217 14. Detroit, MI - Food $5,616 14 80.6% 106 15. Charlotte, NC - Food $5,015 15 51.2% 177

Source: IRI Infoscan IRI FOOD MARKETS 52 Weeks Ending Jan 4, 2015 TOP FOOD MARKETS FOR CRAFT IPA STYLES DOLLAR SALES & DOLLAR SALES CHANGE VS YEAR AGO

Top 3 Food Markets Dollar Top 3 Food Markets Dollar Dollar Sales Craft IPA Style Dollar Sales Sales Sales Chg vs YA Chg vs YA

Los Angeles, CA $22.2MM Los Angeles, CA $7.5MM Total Craft IPA Portland, OR $22.1MM Portland, OR $5.1MM Seattle/Tacoma, WA $20.2MM San Diego, CA $5.0MM

Portland, OR $14.8MM Los Angeles, CA $4.9MM Craft American IPA Seattle/Tacoma, WA $14.5MM Portland, OR $3.2MM Los Angeles, CA $14.3MM Seattle/Tacoma, WA $2.9MM

Los Angeles, CA $5.9MM San Francisco/Oakland, CA $943K Craft Imperial IPA San Francisco/Oakland, CA $5.9MM San Diego, CA $839K Portland, OR $5.3MM Los Angeles, CA $744K

Grand Rapids, MI $1MM San Diego, CA $645K Craft Session IPA Detroit, MI $700K Grand Rapids, MI $595K San Diego, CA $667K Los Angeles, CA $526K

New England $679K Los Angeles, CA $154K Craft English IPA Chicago $550K San Francisco/Oakland, CA $112K New York $537K Tampa/St Petersburg, FL $62K

San Diego, CA $263K Los Angeles, CA $134K Craft Belgian/White IPA Los Angeles, CA $258K San Diego, CA $73K San Francisco/Oakland, CA $92K Milwaukee, WI $52K

San Francisco/Oakland, CA $190K San Francisco/Oakland, CA $23K Craft Black IPA Richmond, VA $83K Buffalo/Rochester, NY $19K Seattle/Tacoma, WA $69K Columbus, OH $15K

Source: IRI Infoscan IRI FOOD MARKETS 52 Weeks Ending Jan 4, 2015 OND SALES RECAP

 Two-thirds of the top single weeks for Craft based on Case Sales occur during OND. The Craft Segment’s ability to generate over 1MM Case Sales during key holiday single weeks is becoming the norm Case Sales

July 6, 2014 1,203,395 December 28, 2014 1,101,146 November 30, 2014 1,096,094 July 7, 2013 1,052,130 August 31, 2014 1,016,544 December 21, 2014 1,009,142 December 29, 2013 975,710 May 25, 2014 974,832 December 1, 2013 972,851 December 22, 2013 967,573 September 7, 2014 914,418 November 2, 2014 904,571 November 23, 2014 901,387 September 1, 2013 900,815 January 4, 2015 878,917

Source: IRI Infoscan Total US FOOD Single Weeks, Week Ending Jan 3, 2010 through Week Ending Jan 4, 2015 OCT/NOV/DEC (OND) 2014 BEVERAGE ALCOHOL DOLLAR SHARE BREAKDOWN TOTAL U.S. SUPERMARKETS

 Beer lost one-half of a share point in Total Bev Alc Dollar Sales to Wine during OND 2014  Craft gained +0.7 share of Total Beverage Alcohol Dollar Sales. Cider gained +0.3. Their gains came primarily at the expense of both the Premium and Sub-Premium Segments.

Dollar Share OND 2013 Dollar Share OND 2014

Beer SPIRITS Beer SPIRITS 18.2% 18.2% 43.9% 43.4% DOM PREM DOM PREM 15.9% 15.0%

IMPORT IMPORT TOTAL WINE 8.1% TOTAL WINE 8.1% 38.0% 38.5%

CRAFT CRAFT 6.9% 7.6%

DOM SUB- DOM SUB- PREM NA's PREM NA's 5.3% 0.3% 4.9% 0.4% DOM SUPER MALT DOM SUPER MALT PREM LIQUOR PREM CIDER PAB's CIDER PAB's LIQUOR 4.5% 0.4% 4.4% 0.4% 0.9% 1.4% 1.2% 1.5%

Source: IRI Infoscan Total US FOOD, 13 Weeks Ending Dec 29, 2013 (OND 2013) and 13 Weeks Ending Jan 4, 2015 (OND 2014) CRAFT SHARE OF BEER & BEV ALC DOLLAR SALES OND 2014 TOTAL U.S. SUPERMARKETS

Craft Dollar Share of Beer

20.0% 17.5% 15.6%  Craft increased its 13.9% 15.0% 12.6% share of Total Beer 10.0% Dollar Sales by nearly two full 5.0% points during OND 0.0% 2014 compared to 2011 2012 2013 2014 OND 2013

Craft Dollar Share of Bev Alc

7.6%  Craft increased its 8.0% 6.8% 5.5% 6.0% share of Total 6.0%

4.0% Beverage Alcohol

2.0% Dollar Sales by

0.0% almost one full 2011 2012 2013 2014 point in OND 2014

Source: IRI Infoscan Total US FOOD 13 Weeks Ending Jan 4, 2015 (OND 2014) TOP 10 CRAFT VENDORS – ACTUAL DOLLAR SALES CHANGE VS YEAR AGO DURING OND 2014 TOTAL U.S. SUPERMARKETS  Lagunitas Brewing and Sierra Nevada Brewing were the top two Craft Vendors who increased their Dollar Sales during OND 2014

Dollar Dollar Dollar Sales Change vs Year Ago Share of Share Craft Chg YA

THE LAGUNITAS BREWING COMPANY $6,126,443 4.2% 1.1% SIERRA NEVADA BREWING CO $5,128,854 8.8% 0.0% NEW BELGIUM BREWING COMPANY $4,650,145 7.4% 0.1% STONE BREWING CO. $2,980,513 2.3% 0.5% BALLAST POINT BREWING COMPANY $2,019,331 0.9% 0.4% DESCHUTES BREWERY $1,876,612 3.0% 0.0% SWEETWATER BREWING COMPANY LLC $1,813,345 1.5% 0.3%

FOUNDERS BREWING CO $1,688,271 1.1% 0.3%

BELLS BREWERY INC $1,449,421 1.6% 0.2%

FIRESTONE WALKER BREWING COMPANY $1,220,069 1.0% 0.2%

Source: IRI Infoscan Total US FOOD, 13 Weeks Ending Jan 4, 2015 (OND 2014) NEW BEVERAGE ALCOHOL PRODUCTS RELEASED DURING OND 2014 TOTAL U.S. SUPERMARKETS

 Spirits achieved the highest share of total new Bev Alc product Dollar Sales released during OND 2014. Wine had the highest number of new SKU’s.

Dollar Sales New Products New Item SKU Count OND OND 2014 2014

BEER, 127 BEER, $2,601,662 SPIRITS, 152 SPIRITS, $4,444,377

TOTAL TOTAL WINE, WINE, 179 $1,651,329

Source: IRI Infoscan Total US FOOD, 13 Weeks Ending Jan 4, 2015 (OND 2014) NEW BEER PRODUCTS RELEASED DURING OND 2014 TOTAL U.S. SUPERMARKETS

 Small Town Brewery had the top selling new Craft beer package released during the OND 2014 time period

Dollar Sales $1,977,000

$373,538 $158,420 $59,810 $31,403 $1,285 $206

Craft Cider Import Dom Sub PABs Dom Sup Dom Prem Prem Prem

Segment OND Best Selling new package by Segment Dollar Sales Craft SMALL TOWN NT YR FATHRS RT BEER 6-PACK 11-12OZ BTL $409,888 Cider JOHNNY APPLESEED VARIETY PACK 12-PACK 11-12OZ BTL $246,506 Import GUINNESS THE 1759 AMBER ALE SINGLES 25.4OZ LNBTL $80,954

Source: IRI Infoscan Total US FOOD, 13 Weeks Ending Jan 4, 2015 (OND 2014) Thank You!

Craft Brewers: Please continue to send your current UPC lists and product images to me to insure your products are being tracked by IRI.

Please e-mail me at [email protected]