Craft Beer Brewers & Alcohol Distillers

WINE, BEER & SPIRITS PRACTICE Craft Beer Brewers & Alcohol Distillers

Dawn breaks on world-changing ideas in the craft brewing

and distilling industry. Here, prosperity is built on the ability WE HAVE YOU COVERED to recognize opportunity—and the willingness to embrace it. To help tap success, it’s important to have industry expertise on your side in an increasingly challenging 30+ locations west of the Mississippi marketplace. Rapid industry consolidation, domestic and international competition, changing consumer preferences, and complex risk management issues can affect everything 35 from planning and financing to sales and distribution. We craft brewing and distilling clients served nationwide understand these challenges, and can help you create the

financial and operational strength you need to focus on Some of the Clients We Serve what you love: making, distributing, and selling great beer. –– Almanac Beer Company –– Bear Republic Brewing Co. WHO WE SERVE –– Bull Run Distillery Craft breweries and spirit distilleries, suppliers, and service providers that –– Craft Brew Alliance want to improve operational efficiency, achieve tax-efficient structuring, –– Crazy Mountain Brewery comply with industry regulations, and seize growth opportunities. –– Declaration Brewing Company –– Distillers Way HOW IT BENEFITS YOU –– Dry Fly Distilling Our industry-specific regional and national resources can help you solve your most complex challenges—whether that’s navigating state and federal taxes, –– Firestone Walker Brewing Company managing the company’s books, improving supply and distribution chains, –– Fish Brewing Company IT investment planning, or preparing for a merger or acquisition. This allows –– Full Sail Brewing Company you to improve your organizational performance and move forward with –– Green Cheek Beer Company confidence, wherever your plans to scale your business lead you. –– HenHouse Brewing THE CHALLENGES YOU FACE –– Hotaling & Co. Distillery Whether you’re navigating complex issues of state and federal tax compliance, internal or outsourced bookkeeping, IT investment planning, wealth management, or exit planning, our engagement team will support and guide you through the process.

over Craft Beer Brewers & Alcohol Distillers

HOW WE SERVE YOU Our professionals’ experience spans the entire supply chain—from hops –– Mammoth Brewing Company growers to craft brewers and distillers to bottlers and distributors—and can help you navigate each stage in your business life cycle. –– Russian River Brewing Company

Start-Up Association Involvement –– Accounting method selection –– Brewers Association –– Capital acquisition –– California Craft Brewers Association –– Choosing business entity type –– California Grocers Association –– State and federal tax compliance –– Colorado Brewers Guild Growth –– Orange County Brewers Guild –– Hiring and compensation planning –– Oregon Craft Beverage Council –– Internal or outsourced bookkeeping –– Washington Beer Commission –– IT investment –– Washington Brewers Guild –– Geographic distribution and expansion –– Operational efficiency planning Other Consulting Services Maturity –– Barrel ERP –– Financial business planning –– IT –– Investigating merger and acquisition candidates –– Strategy & Operations –– Wealth planning –– Transactions –– Financial statement audit and review Transition –– Business valuations –– Exit planning strategies RESOURCES –– Transition or sale of the company What you need to know, when you need to know it, and in the format that fits your life.

–– Articles & Alerts –– Webcasts –– Reports & Guides

Assurance, tax, and consulting offered through Moss Adams LLP. Investment advisory services offered through Moss Adams Wealth Advisors LLC. Investment banking offered through Moss Adams Capital LLC. ENTERPRISE SYSTEMS CONSULTING Barrel ERP

Manage your entire brewery with one integrated software solution. Our proprietary enterprise resource planning (ERP) system, Barrel ERP powered by NetSuite, allows you to securely access and manage your business data in real time across multiple departments and locations. It provides automated processes that help reduce costs and allows WE HAVE YOU COVERED visibility across your business through a single repository of information. By using Barrel ERP to help run your brewery, 30+ you can spend more time focusing on what you love: making brewery clients nationwide great beer. Other IT Consulting Services –– Assessment & Planning WHO’S AFFECTED –– Business Intelligence Systems Breweries using complex spreadsheets or manual procedures to manage –– Enterprise Systems important business processes or that have issues integrating their systems.

HOW IT BENEFITS YOU As the world’s leading provider of cloud-based business management software, NetSuite delivers an end-to-end, integrated solution that accelerates your ability to meet key objectives. With Barrel ERP, you’ll discover solutions that provide real, measurable value, helping your business to operate more effectively and efficiently as your brewery grows. –– Increase transparency –– Speed up delivery times –– Improve margins –– Streamline financials –– Reduce costs

THE CHALLENGES YOU FACE Rapid industry consolidation, increased competition, changing consumer preferences, and managing growth projections while controlling costs can over Barrel ERP

affect everything from planning and financing to sales and distribution. Our team understands these challenges, and can help you plan ahead with Barrel ERP, which provides a 360-degree view of your business and scales to your RESOURCES brewery’s evolving needs. What you need to know, when you need to know it, and in the format that fits your life. HOW WE SERVE YOU –– Articles & Alerts Barrel ERP is the combination of the brewery industry and system –– Webcasts implementation expertise of Moss Adams brought together with the NetSuite platform. –– Reports & Guides NetSuite is the world’s most deployed cloud-based ERP solution. It’s used by over 40,000 organizations and invests more than $100 million in R&D annually. It doesn’t require any on-site hardware and scales with your business. CONTACT US It also works on any mobile device and meets enterprise-level security [email protected] standards. mossadams.com/barrelerp From customer orders to brewing, through collecting on invoices and reporting on cost of goods sold, Barrel ERP is the only brewery management software you’ll ever need.

ONE SIMPLE SOLUTION Barrel ERP and NetSuite create solutions that provide real, measurable value, helping your business to operate more effectively and efficiently as your brewery grows.

TTB & Tax Production & Reporting Scheduling

Recipe Warehouse Management Management

CORE BUSINESS Sales Inventory Operations Payroll Management Production Financials Analytics & Reporting

CRM & Sales Order Time & Management Expense

Supply Chain R&D Management Tracking

You want to focus on your business, not the accounting.

We get it. By outsourcing some or all of your accounting WE HAVE YOU and finance functions, you gain the experience, industry COVERED knowledge, and efficiency you can’t find with a single full-time employee or bookkeeper. Let us take care of the 100+ details so we can provide you with the current and relevant clients served information you need to better run your business. annually

WHO’S AFFECTED Other Assurance Services Whether you want to add help, expertise, or backup to your existing team –– Financial Statement Audits or completely outsource your accounting and finance functions, we can –– Employee Benefit Plans help. We can also assist you in modernizing your systems and processes to –– Public Company/SEC take advantage of the efficiencies and near real-time information that cloud computing can provide. –– Internal Audit –– Contract Compliance HOW IT BENEFITS YOU Pay for What You Need, When You Need It We customize our services to fit your situation, and our team approach gives us the flexibility to scale up when you need it.

Fixed-Fee Pricing You’ll never have to worry that the meter’s running. Monthly fixed fees mean you’ll be able to budget for the help you need.

Small Team, Deep Bench Our small team approach is supported by the resources of one of the largest accounting firms in the nation. As your needs change, we can add assurance, tax, and consulting expertise to the team that serves you.

Convenience We deliver our services using our preferred technology platforms to keep you in control but out of the details you don’t need. You’ll spend less time and over Outsourced Accounting

money getting things done and have better access to the information you need to run your business. RESOURCES HOW WE SERVE YOU What you need to know, when you need to Your dedicated engagement team is here to serve your needs now and as your know it, and in the format that fits your life. business grows. We offer reliable and economical options, including: Articles & Alerts –– Accounting system installations and upgrades that can scale with your business Webcasts –– Help with banking, payroll, and benefits Reports & Guides –– Cloud-based systems for bill payment and other operating transactions ––Year-End Tax Planning Guide –– Financial and management reporting, including dashboards displaying –– Revenue Recognition Guide the current status of key drivers for your business –– Lease Accounting Guide

CONTACT US For more information about our services, visit mossadams.com/assurance or email Partner Larry Kammerer at [email protected].

Assurance, tax, and consulting offered through Moss Adams LLP. Wealth management offered through Moss Adams Wealth Advisors LLC. Investment banking offered through Moss Adams Capital LLC. OPPORTUNITY UNBOUND How to Reduce Your Payroll Tax

New or small businesses—including those with no gross receipts—may be eligible to apply the R&D tax credit against their payroll tax.

BENEFIT You can potentially offset up to $250,000 in payroll taxes each year, for up to five years.

1 Are you eligible to claim the R&D tax credit? >> Your activities MUST meet the tax definition of R&D. >> Eligible expenses incurred by those activities can include wages, supplies, contract research, and computer leasing.

2 Are you eligible to apply the R&D tax credit against your payroll tax? >> You’ve generated gross receipts for five years or less. >> Your gross receipts are less than $5 million in the current year.

APPLYING THE CREDIT If you answered yes to the questions above, here’s the process to apply the R&D tax credit against your payroll tax:

IDENTIFY ELECT CLAIM CARRY FORWARD Identify and Elect the credit Claim the credit on Carry the credit document the R&D amount that may your quarterly tax forward to the tax credit that’s be used to offset return following the following calendar available on your payroll tax. filing of your annual quarter if it isn’t annual tax return. tax return with the used up. election.*

*Once the credit is applied to your payroll tax, it can only be applied to future payroll tax and not to your income tax.

To learn more, visit mossadams.com/rdpayrollcredit. Market Monitor WINTER 2018 Contents

Industry Update 3 Relevant Transactions 6 Public Company Stock Performance 8

Moss Adams Overview 10 Craft Craft Breweries

2 Craft Beer Industry Snapshot • A record of approximately 1,000 breweries were added in 2017, an increase of 20% from the prior year. However, the projected growth rate is decelerating in 2018 to 10%, or an increase of approximately 600 breweries due to stiffer competition and market saturation.

• Craft breweries are investing heavily into experiential retail offerings to further expand their regional footprint. Examples include San Diego’s Modern Times opening up a 5,000 sq. ft. brewery tasting room in Santa Barbara that includes a 5,000 sq. ft. tap room and a full service restaurant and Golden Road Brewing Co. opening a new 40,000 sq. ft. facility that includes beer, food and recreational games next to the Los Angeles Angels Anaheim Stadium (see slide 5 for more examples).

• Opening additional retail locations has become very important, as approximately 75% of legal-age adults now live within 10 miles of a brewery and typically prefer buying local beers. In addition to opening retail locations, craft brewers are serving as vendors at festivals to reach the millennial market, which is typically a regionally-diverse crowd.

• This past summer, the hard seltzer segment grew significantly as June 2018 year-to-date sales totaled $257 million in comparison to $85 million in 2017.

• Canned beer now outsells bottled beer and has 57% of total beer dollar share as consumers are becoming less resistant to buying craft beer in cans; only 15% of craft beer drinkers say they wouldn’t purchase beer packaged in aluminum.

Craft Craft Breweries Craft Beer Sales U.S. Brewery Statistics

D. G. Yuengling and Son Inc 8,000 15% All others 6,000 31% Boston Beer Co 11% 4,000

Sierra Nevada 2,000 Brewing Co 6% 0

New Belgium Number of Breweries Brewing Co '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 5% est Spoetzl Brewery Next 25 Largest 3% Top 5 States by … 30.0 29% $30.0 23.8 25.0 23.2 23.1 # of Barrels (000s) Gallons Produced 25.0 21.0 $25.0 $ Sales $26.0 $27.3 20.0 $23.5 $20.0 State # State # / 21+ Adults Sales in Barrels 14.5 $21.4 15.0 12.4 $18.0 $15.0 10.7 Pennsylvania 3,724 Vermont 18.9 9.4 7.8 8.4 10.0 $13.0 $10.0 in$ billions California 3,285 Delaware 12.6 $10.7 millions barrels of $9.1 5.0 $7.9 $5.0 Colorado 1,523 Alaska 12.0 $6.2 $6.8 0 $0.0 Florida 1,408 Pennsylvania 12.0 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 est Ohio 1,355 Colorado 11.4 Source: Brewer’s Association & Moss Adams Capital estimates. 3 Note: Top bar graph represents total number of breweries and the bottom table represents craft breweries Craft Beer Industry Snapshot Top Craft Beer Styles by Sales in 2017 (in $mm) Craft Beer Market Share and $US (in mm) Growth

$30,000 16.0% India Pale Ale $1,000

Seasonal Specialty $790 $26,000 $25,000 $23,500 14.0% White Wheat $450 $22,300

American Pale Ale $270 $19,600 $20,000 12.7% 12.0% 12.2% 12.3% IIPA (2x/3x IPA) $220 $16,100

American Amber $170 $15,000 11.0% 10.0%

Amber Lager $165 $10,200 Herb Spice $155 $10,000 $8,720 8.0% 7.8%

Blonde Ale $100 Percent of Total Brewery Market

Craft Craft Breweries $USD $USD (in millions) of Craft Beer Market $5,000 6.5% 6.0% German Bock $90 5.7%

Leading Sales of Craft Beer Brands in 2017 (in $mm) $- 4.0% 2011 2012 2013 2014 2015 2016 2017

Samuel Adams $287 • Craft beer’s popularity among women continues to grow faster than male craft beer drinkers. Female consumers are less interested in typical IPA profiles but seem to be enjoying the newly popular New Sierra Nevada $247 England-style, hazy IPAs, which has increased 39% over the previous year.

New Belgium $205 • Craft beer production is up 5% in 2018, but craft breweries are experiencing decelerating growth due to an oversaturated market with over 7,000 breweries across the United States. Leinenkugel $181 • As craft brewers’ growth decelerates, malternatives, or flavored malt beverages, has seen robust Lagunitas $177 growth in the past couple years. Malternatives offer low-sugar drinks that combine the recent interest of sparkling water with malt beverages. Specifically, the hard seltzer segment has experienced a 177% Shiner $136 year-over-year dollar sales growth in 2017 led by popular brands, White Claw and Spiked Seltzer. • The federal excise tax was reduced in December 2017 to $3.50/barrel from $7.00/barrel for domestic Deschutes $77 brewers producing less than 2 million barrels annually, which will increase free cash flows for craft brewers. Goose Island $75

4 Current Events Brewery Expansions Upcoming Events

Ashville, NC based Hi-Wire Brewing will open their third brewery in the city of Durham. The facility is expected to open by the end of 2018. December 1, 2018 Mother Truckin’ Beer Fest Hoffman Estates, IL

Modern Times Beer, a San Diego based brewery, will be expanding to Santa Barbara this year with a new facility that December 7, 2018 – St. Johns Winter Beer Fest includes a 5,000 sq. ft. tap room. Portland, Oregon December 9, 2018 and Record Show

In July 2018, Oklahoma City-based COOP Ale Works announced a $20 million project to revitalize the 23rd Street National guard Armory into a brewery.

December 15, 2018 BeerAdvocate’s IPA Fest Boston, Massachussetts Craft Craft Breweries In mid-June, Yazoo Brewing Company plans to renovate its new 30,000 sq. ft. destination brewery in the Madison neighborhood of northeast Nashville.

January 26, 2019 Rhode Island Brew Fest Providence, Rhode Island New Realm Brewing opened the last section of its 58,000 sq. ft. facility, an outdoor beer garden, that is located along the Eastside Beltline trail in Atlanta

Queen City Brewers February 2, 2019 Charlotte, North Carolina Michigan’s New Holland Brewing Co. has purchased an Festival 18,000 sq. ft. building in downtown Battle Creek for its third brewery and taproom.

10th Annual Brewbies The Wyoming-headquartered cult beer maker, Melvin February 9, 2019 Oceanside, California Brewing, has signed a letter of intent on a 5,500 sq. ft. space Fundraise Fest in downtown San Diego.

Source: Beer Street Journal; brewbound.com 5 Select, Recent M&A Activity

$ in millions Close Date Target Target Location Acquirer/Investor Percent Sought Est. Production Announced Appalachian Mountain Brewery LLC Boone, NC Craft Brew Alliance, Inc. 100% 5,500 Announced Palmetto Brewing Company Charleston, SC Catawba Brewing Co. 100% 8,000 Nov-18 Majority Assets of Rivertowne Brewing Company Export, PA Helltown Brewing LLC 100% 15,000 Oct-18 Wynwood Brewing Company LLC Miami, FL Craft Brew Alliance, Inc. 76% 5,000 Oct-18 Certain Assets Of Cisco Brewers, Inc. Nantucket, MA Craft Brew Alliance, Inc. 100% 5,500 Jul-18 Three Weavers Brewing Company, LLC Inglewood, CA Fireman Capital Partners 100% 12,000 Jul-18 Four Corners Brewing Co LLC Dallas, TX Constellation Brands, Inc. 100% 25,000 Jun-18 Deep Ellum Brewing Company, LLC Dallas, TX Fireman Capital Partners 100% 45,000 Mar-18 California & Nebraska Operations of Green Flash Brewing Co. San Diego, CA Muirlands Capital LLC 100% 65,000 Mar-18 Finest Made Ales Santee, CA Council Brewing Company, LLC 100% 4,000

Craft Craft Breweries Mar-18 Bayside Beverage division in Marquette Ishpeming, MI Imperial Beverage Group, LLC 100% 3,000 Feb-18 Pedernales Brewing Company, LLC Fredericksburg, TX Uncle Billy's Brewery 100% 400 Jan-18 Hamilton Street Facility of Like Minds Brewing Co. Milwaukee, WI Eagle Park Brewing Company 100% NA Jan-18 Pittsburgh Brewing Company Pittsburgh, PA Red Eye “61” LLC 100% 50,000 Dec-17 Cape Coral Brewing Co. Cape Coral, FL Seaboard Craft Beer Holdings LLC 100% 190 May-17 Wicked Weed Brewing LLC Asheville, NC Anheuser-Busch Companies, LLC 100% 5,000 May-17 Arbor Brewing Company Ann Arbor, MI Bigalora Wood Fired Cucina 100% 6,000 May-17 The Lagunitas Brewing Company Petaluma, CA HEINEKEN USA Incorporated 50% 916,420 May-17 Rolling Boil, LLC Dillon, CO Private Investor 100% NA

20 4 1 6 20 2 4 3 1 9 6 15 7 8 17 17 17 17 2 15 15 14 10 6 13 6 13 2 11 12 5 8 8 8

0 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr 4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3

2015 2016 Cap Raise M&A 2017 2018 Source: CapitalIQ, PitchBook, company filings, news releases. 6 Selected Deal Profiles

Constellation Brands (NYSE: STZ) acquires Four Fireman Capital-backed Canarchy Craft Brewery Muirlands Capital acquires Green Flash Brewing Corners Brewing Collective acquires Deep Ellum Brewing Company Announced July 10, 2018 Announced June 11, 2018 Announced March 30, 2018

• Four Corners will join California’s Ballast Point Brewing • This acquisition will give Deep Ellum immediate • Muirlands Capital acquired the insolvent Green and Florida’s Funky Buddha Brewery in Constellation’s capital to increase its brewing capacity and Flash, who also owns Alpine breweries which it had growing craft and specialty beer group. complete a $3 million expansion at its satellite acquired in 2014.

production facility in Austin, Texas. Craft Craft Breweries • Constellation Brands President stated, “It’s a compelling • Green Flash had ambitious plans to become a opportunity for Constellation because Four Corners’ • Deep Ellum produced 85,000 barrels in 2017 and national craft beer brand and distribute to all 50 bicultural inspired flavors and branding capitalize on sold 85% of that within a 20-mile radius of Dallas. states, but was unable to make payments on the $20 one of the hottest trends in beer – Hispanic influenced Sales are up about 15% in 2018 year-over-year. million loan with Comerica. products.” • Canarchy now owns one of the fastest-growing craft • “After a general slowdown in the craft beer • Sales of Four Corners have been increasing five-fold breweries in Texas as it continues to build on its industry, coupled with intense competition and a since 2014, and the company has the capacity to strategy of acquiring strong, regional craft brands. slowdown of our business, we could not service the produce 25,000 barrels annually in 2018 debt that we took on to build the Virginia Beach • Canarchy spokesman Chad Melis commented, “I brewery,” Mike Hinkley, the Green Flash CEO wrote • Four Corners’ co-founder, George Esquivel, stated think as you look at the landscape of people being in his note to shareholders. during a press release, “We’re proud Texas brewers, and really successful in local markets – and you look at we’ve always had intent of sharing our brews and our what John and Deep Ellum have been doing in their • Alpine Beer will be dissolved and Comerica will story with as many people as possible. We know area, the strength of the brand, and how much beer attempt to sell the Virginia Beach brewery. Constellation brands is the right partner to help us do they are able to sell in their backyard – we know it that.” authentically resonates.” • Muirlands Capital will continue to sell the Green Flash brand in eight states, all in the Western region • The Brewers Association ranked Canarchy as the with Nebraska being the furthest East. ninth largest U.S. craft beer company in 2017.

Source: BevNET.com, Inc.; brewbound.com 7 Public Market Valuations and Forward Projections

• Boston Beer Company (NYSE: SAM) released their second quarter 2018 earnings with a 10.2% increase in net revenue to $273.1 million. Their founder, Jim Koch, praises his company’s innovation for new beer styles as the tool for driving growth in a stagnant market. They are expected to grow over 9.5% in the next 12 months.

• Large brewers are trading slightly below the S&P 500 (11.5x EBITDA), but craft brewers are still experiencing higher multiples due to higher anticipated growth and a stronger resonation with the younger generations.

• Market leaders are still looking to acquire smaller brewers with local customers; Craft Brew Alliance acquired three brewers in October 2018, with the largest brewer producing an estimated 5,500 barrels per year.

• Due to long-term headwinds in the overall beer market from Millennials opting for healthier non-alcoholic options, larger brewers have been looking for new opportunities to invest capital. Molson Coors acquired Clearly Kombucha in June 2018, a non-alcohol, vegan, fermented tea, which is its second investment in Molson’s non-alcoholic portfolio in the past two years. Next 12 Months: Estimated Sales Growth Public Market Valuations

10% 24.0x

Craft Craft Breweries S&P 500 11.9x Large Breweries 11.5x Craft Breweries 21.1x 8.6% 22.0x 8% 20.0x 6.3% 18.0x 6%

16.0x 4% 14.0x

12.0x 2%

10.0x

0% 8.0x

6.0x (2%) (1.2%)

Large Brewers S&P 500 Craft Brewers 4.0x Index

Note: The Craft Breweries and Major Breweries Indices are composed of the public companies included on page 9. Source: S&P Capital IQ. 8 Public Company Valuations

($U.S. in millions, except per share amounts) 12/4/18 TTM Data EV Multiple Share 52 Week Market Enterprise EBITDA TTM TTM NTM NTM Company Name Price High - Low Cap Value Sales EBITDA Margin Sales EBITDA Sales EBITDA Major Breweries

Anheuser-Busch InBev SA/NV $75.38 $111.20 - $72.73 $147,508 $261,767 $54,969 $21,854 39.8% 4.8x 12.0x 4.7x 11.6x Heineken N.V. 92.15 106.21 - 85.55 52,599 68,874 26,045 5,295 20.3% 2.6x 13.0x 2.6x 11.2x Kirin Holdings Company, Limited 23.26 28.32 - 21.83 20,427 25,340 16,103 2,304 14.3% 1.6x 11.0x 1.5x 10.3x Asahi Group Holdings, Ltd. 41.35 53.79 - 41.33 18,940 27,858 18,871 2,846 15.1% 1.5x 9.8x 1.8x 9.6x Carlsberg A/S 111.82 121.80 - 103.45 16,937 20,102 9,645 2,018 20.9% 2.1x 10.0x 2.1x 9.5x Molson Coors Brewing Company 65.63 85.86 - 55.52 14,278 24,327 10,931 2,418 22.1% 2.2x 10.1x 2.2x 9.8x Tsingtao Brewery Company Limited 4.15 6.63 - 3.72 5,965 3,872 3,863 338 8.8% 1.0x 11.4x 1.0x 8.8x

Craft Craft Breweries United Breweries Limited 17.51 20.77 - 12.88 4,628 4,668 863 140 16.2% 5.4x 33.5x 4.8x 26.4x Beijing Yanjing Brewery Co.,Ltd. 0.85 1.36 - 0.79 2,387 2,150 1,636 149 9.1% 1.3x 14.4x 1.3x 10.6x Sapporo Holdings Limited 22.59 32.62 - 18.48 1,760 4,028 4,686 373 8.0% 0.9x 10.8x 0.9x 11.3x

Median $22,214 $10,288 $2,161 15.6% 1.8x 11.2x 1.9x 10.5x Average $44,299 $14,761 $3,773 17.5% 2.3x 13.6x 2.3x 11.9x Craft Breweries

The Boston Beer Company, Inc. $270.20 $329.95 - $160.40 $3,208 $3,139 $977 $155 15.9% 3.2x 20.2x 2.9x 16.6x Craft Brew Alliance, Inc. 16.04 21.00 - 15.24 320 319 208 20 9.8% 1.5x 15.7x 1.5x 17.1x Brick Brewing Co. Limited 2.51 3.60 - 2.29 87 95 35 5 13.4% 2.7x 20.2x 2.3x 10.3x

Median $319 $208 $20 13.4% 2.7x 20.2x 2.3x 16.6x Average $1,184 $407 $60 13.0% 2.5x 18.7x 2.2x 14.7x

Note: NA if denominator is 0, for percentages and multiples, or if estimates are not available. NTM figures are based on the median estimate of Wall St. analysts. Source: CapitalIQ, company filings. 9 Our Locations Moss Adams Location

Satellite

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Craft Craft Breweries Sacramento Dallas San Diego Houston San Francisco WASHINGTON Santa Rosa Bellingham Stockton Everett Walnut Creek Issaquah Woodland Hills Seattle Spokane COLORADO Tacoma Denver Tri-Cities KANSAS Wenatchee Kansas City Yakima

NEW MEXICO Albuquerque 30+ locations west of the Mississippi

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Craft Craft Breweries HEALTH CARE HIGHER EDUCATION HOSPITALITY MEDICAL DEVICES Here you’ll discover the advantage of industrial grade expertise. Beyond technical acumen, our professionals are MANUFACTURING OUTDOOR & & CONSUMER PRIVATE CLIENTS PRIVATE EQUITY steeped in the market sectors they serve. RECREATION PRODUCTS Our keen understanding of industry trends and challenges permits us to anticipate and respond to opportunities PROFESSIONAL REAL ESTATE RESTAURANTS RETAIL for our clients that might otherwise go SERVICES untapped.

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Sustainability Craft Craft Breweries We offer a full range of services and Compliance Insurance specializations that span accounting, TAX consulting, and wealth management to Cybersecurity suit your specific needs. Accounting for Income Taxes (ASC 740) Assessment & Planning

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12 Our Global Reach Through Local Relationships

Mazars Canada Mazars Europe 140 offices 1 office Mazars M&A 20 offices CH Reynolds CF MNP Corporate Finance 10 offices 1 office Mazars Asia MNP LLP 70 offices

25 offices Craft Craft Breweries Moss Adams Capital 2 locations Moss Adams LLP 30 locations Weiser Mazars 6 offices

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BKD Corporate Finance 4 offices Mazars Middle East BKD LLP 33 offices 15 offices

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Contact Us Craft Craft Breweries Richard Anderson Tyler Dale James Parr Managing Director Director Associate [email protected] [email protected] [email protected]

FOR ADDITIONAL INFORMATION CONTACT CONTRIBUTING AUTHORS WITH MOSS ADAMS INVESTMENT BANKING & ADVISORY

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14 The material appearing in this presentation is for informational purposes only and should not be construed as advice of any kind, including, without limitation, legal, accounting, or investment advice. This information is not intended to create, and receipt does not constitute, a legal relationship, including,

Craft Craft Breweries but nor limited to, an accountant-client relationship. Although this information may have been prepared by professionals, it should not be used as a substitute for professional services. If legal, accounting, investment, or other professional advice is required, the services of a professional should be sought.

Assurance, tax, and consulting offered through Moss Adams LLP. Wealth management offered through Moss Adams Wealth Advisors LLC. Investment banking offered through Moss Adams Capital LLC.