Powerpoint Template 2007-2010

CRAFT BEER CONSUMERS: WHO ARE THEY, WHERE ARE THEY, AND WHAT ABOUT THE FUTURE?

PEOPLEWATCH BUY & BUY

2 Copyright ©2012 The Nielsen Company. Confidential and proprietary. * Beer is 288 oz case; wine and spirits are Eq cases Eq 9L are and spirits wine oz case; 288 is Beer * Source: Retail 2 weeks thru thru 52 weeks 9- Military; + Liquor + Conv+ xAOC U.S. Total Nielsen :  179MM cases*

Sales 75M 1.6B cases* $ $14B $ 12B 35B cases*

• • • • • • andaccounts across U.S. Variety of Liquor markets Military Exchanges Dollar BJ’s Sam’s, Walmart, Target Convenience Food, Drug,

13- 2014

Consumer Consumer • 1MM • U.S. geographicallyand Ongoing Ongoing • consumer consumer Geo demographically HH’srepresentative of segmentation • Fast/flexible  - demographic demographic purchase purchase

Insights

surveys

data

4 CRAFT BEER CONSUMERS: WHO ARE THEY, WHERE ARE THEY, AND WHAT ABOUT THE FUTURE?

1 CRAFT BEER IN THE BIGGER PICTURE 2 WHO IS BUYING CRAFT BEER? • WHY AND WHERE? • HOW IS THAT CHANGING? • WHAT ARE SOME KEY OPPORTUNITY AREAS? 3 “WHERE” IN SEARCH OF THE “WHO” CRAFT BEER IN THE BIGGER PICTURE Copyright ©2012 The Nielsen Company. Confidential and proprietary. MULTI- STARAND SHINY A IS BEER BRIGHT CRAFT FOR Beer: 52 w/e 10- 52 w/e Beer: Scantrack Nielsen Source: Volume Basis 65% 11- CATEGORY RETAILERS 2014; Nielsen measured all outlets (Food, Drug, Mass, Walmart, Club, Dollar, Liquor, Liquor, Dollar, Club, Mass, Walmart, Drug, (Food, outlets all 2014; measured Nielsen

Total U.S.Total

All Nielsen CategoriesNielsen All Growing –

All Outlets All Outlets 35% Combined Combined

; 52 Declining w/e w/e 10- * Beer incl. FMB, Ciders CRAFT BEER* ALL CATEGORIES 25- 2014 2014 year prior versus

BEER

;

UPC Conv - coded; coded; , Military) , 127 categories categories

VOLUME +12.5% +/ - 0.1%

- 0%

DOLLARS +16.8% +3.0% +1.4%

2002

2012

Share of Share Beverageof Alcohol 60% 51.9%

*Beer: oz; 12 Wine: oz;5 Spirits: 1.5 oz Beer

Value ($)Share Spirits: 37% Spirits: Wine : 15% : Wine Beer: 49% Beer: Spirits (2013)

Wine -

# Drinks*

14% 33.7% 29% 15.2%

2013* 2007 *Preliminary

51.1%

57%

8 Copyright ©2012 The Nielsen Company. Confidential and proprietary. MILLENNIALS YOUNGER GENERATIONS – -10 10 -5 0 5 Source: Nielsen Generations Study Study Generations Nielsen Source: Beer Dollar ShareChange 2013 vs 2003; total BevAl =100% 21- –

Homescan ; and Ciders FMB’s Panel incl Homescan Beer – 36 Wine

HAVEDRIVEN WINE/SPIRIT GAINS Spirits

ESPECIALLY -10 10 -5 0 5 Beer 37- Wine 48

Spirits 9 Copyright ©2012 The Nielsen Company. Confidential and proprietary. OVER THE LAST DECADEOVER LAST THE INROADSTREMENDOUS CRAFTMADE HASBUT BEER 10 15 20 25 0 5 Source: Nielsen Generations Study Study Generations Nielsen Source: Craft Beer ofCraft Bev Beer =Share Al 100% Total Craft Beer* Dollar Share Change: 2013 vs 2003 vs ShareCraft 2013 Change: Dollar Beer* –

Homescan ; and Ciders Panel incl Homescan Beer 21-36 Craft BA= Domestic + Specialty – ESPECIALLY YOUNGER LDA’S FMB’s 37-48

increased +4.2points of total Bev Al since 10 Craft Beershare $ among 37 Craft Beer ofCraft Beer100% Beer = Share years ago,points11.5 AND of Beer How to ReadHow 49-67

- -

48year olds

Grt Gen Grt

10 Copyright ©2012 The Nielsen Company. Confidential and proprietary. How much more or less craft beer do you drink drink now do you compared to beer craft or less How acouple ago? more much years CONTINUEDMOMENTUMPOSITIVEBEER CRAFT RECENTCONSUMER RESPONSES SUPPORT Respondent Base: 572 572 BeerBase: drinkers Craft Respondent November 11 Period: Query; Quick Fielding Source: Nielsen A lot/littleA more 42%

A lot more lot A 17% Percentages drinking (21+) Craftthose among Beer

— 13, 2014 A littleA more 25%

About the same 44%

A lot/littleA 14% less

A littleA less 7%

A lot less A 7%

11 Copyright ©2012 The Nielsen Company. Confidential and proprietary. Premium 41% DM DM Coolers Craft(Dollars) ShiftingBeer BEER BEER SEGMENTS; BEWARY CIDERSOFAND FMB’S CATEGORY EXPANSION SHIFTING FROM AND OTHER CRAFT IS BEER GAININGVOLUME BOTH FROM

FMB/ - 7%

Craft Beer to/from Shifting Shifting

48%

Imports 20%

Ciders - Shifting = 100% = Shifting 11%

Premiu Super 14%

Other 1% All

CRAFT $$ $$ CRAFT VOLUME Category (to Beer) (to Beer) Buyers Premium New New - Below Below 2 41% interaction %

High High

P1 Homescan Source: = 52wks ending (to Craft) Buyers 16% New New

Expansion Craft Beer

54% 09/2714 wks ending 52 P2= 09/28/13; Panel , TTL U.S., TTL,

Retained Buyers

Craft 38%

12 Copyright ©2012 The Nielsen Company. Confidential and proprietary. CRAFT (INCL CRAFT Source: Nielsen Homescan Panel Panel Homescan Nielsen Source: Annual of Beer % Buying HH’s buying Craft 2010 29% 2010

Penetration(off premise) 3.7

Annual Trips DM SPECIALTY) DM CONSUMERHEALTHY(IER) METRICS –

Latest 52 weeks thru 9 thru 52 Latest weeks 2012 33% 2012

3.9

- 27 Lat 52weeks - 2014; Craft including Domestic Specialty; Beer excludes FMB’s 2014; FMB’s CId and BeerDomestic excludes Specialty; Craft including Lat 52weeks 38%

4.2

beer in the last year On average,On therewere 4.2 Craft beer shopping shopping Craftbeer 4.2 HH’s Crafta bought 38% of Beer buying buying Beer of 38% trips during the year year the during trips $13.30 2010 2010 33%

ers

Dollars per Trip $14.07 2012 2012 35% Loyalty The average spending on on average The spending Craft beer per shopping Craft per shopping beer overall Beer $$ spending spending $$ overall Beer buyers Craftbeer of 41% sourced tosourced Craft beers

$14.81 was trip

Lat 52weeks Lat 52weeks

$14.81 41%

Copyright ©2012 The Nielsen Company. Confidential and proprietary. VARIETY, TASTE,A “TREAT” AND TOPTHE LIST MULTIPLEAMONG REASONSFOR BUYING CRAFT BEER, reasons you or others in your HH buy Craft beer? (select all) (select beer? Craft buy HH your in others or you reasons the primary are What Source: Nielsen Household Panel, Survey (March 2013 (March Survey Panel, Household Nielsen Source: It'snice tohave at homewhen relaxing without guests A treatspecial for occasions bring to to others' homes A treat for special occasions when out (rest, bar, etc) Usually buyother beer, but preferCraft toimpress… Like toexperiment with different styles, flavors,… It's a treat for special occasions at home at my occasions special for a treat It's Made with higher quality ingredients Like the seasonalofferings ); Total U.S. Total ); Like something local Pairswell with Food

Tastes better

19% 20% 21% 22%

28%

31%

36%

40%

46%

50%

14 Copyright ©2012 The Nielsen Company. Confidential and proprietary. More education on styles and brands and styles on education More FURTHER PURCHASES…. VARIETY A CONSTANT IS IN MOTIVATING THEME What What Source: Nielsen Household Panel, Survey (April Survey 2013);Panel, TotalHousehold U.S. Nielsen Source: would increase your interest in purchasing Upscale Beer? (select all (select Upscaleinterest Beer? purchasing your in increase would More ability to mix and match… More high calorie options calorie high More More low calorie options Moreseasonal offerings More sweet products sweet More Moreflavor options More trial packages Broader availability

10% 13%

20% 23% 23%

)

26%

28%

32%

15 WHO IS THE CRAFT BEER CONSUMER Copyright ©2012 The Nielsen Company. Confidential and proprietary. BEER PURCHASE OVER A 12MONTH PERIOD JUSTOVER OF BEER 1/3 BUYERS CLAIMED A CRAFT purchased in past in the months? purchased 12 Which Source: Nielsen Household Panel, Survey (March 2013); 2013); U.S. (March Total Survey Panel, Household Nielsen Source: of the following types of beer (if any) have you or anyone in your household any) (if or household the anyonefollowing of beer you in ofhave your types Craft 34% % of Beer buyers claiming to purchase CraftBeer

DM Specialty DM On plus Premiseplus On Off

24%

Imported 46%

Domestic Other

77%

17 Copyright ©2012 The Nielsen Company. Confidential and proprietary. OF THATOF CONSUMERSBEER THIRD OF THERE IS SIGNIFICANT VARIATION IN THE SOURCE purchased in past in the months? purchased 12 Which Source: Nielsen Household Panel, Survey (March 2013); purchasing 2013); months U.S.; (March Total prior12 Survey Panel, Household Nielsen Source: of the following types of beer (if any) have you or anyone in your household any) (if or household the anyonefollowing of beer you in ofhave your types Craft 34% % of Beer buyers purchasing CraftBeer (on off+ premise)

42% of Beer42% Cosmopolitanin buyersliving (21+) Centers bought pastmonthsCraftthe 12 beer in Income $100K+ Income HIGHS(vs 34% Affluent Asians Millennials Cosmopolitan Centers Cosmopolitan

Suburbanites

How to ReadHow

avg

)

47% 51% 42% 47% 44%

African American Incomes <$50K LOWS (vs 34% Greatest Generation Rural Living

avg

)

16% 23% 21% 20%

18 Copyright ©2012 The Nielsen Company. Confidential and proprietary. Source: Nielsen Spectra /Simmons (Data Version: Sept 2014); on plus off plus 2014); on Sept Version: (Data /Simmons Spectra Nielsen Source: 21+ AGE 65+ 45- 35- 21- REPRESENT CLOSETO OVERALLOF 1/3 VOLUMES MILLENNIAL/GEN CRAFTS CRAFTS (incl

64 44 34

ARE BESTDEVELOPED DM DM SPECIALTY) Adults 19.2% 37.1% 18.0% 25.6% % <80

- premise % Volume – X’ERS

TTL BEER AGE/GENERATIONS; Adults Index% to

10.8% 33.3% 20.7% 35.1% , BUT BOOMERS STILLBUT ,

Index 137 115 56 90 >120 AMONG

% Volume 31.6% 24.3% 35.5% CRAFT* 8.6%

Index 135 138

45 85

”

succinctly …conversational …experimental, adventurous authenticity …values feedback …craves …love to “capture” life, and it “share” “personalization” …embrace …self liberal …more shifts role …gender …VERYand accepting diverse, …most educated …self “green” minded minded; …social ...positive; optimistic …multi … connected …always – techno - - expressive confident - taskers savvy

talk with, tonot talk with, – –

if it’sif good? – –

be genuine & real genuine be fun life, enjoy

but but

Copyright ©2012 The Nielsen Company. Confidential and proprietary. THEY‘RE ALSO ENVIRONMENTALLY ALSO THEY‘RE CONSCIOUS YOUBUT TO NEED TO WORK HARD RETAIN LOYALTY; MILLENNIALSARE ADVENTUROUS Top 2 box Liketo flavors new try brands Prefer small/local Liketo explorenew/different products Top 2 box positive social and environmental and social positive impact committed to companies from services - willing willing to extra pay for products/ Source: Source: 1 ) NielsenGenerations Study – – –

General Pop’n Beer buyers

Homescan Homescan 1

Panel; 2)Nielsen Consumer Confidence Study (Q1 2014) (Q1 Study Confidence Consumer Panel; 2)Nielsen

Millennial Millennial (21- (21- 66% 64% 43% 61% 24) 28)

Millennial Millennial – (25- (29- 53% 53% 32% 51% GOOD FOR TRIAL FORGOOD TRIAL 34) 36)

– (35- (37- 40% 45% 29% 44%

Gen X Gen X Gen U.S. Results U.S. 49) 48)

Boomer Boomer (50- (49- 33% 35% 24% 37% 64) 67)

Grt Grt Gen 31% 24% 20% 25% (65+) (68+)

Gen

21 Copyright ©2012 The Nielsen Company. Confidential and proprietary. “LOCAL” RESONATESSTRONGLY MILLENNIALS WITH EXPERIMENTATION WITH STYLES/FLAVORS, ASWELL AS It'snice tohave at homewhen relaxing without guests A treatspecial for occasions bring to to others' homes A treat for special occasions when out (rest, bar, etc) What What Usually buyother beer, but preferCraft toimpress… Source: Nielsen Household Panel, Survey (March 2013 (March Survey Panel, Household Nielsen Source: Like toexperiment with different styles, flavors,… Millennials are the primary reasons you or others in your HH buy Craft beer? (select all) (select beer? Craft buy HH your in others or you reasons primary the are It's a treat for special occasions at home at my occasions special for a treat It's Made with higher quality ingredients Like the seasonalofferings Overall Like something local Pairswell with Food ); Total U.S. Total );

Tastes better 0%

10% 20% 30% 40% 50%

60%

CRAFT BEER Segmentation NMI’s Health WELLNESS CRAFT THE CONSUMER MUCHIS HEALTH MORE AND & Wellness&

Consumer Source: Natural Marketing Institute Segmentation and Nielsen Homescan Panel (Annual 2013) BEER

Most Health • • • • CONSCIOUS Most Green usage organicHighest & Influencers Market leaders pro Most health Conscious BEINGS® - WELL WELL active 120 17% 86

Buying • conscious” segment is 20% moresegmentthe than is 20% conscious” How to read: Craft buyers spending per HH among the “health “health the among HH per spending buyers Craft toread: How healthy Mainstream ACTIVES® THAN THE OVERALLCONSUMER THE THAN BEER FOOD FOOD 106 91 18%

Rate Index to “All Buyers” = 100

• SITTERS® healthy ‘Wannabe’ FENCE FENCE 102 100 12%

• BULLETS® healthy Conveniently MAGIC MAGIC 104 31% 83

avg

• • • spending per HH per spending & BEMERRYS®& Most price driven price Most about prevention Unconcerned active Least health Least Health EAT, DRINK Conscious 113 21%

23 Copyright ©2012 The Nielsen Company. Confidential and proprietary. WHO’S COMING NEXT…HELLOWHO’S Z GEN tomid late 1990’s Born • • • • • • • • • • Source: JWTconnections.com;Forrester Research; Millennial Branding Internships.com;/ Capitalist Visual Significant in size in Significant VERY diverse; with a Global mindset mindset Global a with VERY diverse; Even more entrepreneurialthan of the brand the conversationof First generationto grow“twowayup with brand”conversation; must part a be Digitally connected constantlyconnected Digitally Prefer Prefer visuals overtext spend They They prefer home educatorsSelf -

lack brandlack beyond school time41% beyond of school their to workindependently

52% use use You52% Tubeor for socialmedia research assignments loyalty; authenticity is is keyloyalty; authenticity toloyalty gaining - -

cookedfoods overprocessed, ready nearly ¼ population ¼ US of nearly

-- –

Generationis very they multitask across at least fivescreens millennials - 42% are Hispanic, with computers with mobile or

individualized

- to Afr - eat meals -

Am, or Asian or Am,

devices

daily; daily;

24 Copyright ©2012 The Nielsen Company. Confidential and proprietary. FEMALE MALE GENDER 21+ FEMALE MORE EQUALLY,FMB’SAS DO AND CIDERS CERTAIN SPIRITSEGMENTS (EG VODKA)SERVE BOTHMALES AND CRAFTS (incl BEER, Source: Nielsen Spectra /Simmons (Data Version: Sept 2014); on plus off plus 2014); on Sept Version: (Data /Simmons Spectra Nielsen Source:

INCL. INCL.

DM SPECIALTY) % Adults CRAFTS, ARE STILL VERYCRAFTS,STILL ARE MALE 52.0% 48.0%

% Volume TTL BEER –

31.8% 68.2% GENDER;Index to % Adults <80 - premise

Index 142 61

% Volume CRAFT 28.4% 71.6% >120 - CENTRIC. WINE & WINE CENTRIC.

Index 149 55

FMB Index 110 90

CIDER Index 101 99

25 Copyright ©2012 The Nielsen Company. Confidential and proprietary. Source: Nielsen Spectra /Simmons (Data Version: Sept 2014); on plus off plus 2014); on Sept Version: (Data /Simmons Spectra Nielsen Source: RACE/ETHNICITY ASIAN HISPANIC - AFR WHITE 21+ VERY “WHITE”,VERY DIFFERENT A CRAFTS (incl

STUDYCONTRASTS;ETHNICIN CRAFTS SKEWED

DM SPECIALTY)

% Adults 14.8% 66.4% 11.2% 5.3% <80 –

- premise RACE/ETHNICITY; Index to Adults %

% Volume

TTL BEER 16.6% 12.5% 61.6% 6.8%

Index >120 128 112 111 93

% Volume 83.3% CRAFT 4.7% 7.0% 2.7%

Index 125 87 47 24

26 Copyright ©2012 The Nielsen Company. Confidential and proprietary. : Source: U.S. Census; 13% 2000 70% 13% Hispanic 4% IS ALL MULTIIS ALL -CULTURAL, BY LED HISPANICS IMPORTANT?THIS WHY IS POPULATION GROWTH Distribution of the U.S.the Distributionof Population

*Buying Buyer = Selig = Selig Buyer *Buying Black 19% 2020 60% 14% Center of Economic Growth, 2012 Growth, 2012 Economic of Center 6%

Asian 27% 2040 51% 15%

8% White Non-Hispanic

46% 2050 15% 30% 9%

How to Read: Less acculturatedHispanics

account for 76% less for 76% account less Craft than volume Source: Nielsen Spectra Hispanic IQ; October 2014 IQ; Hispanic Spectra Nielsen Source: their overall share of 21+ population population overall 21+ of their share Least Acculturated Least Acculturation level 24% Craft ( 24

incl

DM Specialty)DM Volume IndexHispanics among by -

Indexed to % of Adults among General Bi-Cultural 32% 22

Most Acculturated Most Pop’n 96 44%

28 Copyright ©2012 The Nielsen Company. Confidential and proprietary. have not embracedhaveboth? bit Hispanics? maybeof a Or OPPORTUNITY FORCRAFTINDUSTRY BEER THE HISPANICS REPRESENT SIGNIFICANTA GROWTH Is Is it that Hispanics have not embraced Crafts; or is it in part that Crafts Source: Nielsen Target Target Source: Nielsen Track; 52 11/1/2014 ending weeks Hispanic sourcedof Dollars % Total Beer 15.1% (based statistical(based on decomposition scanof sales)

Craft Beer (incl DM Specialty) DM (incl Beer Craft –

TotalU.S.Food Channel 7.6%

29 Copyright ©2012 The Nielsen Company. Confidential and proprietary. Hispanic CONSISTENTLY OUTPACEDNON HISPANIC SOURCED CRAFT BEER GROWTH HAS 10 15 20 25 30 0 5 • • Source: Nielsen Source: Of 45 CraftHispanic sourced case sales non > CraftHispanicsourced case sales aregrowing double - Nielsen measured localFood markets sub sourced sales have contributed ~44% of Beer $ sales growth between 2010 between growth sales $ Beer contributedof ~44% have sales sourced ; TargetTrack 2010 Craft(BA + Specialty)Dom DollarChange % Annual periods, Annual Hispanic U.S. Food

2011 2012 - Hispanic sourced sales in 33 (of 45) sourced (of sales Hispanic 33 in Non Hispanic U.S. Food - divided into Hispanic vsinto Non dividedHispanic - HISPANIC digits in digits in 2013 –

Total U.S. 31 (of 45) 31

GROWTH Lat 52 weeks 52 Lat (11/1/2014)

Hispanic

- 13 30 Copyright ©2012 The Nielsen Company. Confidential and proprietary. Respondent Base: 572 Craft Beer drinkers; Note that Hispanic responses are directional only given sample base sample given only directional are responses Note Hispanic that 572 BeerBase: drinkers; Craft Respondent November 11 Period: Query; Quick Fielding Source: Nielsen How much more or less craft beer do you drink drink now do you compared to beer craft or less How acouple ago? more much years REPORTING INCREASED CONSUMPTION CRAFT HISPANICS* FAVORABLEEVEN MORE IN A lot/little more Total 42%

Percentages among those (21+)drinking Craft Beer Hispanics

57% —

13, 2014

About the same the About Total 44%

Hispanics 32%

A lot/little less Total 14%

Hispanics 11%

2014 2014 non Hispanics Hispanics,

Percentage21+ populationof non-Hispanics - 16%

A35-44 index A YOUTHFULDEMOGRAPHIC 150 24%

20% A45-54 Hispanics 19%

41% A55+ 23%

median age median 28 Hispanic Hispanic Hispanic non

vs vs - 42

Npower Hispanics Hispanics

2014 Hispanics 21 2014 Hispanics 21- 34 - 34 Foreign born

55%

42% 36% 47% 30% 24% 34% Keyfacts about this consumer

live in households with >$50K parents their with live employedfull time white have at least some married) (43% theirhomes head

collar occupation collar

college

33 Copyright ©2012 The Nielsen Company. Confidential and proprietary. Source: U.S. Census Bureau. HH income growth growth HH income U.S. Bureau. Source: Census EMERGENCE UPSCALE THE OF A sweetA spot for Craftbeers +31% +71%

2000- Non grew earning Latino households 49% grew grew $100K+ Latino earning households 2011

Latino for Non 31% $75-

vs. vs.

$99K Latino 71% 16%

for for

vs. vs. LATINO $1.5 Trillion in spending power spending in projected In 2015 In

34 Copyright ©2012 The Nielsen Company. Confidential and proprietary. Source: Pew Hispanic Center, Npower Center, Hispanic Pew Source: New York Los Angeles Markets Top Hispanic Miami San FranciscoSan Dallas Chicago Houston San AntonioSan Phoenix Impacting localand regional distribution GROWING IN A NEIGHBORHOOD NEAR YOU

Nielsen Hispanics 21 Nielsen Hispanics Contribution % Hispanic 21 To 21 To 48% 30% 34% 24% 42% 51% 38% 32% 65% - 34 Total - 34

- 34

SEATTLE DENVER

MINNEAPOLIS

DETROIT RALEIGH

35 Copyright ©2012 The Nielsen Company. Confidential and proprietary. Source: Nielsen Nielsen Source: HYPER Marketsight SMARTPHONE Hispanics owna 88% 88% smartphone 2014 2014 A21 Q3 non Hispanics Hispanics, 90% of non of MOBILE

- 34, NPOWER Aug 2014 vs Aug 2011 Aug 2014 vs 34, NPOWER Aug CONNECTED % Penetration 55% Hispanics Hispanics TABLET 52%

of non of

- -

Total Hispanic Homes 45% 45% Hispanics LAPTOP 34% of non of

36 Copyright ©2012 The Nielsen Company. Confidential and proprietary. Source: Nielsen Mobile Mobile Nielsen Source: SOCIAL MEDIA GETSLIKES MANY 44hrs36min Netview mobile Apps mobile Time spent/ 63% Non 44hrs11min : Hispanics 18+, 18+, non- Hispanics : averaging - App usage App Hispanics Hispanics

Hispanics 18+ 18+ by spent, August time 2014 Apps Top Hispanics

76% social media

Facebook Pandora Radio Twitter Facebook Messenger Instagram YouTube Bank of America America of Bank Chase Mobile Amazon Mobile SearchGoogle Time spenton mobile Apps(

58%

APP

GPS

Banking

59% Hispanic 12:10 06:36 03:06 05:02 02:49 00:25 01:20 02:25 00:34 00:42

shopping

48% Hrs:Min Non

10:52 04:30 02:03 04:46 02:11 00:21 01:39 02:04 00:21 00:42 - Hispanic )

% of Hispanics that agree…. that Hispanics of % My culture/ethnicis heritage an Source: Scarborough 2014 RR1 Hispanics 21 2014 Hispanics RR1 Scarborough Source: heritage thanheritage my parents important partof who Iam I enjoy maintaining traditions children continuechildren my family's… It is importantIt is me my to that

livein households where both English and Spanish are spoken HISPANICS Hispanics 21-34 - 34, Hispanics 21 Hispanics 34, - 44 AS BICULTURAL ASOLDER

Hispanics 35+ Hispanics 33% 37%

68% 72% 73% 76% 76% 77%

LATINOS

38 Copyright ©2012 The Nielsen Company. Confidential and proprietary. HEALTH, BUYING FRESH AND Source: Scarborough 2014 21 2014 RR1 Scarborough Hispanics Source: Important toyoung LDA Latinoswho drink Craft beer a healthier lifea beer (past 30 days) Amongst(21 young ...buying ...buy brands ...buy based on quality, not on price ...always looking ...prefercooking fresh

Americanis important tome Attitudes that reflect my style

- fornewways to live - 34 34 who craft beer drank 30 past days 34) Hispanic consumersHispanic34) that drankcraft

AMERICAN 67% 61% 64% 74% 88% %

... 39 Copyright ©2012 The Nielsen Company. Confidential and proprietary. LOCATIONS HISPANICSCRAFTINMULTIPLE BEER BUY 10% 20% 30% 40% 50% 60% 70% Where do you buy Craft Beer? (select all) (select Beer? Craft buy you do Where Source: Nielsen Household Panel, Survey (March 2013); 2013); U.S. (March Total Survey Panel, Household Nielsen Source: 0% MUCH MORESO MUCH Channels where21 Hispanic % of Craftbeer buyers that buy Craftbeer bychannel –

EVEN

than non- Hispanic MORESO

Hispanicssimilar a ageof range - 34 yearold Craftbuyers buy Beer (ofall kinds)

Non Hispanic Non

THAN NON -

HISPANICS

40 Copyright ©2012 The Nielsen Company. Confidential and proprietary. HISPANIC RETAILERS IMPORTANT TO Source; Hispanic Grocery Survey; reported by Nielsen Homescan Q2 Panel; Homescan Consumer 2014 Nielsen by reported Grocery Survey; Hispanic Source; Total Hispanic HH's Hispanic Total Do youDo shop at Hispanic stores? 61.3 38.7 Spanish Preferred Spanish Yes 76.8 23.2 No

English Preferred English (percentages) 43.2 56.8 LATINOS

41 Copyright ©2012 The Nielsen Company. Confidential and proprietary. YOU/YOUR DISTRIBUTORS CONSIDERING THESE YOU’REIF SEEKING THE • • • • • • • • • • • • • • • • • • • • • La La MarketsLow K.V. area Angeles (Los Mart Supermarket - Jalisco Market - Ideal Fresh World International Supermarket (Northern Virginia) (TexasFoodarama area) FoodCity (Arizona) Food Bazaar Supermarkets (CT,NJ, NY) area) Florida (Central Freshco Mart Fiesta El Rio Grande Latin Market - SuperAngeles,El (Los southern Nevada Phoenix) and Compare Foods Cardenas Supermarkets – Carnival Carnicerias Jiminez Bravo – Saver Foods Big chain southern in California Baja Ranch Supermarket (formerly RanchKing Markets) Virginia) Bestway (Maryland, Supermarket Artegas Placita http://en.wikipedia.org/wiki/List_of_supermarket_chains_in_the_United_States#Hispanic.2FLatino 2014) 10, (Nov WikipediaSource:

–

chain Centralchain Florida Food Center Center Food –

- Dallas area Dallas

New Orleans area (4 stores) area (4 Orleans New –

Mexican

New Orleans area (5 stores) area (5 Orleans New – 60+ stores60+ East/NE. in (NY,CT, NC) RI, MA,

(16 stores in Los Angeles area) stores Angeles Los (16 in - –

owned by Bashas owned 8 stores Chicagoin area -

Louisiana(4 stores) (10+ stores(10+Northern California) in American, primarilyTexas in

S California

(Texas)

Operates as Top ValuBuy and

HISPANIC

• • • • • • • • • • • • • • • • • • • • • • •

CONSUMER, ARE Vallarta Supermarkets Markets – Rancho Markets – Ranch Rio – Terry's/El Supermarkets Mariachi RanchoEl – Tienda Mi Supermercado Rancho El Supermercado Warehouse – Super Superior - Bros. Seller's Sedano's Plus Saver's Cost Rancho– Liborio Markets - Ranch R Presidente Market Uno Numero Gonzalez Northgate Center Food Pueblo Mi Publix Sabor Market Ranch Altos Pro’sMarket /Los Ranch Meat Market Michoacana La Latino Megamart Express Grocery

–

- Southern Florida (DC area) (DC -

Dallas/Fort Worth, Texas Worth, Dallas/Fort area

Divisionof HEB South Florida –

operated byPublix Houston, Texas Nuestra

11 stores 11 (California, Nevada,Colorado) -

Texas Utah Southern California

8 stores;California8 Southern - -

California 10 stores in Los Angeles area stores Angeles Los 10 in -

Familia -

California

New Orleans area (3 stores) area (3 Orleans New Northern California –

Texas stores 15 area ;

Stores; TexasStores; -

STORES? 28 stores28 Southern; California

130 stores; TX area –

Nebraska; 3 stores 3 Nebraska;

Texas; OklahomaCity

- – 21 Stores 21

AZ, CA, NM, AZ, TX CA,

42 Copyright ©2012 The Nielsen Company. Confidential and proprietary. “TREAT” RESONATE HISPANICSWITH MORE EVEN SEASONALOFFERINGS, FOOD PAIRINGS CRAFT ANDAS A What A treatspecial for occasions bring to to others' homes A treat for special occasions when out (rest, bar, etc) Source: Nielsen Household Panel, Survey (March 2013 (March Survey Panel, Household Nielsen Source: Usually buyother beer, but preferCraft toimpress… Like toexperiment with different styles, flavors,… It'snice tohave at homewhen relaxing without… are the primary reasons you or others in your HH buy Craft beer? (select all) (select beer? Craft buy HH your in others or you reasons primary the are Hispanics It's a treat for special occasions at home at my occasions special for a treat It's Made with higher quality ingredients Overall Like the seasonalofferings ); Total U.S. Total ); Like something local Pairswell with Food

Tastes better 0% 5% 10% 15% 20% 25% 30% 35%

40% 45%

of Americaacross

, OPPORTUNITY TO, OPPORTUNITY INNOVATE

Top flavorsamongst Hispanics Fruit: cherry, pear,melon, black currantblack pine Earthy: , hickory , oak

coriander, clove, Sour:lemon, Spices: lime, citrus lime, anis

, cumin , canela

PRESENT IN EVERYTHE DAY OF LATINOS FOR BONDING, BUT ALSO TO ALSO STRENGTHENBUT FOR BONDING, IDENTITY VERY PRESENT –

FAMILYPARAMOUNT IS IN YOUNGER IN GENERATION

45 Copyright ©2012 The Nielsen Company. Confidential and proprietary. Total U.S. - top3) favorites to (select drink your are beer craft following styles of the of 3 Which M 55 STYLE PREFERENCES DIFFER BY THE “WHO” M M Hispanic

Source: Nielsen Quick Query; Fielding Period: November November 11 Period: Query; Quick Fielding Source: Nielsen F 21- F provided styles choices 34 21+

21- 35- -

64 34 34 44

24% 32 18 27 10

8 No particular

preference 19%

Shaded area percentagesShaded area pointsleast at higher4 than Total Lager

19%

Pale Ale TopPreferences Style drinkers amongBeer

— 17% 13, 13,

2014; Respondent 2014; Amber

16% Light

Base: Base: 12%

830 Stout Beer

12% drinkers Belgian Ale

11% Pilsner

9% Fruit Flav

9% Oktoberfest

8% IPA

8% Blonde

7% Golden Ale

Classic Dark

46 WHERE TO FIND THE “WHO” Copyright ©2012 The Nielsen Company. Confidential and proprietary. Nielsen collects HERE’S WHERE CRAFT IS IS BESTCRAFT WHERE HERE’S DEVELOPED (GROCERY) Source: Grocery; Source: Nielsen 52 10 ending weeks 10 3 2 1 4 5 6 7 8 9

$832MM $832MM TAMPA PHOENIX LOS LOS SAN FRANCISCO HOUSTON CHICAGO MIAMI MIAMI NEW YORKNEW SEATTLE $257MM PORTLAND POSdata Beer* ANGELES

- 2014; Beer includes FMB’s and Ciders and FMB’s includes2014; Beer

from Grocery; Drug; Convenience; Liquor at local marketlevel local at Liquor Convenience; Drug; Grocery; from

SAN FRANCISCO $82MM PORTLAND SEATTLE LOS ANGELES NEW YORKNEW WASH D.C WASH DETROIT SAN DIEGO CLEVELAND $38MM TAMPA Craft $$

. .

32% PORTLAND SAN FRANCISCO CLEVELAND WASH WASH SAN DIEGO SEATTLE SACRAMENTO COLUMBUS 19% BUFF/ROCH ALBANY Craft

D.C. D.C.

$ Share

+45% MEMPHIS SAN DIEGO BIRMINGHAM MIAMI MIAMI SACRAMENTO LAS VEGASLAS CHICAGO MILWAUKEE LOS ANGELES +21% TAMPA Craft $ % Growth

48 Copyright ©2012 The Nielsen Company. Confidential and proprietary. FIND THEM GEOGRAPHICALLY WE CAN IDENTIFY THE MOST LIKELY “WHO”, AND 2. 1. • • Wecan identifyyour “consumer” You OR... your “target” us tell can via yourvia depletions via consumer panel data Thumbprint #1

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<120 120- 150+ 150

190% more likely to purchase Craft AffluentSpreadsare Suburban Beer than the average thanBeer the U.S. HH Young Transitionalsin living

Less Affluent Less SPECTRA GRID

50 Copyright ©2012 The Nielsen Company. Confidential and proprietary. FIND SIMILAR, HIGH POTENTIAL HOUSEHOLDS else do they Whatbuy? are their lifestyles? Media preferences? Theyconsume wellabove averageamounts Craft ofBeer

–

wherearethey? What

51 Copyright ©2012 The Nielsen Company. Confidential and proprietary. State/City Level highestdevelopment indexfor opportunity CraftBeer Cook County is the most densely populated county in Illinois; DuPage represents IDENTIFY HIGHEST POTENTIALGEOGRAPHIES Source: NielsenSpectra

County Level

DuPageLevelCounty Code Zip

53 Copyright ©2012 The Nielsen Company. Confidential and proprietary. Source: NielsenSpectra AND THOSE MUCH LESS LIKELYMUCH THOSE AND TO BEER CRAFT SELL StoreJewel Rankingof 173 OscoStores the Statein of Illinois

AT AT A NATIONALA LOCALOR LEVEL PREFERENCES, Source: Nielsen Nielsen Source: Spectra

55 Copyright ©2012 The Nielsen Company. Confidential and proprietary. 3. 2. 1. WHO IS THE CRAFTCONSUMER BEER IS THE WHO • in the rightthe in Pinpointing long Craft the Expanding profilecritical Beer to be will future Millennials/Gen with positivea long term outlook given with success CraftBeer continues “coveted”toa be category atRetail, Hispanics one of those BIG ofopportunities – one those Hispanics but but stilla lot of work left to do - term growth outlets! opportunities will be critical X’ers

, and traits of Gen traitsGen , and of

we’re on theright path, Z’ers –

the right the products

to come

56 Copyright ©2012 The Nielsen Company. Confidential and proprietary. • • • NIELSEN DATABASE HELPUS HAVE YOUR PRODUCTS CODED IN THE CRAFT BREWERS • [email protected] Contact Contact fashion for accounted (front and back labels, or artwork) us send yourPlease current UPC listspackagenew and informationNielsen referenced and is used widely investment industryassociationsfirms, Retailers,trade andconsumer media, suppliers – Nielsen Nielsen

we’ll do rest! the in our sales data accurately and in a timely @

[email protected]

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images 57 Thank You! Cheers

[email protected] 949-716-0224