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IRI Large Audience Template FASTEN YOUR SEAT BELTS 2016 MID-YEAR BEER CATEGORY AND CRAFT SEGMENT REVIEW Dan Wandel Principal, IRI Beverage Alcohol Practice Area September 1, 2016 CRAFT BEER SUMMARY YEAR-TO-DATE 2016 Copyright © 2016 Information Resources, Inc. (IRI). Confidential and Proprietary. CRAFT SEGMENT TRENDS TOTAL U.S. MULTI-OUTLET + CONV AND TOTAL U.S. SUPERMARKETS Craft is experiencing its lowest Dollar Sales percent increase at +9.6% in Supermarkets since 2004. Craft sales trends have decelerated further in the latest 4 week period. Total US MULC Total US FOOD 9.9% 9.1% 6.2% 5.8% 5.6% 4.0% 2.2% 0.6% Dollar Sales Volume Sales Dollar Sales Volume Sales % Chg YA % Chg YA % Chg YA % Chg YA YTD 08-07-16 4 Wks 08-07-16 YTD 08-07-16 4 Wks 08-07-16 Source: IRI InfoScan Total US Multi-Outlet + Conv and Total US FOOD, YTD and 4 weeks ending August 7, 2016 Copyright © 2016 Information Resources, Inc. (IRI). Confidential and Proprietary. COMPETITIVE THREATS ABOUND THROUGHOUT BEVERAGE ALCOHOL Copyright © 2016 Information Resources, Inc. (IRI). Confidential and Proprietary. BEER CATEGORY & SEGMENT TRENDS AND SHARE TOTAL U.S. MULTI-OUTLET AND MULTI-OUTLET + CONVENIENCE Cider sales trends are down significantly from the high double-digit percent sales increases they had during the same period in 2015. Total US - Multi Outlet Total US - Multi Outlet + Conv Dollar Dollar Volume Volume Dollar Dollar Volume Volume 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 3.9% 100.00 1.3% 100.00 CIDER -7.3% 1.81 -10.4% 1.12 -8.3% 1.17 -11.0% 0.73 TOTAL BA CRAFT* 11.2% 11.17 7.6% 6.93 12.2% 7.15 8.4% 4.38 CRAFT (IRI DEFINITION) 9.4% 17.23 5.8% 11.11 10.3% 10.94 6.7% 6.97 PREMIUM 1.2% 34.77 -0.4% 41.66 0.2% 40.15 -1.1% 44.64 SUB-PREMIUM -0.3% 12.41 -0.6% 18.97 -1.1% 16.56 -1.6% 23.72 SUPER PREMIUM 8.0% 6.71 7.7% 6.22 9.0% 6.68 8.4% 5.77 FMB's 18.6% 6.35 15.2% 4.20 14.7% 6.63 11.9% 4.42 IMPORT 5.8% 19.84 3.5% 15.95 9.5% 17.45 7.1% 13.37 NA's 1.4% 0.64 -1.4% 0.62 -0.4% 0.32 -3.3% 0.32 *Total BA Craft does not include the following Yuengling brands: Traditional Lager, Light Lager, Black and Tan, Premium, and Premium Light Source: IRI InfoScan Total US Multi-Outlet and Total US Multi-Outlet + Convenience, YTD ending July 10, 2016 Copyright © 2016 Information Resources, Inc. (IRI). Confidential and Proprietary. TOP 15 BEVERAGE ALCOHOL GROWTH SEGMENTS ACTUAL DOLLAR SALES CHANGE YA - TOTAL U.S. MULTI-OUTLET Craft remains the top overall Beverage Alcohol Growth Segment. % Change vs Change vs YA Dollar Sales YA CRAFT - BEER $120,783,939 9.4% $1,406,884,139 ($11.00 - $14.99) TABLE WINE $103,876,505 14.7% $809,390,823 IMPORT - BEER $88,323,613 5.8% $1,620,390,500 FMB - BEER $81,227,527 18.6% $518,354,008 WHISKEY $54,814,471 6.4% $911,347,229 ($8.00 - $10.99) TABLE WINE $49,816,304 4.2% $1,229,647,595 SUPER PREMIUM - BEER $40,733,056 8.0% $548,201,950 VODKA $36,541,372 4.6% $834,239,219 ($4.50 +) BOX TABLE WINE $36,166,326 22.5% $196,745,741 PREMIUM - BEER $32,832,622 1.2% $2,839,600,874 ($20.00 - $24.99) TABLE WINE $29,975,539 27.1% $140,407,729 ($8.00-$12.99) SPARKLING WINE $27,391,062 13.9% $224,167,437 ($15.00 - $19.99) TABLE WINE $25,782,926 10.3% $274,906,187 ($13.00-$17.99) SPARKLING WINE $19,009,671 24.7% $96,032,618 TEQUILA $15,685,139 8.3% $204,170,844 Source: IRI InfoScan Total US Multi-Outlet, YTD ending July 10, 2016 Copyright © 2016 Information Resources, Inc. (IRI). Confidential and Proprietary. BEVERAGE ALCOHOL SALES TRENDS INDIVIDUAL CHANNELS Sum Of Total Liquor Total US - Food Total US - Drug Total US - Conv Stores-RMA - Liquor Dollar Volume Dollar Volume D ollar Volume Dollar Volume Sales % Sales % Sales % Sales % Sales % Sales % Sales % Sales % Chg YA Chg YA Chg YA Chg YA Chg YA Chg YA Chg YA Chg YA CATEGORY - BEER 4.1% 1.4% -1.2% -2.3% 3.4% 0.8% 1.4% -2.6% CIDER -7.6% -11.1% -10.1% -11.6% -10.5% -12.4% -7.3% -11.0% TOTAL BA CRAFT* 11.7% 8.4% 4.8% 2.2% 14.6% 10.7% 3.2% -2.2% CRAFT (IRI DEFINITION) 9.6% 6.2% 4.4% 0.9% 12.7% 9.2% 3.9% -2.8% PREMIUM 1.1% -0.3% -4.3% -3.9% -0.3% -1.7% -2.3% -4.7% SUB-PREMIUM -1.7% -1.8% -5.5% -4.5% -1.5% -2.3% -5.5% -5.5% SUPER PREMIUM 5.5% 5.3% 0.2% -0.1% 9.8% 9.2% 4.3% -0.6% FMB's 19.1% 15.7% -2.5% -4.7% 11.9% 9.5% 13.0% 7.0% IMPORT 3.9% 1.5% 5.2% 3.1% 13.8% 11.8% 3.0% 2.1% NA's 1.5% -1.4% -14.1% -15.8% -13.6% -17.7% 4.5% -0.7% TOTAL WINE 5.7% 2.7% 3.4% 0.2% 5.6% 3.6% 1.2% -0.9% SPIRITS 5.1% 3.1% 0.3% -1.8% 10.3% 12.7% 4.3% 1.0% COOLERS -2.7% 0.2% -11.1% -10.6% 13.0% 16.6% -0.2% -11.6% *Total BA Craft does not include the following Yuengling brands: Traditional Lager, Light Lager, Black and Tan, Premium, and Premium Light Source: IRI InfoScan Total US FOOD, Total US Drug, Total US Convenience, and Sum of Total Liquor Stores RMA, YTD ending July 10, 2016 Copyright © 2016 Information Resources, Inc. (IRI). Confidential and Proprietary. SEGMENTS’ HISTORICAL DOLLAR SHARE OF BEER TOTAL U.S. SUPERMARKETS FMB’s lead all Segments in Dollar Share growth this year at +0.5. 0.90 0.84 0.81 0.80 0.79 NA's 19.42 19.15 19.02 19.33 19.61 IMPORT 3.53 4.71 5.02 5.42 5.97 6.72 FMB's 6.63 6.22 6.11 6.29 14.67 13.45 12.66 11.64 11.27 SUPER PREMIUM SUB-PREMIUM 33.02 32.37 36.17 34.50 38.34 PREMIUM 2.09 2.27 2.38 0.91 1.56 CIDER 21.00 21.28 15.39 17.29 19.27 CRAFT 2012 2013 2014 2015 YTD 2016 Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016 Copyright © 2016 Information Resources, Inc. (IRI). Confidential and Proprietary. TOP 15 BEER VENDORS TOTAL U.S. SUPERMARKETS Only five of the Top 15 Vendors have managed to gain Share of Total Beer Category Dollar Sales this year. Dollar Sales Dollar Dollar Share Dollar Sales % Chg YA Share Chg YA ANHEUSER-BUSCH INBEV* $1,951,436,712 2.1% 35.21 -0.70 MILLERCOORS BREWING $1,254,472,257 1.2% 22.63 -0.66 CONSTELLATION BRANDS $506,408,977 10.7% 9.14 0.55 HEINEKEN USA INC $301,991,386 -2.7% 5.45 -0.38 BOSTON BEER CO $162,449,756 -7.8% 2.93 -0.38 PABST BREWING CO $128,538,282 17.0% 2.32 0.25 DIAGEO GUINNESS USA $101,628,137 2.8% 1.83 -0.02 MARK ANTHONY BRANDS INC $82,283,582 7.2% 1.48 0.04 SIERRA NEVADA BREWING CO $81,318,157 -0.4% 1.47 -0.07 D G YUENGLING & SON INC $76,107,341 3.3% 1.37 -0.01 NEW BELGIUM BREWING COMPANY $65,809,941 4.6% 1.19 0.01 NORTH AMERICAN BREWERIES $52,234,002 -2.6% 0.94 -0.07 CRAFT BREW ALLIANCE INC $51,176,170 -2.2% 0.92 -0.06 THE LAGUNITAS BREWING COMPANY $48,861,570 14.2% 0.88 0.08 THE GAMBRINUS COMPANY $35,546,909 -6.0% 0.64 -0.07 *Anheuser-Busch InBev data includes Four Peaks and Breckenridge Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016 Copyright © 2016 Information Resources, Inc. (IRI). Confidential and Proprietary. TOP 15 BEER BRANDS TOTAL U.S. SUPERMARKETS Michelob Ultra and Modelo Especial continue to be the top share gainers amongst the Top 15 overall Beer Brands. Dollar Sales % Dollar Dollar Share Chg Dollar Sales Chg YA Share YA BUD LIGHT $649,171,043 1.1% 11.71 -0.36 COORS LIGHT $356,878,081 2.6% 6.44 -0.09 MILLER LITE $308,708,380 3.0% 5.57 -0.06 BUDWEISER $240,945,777 0.6% 4.35 -0.15 CORONA EXTRA $229,286,804 3.0% 4.14 -0.04 MICHELOB ULTRA LIGHT $191,889,027 20.1% 3.46 0.46 MODELO ESPECIAL $128,746,884 20.6% 2.32 0.32 HEINEKEN $112,113,195 -2.2% 2.02 -0.13 NATURAL LIGHT $105,926,920 -1.2% 1.91 -0.10 BUSCH LIGHT $98,419,779 0.3% 1.78 -0.07 STELLA ARTOIS LAGER $83,357,643 14.4% 1.50 0.13 CORONA LIGHT $77,884,905 6.1% 1.41 0.03 MILLER HIGH LIFE $68,255,517 -1.2% 1.23 -0.07 BUSCH $61,007,443 -0.5% 1.10 -0.05 BLUE MOON BELGIAN WHITE ALE $60,746,494 3.2% 1.10 -0.01 Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016 Copyright © 2016 Information Resources, Inc.
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