IRI Large Audience Template

Home , Hard soda, Live Oak Brewing Company

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

 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

 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

 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

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

 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

 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

 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

 New Beer Products Case and Dollar Sales have both increased this year compared to the 2.5MM Cases and $82.4MM Dollars generated through mid-year 2015. Dollar Sales

MILLERCOORS BREWING $24,004,526

ANHEUSER-BUSCH INBEV* $16,589,106

BOSTON BEER CO $11,077,421

NEW BELGIUM BREWING COMPANY $6,356,511

CONSTELLATION BRANDS $5,903,071

MARK ANTHONY BRANDS INC $3,234,056

SIERRA NEVADA BREWING CO $2,499,394 Total New Beer Products:

DIAGEO GUINNESS USA $1,492,546 Case Sales = 2.8MM BELLS BREWERY INC $1,465,003

PABST BREWING CO $1,368,329 Dollar Sales = $100.7MM

NORTH AMERICAN BREWERIES $1,031,715

*Anheuser-Busch InBev data includes Four Peaks and Breckenridge

Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016

 12 of the Top 16 New Beer Brands have a flavor element to them.

Dollar Sales

HENRYS HARD SODA ORANGE $14,018,409 HENRYS HARD SODA GINGER ALE $6,539,325 NEW BELGIUM CITRADELIC TANGERINE IPA $5,616,099 BEST DAMN CHERRY COLA $4,759,123 SAMUEL ADAMS REBEL GRAPEFRUIT IPA $4,341,787 ESTRELLA JALISCO $3,425,877 SIERRA NEVADA OTRA VEZ GOSE STYLE ALE $2,477,481 BALLAST POINT PINEAPPLE SCULPIN IPA $1,888,779 BUD LIGHT LIME STRAW BER RITA SPLASH $1,883,308 CERVEZAS CLASICAS $1,634,659 # of Total New Top New Beer Brand MIKES HARD PEACH LEMONADE $1,558,801 Year New Beer Brand (Based on $ Sales) SAMUEL ADAMS NITRO COFFEE STOUT $1,411,624 Brands Case Sales YTD 2016 665 2,240,595 HENRYS HARD SODA ORANGE BUD LIGHT LIME LIME A RITA SPLASH $1,346,743 2015 1150 4,881,824 Coney Island Hard Root Beer SAMUEL ADAMS NITRO WHITE ALE $1,287,649 2014 612 7,403,257 Bud Light Lime Mang O Rita GOOSE ISLAND FOUR STAR PILS $1,049,296 2013 530 5,473,905 Bud Light Lime Straw Ber Rita SMIRNOFF ICE ELECTRIC BERRY $1,004,192 2012 415 6,953,181 Bud Light Platinum Lager

Note: Includes brands with sales in December 2014 of $10K or less. Top seller Henry's Hard Soda Orange was given an exception given a December release but slightly over $10K in sales.

Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016

 IPA’s continue to dominate the top new beer brands ranking.

Dollar Sales

NEW BELGIUM CITRADELIC TANGERINE IPA $5,616,099 SAMUEL ADAMS REBEL GRAPEFRUIT IPA $4,341,787 ESTRELLA JALISCO $3,425,877 SIERRA NEVADA OTRA VEZ GOSE STYLE ALE $2,477,481 BALLAST POINT PINEAPPLE SCULPIN IPA $1,888,779 CERVEZAS CLASICAS $1,634,659 SAMUEL ADAMS NITRO COFFEE STOUT $1,411,624 SAMUEL ADAMS NITRO WHITE ALE $1,287,649 GOOSE ISLAND FOUR STAR PILS $1,049,296 SAMUEL ADAMS NITRO IPA $977,382 BALLAST POINT WATERMELON DORADO DOUBLE IPA $851,290 BALLAST POINT MANGO EVEN KEEL SESSION IPA $655,304 NEW BELGIUM GLUTINY PALE ALE $554,711 ORCHARDS EDGE KNOTTY PEAR $526,111 FIRESTONE WALKER LUPONIC DISTORTION IPA $517,662

Note: Includes brands with sales in December 2014 of $10K or less.

Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016

 New Craft Products account for over half of Beer’s total new product Dollar Sales. This is up from 42.6% in mid-year 2015.

New Product Dollar Share of Total New Sales by Segment Product Dollar Sales

CRAFT $52,947,652

FMB's $37,517,056 FMB's 37.3% IMPORT $5,699,529 CRAFT 52.6% CIDER $2,606,966 IMPORT 5.7%

SUPER PREMIUM $1,314,014 CIDER 2.6% PREMIUM SUB-PREMIUM $538,823 0.1% SUB- SUPER PREMIUM PREMIUM PREMIUM $92,319 0.5% 1.3%

Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016

 Infused Beers share of Total Beer Dollar Sales has increased by +4.9 since 2012. Infused Spirits share has increased by +1.3 since 2012.

Dollar Share of Infused within respective Category

40.0 31.2 32.5 30.0 Infused Spirits 20.0 Infused Beer 12.2 10.0 7.3 Infused Wine 1.3 0.9 0.0 2012 YTD 2016

• Infused Beers include FMB, Cider, and Fruit/Veggie/Spiced/Infused Brands across other beer segments. • Infused Spirits include Flavored Vodka, Gin, Whiskey, Brandy, Rum (including Spiced), Cordials and Premixed Cocktails. • Infused Wine includes Beverage, Chocolate and Fruit Flavored Wines

Source: IRI InfoScan Total US FOOD, Calendar Year 2012 and YTD ending July 10, 2016

 Boston Beer is the #3 Spirits Vendor Dollar Share Gainer due to its Truly Spiked new hard seltzer products.

Dollar Share Top Vendors - Dollar Sales Chg YA Top Dollar Share Gainers

DIAGEO $130,330,673 0.5% PROXIMO SPIRITS 0.5%

PROXIMO SPIRITS $57,493,206 0.5% DIAGEO 0.5%

SAZERAC CO $55,247,402 -0.1% BOSTON BEER 0.4%

PERNOD RICARD $52,554,745 -0.4% E & J GALLO 0.3%

BEAM SUNTORY $37,993,485 -0.3% BOATHOUSE BEVERAGE 0.2% AMER BVRG MKTR 0.2% HEAVEN HILL DIST $19,883,904 0.1% LEVECKE CORP 0.2% BACARDI USA $19,664,370 -0.6% HEAVEN HILL DIST 0.1% SIDNEY FRANK $18,930,958 -0.2% TRES AGAVES 0.1% BROWN FORMAN $17,838,356 -0.1% ZING ZANG CORP. 0.1% MOTTS LLP $17,427,951 -0.3%

Infused spirits include Flavored Vodka, Gin, Whiskey, Brandy, Rum (including Spiced), Cordials and Premixed Cocktails.

Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016

 Pabst Brewing is the top gainer this year relative to share of Total Infused Beer Dollar Sales.

Dollar share Dollar Share Dollar Sales of Infused Chg YA

ANHEUSER-BUSCH INBEV* $165,838,449 24.6% -4.4%

MILLERCOORS BREWING $131,618,865 19.5% 0.9%

MARK ANTHONY BRANDS INC $82,269,874 12.2% -0.8%

BOSTON BEER CO $77,116,784 11.4% -2.4%

PABST BREWING CO $43,939,207 6.5% 2.3%

DIAGEO GUINNESS USA $42,671,063 6.3% -1.0%

CONSTELLATION BRANDS $13,341,786 2.0% 1.0%

HEINEKEN USA INC $12,092,706 1.8% 0.1%

ALCHEMY AND SCIENCE $11,770,076 1.7% 1.1%

NEW BELGIUM BREWING COMPANY $5,617,533 0.8% 0.8%

*Anheuser-Busch InBev data includes Four Peaks and Breckenridge Infused Beers include FMB, Cider, and Fruit/Veggie/Spiced/Infused Brands across other beer segments.

Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016

Copyright © 2016 Information Resources, Inc. (IRI). Confidential and Proprietary. TOP 15 HARD SODA BRANDS TOTAL U.S. MULTI OUTLET + CONVENIENCE  Total Hard Soda Dollar Sales thru YTD 2016 are $208,991,137  Total Hard Soda Dollar Sales in CY 2015 were $145,806,084.

Share of Dollar Sales % Chg YA Dollar Sales Hard Sodas 4 Wk 4 Wk YTD 08-07-16 08-07-16 08-07-16 SMALL TOWN NOT YOUR FATHERS ROOT BEER ALE $6,095,443 26.4% -43.2% 151% HENRYS HARD SODA ORANGE $5,205,734 22.5% BEST DAMN ROOT BEER $3,153,381 13.6% BEST DAMN CHERRY COLA $2,090,292 9.0% 100018047% HENRYS HARD SODA GINGER ALE $1,720,248 7.4% CONEY ISLAND HARD ROOT BEER $1,346,613 5.8% -35.9% 589% SMALL TOWN NOT YOUR FATHERS GINGER ALE $1,034,009 4.5% SMALL TOWN NOT YOUR FATHERS VANILLA CREAM… $602,204 2.6% CRABBIES GINGER $441,549 1.9% -23.6% 13% CONEY ISLAND HARD ORANGE CREAM ALE $417,765 1.8% CONEY ISLAND HARD GINGER ALE $201,134 0.9% HENRYS HARD SODA VARIETY PACK $164,087 0.7% SEAGRAMS HARD SODA VARIETY PACK $131,377 0.6% ROOT SELLERS ROW HARD ROOT BEER $56,811 0.2% -58.2% 17% THOMAS CREEK ISLANDER GINGER BEER $51,671 0.2% 913.9% 1476%

Source: IRI InfoScan Total US Multi-Outlet + Conv 4 Weeks Ending August 7, 2016

 Infused Craft Beer passed Cider in Dollar Sales earlier this year during the four-week period ending March 20, 2016.

Dollar Sales

FMB's $331,087,638

CRAFT $130,330,610

CIDER $116,233,345

ALL OTHER $80,890,279 DOMESTIC

IMPORT $16,879,913

Infused Beers include FMB, Cider, and Fruit/Veggie/Spiced/Infused Brands across other beer segments.

Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016

 Infused Craft Beers have increased their share of Total Craft Dollar Sales by +2.1 to date.

Dollar Sales and Share of Total Craft Dollar Sales * YTD 6.7% 7.3% 7.5% 8.9% 11.0% $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0

Infused Craft beers are comprised of Fruit/Veggie/Spiced brands from Craft. Seasonals, Variety Packs and Special Releases are excluded from this analysis, except where all items are known to be flavored

*Share is based on 52 week data by year and YTD Ending July 10, 2016

Source: IRI InfoScan Total US FOOD, 13 week periods April 1, 2012 through June 26, 2016 and YTD ending July 10, 2016

Hispanics will account for 3M 4M 15% Asian growth 53% of population growth White 10% growth 1M 5% 309M Other growth USA Population 2010

33M Hispanic 53% 334M growth USA Population 2020

% of FMCG Dollar Volume M I L B L $290B O E O N M 38% N E 32% I 29% R

A +70% -16% S L 17% S

2015 2020 2015 2020

*FMCG = Fast Moving Consumer Goods Copyright © 2016 Information Resources, Inc. (IRI). Confidential and Proprietary. BABY BOOMERS REPRESENT MORE THAN THEIR FAIR SHARE OF BEV ALC DOLLARS, MAKING THEM A CRITICALLY IMPORTANT SEGMENT

INDEX

Seniors 13% 17% 131

Baby Boomers 33%

45% 136

Gen X 27%

20% 74

Millennials 28% 68 19%

% US LDA POPULATION % BWS DOLLARS

% DRINKING ONCE A WEEK OR MORE

66% Millennials 26%

70% Gen X 24%

75% Baby Boomers 26%

76% Seniors 23%

SOURCE: IRI BWS Survey | July, 2016

AVG. # TIMES BOUGHT PER YEAR IN A PHYSICAL STORE

56 55 55

Millennials Gen X Baby Seniors Boomers

Love trying all kinds of different alcoholic beverages.

Prefer bars & restaurants that put a creative spin on the alcoholic drinks they make.

Are always trying the newest alcoholic beverages/trends.

SOURCE: IRI BWS Survey | July, 2016 Copyright © 2016 Information Resources, Inc. (IRI). Confidential and Proprietary. IN-STORE IS IDEAL FOR CREATING ENGAGEMENT AND INFLUENCING AND ALSO FOR CREATING DISRUPTION

21% 60% Changed mind in-store

Planned their BWS 50% purchases Bought a different brand than planned

AVERAGE # OF DIFFERENT TYPES OF ALCOHOL CONSUMED IN PAST 3 MONTHS

4.3

3.6 3.5 3.2 2.9 2.8

2.0 1.9

Millennials Gen X Baby Boomers Seniors

At Home | On Premise

I make my alcoholic drink decisions based on price I make my alcoholic drink decisions based on quality

65%

60% 59% 58%

42% 40% 41% 35% PRICE

QUALITY

Millennials Gen X Baby Boomers Seniors

% Agreeing Very Much/Somewhat SOURCE: IRI BWS Survey | July, 2016

73% % Drinking Alcoholic Beverage type at home in the past 3 months

57% 52%

23%

% CONSUMED ON PREMISE IN PAST 3 MONTHS

37% Craft Beer 27%

24% FMB's or Cider 16%

33% Vodka 25%

13% Bourbon 8%

17% Sparkling Wine 12%

13% Champagne 6%

Millennials | Gen X

• 1,045 Craft Vendors actively selling in Supermarkets • Top 46 Craft Vendors--based on Dollar Sales account for 80% of Total Craft Dollar Sales

• 5,521 Craft Brands actively selling in Supermarkets • Top 397 Craft Brands account for 80% of Total Craft Dollar Sales

• 7,489 Craft Packages actively selling in Supermarkets • Top 684 Craft Packages account for 80% of Total Craft Dollar Sales

• 51% of Craft’s Dollar Sales Growth this year is attributed to New Products. This compares to 28% for the same period in 2015.

 Tier 1 Vendors collectively have lost 4.5 Volume Share points to date this year. Tiers 2 & 4 have been the beneficiaries of this share loss.

Volume Volume Volume Volume Volume Craft Tiers* Sales Chg Sales % Share Chg Sales Share YA Chg YA YA

> 1MM Cases (Tier 1) 19,406,259 261,538 -1.3% 58.7% -4.5%

500K - 999K Cases (Tier 2) 3,874,454 921,362 31.2% 11.7% 2.2%

100K - 499K Cases (Tier 3) 5,299,354 295,608 5.9% 16.0% 0.0%

< 99K Cases (Tier 4) 4,456,176 979,136 28.2% 13.5% 2.3%

*Vendor Tiers assigned based on 52 week data for Total US FOOD. Actual data based on YTD ending July 10, 2016

Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016

 Emerging new Craft Brewers continue to be more widely dispersed across the country in IRI tracked Supermarket sales.

Dollar Sales Location AUSTIN BEERWORKS $610,371 Austin, TX LIVE OAK BREWING COMPANY $338,057 Del Valle, TX 8TH WONDER BREWERY $300,408 Houston, TX PLATFORM BEER CO $154,361 Cleveland, OH MELVIN BREWING COMPANY $151,539 Alpine, WY TENNESSEE BREW WORKS $102,415 Nashville, TN WOLFS RIDGE BREWING $100,192 Columbus, OH SUNKEN CITY BREWING COMPANY $70,265 Hardy, VA M I A BEER COMPANY $64,352 Doral, FL FORT POINT BEER CO $63,841 San Francisco, CA CRANE BREWING COMPANY $58,165 Raytown, MO PUYALLUP RIVER BREWING COMPANY $37,639 Puyallup, WA HUSS BREWING COMPANY $36,391 Tempe, AZ TW PITCHERS BREWING COMPANY $36,235 San Francisco, CA PHILIPSBURG BREWING COMPANY $33,010 Philipsburg, MT

Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016

Copyright © 2016 Information Resources, Inc. (IRI). Confidential and Proprietary. TOP 15 IRI DEFINED CRAFT BRANDS TOTAL U.S. SUPERMARKETS  Almost half of the Top 15 Craft Brands are experiencing Dollar Sales declines vs Year Ago. Only four have managed to gain share this year.

Dollar Sales Dollar Share Dollar Share Dollar Sales % Chg YA of Craft Chg YA BLUE MOON BELGIAN WHITE ALE $60,746,494 3.2% 5.1% -0.3% SIERRA NEVADA PALE ALE $33,174,237 -2.9% 2.8% -0.4% LEINENKUGELS SHANDY SEASONAL $32,886,795 -2.4% 2.8% -0.3% NEW BELGIUM FAT TIRE AMBER ALE $25,318,507 6.9% 2.1% -0.1% SAMUEL ADAMS SEASONAL $24,783,667 -17.4% 2.1% -0.7% SHOCK TOP BELGIAN WHITE ALE $24,020,767 -2.7% 2.0% -0.3% SAMUEL ADAMS BOSTON LAGER $23,823,625 -7.7% 2.0% -0.4% LAGUNITAS INDIA PALE ALE $22,003,663 12.7% 1.9% 0.1% SHINER BOCK $18,216,387 6.0% 1.5% -0.1% SIERRA NEVADA TORPEDO EXTRA IPA $16,719,650 -6.5% 1.4% -0.2% SAMUEL ADAMS VARIETY PACK $13,338,447 -10.5% 1.1% -0.3% SIERRA NEVADA SEASONAL $11,230,572 5.7% 1.0% 0.0% FOUNDERS ALL DAY IPA $10,797,146 92.3% 0.9% 0.4% BELLS SEASONAL $10,628,115 29.1% 0.9% 0.1% FIRESTONE WALKER 805 BLONDE ALE $10,587,195 94.9% 0.9% 0.4%

Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016

 Cans continue to increase their share of Total Craft Dollar Sales and are now up to a 15.4 share. This represents a +4.5 share gain vs year ago.

TOTAL CRAFT GLASS Dollar Sales % Chg YA $ Sales % Chg YA 6 CT 11-12 OZ BOTTLE $529,651,426 7.4% $997,669,323 4.10% 12 CT 11-12 OZ BOTTLE $346,851,142 -0.9%

6 CT 11-12 OZ CAN $88,251,708 66.2% TOTAL CRAFT CAN SINGLES 22 OZ BOTTLE $65,711,960 4.8% $ Sales % Chg YA 12 CT 12 OZ CAN $55,226,320 25.1% $181,596,331 54.86%

4 CT 11-12 OZ BOTTLE $23,688,276 4.6%

4 CT 16 OZ CAN $19,882,559 59.8% Top 5 Craft Can Vendors YTD 2016 15 CT 12 OZ CAN $10,975,200 164.2% MILLERCOORS BREWING $13,902,766 SINGLES 25 OZ BOTTLE $9,762,945 -3.6% FOUNDERS BREWING CO $10,411,005 SINGLES 11-12 OZ BOTTLE $9,671,922 21.2% SIERRA NEVADA BREWING… $9,706,861 24 CT 12 OZ BOTTLE $3,866,319 9.0% BOSTON BEER CO $9,472,450 4 CT 12 OZ CAN $2,614,421 101.7% OSKAR BLUES BREWERY $7,514,093

Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016

 IPA’s account for over 28 percent share of Total Craft Dollar Sales in Supermarkets.

Dollar Sales Dollar Share Dollar Sales % Chg YA of Craft

CRAFT IPA $332,485,547 22.8% 28.2%

CRAFT SEASONAL $185,578,552 -3.2% 15.7%

CRAFT VARIETY $115,451,357 2.0% 9.8%

CRAFT BELGIAN WITS $94,284,305 3.4% 8.0%

CRAFT PALE ALE $82,673,205 0.7% 7.0%

CRAFT AMBER ALE $47,179,488 3.5% 4.0%

CRAFT AMBER LAGER $43,102,484 -1.3% 3.7%

CRAFT FRUIT/VEGGIE/SPICED $43,062,612 41.7% 3.6%

CRAFT WHEAT BEER $35,301,265 -0.1% 3.0%

CRAFT GOLDEN ALES $31,618,892 42.9% 2.7%

Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016

 Fruit/Veggie/Spiced IPA’s remain the fastest growing IPA Sub-Style.

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

American $205,404,963 15.8% 61.8% -3.7%

Imperial $60,604,301 6.9% 18.2% -2.7%

Session $23,256,891 32.4% 7.0% 0.5%

Fruit/Veggie/Spiced $22,806,069 662.8% 6.9% 5.8%

English $10,248,716 55.3% 3.1% 0.6%

Belgian White $6,793,466 6.7% 2.0% -0.3%

Other $1,987,378 33.3% 0.6% 0.0%

Black $1,383,763 -15.6% 0.4% -0.2%

Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016

 Total number of Craft IPA brands selling has exceeded 1,400. Session IPA’s are over 100 and Fruit/Veggie/Spiced IPA’s are over 60 brands.

Total Number of IPA Brands

1353 1426 1065 785 594 439

2011 2012 2013 2014 2015 YTD 2016

2011 2012 2013 2014 2015 YTD 2016 American 261 340 441 577 727 767 Imperial 117 160 209 277 330 336 Session 5 8 21 46 90 107 Fruit/Veggie/Spiced 5 18 43 62 Black 15 24 33 43 46 43 Belgian White 10 18 23 36 40 38 English 24 28 32 37 38 37 Other 7 16 21 31 39 36 TOTAL 439 594 785 1065 1353 1426

Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016

 The continued success of Craft IPA sales in its top markets appears to indicate that IPA’s have plenty of runway left to grow their share.

Share of Craft Craft IPA dollar share of Total Craft Chg YA

San Diego, CA - Food 47.5% 4.7%

San Francisco/Oakland, CA - Food 37.7% 2.6%

Portland, OR - Food 37.6% 3.3%

Seattle/Tacoma, WA - Food 35.3% 3.0%

Sacramento, CA - Food 34.7% 2.8%

Los Angeles, CA - Food 33.6% 4.6%

Philadelphia, PA - Food 30.6% 3.5%

Miami/Ft. Lauderdale, FL - Food 30.5% 4.6%

Baltimore, MD/Washington D.C. - Food 29.6% 2.9%

Raleigh/Greensboro, NC - Food 28.8% 4.0%

Source: IRI InfoScan IRI FOOD Markets, YTD ending July 10, 2016

 Golden Ales are the #10 Ranked Craft Style based on Dollar Sales and are up +43% compared to year ago or +$9.5MM.

Dollar Sales Top 5 IRI Markets - Food Channel

Los Angeles, CA FIRESTONE WALKER 805 BLONDE ALE $10,587,195 $6,037,375 Houston, TX $1,755,045 KONA BIG WAVE GOLDEN ALE $6,049,332 San Fran/Oakland, CA $1,604,309

REAL ALE FIREMANS #4 BLOND ALE $1,331,714 San Diego, CA $1,327,945

SAINT ARNOLD FANCY LAWNMOWER ALE $752,952 Sacramento, CA $1,076,133

DESCHUTES RIVER ALE $643,309 Top 5 New Golden Ales RHINEGEIST COUGAR BLONDE ALE $571,905 NEW BELGIUM GLUTINY GOLDEN ALE $163,223 ATWATER DIRTY BLONDE ALE $505,979 8TH WONDER DOME FAUXM CREAM ALE $159,242 SOUTHERN STAR BOMBSHELL BLONDE ALE $498,619 AUSTIN BEERWORKS PEACEMAKER ANYTIME ALE $151,521

DEEP ELLUM DALLAS BLONDE ALE $437,765 APPALACHIAN MNTAIN BOONE CREEK BLNDE ALE $110,278

GRIFFIN CLAW CLUBHOUSE CREAM ALE $71,600 SAINT ARCHER BLONDE ALE $348,706

Source: IRI InfoScan Total US FOOD, YTD ending July 10, 2016

3.6%

4.6% 9.9% 2.1% 10.2% 11.3% 4.3% 11.8% 0.9% 4.2% 10.7% 11.4%

7.4% 4.2% Beer Dollar Trend 8.9% 12.1% Craft Dollar Trend

Source: IRI InfoScan IRI FOOD REGIONS, YTD ending July 10, 2016

 San Diego has the largest share gain amongst Craft’s Top 10 Markets this year.

Dollar Sales Dollar Share of Category Top 10 IRI Tracked Change vs Food Markets for Craft Current Change vs YA Current YA

Los Angeles, CA – Food $65,449,768 $8,553,366 15.75 2.03 Portland, OR – Food $47,592,575 $2,133,219 44.61 1.14 Seattle/Tacoma, WA – Food $46,718,800 $428,478 40.92 0.78 San Francisco/Oakland, CA – Food $41,873,458 $1,945,234 35.81 1.20 New England – Food $35,456,525 $1,677,037 29.89 1.02 Chicago, IL – Food $33,520,938 $2,196,450 23.09 1.25 San Diego, CA – Food $33,124,957 $5,081,559 37.42 3.83 Baltimore, MD/Washington D.C. – Food $29,478,786 $2,968,216 33.94 1.50 Houston, TX – Food $26,377,923 $2,740,622 16.11 0.45 Detroit, MI - Food $23,092,101 $3,638,459 27.52 2.11

Source: IRI InfoScan IRI FOOD Markets, YTD ending July 10, 2016

 Local Craft Vendor sales continue to outpace Other Craft Vendor sales.

Dollar Sales $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0

Total Michigan Local Craft Total Non-Michigan Craft

Source: IRI InfoScan IRI Michigan State FOOD, Quad weeks January 25, 2015 through July 10, 2016

 Local Craft Vendors have gained 17.5 share of Total Craft Dollar Sales since 2012.

Dollar Share of Craft

61.6% 60.1% 55.9% 52.9% 51.4% 47.1% 48.6% 44.1% 38.4% 39.9%

2012 2013 2014 2015 YTD 2016

Total Michigan Local Craft Total Non-Michigan Craft

Source: IRI InfoScan IRI Michigan State FOOD, Calendar Years 2012 through 2015 and YTD ending July 10, 2016

 Local Craft Vendor Dollar Sales continue along at a very healthy double-digit percent increase clip.

Dollar Sales % Change Year Ago

38.6% 36.8%

28.5% 27.5% 26.4% 22.1%

14.8%

7.5% 9.1% 3.3%

2012 2013 2014 2015 YTD 2016

Total Michigan Local Craft Total Non-Michigan Craft

Source: IRI InfoScan IRI Michigan State FOOD, Calendar Years 2012 through 2015 and YTD ending July 10, 2016

Copyright © 2016 Information Resources, Inc. (IRI). Confidential and Proprietary. • Craft Brewers: Please continue to send me your new UPC information and high-resolution product images to insure your products are being tracked by IRI.

• Please E-mail me at [email protected]