Beverage Alcohol Media Report Q1 2016

BEVERAGE ALCOHOL MEDIA REPORT Q1 2016

DANNY BRAGER Better insights drive better action, and so it’s our pleasure to provide you SVP PROFESSIONAL with an updated Nielsen perspective on the U.S. media landscape, specific SERVICES to the Beverage Alcohol (Bev Al) 21 and older environment. In this report, BEV-AL PRACTICE we will provide snapshots of the Bev Al media landscape from different NIELSEN perspectives in the first quarter of 2016.

The Big Game, a.k.a. The Super Bowl, is one of the biggest events of the first-quarter and an especially big one for Bev Al. Just mentioning the name brings to mind the sights, smells and tastes of the day — from the food and beer consumed, to yelling at the TV and laughing at the commercials. All of these things and more seem to be forever tied to the big event. That being said, perceptions and participation continue to evolve and influence how consumers and sponsors treat this event. We offer some thoughts around: • Is the Super Bowl more than just beer? • The women fan base - Are they driving change? • Super Bowl commercials - Just how important are they?

Beyond the big game, we also highlight the top Bev Al television ads from first-quarter 2016 and provide an updated look on how LDA consumers are engaging with media content that has a specific focus on generation and ethnicity.

We hope you enjoy these highlights as we endeavor to enable a true understanding of total audience behavior within an ever-fragmenting media world.

DANNY

2 BEVERAGE ALCOHOL MEDIA REPORT | Q1 2016 SUPER BOWL SUNDAY IS NO

LONGER JUST A SUPER BOWL SALES SPIKE

BEER HOLIDAY Adult beverage sales have been For most Americans who enjoy the Super Bowl, the season’s higher across the entire category biggest game is much more than just a sports event. In many the week before the Super Bowl ways, Super Bowl Sunday is now a bona fide American holiday. for the past two years And like with most holidays, food and drink play an important role in this national celebration. Millions of viewers gathered with friends and family to tune into the Super Bowl 50, digging into a host of traditional game day favorites like chips, Buffalo wings and 10.7% beer.

But despite traditionally being considered a beer-drinking event, 9.0% 8.9% there are signs that consumers are thirsty for something else. According to a Nielsen survey conducted by Harris Poll, 57% of Americans said they were planning to host others for the big game. They more than likely had to clear some space on the tables for options other than beer. While beer remains the number % Growth one adult beverage choice for the Super Bowl, 20% of legal age drinkers said they’ll drink wine, and 20% said they’ll drink some form of spirits.

Nielsen’s off-premise sales data for adult beverages shows that the Super Bowl benefits wine and spirits as much as it does beer. During the week leading up to the Super Bowl, wine sales are SUPER BOWL WEEK SALES* 9% higher on average than the average of three weeks prior, and spirits are about 11% higher. That’s in the same range as the lift in beer sales during the same period. BEER WINE SPIRITS

*Average sales increases during the week leading up to the Super Bowl over the past two years.

Source: Nielsen off-premise measured channels.

While kicking off the Super Bowl with a cabernet may not be the choice for all football fans, the appeal certainly speaks to women. According to Nielsen Spectra data, women continue to account for a larger percentage of wine consumption than men (57% of women compared with 43% of men), and are a more significant gender to both wine and spirits than to beer.

Football is also a growing taste among women, particularly the Super Bowl. According to Nielsen Media Research, the Super Bowl attracted significantly more female viewers over the past five seasons than regular NFL season games. In fact, women now make up about 47% of the people who watch the Super Bowl, versus about 34% during the regular season.

Football and beer may be a perfect pairing, but new preferences of fans and the widening appeal of the country’s biggest sporting event among women are changing the beverage-buying game. With the spirits and wine categories making inroads into a sport better known for chugging than sipping, it’s clear that there are growth opportunities across the entire adult beverage category for Super Bowl Sunday.

4 BEVERAGE ALCOHOL MEDIA REPORT | Q1 2016 REGULAR SEASON VIEWERSHIP PER GAME

SEASON 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

LDA VIEWERS 15,372,000 14,753,000 15,453,000 15,746,000 15,987,000

34% 66% 33% 67% 35% 65% 34% 66% 35% 65%

SUPER BOWL VIEWERSHIP

SUPER BOWL XLVI (2012) XLVII (2013) XLVIII (2014) XLIX (2015) 50 (2016)

LDA VIEWERS 90,141,000 88,714,000 90,520,000 93,245,000 92,285,000

46% 54% 47% 53% 47% 53% 47% 53% 47% 53%

Source: Nielsen

6 BEVERAGE ALCOHOL MEDIA REPORT | Q1 2016 NFL

Whether cheering for Cam Newton and the Carolina Panthers or Peyton Manning and the Denver Broncos, fans certainly tuned into to watch Super Bowl 50, which had over 90 million viewers P21 and older.

TIMELINE OF TV VIEWERSHIP HIGHLIGHTS

AVERAGE AUDIENCE PROJECTIONS IN MILLIONS

Jan 09, 2016 Jan 17, 2016 Feb 07, 2016 Jan 17, 2016 Jan 10, 2016 Jan 09, 2016 AFC Wildcard AFC Divisional Super Bowl 50 FOX NFL Playoff NBC NFL NFL Wildcard L Playoff Playoff-Su Carolina vs. Denver Game Playoff Game Kansas City/ Pittsburgh at Pittsburgh at CBS Seattle at Carolina 1/10 Houston Cincinnati Denver FOX Seattle at ESPN CBS CBS Minnesota NBC

28.0 28.1 38.3 47.6 92.3 40.3 32.4 34.8 31.7 34.8 5.3

Jan 16, 2016 Jan 24, 2016 Jan 24, 2016 Jan 16, 2016 Jan 10, 2016 AFC Divisional AFC Championship FOX NFC NBC NFL Playoff FOX NFC Playoff-Sa on CBS Championship Game 1/16 Wildcard Game Kansas City at New England at Arizona at Green Bay at Green Bay at New England Denver Carolina Arizona Washington CBS CBS FOX NBC FOX

Average Audience Projections based on P21+

Copyright © 2016 The Nielsen Company 7 THE CHAMPIONS OF ADVERTISING The Super Bowl is not only the biggest sporting event of the year, but it is also the biggest advertising event of the year. Viewers who don’t like football often tune in just to watch the ads. While the $4.5 million charged for a 30-second spot is certainly a lot of money, brands not only see enormous “Reach” from their investment, their ads perform significantly better.

Brand Memorability of ads within the Super Bowl is about 54% more effective than both the average sports programming ad outside of the Super Bowl and the average non-sports programming ad.

HISTORICAL SUPER BOWL AD EFFECTIVENESS

AD MEMORABILITY BRAND MEMORABILITY

HISTORICAL SUPER BOWL PERFORMANCE 58% Feb. 7, 2010 - Feb. 7, 2016 43%

NON SPORTS PROGRAMMING 46% Broadcast /Cable 28%

SPORTS PROGRAMMING 45% Broadcast/Cable 28%

*Non-Sports/Sports: Based on P21+ survey responses from Jan. 24, 2010 - Feb. 15, 2016

8 BEVERAGE ALCOHOL MEDIA REPORT | Q1 2016 LOCAL FAN INSIGHTS While both Panthers and Broncos fans enjoy throwing back a few “coldies” on a Sunday afternoon, the difference lies in their imported beer of choice. Both Panthers Fans and Broncos Fans agree on their favorite domestic beer, Miller Genuine Draft.

PANTHERS FANS BRONCOS FANS

Carolina Panthers Fans prefer LaBatt Corona Light is the favorite among Blue; as they are 49% more likely to Broncos fans, as they are 32% more drink LaBatt Blue than the typical likely to enjoy a Corona Light than Charlotte adult. the typical Denver adult. *P21+ *P21+

Carolina Panthers Fans are 49% more Denver Broncos Fans are more 47% likely to drink Miller Genuine Draft more likely to drink Miller Genuine than the typical Charlotte adults. Draft than the typical Denver adult. *P21+ *P21+

Source: Scarborough TOP NATIONAL ADVERTISERS TOTAL $ SPEND 1 ANHEUSER-BUSCH INBEV SA/NV 2 PEPSICO INC 3 FIAT CHRYSLER AUTOMOBILES NV 4 TOYOTA MOTOR CORP 5 HONDA MOTOR COMPANY LTD

Source: Nielsen Ad Intel

10 BEVERAGE ALCOHOL MEDIA REPORT | Q1 2016 Today’s consumers have more access to more information than ever before, and we are consuming information at a faster and faster rate. The average adult (21+) watches more than five hours of TV per day. This equates to about 300 ad impressions each day, or 1,750 ad impressions per week.

The ads showcased in this section were able to break through the clutter of real-world TV ad viewing—including the impact of multi-tasking and life’s many other distractions—to deliver high performance in Brand Memorability.

HOW TO READ TOP ADS PERFORMANCE SECTION

BRAND AD NAME CATEGORY LOREM BA BRAND A – “AD ONE” :15 AD DURATION

AD THUMBNAILS

Lorem ipsum dolor sit amet, consectetur adipiscing elit. AD DESCRIPTION AD ICON Praesent finibus sem commodo scelerisque pretium. Vivamus quis nibh aliquet, elementum.

Brand Memorability Index: 230 SCORE Indicates the effectiveness of the ad BEST PRACTICES breaking through in- market and connecting SIMPLE STORYLINE RELATABLE CHARACTERS back to the brand in BA comparison to the ad’s CHARACTER DIALOGUE HUMOR/SENTIMENTALITY category norm. BA

BEST PRACTICES MATRIX Displays the best practices identified in ad.

NIELSEN TV BRAND EFFECT SPIRITS JD JACK DANIELS – “OLD FASHIONED” :30 JM JIM BEAM– “A LOOK INSIDE” :15

This Jack Daniel’s creative achieved the top score in the Spirits This spot from Jim Beam featuring Mila Kunis leverages on- category for the third quarter in a row. Continuous support screen dialogue and integrates the brand early and often to behind a strong creative has resulted in sustained in-market resonate with consumers. resonance for the brand. Brand Memorability Index: 152 Brand Memorability Index: 109

BEER CL COORS LIGHT – “BORN IN THE ROCKIES - BD BUD LIGHT– “BUD LIGHT PARTY: BASKETBALL” :30 PLACE” :30

Back again as one of the top beer advertisers, Coors Light Utilizing humor and character dialogue, this spot features Seth leverages images of the Rocky Mountains, which have become Rogen and Amy Schumer holding Bud Light bottles throughout a recognizable brand icon that continues to break through and the spot and resonates with viewers through its unique humor. drive brand recognition. Brand Memorability Index: 170 Brand Memorability Index: 170

FMBS & CIDERS RD HENRY’S HARD SODA – “LIVE HARD-ISH” :15 LR BUD LIGHT LIME-A-RITA– “ART GALLERY” :30

Making a splash into the top TV ads this quarter is the “Live This spot was able to break through and link back to the brand Hard-ish” spot, which leverages prominent brand cues as well by employing a simple storyline with relatable characters and as the use of appropriate humor to help this creative break including the brand in the storyline. through the clutter. Brand Memorability Index: 109 Brand Memorability Index: 100

BREAKTHROUGH BEST PRACTICES BRANDING BEST PRACTICES SIMPLE STORYLINE RELATABLE CHARACTERS EARLY VISUAL/VERBAL CUES LEVERAGE BRAND ICON JD LR JD LR JM BD RD LR CL

CHARACTER DIALOGUE HUMOR/SENTIMENTALITY OWNABLE CONCEPT BRAND IN STORYLINE JM BD JD CL BD RD JD CL BD JM BD RD LR

Source: Nielsen TV Brand Effect, 1/1/16 - 3/31/16, 21+ Evaluating English-language ads on English-language networks within TV Brand Effect coverage only. Only includes ads that have debuted since 4/1/15 with > 100 Brand Linkage sample in 1Q’16. Ads with less than 100 sample were not considered Branded Memorability indexed against the 2013-2015 Beverage Alcohol norm for Branded Memorability *No wine ads reached normative levels in Brand Memorability during the measurement period

12 BEVERAGE ALCOHOL MEDIA REPORT | Q1 2016 TOP TV BEVERAGE ALCOHOL ADS: Q1 2016

LDA AUDIENCE MEDIA CONSUMPTION

AVERAGE TIME SPENT PER ADULT 21+ PER DAY

EXHIBIT 1 - BASED ON THE TOTAL U.S. LDA POPULATION

0:08 0:13 0:32

Q1 2016 4:40 0:34 1:53 0:59 1:41

0:13 0:09 0:09 0:20

Q1 2015 4:43 0:34 1:52 0:49 1:03

0:12 0:10 0:05 0:12

Q1 2014 4:58 0:33 1:55 0:50 0:47

0:11

LIVE TV DVR/TIME-SHIFTED TV AM/FM RADIO DVD/BLU-RAY DEVICE GAME CONSOLE MULTIMEDIA DEVICE

INTERNET ON A PC APP/WEB ON A SMARTPHONE APP/WEB ON A TABLET

Note: Panel enhancements made in March 2016 impacted smartphone and tablet reporting. See sourcing for details.

14 BEVERAGE ALCOHOL MEDIA REPORT | Q1 2016 TABLE 1A – WEEKLY TIME SPENT IN HOURS: MINUTES AMONG U.S. POPULATION FOR Q1 2016

ASIAN A A A A A A BLACK HISP. AM. 21-34 25-34 35-49 50-64 65+ 21+ 21+ 21+ 21+

Live+DVR/Time-shifted TV 21:45 23:26 32:07 44:06 51:32 36:40 52:56 28:18 18:24

DVR/Time-shifted TV 2:36 3:01 4:22 4:39 4:12 3:57 3:30 2:33 2:22

AM/FM Radio 11:08 11:20 13:40 15:09 12:32 13:11 13:44 13:54 n/a

DVD/Blu-Ray Device 1:02 1:07 1:05 1:00 0:42 0:58 1:07 0:53 0:35

Game Console 3:43 3:20 1:30 0:28 0:07 1:30 1:36 1:32 0:57

Multimedia Device 2:28 2:36 1:44 1:07 0:42 1:33 1:19 1:32 2:44

Internet on a PC 7:05 7:53 8:20 7:21 4:10 6:53 7:44 5:12 4:10

Video on a PC 2:42 2:57 2:12 1:26 0:41 1:48 2:44 1:52 1:31

App/Web on a Smartphone 15:55 13:47 14:34 12:13 2:41 11:51 13:06 14:38 9:55

Video on a Smartphone 0:42 0:31 0:25 0:16 IFR 0:22 0:36 0:42 0:30

Note: IFR represents data that is insufficient for reporting due to small sample sizes. n/a represents data unavailability.

ASIAN A A A A A A BLACK HISP. AM. 21-34 25-34 35-49 50-64 65+ 21+ 21+ 21+ 21+

Live+DVR/Time-shifted TV 22:55 24:36 32:54 43:49 51:14 36:58 52:42 30:05 19:29

DVR/Time-shifted TV 2:55 3:24 4:26 4:31 3:54 3:57 3:40 2:35 2:22

AM/FM Radio 11:15 11:33 13:36 14:55 12:16 13:06 13:33 13:49 n/a

DVD/Blu-Ray Device 1:12 1:18 1:14 1:07 0:42 1:05 1:09 1:01 0:58

Game Console 3:34 3:07 1:16 0:27 0:07 1:24 1:34 1:32 1:07

Multimedia Device 1:38 1:41 1:11 0:40 0:27 1:01 0:46 0:45 2:11

Internet on a PC 5:35 5:36 7:06 6:19 3:23 5:45 6:36 3:56 4:16

Video on a PC 2:05 1:58 1:56 1:22 0:38 1:33 2:23 1:11 1:15

App/Web on a Smartphone 10:33 9:40 9:00 7:02 1:28 7:21 8:14 9:31 7:39

Video on a Smartphone 0:26 0:22 0:14 0:09 IFR 0:13 0:18 0:23 0:21

16 BEVERAGE ALCOHOL MEDIA REPORT | Q1 2016 TABLE 2 – OVERALL USERS BY MEDIUM NUMBER OF USERS 21+ (IN 000’S) - MONTHLY REACH

COMPOSITE BLACK HISPANIC ASIAN AMERICAN

Q1 15 Q1 16 Q1 15 Q1 16 Q1 15 Q1 16 Q1 15 Q1 16

Live+DVR/Time-shifted TV 211,880 214,249 26,344 27,048 31,870 32,878 11,371 11,896

DVR/Time-shifted TV 137,008 151,061 16,626 18,691 17,146 20,016 6,239 7,310

AM/FM Radio 224,334 226,751 27,511 27,987 34,071 34,908 n/a n/a

DVD/Blu-Ray Device 101,860 89,257 11,578 10,157 14,249 12,546 4,834 4,109

Game Console 57,759 55,362 6,709 6,833 9,644 9,653 3,667 3,121

Multimedia Device 37,914 56,924 3,487 5,412 5,219 9,116 4,445 5,843

Internet on a PC 161,979 155,332 20,382 19,418 18,433 17,821 5,786 5,267

Video on a PC 119,234 108,043 15,055 13,656 12,656 11,606 4,390 3,708

App/Web on a Smartphone 162,383 184,702 19,296 22,692 27,030 31,558 9,435 10,402

Video on a Smartphone 122,381 145,791 16,132 19,113 22,519 25,913 7,214 7,779

TABLE 3 – MONTHLY TIME SPENT BY MEDIUM AMONG USERS USERS IN HOURS: MINUTES AMONG P21+

COMPOSITE BLACK HISPANIC ASIAN AMERICAN

Q1 15 Q1 16 Q1 15 Q1 16 Q1 15 Q1 16 Q1 15 Q1 16

Live+DVR/Time-shifted TV 171:06 170:14 242:34 241:00 129:00 128:17 94:29 93:11

DVR/Time-shifted TV 28:31 26:01 25:27 23:06 21:38 19:01 22:08 19:29

AM/FM Radio 57:19 57:47 59:20 60:25 58:47 59:20 n/a n/a

DVD/Blu-Ray Device 9:25 10:49 11:34 13:27 9:00 10:29 7:08 8:39

Game Console 25:46 27:03 28:47 28:50 23:03 23:37 15:15 18:29

Multimedia Device 40:13 26:57 45:20 29:47 42:45 25:07 35:58 28:14

Internet on a PC 34:32 44:18 38:38 49:02 30:42 43:23 42:25 48:16

Video on a PC 12:42 16:34 18:53 24:41 13:33 23:34 16:25 24:42

App/Web on a Smartphone 44:35 59:27 52:18 66:46 51:31 64:19 45:33 52:26

Video on a Smartphone 1:51 2:24 2:23 3:39 2:37 3:49 2:49 3:34

The data sources in Table 3 should not be added or subtracted; they are based on users of each medium and the bases vary by source.

A A A A A A 21-34 25-34 35-49 50-64 65+ 21+

Live+DVR/Time-shifted TV 107:11 113:35 147:29 199:52 232:51 170:14

DVR/Time-shifted TV 18:42 20:27 26:59 29:20 28:41 26:01

AM/FM Radio 48:39 49:15 60:00 66:13 54:36 57:47

DVD/Blu-Ray Device 14:18 14:14 10:35 10:05 8:33 10:49

Game Console 39:49 35:26 19:22 14:16 10:10 27:03

Multimedia Device 33:43 33:11 23:52 22:56 24:17 26:57

Internet on a PC 46:38 49:11 47:31 45:28 33:01 44:18

Video on a PC 26:12 26:52 18:07 12:15 7:32 16:34

App/Web on a Smartphone 65:07 63:27 64:39 53:13 39:06 59:27

Video on a Smartphone 3:26 2:57 2:16 1:41 0:37 2:24

TABLE 4B – MONTHLY TIME SPENT BY MEDIUM IN HOURS:MINUTES AMONG USERS AMONG BLACKS

A A A A A A 21-34 25-34 35-49 50-64 65+ 21+

Live+DVR/Time-shifted TV 165:12 168:18 217:35 291:12 336:57 241:00

DVR/Time-shifted TV 18:07 19:00 26:32 26:33 19:03 23:06

AM/FM Radio 49:19 50:24 62:33 70:58 60:02 60:25

DVD/Blu-Ray Device 17:02 18:11 12:53 12:54 10:28 13:27

Game Console 41:56 39:07 20:05 14:30 10:30 28:50

Multimedia Device 35:34 34:45 27:31 27:00 19:51 29:47

Internet on a PC 55:14 59:15 52:20 45:15 30:00 49:02

Video on a PC 33:02 33:40 25:42 19:48 8:23 24:41

App/Web on a Smartphone 73:49 77:57 73:34 60:20 IFR 66:46

Video on a Smartphone 4:54 4:31 3:07 3:23 IFR 3:39

Note: IFR represents data that is insufficient for reporting due to small sample sizes.

The data sources in Table 4 should not be added or subtracted; they are based on users of each medium and the bases vary by source.

18 BEVERAGE ALCOHOL MEDIA REPORT | Q1 2016 TABLE 4C – MONTHLY TIME SPENT BY MEDIUM IN HOURS:MINUTES AMONG USERS AMONG HISPANICS

A A A A A A 21-34 25-34 35-49 50-64 65+ 21+

Live+DVR/Time-shifted TV 91:00 97:28 122:29 160:36 210:55 128:17

DVR/Time-shifted TV 16:13 17:44 19:59 21:13 21:38 19:01

AM/FM Radio 51:30 53:00 64:11 68:26 57:57 59:20

DVD/Blu-Ray Device 12:00 11:37 9:20 10:19 9:51 10:29

Game Console 31:54 28:23 16:10 12:43 13:08 23:37

Multimedia Device 29:27 27:36 21:41 23:34 18:03 25:07

Internet on a PC 47:54 48:02 42:27 39:56 34:32 43:23

Video on a PC 31:29 30:48 24:14 13:12 15:31 23:34

App/Web on a Smartphone 66:25 64:57 67:47 56:01 IFR 64:19

Video on a Smartphone 4:23 3:57 3:46 2:21 IFR 3:49

TABLE 4D – MONTHLY TIME SPENT BY MEDIUM IN HOURS:MINUTES AMONG USERS AMONG ASIAN AMERICANS

A A A A A A 21-34 25-34 35-49 50-64 65+ 21+

Live+DVR/Time-shifted TV 64:57 69:23 77:23 105:49 150:30 93:11

DVR/Time-shifted TV 14:06 16:05 19:42 25:53 19:03 19:29

DVD/Blu-Ray Device 12:24 13:32 8:17 7:24 7:03 8:39

Game Console 31:37 27:21 13:08 7:32 8:08 18:29

Multimedia Device 29:51 29:22 21:33 28:27 50:12 28:14

Internet on a PC 63:38 64:07 53:48 22:14 24:34 48:16

Video on a PC 31:19 32:12 26:43 14:55 10:08 24:42

App/Web on a Smartphone 60:08 58:51 54:32 IFR IFR 52:26

Video on a Smartphone 3:37 2:48 4:19 IFR IFR 3:34

Note: IFR represents data that is insufficient for reporting due to small sample sizes.

The data sources in Table 4 should not be added or subtracted; they are based on users of each medium and the bases vary by source.

SMARTPHONE FEATURE PHONE

13% 18% 20%

COMPOSITE WHITE BLACK

82% 80% 87%

17% 11%

ASIAN HISPANIC AMERICAN

83% 89%

20 BEVERAGE ALCOHOL MEDIA REPORT | Q1 2016 SOURCING & METHODOLOGIES

TELEVISION METHODOLOGY

Live+DVR/Time-shifted TV includes Live usage plus any playback viewing within the measurement period. DVR/Time-shifted TV is playback primarily on a DVR but includes playback from video on demand, DVD recorders, server based DVR’s and services like Start Over.

TV-connected devices (DVD, Game Console, Multimedia Device) would include content being viewed on the TV screen through these devices. This would include when these devices are in use for any purpose, not just for accessing media content. For example, Game Console would also include when the game console is being used to play video games.

Multimedia Devices is a combination of usage of the Internet Connected Devices viewing source and Audio-Video viewing sources. It would include viewing on an Apple TV, Roku, Google Chromecast, Smartphone, Computer/Laptop, etc. connected to the TV.

Reach for television and TV-connected devices includes those viewing at least one minute within the measurement period.

Data used in this report is inclusive of multicultural audiences. Hispanic consumer audiences are comprised of both English and Spanish speaking representative populations.

The last phase of a two-year sample expansion initiative (referred to as NPX) was completed on December 28, 2015, essentially doubling the sample size of our National Panel. The official production ratings that comprise Nielsen’s National television measurement service will be based on the larger panel of households. As with any past panel enhancements or methodology change, there is a trend break in the data when looking at year-over-year comparisons.

AM/FM RADIO METHODOLOGY

Listening to programming from AM/FM radio stations or network programming.

Audience estimates for 48 large markets are based on a panel of people who carry a portable device called a Personal People Meter (PPM) that passively detects exposure to content that contains inaudible codes embedded within the program content. Audience estimates from the balance of markets and countries in the U.S. are based on surveys of people who record their listening in a written diary for a week.

The estimates in this report are based on RADAR and the National Regional Database. RADAR reports national network radio ratings covering the U.S. using both PPM and Diary measurement and it is based on a rolling one-year average of nearly 400,000 respondents. The Q1 2016 report is based on the June RADAR studies to more accurately align with the other included media. This adjustment is also reflected in the included historical data.

Monthly Radio Estimates: Nielsen’s Measurement Science group used statistical modeling techniques to estimate the total cume audience to radio in a four week period, as compared to the total cume audience to radio in an average week. The methodology utilized PPM panel data, and essentially measured how many people who were not exposed to radio in a single week might typically be exposed to radio over a consecutive four week period. A radio cume growth factor was then determined and applied to radio listening on a national basis. In the Q1 2016 report, the model for monthly radio

Listening to HD radio broadcasts, Internet streams of AM/FM radio stations and Satellite Radio is included in the Persons Using Radio estimates in this report where the tuning meets our reporting and crediting requirements of at least 5 minutes of usage. Reach for AM/FM Radio includes those listening for at least 5 minutes within the measurement period.

Data used in this report is inclusive of multicultural audiences. Hispanic consumer audiences are comprised of both English and Spanish speaking representative populations.

ONLINE METHODOLOGY

Nielsen’s Online Panel is recruited based on an opt-in convenience panel. Online recruitment pages are offered in both English and Spanish. Panelists then download Nielsen’s patented desktop NetSight meter, which accurately identifies which browser, tab, Internet application (including media players and instant messaging) or desktop application is in focus. Nielsen’s Online Panel tracks usage across web sites and digital applications to deliver audience and analytics through metered measurement of panels of Internet users at both home and work.

Nielsen Netview and VideoCensus data is reflective of the hybrid methodology which combines a census level accounting of page views and video streams where Nielsen measurement tags have been deployed in order to project audience and behavior to the full universe of all Internet users. For VideoCensus, the portion of the total video streams calibrated by census data, previously allocated to Home/Work computers, are now allocated to other devices and locations such as smartphones and viewing outside of home and work.

Hours:minutes for Internet and video use are based on the universe of persons who used the Internet/watched online video. All Internet figures are weekly or monthly averages over the course of the quarter. All Internet on a PC metrics are derived from Nielsen NetView, while all Video on a PC metrics are derived from Nielsen VideoCensus. The audience of Video on a PC is a subset of Internet on a PC.

As of August 2015, the rules used for crediting page views and duration within Netview have been updated with more comprehensive accounting of multi-tabbed browsing and iFrames, as well as the implementation of a longer timeout threshold for mouse/keyboard inactivity. These changes resulted in an increase in Internet duration on a PC.

Meter collection capability improved in February 2016, which generally resulted in increased audience, page view, stream and duration metrics for Internet on a PC.

MOBILE METHODOLOGY

Nielsen’s Electronic Mobile Measurement (EMM) is an observational, user-centric approach that uses passive metering technology on smartphones and tablets to track device and application usage on an opt-in convenience panel, recruited online and in English. Results are then reported out through Nielsen Mobile NetView 3.0. There are approximately 9,000 smartphone and 1,300 tablet panelists in the U.S. across both iOS and Android smartphone devices. This method provides a holistic view of all activity on the device as the behavior is being tracked without interruption.

A number of steps are taken after the data collection process to ensure the reported data is representative of the mobile population. For smartphones, weighting controls are applied across five characteristics (gender, age, income, race, and ethnicity) while independent enumeration studies are carried out on a continuous basis to provide the most current estimates of the mobile population (aka Universe Estimation).

22 BEVERAGE ALCOHOL MEDIA REPORT | Q1 2016 Tablet data is unweighted and projections are applied using estimates from the National People Meter (NPM) panel that is the industry standard for TV ratings.

Figures reported in Nielsen’s Mobile NetView 3.0 include those individuals who are P18+ who have used an iOS or Android device in the U.S. In particular:

App/Web refers to consuming mobile media content through a web browser or via a mobile app. It does not include other types of activity such as making/receiving phone calls, sending SMS/MMS messages etc, which has been excluded for this report.

Video is a subset of App/Web and refers to those individuals who visit a website or use a mobile app specifically designed to watch video content.

Weekly smartphone data is now based on weekly weights. This adjustment is also reflected in the included historical data.

In March 2016 Nielsen implemented a crediting enhancement to improve the reporting of mobile usage on iOS devices. A legacy crediting rule that capped usage at 30 minutes was removed, so now if a panelist uses an app or visits a website for more than 30 minutes at a time the entire duration is now credited towards the app or website. This crediting rule will also be implemented on Android devices in the coming months.

TV BRAND EFFECT METHODOLOGY

Nielsen TV Brand Effect employs a nationally representative online panel of U.S. TV viewers who have watched programs within the past 24 hours. These panelists answer survey questions about the programs they watched and the commercials they were exposed to. Since the panelists respond based on what they watched in a natural environment, the results reflect real-life reaction to and memory of television commercials. Nielsen logs and issues surveys for all national commercials within its coverage dayparts and networks. Advertisements evaluated for this report were English- language ads viewed on English-language networks within TV Brand Effect coverage only.

BRAND MEMORABILITY INDEX

The Brand Memorability Index represents an ad’s Brand Memorability indexed against that ad’s category average for adults 21+. A Brand Memorability Index of 100 indicates that the ad is performing at the category average.

AD MEMORABILITY

The percentage of an ad’s natural in-home viewers who are able to remember its content the next day.

BRAND LINKAGE

Of those viewers who remember an ad’s content (Ad Memorability), the percentage that are able to identify the advertised brand.

BRAND MEMORABILITY

The percentage of viewers who are able to remember both the ad’s content and the advertised brand (Ad Memorability * Brand Linkage).

EXHIBIT 1 & TABLES 1, 2, 3, 4 – AVERAGE TIME SPENT PER ADULT 21+ PER DAY, A WEEK IN THE LIFE, USERS BY MEDIUM, MONTHLY TIME SPENT BY MEDIUM AMONG USERS

Source: Live+DVR/Time-shifted TV, DVR/Time-shifted TV, DVD, Game Consoles, Multimedia Devices 12/28/2015 - 03/27/2016 via Nielsen NPOWER/National Panel, Radio 03/26/15-03/23/16 via RADAR 129, PC 01/01/16-03/31/16 via Nielsen Netview and Nielsen VideoCensus, Smartphone 01/01/16-03/31/16 via Nielsen Electronic Mobile Measurement, Tablet 01/01/16-03/31/16 via Nielsen Electronic Mobile Measurement – unweighted, projections based on estimates from the NPOWER/National Panel.

Exhibit 1 and Table 1 are based on the total U.S. population whether or not they have the technology

Tables 2-4 are based on users of each medium.

EXHIBIT 2 – MOBILE DEVICE PENETRATION AMONG MOBILE SUBSCRIBERS 21+ Source: Mobile 01/01/16-03/31/16 via Nielsen Mobile Insights

SUPER BOWL SUNDAY IS NO LONGER JUST A BEER HOLIDAY Survey insights from this article were derived from a Nielsen survey conducted by Harris Poll of 2,000 21+ Americans representative of the general adult population. The survey was conducted between Jan. 19-21, 2016.

24 BEVERAGE ALCOHOL MEDIA REPORT | Q1 2016 ABOUT NIELSEN

Nielsen Holdings plc (NYSE: NLSN) is a global performance management company that provides a comprehensive understanding of what consumers watch and buy. Nielsen’s Watch segment provides media and advertising clients with Total Audience measurement services for all devices on which content — video, audio and text — is consumed. The Buy segment offers consumer packaged goods manufacturers and retailers the industry’s only global view of retail performance measurement. By integrating information from its Watch and Buy segments and other data sources, Nielsen also provides its clients with analytics that help improve performance. Nielsen, an S&P 500 company, has operations in over 100 countries, covering more than 90% of the world’s population.

For more information, visit www.nielsen.com.

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