CRAFT BEER U.S. MARKET REVIEW TO INFINITY AND BEYOND… Dan Wandel Principle, Beverage Alcohol March, 5 2015 AGENDA • Beer Category Off-Premise Overview • Beer Category & Craft On-Premise Overview • Craft Beer Off-Premise Review • Craft IPA Style Deep Dive • OND Sales Recap Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 2014 BEER CATEGORY HEADLINES • Beer Category Dollar and Case Sales increased in IRI’s Multi-Outlet OffPremise universe, but at a slightly slower rate compared to 2013. Beer Sales Trends outpaced both Wine and Spirits for the first time since 2008 • In On-Premise, Beer sales trends were outpaced by both Spirits and Wine. • ABI continued its expansion into the Craft Segment by acquiring both 10 Barrel Brewing and Elysian Brewing. • News of ESOP’s and Private Equity investments amongst Craft Brewers were prevalent throughout 2014. • Number of Craft Vendors selling in IRI-tracked Supermarkets increased significantly again • Best ever Craft Brand Intro led to record year for new Craft product sales • Craft Can sales growth continued to increase dramatically in the Off-Premise • IPA sales and offerings showed no signs of slowing • Craft continues to win key holiday sales periods Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. BEER CATEGORY OFF-PREMISE REVIEW Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. BEVERAGE ALCOHOL CATEGORY FOUR-YEAR SALES TRENDS TOTAL U.S. MULTI-OUTLET (MULO) Beer Dollar Sales trends outpaced both Wine and Spirits sales trends for the first time since 2008. Dollar Trends 10.8% 5.2% 5.5% 2.5% 2011 2012 2013 4.5% 2014 6.7% 5.0% 2011 BEER 2012 5.1% 2013 4.3% 2014 6.6% 5.7% 2.7% 2011 2012 2013 2014 SPIRITS TOTAL WINE Note: Spirits sold in WA State starting in 2012 Dollar Share of Bev Alc 2013 SPIRITS 18.4% TOTAL WINE 32.6% BEER 49.0% Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US Multi-Outlet 52 Weeks Ending Jan 4, 2015 Dollar Share of Bev Alc 2014 SPIRITS 18.2% TOTAL WINE 32.7% BEER 49.1% TOP 15 BEVERAGE ALCOHOL SALES GROWTH SEGMENTS ACTUAL DOLLAR SALES CHANGE VS YEAR AGO For the second straight year, Craft Beer led all Beverage Alcohol Segments in Dollar Sales Growth in Total US MULO CRAFT - BEER $269,541,064 ($11.00-$14.99) TABLE WINE $163,549,860 ($8.00-$10.99) TABLE WINE $140,013,294 WHISKEY $127,677,286 IMPORT - BEER $121,327,214 SUPER PREMIUM - BEER $100,501,844 CIDER - BEER $99,803,099 Dollar Sales % Chg YA Dollar Sales 18.5% $1,729,698,215 15.1% $1,246,595,717 6.7% $2,224,762,394 9.1% $1,534,594,707 4.7% $2,683,566,938 7.0% $1,528,782,507 57.9% $272,133,422 ($20.00+) TABLE WINE $50,653,788 16.3% $362,347,763 ($3.50-$4.99) BOX TABLE WINE $47,898,870 20.6% $280,854,342 PAB's - BEER $43,999,478 7.3% $643,226,253 ($15.00-$19.99) TABLE WINE $38,968,528 9.0% $470,169,410 VODKA $38,052,972 2.7% $1,460,740,051 ($8.00 - $12.99) SPARKLING WINE $32,703,399 9.5% $378,631,270 21.1% $121,273,488 14.7% $95,295,960 ($13.00 - $17.99) SPARKLING WINE COGNAC $21,144,617 $12,199,582 Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US Multi-Outlet 52 Weeks Ending Jan 4, 2015 BEER CATEGORY & SEGMENT TRENDS AND SHARE TOTAL U.S. MULO AND MULO + CONVENIENCE Craft’s Dollar Share gains of Total Beer Sales achieved in 2014 were even more pronounced than those it achieved in 2013. Craft gained +1.5 in Total US MULO and +1.0 in Total US MULC in 2014 vs year ago. Total US - Multi Outlet Total US - Multi Outlet + Conv Dollar Sales % Chg YA Dollar Share of Category Case Sales % Chg YA Case Share of Category Dollar Sales % Chg YA Dollar Share of Category Case Sales % Chg YA Case Share of Category CATEGORY – BEER 4.5% 100.00 1.8% 100.00 3.7% 100.00 1.2% 100.00 CRAFT - BA DEFINITION* 21.3% 10.75 18.2% 6.68 23.3% 6.62 20.1% 4.07 CRAFT - IRI DEFINITION 18.5% 12.14 15.1% 7.64 20.5% 7.40 17.1% 4.61 CIDER 57.9% 1.91 59.3% 1.21 72.4% 1.20 73.5% 0.76 DOMESTIC MALT LIQUOR 2.0% 0.70 0.6% 0.90 2.6% 1.61 0.4% 2.00 DOMESTIC PREMIUM 0.1% 37.67 -0.6% 43.88 0.0% 44.04 -0.7% 47.61 DOMESTIC SUB-PREMIUM -1.5% 12.58 -2.7% 18.86 -2.5% 15.73 -3.4% 22.36 DOMESTIC SUPER PREMIUM 7.0% 10.73 5.5% 8.87 9.0% 9.19 7.0% 7.29 IMPORT 4.7% 18.84 3.4% 14.93 8.4% 15.39 6.5% 11.72 NON-ALCOHOLIC 1.0% 0.66 -2.3% 0.64 1.1% 0.33 -2.2% 0.32 PROGRESSIVE ADULT BEVERAGES 7.3% 4.52 4.8% 2.92 4.8% 5.00 3.6% 3.27 *BA Craft does not include the following Vendors: CBA, ABI, NAB, World Brews, Mendocino Brewing, Portland Brewing Co, D G Yuengling & Son. IRI’s Craft Definition also does not include D G Yuengling & Son. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US Multi-Outlet and Total US Multi-Outlet + Convenience 52 Weeks Ending Jan 4, 2015 BEVERAGE ALCOHOL SALES TRENDS BY INDIVIDUAL CHANNEL Craft and Cider Segments achieved double-digit Dollar and Case Sales percent increases across all four channels Total US - Food Total US - Drug Total US - Conv Sum Of Total Liquor Stores-RMA - Liquor Dollar Dollar Dollar Dollar Case Sales Case Sales Case Sales Case Sales Sales % Sales % Sales % Sales % % Chg YA % Chg YA % Chg YA % Chg YA Chg YA Chg YA Chg YA Chg YA CATEGORY – BEER 4.0% 1.0% 0.8% -2.5% 3.1% 0.7% 11.1% 7.6% CRAFT - BA DEFINITION 21.4% 18.4% 25.7% 21.1% 29.0% 25.9% 24.4% 21.9% CRAFT – IRI DEFINITION 18.3% 15.0% 22.9% 18.5% 26.6% 23.4% 23.2% 20.7% CIDER 49.3% 50.6% 202.0% 200.2% 123.4% 125.3% 36.7% 39.4% DOMESTIC MALT LIQUOR 0.3% -0.9% -1.1% -2.2% 2.8% 0.3% 4.7% 3.7% DOMESTIC PREMIUM -1.2% -1.9% -3.4% -5.1% -0.1% -0.7% 5.6% 4.9% DOMESTIC SUB-PREMIUM -3.0% -4.1% -4.7% -6.1% -3.0% -3.8% 2.7% 0.8% DOMESTIC SUPER PREMIUM 5.6% 4.5% 5.6% 3.3% 11.3% 8.8% 7.8% 3.6% IMPORT 3.3% 2.1% 3.4% 1.0% 13.3% 10.9% 7.7% 6.5% NON-ALCOHOLIC 1.1% -1.9% -7.8% -11.5% 1.7% -0.6% 11.0% 8.6% PROGRESSIVE ADULT BEVERAGES 5.6% 3.4% 14.3% 11.2% 3.2% 2.7% 10.1% 0.7% TOTAL WINE 4.3% 1.4% 5.2% 1.4% 7.2% 5.7% 4.9% 2.0% SPIRITS 1.9% -1.1% 4.9% 2.3% 14.2% 16.0% 12.2% 10.7% COOLERS -0.1% 0.3% 1.3% -0.7% 6.6% 8.2% 11.4% 8.4% *BA Craft does not include the following Vendors: CBA, ABI, NAB, World Brews, Mendocino Brewing, Portland Brewing Co, D G Yuengling & Son. IRI’s Craft Definition also does not include D G Yuengling & Son. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan by channel 52 Weeks Ending Jan 4, 2015 SEGMENT DOLLAR SHARE OF BEER CATEGORY 2010 – 2014 TOTAL U.S. SUPERMARKETS Craft achieved nearly a +2 point increase in Share of Total Beer Dollar Sales gain vs YA. This topped its share increase of +1.5 achieved in 2013 vs 2012 1.95 1.90 1.82 1.69 1.64 3.36 3.30 3.58 4.16 4.23 19.61 19.66 19.39 19.13 19.00 8.38 8.76 10.14 10.47 10.64 15.02 14.33 13.34 12.23 11.40 NA's and MALT PAB's IMPORT SUPER PREMIUM SUB-PREMIUM 41.73 40.51 38.67 36.96 35.11 2.26 0.45 0.56 0.91 1.56 9.43 10.82 11.91 13.47 15.36 2010 2011 2012 2013 2014 Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 PREMIUM CIDER CRAFT BEER CATEGORY & SEGMENTS’ MERCHANDISING SUPPORT TOTAL U.S. SUPERMARKETS Cider, Craft, PAB’s and Super Premium received the highest increases in merchandising support in 2014. Weighted Weeks, Any Merch Change vs YA CATEGORY - BEER 42.30 DOMESTIC PREMIUM 40.42 CATEGORY - BEER (0.01) DOMESTIC PREMIUM 0.21 0.23 IMPORT 38.55 IMPORT DOMESTIC SUP PREM 38.30 DOMESTIC SUP PREM 0.56 CRAFT 0.77 PAB's 0.60 CRAFT 36.34 PAB's 34.67 DOMESTIC SUB-PREM 33.32 CIDER NA's MALT LIQUOR 28.71 6.69 5.25 Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 DOMESTIC SUB-PREM (0.83) CIDER NA's MALT LIQUOR 5.27 (0.72) 0.12 TOP 10 BEER VENDORS 2014 RANKED BY DOLLAR SALES TOTAL U.S. SUPERMARKETS Boston Beer and Constellation Beer achieved the largest Dollar Share gains amongst the Top 10 Beer Vendors in 2014 Dollar Sales ANHEUSER-BUSCH INBEV $3,521,747,111 MILLERCOORS BREWING CONSTELLATION BEER HEINEKEN USA INC BOSTON BEER CO $2,329,829,230 $753,328,443 $560,233,777 $354,342,671 Dollar Sales % Chg YA Dollar Share Dollar Share Chg YA 0.4% 36.49 -1.29 0.4% 24.14 -0.85 7.1% 7.80 0.23 2.8% 5.80 -0.07 21.9% 3.67 0.54 DIAGEO GUINNESS USA $186,069,406 -2.4% 1.93 -0.13 PABST BREWING CO $162,821,328 -2.6% 1.69 -0.11 D G YUENGLING & SON INC $137,036,321 6.7% 1.42 0.04 SIERRA NEVADA BREWING CO $132,047,262 13.1% 1.37 0.11 MARK ANTHONY BRANDS INC $131,289,375 0.3% 1.36 -0.05 Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 TOP 15 BEER BRANDS 2014 RANKED BY DOLLAR SALES TOTAL U.S. SUPERMARKETS Modelo Especial cracked the Top 10 Beer Brands by surpassing Miller High Life Corona Light and Stella Artois both moved up one spot to #12 and #13 Dollar Sales $1,208,438,308 BUD LIGHT $654,003,217 COORS LIGHT MILLER LITE BUDWEISER CORONA EXTRA MICHELOB ULTRA LIGHT $554,648,994 $447,351,590 $381,877,352 $264,451,049 Dollar Sales % Chg YA Dollar Share Dollar Share Chg YA 0.5% 12.52 -0.43 -2.0% 6.78 -0.42 1.1% 5.75 -0.16 -2.5% 4.63 -0.31 2.7% 3.96 -0.05 10.2% 2.74 0.15 HEINEKEN $218,697,055 1.1% 2.27 -0.06 NATURAL LIGHT $203,335,773 -2.5% 2.11 -0.14 BUSCH LIGHT $183,692,149 0.1% 1.90 -0.07 MODELO ESPECIAL $170,887,173 22.2% 1.77 0.26 MILLER HIGH LIFE $132,401,911 -3.2% 1.37 -0.10 CORONA LIGHT $124,464,863 2.1% 1.29 -0.02 STELLA ARTOIS LAGER $119,037,734 9.9% 1.23 0.07 BUSCH $118,509,234 -2.1% 1.23 -0.08 BLUE MOON BELGIAN WHITE ALE $103,508,682 1.9% 1.07 -0.02 Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 TOP BEER VENDORS - NEW PRODUCT DOLLAR SALES IN 2014 TOTAL U.S. SUPERMARKETS A record 18 Vendors generated over $1MM in new product sales in 2014 Dollar Sales ANHEUSER-BUSCH INBEV $93,209,058 MILLERCOORS BREWING $57,725,908 BOSTON BEER CO $23,663,167 MARK ANTHONY BRANDS INC $15,364,914 SIERRA NEVADA BREWING CO $12,486,115 HEINEKEN USA INC $8,863,243 NEW BELGIUM BREWING COMPANY $8,320,550 DIAGEO GUINNESS USA $5,377,634 DESCHUTES BREWERY $4,578,654 CRAFT BREW ALLIANCE INC $4,049,406 NORTH AMERICAN BREWERIES $3,300,355 FOUNDERS BREWING CO $2,974,335 STONE BREWING CO. $2,907,173 SWEETWATER BREWING COMPANY LLC $2,655,667 AMERICAN VINTAGE BEVERAGE INC. $2,332,052 BELLS BREWERY INC $2,019,612 DUVEL MOORTGAT USA $1,228,251 CROSBY LAKE SPIRITS COMPANY $1,225,526 Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 • Total New Beer Product Sales Case Sales = 8.7MM • Total New Beer Product Sales Dollar Sales = $281.5MM CLASS OF 2014 TOP 15 NEW BEER BRANDS – DOLLAR SALES TOTAL U.S. - SUPERMARKETS ABI had the top selling new beer brand for the 4th year in a row Samuel Adams Rebel IPA and Sierra Nevada Variety Pack were the top two new Craft Brands Dollar Sales BUD LIGHT LIME MANG O RITA $32,336,953 BUD LIGHT LIME RAZ BER RITA $27,451,132 SAMUEL ADAMS REBEL IPA MILLER FORTUN SPIRITD GOLDN LAGR $21,115,842 $18,617,215 SIERRA NEVADA VARIETY PACK $11,374,248 REDDS VARIETY PACK $10,099,778 COORS LIGHT SUMMER BREW $9,774,599 SMITH AND FORGE HARD CIDER $9,758,753 Year # of New Total New Beer Beer Brand Brands Case Sales Top New Beer Brand (Based on $ Sales) 2014 612 7,403,257 Bud Light Lime Mang O Rita REDDS WICKED APPLE ALE $7,952,905 2013 530 5,473,905 Bud Light Lime Straw Ber Rita JOHNNY APPLESEED APPLE HARD CIDR $7,802,765 2012 415 6,953,181 Bud Light Platinum Lager BUD LIGHT LIME MIX A RITA $7,532,473 2011 362 1,382,057 Shock Top Raspberry Wheat Ale 2010 357 1,843,293 Smirnoff Blueberry & Lemonade 2009 198 2,053,440 Bud Light Golden Wheat 2008 173 4,898,477 Bud Light Lime NEW BELGIUM SNAPSHOT WHEAT $4,530,928 GUINNESS BLONDE AMERICAN LAGER $4,260,432 DOS EQUIS XX DOS A RITA $4,083,194 BUSCH SIGNATURE COPPER LAGER $3,440,432 Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 CLASS OF 2011 BEER BRANDS REVISITED TOTAL U.S. SUPERMARKETS Shock Top Seasonal has the highest Dollar Sales over the past three years Only two of these brands had positive Dollar Sales trends in 2014 $6,451 SHOCK TOP RASPBERRY WHEAT ALE 2014 Dollar Sales % Chg. YA 3 Year (2012-2014) Dollar Sales (000’s) Dollar Sales 2011 (000’s) $13,001 SHOCK TOP SEASONAL -38.70% MIKES HARD RASPBERRY LEMONADE $2,634 SHOCK TOP VARIETY PACK MGD LIGHT 64 LEMONADE $2,280 KONA ISLAND HOPPER VARIETY PACK $6,877 25.10% KONA VARIETY PACK $2,116 SHOCK TOP RASPBERRY WHEAT ALE $6,454 -25.40% SHOCK TOP SEASONAL $2,005 MIKES HARD BLK RASPBERRY… JEREMIAH WEED ROADHOUSE TEA $1,862 BRIDGEPORT KINGPIN DOUBLE RD… MARGARITAVILLE SPIKED LEMONADE $1,638 DOUBLE TAKE IPA $869 -47.10% MARGARITAVILLE SPIKED TEA $1,238 DOUBLE TAKE AMBER ALE $546 -51.30% DOUBLE TAKE IPA $1,203 SIERRA NEVADA BEER CAMP BEERS $116 -38.70% BRIDGEPORT KINGPIN DOUBLE RD ALE $1,070 JEREMIAH WEED ROADHOUSE TEA $5 -93.90% JEREMIAH WEED SPIKED COLA $1,036 MARGARITAVILLE SPIKED LEMONADE $2 -99.00% $9,359 $2,463 $1,056 17.30% -19.30% -5.40% DOUBLE TAKE AMBER ALE $908 JEREMIAH WEED SPIKED COLA $2 -95.10% NEW BELGIUM BELGO IPA $591 MARGARITAVILLE SPIKED TEA $1 -99.30% SIERRA NEVADA BEER CAMP BEERS $522 NEW BELGIUM BELGO IPA $0 -100.00% SHOCK TOP VARIETY PACK $497 MGD LIGHT 64 LEMONADE $0 n/a Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 ON-PREMISE CHANNEL OVERVIEW SPIRITS OUTPERFORMED OTHER ALCOHOL CATEGORIES, BUT ALL THREE ALCOHOL CATEGORIES LAGGED FOOD SALES Y/Y $ Sales Growth by Food & Beverage Category (2014) 4% 3% 2.7% 1.8% 2% 0.6% 1% 0.1% 0% -0.4% -1% -2% Food Spirits Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: GuestMetrics Full Year Ending Dec 31, 2014 Wine Beer Non-Alc Bev SPIRITS TOOK SHARE FROM BEER, WHILE WINE SHARE WAS FLATTISH VERSUS THE PRIOR YEAR 0.4 Y/Y $ Share Change in Alcoholic Beverage Mix (2014) 0.4 0.3 0.2 0.1 0.0 -0.1 -0.1 -0.2 -0.3 -0.3 -0.4 Spirits Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: GuestMetrics Full Year Ending Dec 31, 2014 Wine Beer HOWEVER… WHILE OVERALL BEER CONTINUES TO LOSE SHARE, CRAFT BEER CONTINUES TO AGGRESSIVELY INCREASE ITS SHARE OF TBA DOLLAR SALES AND IS NEARLY 2X THE GAINS ACHIEVED BY SPIRITS DURING 2014 Y/Y Change Alcohol Sales Mix (points) (2014 vs. 2013) 0.8 0.67 0.6 0.38 0.4 0.2 0.0 -0.2 -0.09 -0.4 -0.6 -0.8 -1.0 -0.95 -1.2 Beer -- Craft Spirits Wine Beer -- Other GuestMetrics data reflects new definition of Total BA Craft which includes Yuengling Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: GuestMetrics Full Year Ending Dec 31, 2014 CRAFT BEER MAKES UP NEARLY 10% OF TOTAL BEVERAGE ALCOHOL $ SALES AND ~27% OF TOTAL BEER $ SALES Category Mix (by Retail $ Sales) -- Alcoholic Beverages (2014) 9.8% Beer -- Craft 42.8% 23.5% Beer -- Other Wine Spirits 24.0% GuestMetrics data reflects new definition of Total BA Craft which includes Yuengling Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: GuestMetrics Full Year Ending Dec 31, 2014 CRAFT AND PREMIUM LIGHT ARE THE TWO LARGEST BEER SEGMENTS IN ON-PREMISE VOLUME-WISE Share of Beer Category by Segment (% of total units sold, 2014) 30% 26.5% 26.3% 25% 20% 18.2% 13.6% 15% 9.9% 10% 3.6% 5% 1.9% 0% CRAFT PREMIUM LIGHT IMPORT VALUE / FMB / OTHER PREMIUM PLUS PREMIUM REGULAR GuestMetrics data reflects new definition of Total BA Craft which includes Yuengling Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: GuestMetrics Full Year Ending Dec 31, 2014 CIDER CRAFT AND CIDER SHARE GAINS HAVE COME PRIMARILY AT THE EXPENSE OF PREMIUM LIGHTS Y/Y Change in Beer Volume Share -- by Segment (2014 vs. 2013) 2.5 2.1 2.0 1.5 1.0 0.5 0.5 0.0 -0.1 -0.5 -0.2 -0.2 -0.3 -1.0 -1.5 -2.0 -1.8 -2.5 CRAFT CIDER VALUE / FMB / OTHER PREMIUM REGULAR IMPORT PREMIUM PLUS GuestMetrics data reflects new definition of Total BA Craft which includes Yuengling Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: GuestMetrics Full Year Ending Dec 31, 2014 PREMIUM LIGHT 0% 6.4% 5.7% 5.2% 4.6% 4.3% 3.8% 3.1% 2.8% 2.8% 2.7% 2.1% 2.1% 2.0% 1.9% 1.9% 1.5% 1.2% 1.2% 1.1% 1.1% 0.9% 0.4% 0.2% 0.0% WHEAT (ALE) AMBER / RED (ALE) AMBER (LAGER) OTHER / UNKNOWN SEASONALS BOCK (LAGER) GOLDEN / KOLSCH (ALE) STOUT (ALE) IMPERIAL INDIA PALE (ALE) BELGIAN WIT (ALE) BROWN (ALE) PILSNER (LAGER) FRUIT / PUMPKIN / FLAVORED PORTER (ALE) BELGIAN DARK STRONG (ALE) BELGIAN OTHER (ALE) SCOTTISH (ALE) ALT / DARK (LAGER) STRONG / BARLEYWINE (ALE) MARZEN / OKTOBERFEST (LAGER) SAISON (ALE) BELGIAN GOLDEN STRONG (ALE) DOPPELBOCK (LAGER) BELGIAN SOUR (ALE) 10.6% 5% PALE / BITTER (ALE) 10% 11.2% 15% PALE (LAGER) 20% 19.2% 25% INDIA PALE (ALE) IPA’S AND PALE ALES CONTINUE TO BE TWO OF THE MOST POPULAR CRAFT STYLES, COMBINING FOR 30% OF CRAFT BEER SALES IN ON-PREMISE Volume Mix by Style within Craft (2014) GuestMetrics data reflects new definition of Total BA Craft which includes Yuengling Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: GuestMetrics Full Year Ending Dec 31, 2014 SPIRITS DOMINATES LATE NIGHT, WINE IMPORTANT AT DINNER Alcohol $ Sales Mix by Day Part (2014) 100% 90% 80% 39% 40% 39% 59% 70% 60% 50% 20% Spirits 22% 40% 30% 11% 30% 20% Wine 41% 39% Lunch Happy Hour 10% 31% 30% Dinner Late Night 0% Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: GuestMetrics Full Year Ending Dec 31, 2014 Beer CRAFT BEER REVIEW Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. BEER CATEGORY & CRAFT SEGMENT HISTORICAL DOLLAR SALES TRENDS TOTAL U.S. SUPERMARKETS Craft’s momentum continued as it achieved its highest positive sales percent increase vs a prior year in 2014 Dollar Sales % Chg YA 20.0% 18.3% 17.0% 18.0% 14.0% 12.0% 15.6% 15.1% 16.0% 14.7% 12.7% 11.0% 10.0% 8.0% 6.0% 4.4% 4.0% 4.1% 2.0% 3.9% 0.9% 4.0% 4.0% 0.9% 0.0% 2008 2009 2010 2011 CRAFT Copyright © 2015 Information Resources, Inc. (IRI). 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Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 BEER 2012 2013 2014 TOP 15 BA CRAFT VENDORS BASED ON DOLLAR SALES TOTAL U.S. SUPERMARKETS Sweetwater moved up three spots and entered the Top 10 at #9 Founders and Firestone Walker both entered the Top 15 BA Craft Vendors Dollar Dollar Dollar Sales % Share of Share Chg YA Craft Chg YA Dollar Sales BOSTON BEER CO $215,850,731 SIERRA NEVADA BREWING CO $132,046,825 NEW BELGIUM BREWING COMPANY $117,292,305 THE GAMBRINUS COMPANY $66,676,517 THE LAGUNITAS BREWING COMPANY $59,785,186 DESCHUTES BREWERY $46,691,169 7.3% 14.5% -1.5% 13.1% 8.9% -0.4% 29.4% 7.9% 0.7% 5.8% 4.5% -0.5% 58.7% 4.0% 1.0% 12.9% 3.1% -0.2% STONE BREWING CO. $31,891,195 38.7% 2.1% 0.3% BELLS BREWERY INC $28,797,395 27.6% 1.9% 0.1% SWEETWATER BREWING COMPANY LLC $23,097,454 38.8% 1.6% 0.2% DOGFISH HEAD CRAFT BREWERY $21,685,356 21.7% 1.5% 0.0% GREAT LAKES BREWING CO. $20,198,168 7.6% 1.4% -0.1% DUVEL MOORTGAT USA $18,601,362 11.0% 1.3% -0.1% FIRESTONE WALKER BREWING COMPANY $14,537,417 52.0% 1.0% 0.2% NINKASI BREWING COMPANY $14,295,008 11.3% 1.0% -0.1% FOUNDERS BREWING CO $13,971,248 68.9% 0.9% 0.3% Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 TOP 10 NEW BA CRAFT VENDORS SELLING IN IRI TRACKED SUPERMARKETS The number of Craft Vendors selling in IRI-tracked Supermarkets increased sharply again in 2014 to 735 compared to 595 in 2013 and 484 in 2012 Dollar Sales Location RHINEGEIST BREWERY $782,539 GRIFFIN CLAW BREWING COMPANY $570,128 SMALL TOWN BREWERY GILGAMESH BREWING EXILE BREWING COMPANY BELCHING BEAVER BREWERY OLD BUST HEAD BREWING COMPANY EVERYBODYS BREWING $413,540 $304,454 $264,785 $225,979 $208,175 $177,344 Cincinnati, OH Birmingham, MI Wauconda, IL Salem, OR Des Moines, IA Vista, CA Warrenton, VA White Salmon, WA PISGAH BREWING COMPANY $132,695 Black Mountain, NC GRAPEVINE CRAFT BREWERY $131,133 Farmers Branch, TX Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 2014 TOP 15 NEW BA CRAFT BEER BRANDS TOTAL U.S. SUPERMARKETS Boston Beer’s Samuel Adams Rebel IPA generated an impressive $21MM during its first year of sales. By far the best new Craft intro tracked by IRI. Sierra Nevada’s Variety Pack also generated over $11MM in sales. Dollar Sales SAMUEL ADAMS REBEL IPA $21,116,309 SIERRA NEVADA VARIETY PACK NEW BELGIUM SNAPSHOT WHEAT DESCHUTES FRESH SQUEEZED IPA STONE GO TO IPA $11,374,208 $4,530,783 $3,065,053 $2,019,261 NEW BELGIUM SPECIAL RELEASE $753,641 SIERRA NEVADA BEER CAMP ACROSS AMERICA $722,419 ANCHOR IPA $698,488 DOGFISH HEAD NAMASTE WITBIER $667,338 CIGAR CITY INVASION PALE ALE $542,432 OMMEGANG GAME OF THRONS FIR & BLD $423,127 OMMEGANG GM OF THRNS VLR MORGHLS $414,994 SMALL TOWN NT YR FATHRS RT BEER $413,540 BALLAST POINT GRAPEFRT SCULPN IPA $378,418 RHINEGEIST TRUTH IPA $363,303 Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 Year Brand Dollar Sales 2014 Samuel Adams Rebel IPA $21,116,309 2013 New Belgium Rampant Imperial IPA $3,942,500 2012 Deschutes Chainbreaker White IPA $2,601,975 2011 Kona Variety Pack $2,115,495 2010 New Belgium Ranger IPA $5,495,092 2009 Sierra Nevada Torpedo Extra IPA $3,938,139 2008 Samuel Adams Irish Red $1,623,497 2014 TOP 10 NEW BA CRAFT BEER PACKAGES TOTAL U.S. SUPERMARKETS Led by Samuel Adams Rebel IPA, 2014 was a record revenue year for new Craft product Dollar Sales (More than 2x the past two record years combined) Total Craft new Can package sales totaled $20.9MM Total Craft new Glass package sales totaled $70.5MM Dollar Sales SAMUEL ADAMS REBEL IPA 12-PACK 11-12OZ BTL $12,879,872 SIERRA NEVADA VARIETY PACK 12-PACK 11-12OZ BTL $11,373,044 SAMUEL ADAMS REBEL IPA 6-PACK 11-12OZ BTL NEW BELGIUM SNAPSHOT WHEAT 6-PACK 11-12OZ BTL $8,166,532 $4,481,783 DESCHUTES FRESH SQUEEZED IPA 6-PACK 11-12OZ BTL $3,049,712 NEW BELGIUM VARIETY PACK 12-PACK 12OZ CAN $3,003,318 FOUNDERS ALL DAY IPA 15-PACK 12OZ CAN STONE GO TO IPA 6-PACK 11-12OZ BTL $2,250,736 $2,010,518 Total Craft New Product Dollar Sales 2014 $92,203,800 2013 $42,021,402 2012 $42,969,648 2011 $20,637,476 SWEETWATER 420 PALE ALE 12-PACK 12OZ CAN $1,335,689 2010 $15,387,487 BELLS TWO HEARTED ALE 4-PACK 16OZ CAN $1,166,208 2009 $20,750,750 Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 TOTAL CRAFT BEER KEY PACK SIZE DOLLAR SALE TRENDS TOTAL U.S. SUPERMARKETS Total Craft Can Sales nearly doubled in 2014 vs $62MM in 2013 Dollar Sales % Chg YA 6-PACK 11-12OZ BTL $708,124,353 13.9% 12-PACK 11-12OZ BTL $474,053,611 14.3% SINGLES 22OZ BTL $102,614,871 17.8% 6-PACK 12OZ CAN $53,633,464 96.6% 12-PACK 12OZ CAN $45,591,853 64.4% 4-PACK 11-12OZ BTL $38,158,922 24.6% SINGLES 25.4OZ BTL $16,796,487 29.9% SIERRA NEVADA BREWING CO 4-PACK 16OZ CAN $13,246,556 50.6% BOSTON BEER CO $8,602,072 $10,078,797 82.9% NEW BELGIUM BREWING COMPANY $8,499,572 SINGLES 11-12OZ BTL $4,624,543 32.7% SINGLES 24OZ BTL Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 TOTAL CRAFT GLASS $ Sales % Chg. YA $1,367,359,160 15.16% TOTAL CRAFT CAN $ Sales % Chg. YA $119,233,783 78.95% Top 5 Craft Can Vendors OSKAR BLUES BREWERY THE GAMBRINUS COMPANY $12,527,472 $7,621,200 $5,251,957 BEER CATEGORY AND CRAFT DOLLAR SALES % CHANGE VS. YA EIGHT IRI SUPERMARKET REGIONS 3.2% 1.3% 4.4% 5.4% 4.6% 12.6% 15.2% 22.9% 20.7% 5.0% 19.5% 22.5% 2.8% 15.8% 5.2% 21.3% Beer Dollar Trend Craft Dollar Trend Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan IRI FOOD REGIONS 52 Weeks Ending Jan 4, 2015 TOTAL CRAFT DOLLAR SALES REGIONAL BREAKDOWN EIGHT IRI SUPERMARKET REGIONS Great Lakes led all Regions again in Total Craft actual Case and Dollar Sales Chg vs YA Mid-South moved up two spots compared to last year’s ranking based on Dollar Sales Chg Avg Price Case Sales Avg Price per Case Chg. YA per Case Chg YA Weighted Weighted Weeks, Weeks, any any merch Chg merch YA Dollar Sales Dollar Sales Chg. YA Case Sales Great Lakes $234,782,442 $43,746,949 6,586,885 1,069,535 $35.64 $1.02 43.21 0.79 California $264,119,887 $43,031,710 7,389,288 1,025,349 $35.74 $1.00 45.99 0.34 Mid-South $180,971,209 $33,224,074 5,106,245 825,359 $35.44 $0.93 34.67 0.77 West $295,582,543 $32,993,742 8,599,585 716,743 $34.37 $1.06 39.83 1.07 Southeast $143,987,614 $25,305,058 4,195,130 690,571 $34.32 $0.46 43.01 1.02 Northeast $174,128,435 $23,027,298 4,845,132 511,596 $35.94 $1.07 22.88 0.55 South Central $126,169,935 $17,216,217 3,831,272 447,746 $32.93 $0.73 36.58 0.41 $63,040,790 $10,801,850 1,855,861 252,653 $33.97 $1.38 27.27 0.91 Plains Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan IRI FOOD REGIONS 52 Weeks Ending Jan 4, 2015 TOP 10 CRAFT BEER STYLES TOTAL U.S. SUPERMARKETS Craft IPA increased it’s share of Total Craft Dollar Sales by +3.7 in 2014. Craft Special Release moved up to #9 based on double-digit growth at +37.4% Dollar Sales CRAFT IPA $342,173,636 CRAFT SEASONAL $253,533,887 Dollar Sales % Chg YA Dollar Share of Craft Dollar Share Chg YA 41.0% 23.1% 3.7% 12.6% 17.1% -0.9% CRAFT PALE ALE $139,664,870 9.3% 9.4% -0.8% CRAFT VARIETY $132,926,892 26.0% 9.0% 0.5% 8.4% 5.1% -0.5% 1.4% 4.3% -0.7% 10.2% 3.1% -0.2% CRAFT AMBER ALE CRAFT AMBER LAGER CRAFT WHEAT BEER $75,550,043 $63,678,170 $45,788,387 CRAFT BOCKS $36,646,614 7.3% 2.5% -0.3% CRAFT SPEC RELSE/SPECLTY/COLL $34,516,720 37.4% 2.3% 0.3% CRAFT OTHER PALE LAGERS $28,027,353 6.2% 1.9% -0.2% Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 Infinity and Beyond… perdurable absolute To Total Craft IPA Dollar Sales = $342MM 741 Craft IPA Brands Selling 1,165 Craft IPA Packages Selling Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan by channel 52 Weeks Ending Jan 4, 2015 BREWER ASSOCIATION’S IPA STYLE DEFINITIONS AMERICAN IPA Color is gold to copper or red/brown. Medium maltiness is present. Hop flavor is strong, characterized by fruity, citrus-like piney, resinous or sulfur-like American-variety hop character. Hop bitterness is medium-high to very high. Fruity-ester flavors are moderate to very high. IBUs: 50-70, ABV: 6.3%-7.6% IMPERIAL IPA Color is gold to light brown. Hop aroma is very high. Malt character is medium to high. Hop flavor is very high, and should be fresh and lively and should not be harsh in quality, deriving from any variety of hops. Hop bitterness is very high but not harsh. Alcohol content is medium-high to high and notably evident. Fruity ester flavor is high. IBUs: 65-100, ABV: 7.6%-10.6% SESSION IPA Color of the classic IPA to a lower strength. Session India Pale Ales are gold to copper. There is a balance between the IPA character and a lower alcohol content. Drinkability is a character of the overall balance of this style. Must not exceed 5.0% ABV. ENGLISH IPA Gold to copper colored. Fruity-ester aromas are moderate to very strong. Hop aroma is medium to high, often flowery. Medium malt flavor is present. Earthy and herbal English-variety hop character is the perceived end. Hop bitterness is medium to high. Fruity-ester flavors are moderate to very strong. Most traditional interpretations are characterized by medium to medium-high alcohol content. Hops of other origins may be used for bitterness or approximating traditional English character. ABV: 5.1%-7.1% BELGIAN/WHITE IPA Color is gold to light brown. Chili haze may be evident. Hop aroma is medium to very high. Hop bitterness is medium to very high. Fruity-ester flavor should be medium to high. Yeast derived characters such as banana, berry, apple, sometimes coriander spice-like and/or smoky-phenolic characters should be portrayed with balance of hops and malt character when fermented with Belgian yeasts. Diacetyl, sulfur-like yeast character, and Brettanomyces character should be absent. These beers can be IPA made with Belgian yeast, or Belgian witbier made with lots of American hops. IBUs and AVB: varies BLACK IPA American black-ale styled IPA. Color is very dark to black. Hop aroma is medium-high to high, with fruity, floral, herbal or other hop aroma from hops of all origins. Medium caramel malt and dark roasted malt flavors are evident. High astringency and high degree of burnt roast malt should be absent. Hop flavor is medium-high, with fruity, floral, herbal or other hop flavor. Hop bitterness is medium-high to high. ABV:6.3%7.6% Other IPA consists primarily of Rye, Red and Brown IPA’s IPA’s that are solely included in either Seasonal or Variety packs are not accounted for in this analysis Source: Brewers Association 2014 Beer Styles Guidelines http://www.brewersassociation.org/wp-content/uploads/2014/06/2014_BA_Beer_Style_Guidelines_FINAL.pdf Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. CRAFT IPA STYLE SALES TRENDS BY INDIVIDUAL CHANNEL Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan by channel 52 Weeks Ending Jan 4, 2015 CRAFT IPA STYLES DOLLAR SALES & TRENDS TOTAL U.S. SUPERMARKETS Total Craft IPA Dollar Sales were $342.2MM; +41.0% Change vs Year Ago Dollar Sales (000s) AMERICAN IPAs $217,147 IMPERIAL IPAs $85,845 SESSION IPAs $11,440 ENGLISH IPAs $7,185 % Chg vs YA 42.3% 20.9% 338.8% 22.5% BELGIAN/WHITE IPAs $2,145 -21.5% OTHER IPAs $1,758 -12.2% BLACK IPAs $1,402 6.3% Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 NUMBER OF IPA BRANDS SELLING TOTAL U.S. SUPERMARKETS Count of IPA Brands 741 636 520 388 292 215 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 AMERICAN 142 185 236 302 371 421 IMPERIAL 47 73 101 141 171 199 SESSION 3 3 5 7 14 28 ENGLISH 16 19 24 28 29 29 BELGIAN/WHITE 3 5 8 12 14 19 BLACK 2 3 9 16 20 25 OTHER 2 4 5 14 17 20 TOTAL 215 292 388 520 636 741 Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 TOP 15 NEW CRAFT IPA BRANDS TOTAL U.S. SUPERMARKETS Total Craft IPA Dollar Sales was $342.2MM Total New Craft IPA Dollar Sales was $35.4MM Dollar Sales SAMUEL ADAMS REBEL IPA DESCHUTES FRESH SQUEEZED IPA WIDMER BROS UPHEAVAL IPA STONE GO TO IPA ANCHOR IPA $21,116,347 $3,065,214 $2,431,615 $2,019,258 $698,488 BALLAST POINT GRAPEFRT SCULPN IPA $378,418 RHINEGEIST TRUTH IPA $363,303 HANGAR 24 BETTY IPA $239,082 TERRAPIN HI 5 IPA $228,269 BALLAST POINT HABANER SCULPN IPA $224,560 GRIFFIN CLAW NRMS RAGGDY ASS IPA $218,961 FAT HEADS SUNSHIN DAYDRM SESSN ALE $168,827 GOOSE ISLAND ILLINS IMPERL IPA $153,258 BALLAST POINT EVEN KL SESSN IPA $144,746 ALASKAN HOP O THERMIA DOUBLE IPA $135,821 Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 117 New Craft IPA Brands • • • • • • 57 American 32 Imperial 14 Session 5 Black 5 Belgian/White 4 Other *American IPA *Session IPA *Imperial IPA CRAFT IPA STYLES PACK SIZE BREAKDOWN TOTAL U.S. SUPERMARKETS Craft IPA 12-Pack Sales have their highest share in the American and Session Styles. 4-Packs have their highest share of sales in Imperial IPAs, while Singles have the highest share of sales in Belgian/White. 2.6% 8.5% 13.8% 24.0% 24.9% 42.6% 46.4% 22.4% 65.8% 82.2% 5.8% 72.5% 39.3% 32.5% 1.9% 8.3% AMERICAN IPAs 2.5% IMPERIAL IPAs 12-PACK BELGIAN/WHITE IPAs 6-PACK *Session 12-Packs include 15-Packs Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 0.1% SESSION IPAs 4-PACK SINGLES 3.9% 0.1% ENGLISH IPAs CRAFT STYLES IPA PRICING TOTAL U.S. SUPERMARKETS TOTAL CRAFT IPAs $47.35 $42.21 $37.12 $38.80 $35.11 $35.06 $34.18 BELGIAN/WHITE IPAs IMPERIAL IPAs BLACK IPAs Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 AMERICAN IPAs SESSION IPAs ENGLISH IPAs CRAFT STYLES IPA MERCHANDISING SUPPORT TOTAL U.S. SUPERMARKETS American and Session IPAs received the highest Merch Support increase in 2014 Number of Category Weighted Weeks, Any Merchandising & Change vs YA 3.9 Total Craft 46.1 5.0 0.5 1.9 37.8 35.3 22.8 TOTAL CRAFT IPA AMERICAN IPAs IMPERIAL IPAs 3.4 1.1 0.2 5.5 5.5 1.9 1.0 ENGLISH IPAs Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015 0.8 SESSION IPAsBELGIAN/WHITE IPAs BLACK IPAs CRAFT IPA & IPA STYLES REGIONAL OVERVIEW 8 IRI REGIONS - SUPERMARKETS Dollar Sales TOTAL CRAFT IPA CRAFT AMERICAN IPAs CRAFT IMPERIAL IPAs CRAFT SESSION IPAs CRAFT BELGIAN/WHITE IPAs CRAFT ENGLISH IPAs CRAFT BLACK IPAs % Chg vs YA TOTAL CRAFT IPA CRAFT AMERICAN IPAs CRAFT IMPERIAL IPAs CRAFT SESSION IPAs CRAFT BELGIAN/WHITE IPAs CRAFT ENGLISH IPAs CRAFT BLACK IPAs CALIFORNIA WEST GREAK LAKES MID-SOUTH NORTHEAST SOUTHEAST SOUTH CENTRAL PLAINS $84,556,787 $80,546,862 $48,337,170 $37,859,644 $32,193,041 $33,486,860 $15,010,584 $11,111,326 $45,601,039 $56,072,563 $26,140,183 $27,147,530 $22,790,330 $24,231,573 $9,234,715 $6,305,721 $25,081,520 $19,380,681 $9,688,159 $9,120,825 $7,007,458 $8,095,572 $5,205,518 $2,275,961 $2,367,266 $1,082,356 $3,833,013 $825,504 $1,187,232 $178,280 $576,019 $827,794 $703,769 $107,619 $493,371 $122,651 $270,262 $113,109 $244,980 $89,032 $684,070 $486,838 $1,130,993 $1,057,749 $1,985,045 $1,245,951 $209,921 $384,671 $414,817 $271,828 $302,020 $184,527 $149,513 $10,472 $16,488 $52,732 CALIFORNIA WEST 40.6% 41.7% 20.7% 6328.8% 51.3% 139.7% 16.2% 26.9% 27.4% 11.7% 417.9% -46.0% 80.1% -25.8% GREAK LAKES MID-SOUTH NORTHEAST SOUTHEAST 59.3% 58.6% 34.9% 182.3% -0.7% 7.6% 40.2% Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan IRI FOOD REGIONS 52 Weeks Ending Jan 4, 2015 42.1% 45.5% 25.0% 552.9% -71.6% 19.1% -3.9% 53.5% 47.1% 31.4% 355.2% -24.5% 5.9% 39.1% 41.9% 54.9% 11.1% 159.8% -69.2% 24.3% -55.8% SOUTH CENTRAL 44.9% 47.0% 25.4% 715.5% -10.6% 32.6% 259.5% PLAINS 51.1% 61.3% 38.8% 137.2% -37.1% 14.3% -0.9% CRAFT IPA & IPA STYLES REGIONAL OVERVIEW 8 IRI REGIONS - SUPERMARKETS Dollar Share* of Craft IPAs CRAFT CRAFT CRAFT CRAFT CRAFT CRAFT AMERICAN IPAs IMPERIAL IPAs SESSION IPAs BELGIAN/WHITE IPAs ENGLISH IPAs BLACK IPAs Share Chg vs YA CRAFT CRAFT CRAFT CRAFT CRAFT CRAFT AMERICAN IPAs IMPERIAL IPAs SESSION IPAs BELGIAN/WHITE IPAs ENGLISH IPAs BLACK IPAs CALIFORNIA WEST 60.9% 33.5% 3.2% 0.9% 0.9% 0.6% GREAK LAKES MID-SOUTH NORTHEAST SOUTHEAST 72.4% 25.0% 1.4% 0.1% 0.6% 0.4% CALIFORNIA WEST 1.4 (4.9) 3.1 0.1 0.4 (0.1) 1.9 (2.8) 1.1 (0.2) 0.2 (0.2) 62.9% 23.3% 9.2% 1.2% 2.7% 0.7% 70.6% 23.7% 2.1% 0.3% 2.8% 0.5% 71.5% 23.9% 0.5% 0.3% 3.7% 0.0% GREAK LAKES MID-SOUTH NORTHEAST SOUTHEAST 1.3 (3.5) 4.1 (0.7) (1.2) (0.1) * Share is calculated from the total of the 6 IPA Styles highlighted Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan IRI FOOD REGIONS 52 Weeks Ending Jan 4, 2015 68.3% 21.0% 3.6% 0.8% 5.9% 0.4% SOUTH CENTRAL 59.6% 33.6% 3.7% 1.6% 1.4% 0.1% 3.0 (2.7) 1.7 (1.2) (0.5) (0.2) 2.1 (1.8) 2.4 (0.7) (2.1) (0.0) 7.4 (6.0) 0.2 (1.2) (0.4) (0.1) PLAINS 63.5% 22.9% 8.3% 0.9% 3.9% 0.5% SOUTH PLAINS CENTRAL 2.2 2.7 (4.3) (2.6) 3.1 2.9 (0.9) (1.3) (0.1) (1.4) 0.1 (0.3) TOP 15 FOOD MARKETS FOR TOTAL CRAFT IPA DOLLAR SALES Number % Change of IPAs in vs YA Market Dollar Sales (000s) 1. Los Angeles, CA - Food $22,206 1 50.8% 151 2. Portland, OR - Food $22,141 2 29.8% 210 3 21.8% 205 4 27.5% 145 5 43.4% 161 6 50.5% 192 3. Seattle/Tacoma, WA - Food $20,247 4. San Francisco/Oakland, CA - Food $19,172 5. San Diego, CA - Food $16,533 6. Chicago, IL - Food $9,753 7. New England - Food $8,705 7 51.0% 124 8. Baltimore, MD/Washington D.C. - Food $8,391 8 30.0% 161 9. Sacramento, CA - Food $7,110 9 40.5% 159 10. Atlanta, GA - Food $6,929 10 56.1% 94 11. Raleigh/Greensboro, NC - Food $6,546 11 34.1% 123 12. Phoenix/Tucson, AZ - Food $6,484 12 47.2% 141 13. New York, NY - Food $5,938 13 49.9% 217 14. Detroit, MI - Food $5,616 14 80.6% 106 15 51.2% 177 15. Charlotte, NC - Food $5,015 Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan IRI FOOD MARKETS 52 Weeks Ending Jan 4, 2015 TOP FOOD MARKETS FOR CRAFT IPA STYLES DOLLAR SALES & DOLLAR SALES CHANGE VS YEAR AGO Craft IPA Style Top 3 Food Markets Dollar Sales Dollar Sales Top 3 Food Markets Dollar Sales Chg vs YA Dollar Sales Chg vs YA Total Craft IPA Los Angeles, CA Portland, OR Seattle/Tacoma, WA $22.2MM $22.1MM $20.2MM Los Angeles, CA Portland, OR San Diego, CA $7.5MM $5.1MM $5.0MM Craft American IPA Portland, OR Seattle/Tacoma, WA Los Angeles, CA $14.8MM $14.5MM $14.3MM Los Angeles, CA Portland, OR Seattle/Tacoma, WA $4.9MM $3.2MM $2.9MM Craft Imperial IPA Los Angeles, CA San Francisco/Oakland, CA Portland, OR Craft Session IPA Grand Rapids, MI Detroit, MI San Diego, CA Craft English IPA San Francisco/Oakland, CA San Diego, CA Los Angeles, CA $943K $839K $744K $1MM $700K $667K San Diego, CA Grand Rapids, MI Los Angeles, CA $645K $595K $526K New England Chicago New York $679K $550K $537K Los Angeles, CA San Francisco/Oakland, CA Tampa/St Petersburg, FL $154K $112K $62K Craft Belgian/White IPA San Diego, CA Los Angeles, CA San Francisco/Oakland, CA $263K $258K $92K Los Angeles, CA San Diego, CA Milwaukee, WI $134K $73K $52K Craft Black IPA San Francisco/Oakland, CA Richmond, VA Seattle/Tacoma, WA $190K $83K $69K San Francisco/Oakland, CA Buffalo/Rochester, NY Columbus, OH Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan IRI FOOD MARKETS 52 Weeks Ending Jan 4, 2015 $5.9MM $5.9MM $5.3MM $23K $19K $15K OND SALES RECAP Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. TOP 15 SINGLE WEEKS FOR CRAFT CASE SALES 2010-2014 TOTAL U.S. SUPERMARKETS Two-thirds of the top single weeks for Craft based on Case Sales occur during OND. The Craft Segment’s ability to generate over 1MM Case Sales during key holiday single weeks is becoming the norm Case Sales July 6, 2014 1,203,395 December 28, 2014 1,101,146 November 30, 2014 1,096,094 July 7, 2013 1,052,130 August 31, 2014 1,016,544 December 21, 2014 1,009,142 December 29, 2013 975,710 May 25, 2014 974,832 December 1, 2013 972,851 December 22, 2013 967,573 September 7, 2014 914,418 November 2, 2014 904,571 November 23, 2014 901,387 September 1, 2013 900,815 January 4, 2015 Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US FOOD Single Weeks, Week Ending Jan 3, 2010 through Week Ending Jan 4, 2015 878,917 OCT/NOV/DEC (OND) 2014 BEVERAGE ALCOHOL DOLLAR SHARE BREAKDOWN TOTAL U.S. SUPERMARKETS Beer lost one-half of a share point in Total Bev Alc Dollar Sales to Wine during OND 2014 Craft gained +0.7 share of Total Beverage Alcohol Dollar Sales. Cider gained +0.3. Their gains came primarily at the expense of both the Premium and Sub-Premium Segments. Dollar Share OND 2014 Dollar Share OND 2013 SPIRITS 18.2% Beer 43.9% SPIRITS 18.2% DOM PREM 15.9% TOTAL WINE 38.0% Beer 43.4% DOM PREM 15.0% IMPORT 8.1% TOTAL WINE 38.5% IMPORT 8.1% CRAFT 7.6% CRAFT 6.9% DOM SUBPREM 5.3% NA's 0.4% MALT LIQUOR 0.4% CIDER 0.9% DOM SUPER PREM PAB's 4.5% 1.4% DOM SUBPREM 4.9% NA's 0.3% MALT LIQUOR 0.4% Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US FOOD, 13 Weeks Ending Dec 29, 2013 (OND 2013) and 13 Weeks Ending Jan 4, 2015 (OND 2014) CIDER 1.2% PAB's 1.5% DOM SUPER PREM 4.4% CRAFT SHARE OF BEER & BEV ALC DOLLAR SALES OND 2014 TOTAL U.S. SUPERMARKETS Craft Dollar Share of Beer 20.0% 15.0% 12.6% 13.9% 15.6% 17.5% 10.0% 5.0% 0.0% 2011 2012 2013 2014 Craft increased its share of Total Beer Dollar Sales by nearly two full points during OND 2014 compared to OND 2013 Craft Dollar Share of Bev Alc 8.0% 6.0% 5.5% 6.0% 2011 2012 6.8% 7.6% 4.0% 2.0% 0.0% 2013 Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US FOOD 13 Weeks Ending Jan 4, 2015 (OND 2014) 2014 Craft increased its share of Total Beverage Alcohol Dollar Sales by almost one full point in OND 2014 TOP 10 CRAFT VENDORS – ACTUAL DOLLAR SALES CHANGE VS YEAR AGO DURING OND 2014 TOTAL U.S. SUPERMARKETS Lagunitas Brewing and Sierra Nevada Brewing were the top two Craft Vendors who increased their Dollar Sales during OND 2014 Dollar Sales Change vs Year Ago THE LAGUNITAS BREWING COMPANY $6,126,443 SIERRA NEVADA BREWING CO $5,128,854 NEW BELGIUM BREWING COMPANY $4,650,145 STONE BREWING CO. $2,980,513 Dollar Share of Craft Dollar Share Chg YA 4.2% 1.1% 8.8% 0.0% 7.4% 0.1% 2.3% 0.5% BALLAST POINT BREWING COMPANY $2,019,331 0.9% 0.4% DESCHUTES BREWERY $1,876,612 3.0% 0.0% SWEETWATER BREWING COMPANY LLC $1,813,345 1.5% 0.3% FOUNDERS BREWING CO $1,688,271 1.1% 0.3% 1.6% 0.2% 1.0% 0.2% BELLS BREWERY INC FIRESTONE WALKER BREWING COMPANY $1,449,421 $1,220,069 Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US FOOD, 13 Weeks Ending Jan 4, 2015 (OND 2014) NEW BEVERAGE ALCOHOL PRODUCTS RELEASED DURING OND 2014 TOTAL U.S. SUPERMARKETS Spirits achieved the highest share of total new Bev Alc product Dollar Sales released during OND 2014. Wine had the highest number of new SKU’s. Dollar Sales New Products OND 2014 New Item SKU Count OND 2014 BEER, 127 BEER, $2,601,662 SPIRITS, 152 SPIRITS, $4,444,377 TOTAL WINE, $1,651,329 Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US FOOD, 13 Weeks Ending Jan 4, 2015 (OND 2014) TOTAL WINE, 179 NEW BEER PRODUCTS RELEASED DURING OND 2014 TOTAL U.S. SUPERMARKETS Small Town Brewery had the top selling new Craft beer package released during the OND 2014 time period Dollar Sales $1,977,000 $373,538 Craft Segment Cider $158,420 $59,810 $31,403 $1,285 $206 Import Dom Sub Prem PABs Dom Sup Prem Dom Prem OND Best Selling new package by Segment Dollar Sales Craft SMALL TOWN NT YR FATHRS RT BEER 6-PACK 11-12OZ BTL $409,888 Cider JOHNNY APPLESEED VARIETY PACK 12-PACK 11-12OZ BTL $246,506 Import GUINNESS THE 1759 AMBER ALE SINGLES 25.4OZ LNBTL $80,954 Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. Source: IRI Infoscan Total US FOOD, 13 Weeks Ending Jan 4, 2015 (OND 2014) Thank You! Craft Brewers: Please continue to send your current UPC lists and product images to me to insure your products are being tracked by IRI. Please e-mail me at [email protected] Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 4
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