CRAFT BEER U.S. MARKET REVIEW - Brewers … BEER U.S. MARKET REVIEW TO INFINITY AND BEYOND… Dan Wandel Principle, Beverage Alcohol March, 5 2015. Copyright …

CRAFT BEER U.S. MARKET REVIEW

TO INFINITY AND BEYOND…

Dan WandelPrinciple, Beverage Alcohol March, 5 2015

Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary.

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


2014 BEER CATEGORY HEADLINES

• Beer Category Dollar and Case Sales increased in IRI’s Multi-Outlet Off-

Premise 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


BEER CATEGORY OFF-PREMISE REVIEW

http://www.google.com/url?url=http://www.craftbeer.com/acbw-news/a-country-brewnited-during-american-craft-beer-week&rct=j&frm=1&q=&esrc=s&sa=U&ei=wn_wVJG4IYOkgwTXmYKYDQ&ved=0CBYQ9QEwAA&usg=AFQjCNGbEYTtFGUBwjvfJk5sjCed3dG01A


http://www.google.com/url?url=http://www.rsvlts.com/2013/04/09/guide-on-beer-tasting/&rct=j&frm=1&q=&esrc=s&sa=U&ei=wn_wVJG4IYOkgwTXmYKYDQ&ved=0CBwQ9QEwAw&usg=AFQjCNH-OgJbOTMPrHs3MxbOCDZ9WcbvXw



BEVERAGE ALCOHOL CATEGORY FOUR-YEAR SALES TRENDS TOTAL U.S. MULTI-OUTLET (MULO)

BEER

49.0%TOTAL

WINE

32.6%

SPIRITS

18.4%

Dollar Share of Bev Alc 2013

BEER

49.1%TOTAL

WINE

32.7%

SPIRITS

18.2%

Dollar Share of Bev Alc 2014

Dollar Trends

Beer Dollar Sales trends outpaced both Wine and Spirits sales trends for the first time since 2008.

6.6%

10.8%

5.7%

2.7%

2011 2012 2013 2014

SPIRITS

6.7%5.0% 5.1% 4.3%

2011 2012 2013 2014

TOTAL WINE

2.5%

5.2% 5.5%4.5%

2011 2012 2013 2014

BEER

Note: Spirits sold in WA State starting in 2012

Source: IRI Infoscan Total US Multi-Outlet 52 Weeks Ending Jan 4, 2015


TOP 15 BEVERAGE ALCOHOL SALES GROWTH SEGMENTSACTUAL DOLLAR SALES CHANGE VS YEAR AGO

$269,541,064

$163,549,860

$140,013,294

$127,677,286

$121,327,214

$100,501,844

$99,803,099

$50,653,788

$47,898,870

$43,999,478

$38,968,528

$38,052,972

$32,703,399

$21,144,617

$12,199,582

CRAFT - BEER

($11.00-$14.99) TABLE WINE

($8.00-$10.99) TABLE WINE

WHISKEY

IMPORT - BEER

SUPER PREMIUM - BEER

CIDER - BEER

($20.00+) TABLE WINE

($3.50-$4.99) BOX TABLE WINE

PAB's - BEER

($15.00-$19.99) TABLE WINE

VODKA

($8.00 - $12.99) SPARKLING WINE

($13.00 - $17.99) SPARKLING WINE

COGNAC

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

16.3% $362,347,763

20.6% $280,854,342

7.3% $643,226,253

9.0% $470,169,410

2.7% $1,460,740,051

9.5% $378,631,270

21.1% $121,273,488

14.7% $95,295,960

For the second straight year, Craft Beer led all Beverage Alcohol Segments in Dollar Sales Growth in Total US MULO

Source: IRI Infoscan Total US Multi-Outlet 52 Weeks Ending Jan 4, 2015


BEER CATEGORY & SEGMENT TRENDS AND SHARETOTAL U.S. MULO AND MULO + CONVENIENCE

Total US - Multi Outlet Total US - Multi Outlet + Conv


Dollar Share of Category

Case Sales % Chg YA

Case Share of Category


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

Source: IRI Infoscan Total US Multi-Outlet and Total US Multi-Outlet + Convenience 52 Weeks Ending Jan 4, 2015

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.

*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.


BEVERAGE ALCOHOL SALES TRENDS BY INDIVIDUAL CHANNEL

Total US - Food Total US - Drug Total US - ConvSum Of Total Liquor Stores-RMA - Liquor


Case Sales % Chg YA


Case Sales % Chg YA


Case Sales % Chg YA


Case Sales % 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%

Source: IRI Infoscan by channel 52 Weeks Ending Jan 4, 2015

Craft and Cider Segments achieved double-digit Dollar and Case Sales percent increases across all four channels

*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.


SEGMENT DOLLAR SHARE OF BEER CATEGORY 2010 – 2014TOTAL U.S. SUPERMARKETS

Source: IRI Infoscan Total US FOOD 52 Weeks Ending Jan 4, 2015

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

9.43 10.82 11.91 13.47 15.360.45 0.56 0.91 1.56

2.26

41.73 40.51 38.67 36.96 35.11

15.02 14.33 13.34 12.23 11.40

8.38 8.76 10.14 10.47 10.64

19.61 19.66 19.39 19.13 19.00

3.36 3.30 3.58 4.16 4.23

1.95 1.90 1.82 1.69 1.64

2010 2011 2012 2013 2014

NA's and MALT

PAB's

IMPORT

SUPER PREMIUM

SUB-PREMIUM

PREMIUM

CIDER

CRAFT


BEER CATEGORY & SEGMENTS’ MERCHANDISING SUPPORT TOTAL U.S. SUPERMARKETS

42.30

40.42

38.55

38.30

36.34

34.67

33.32

28.71

6.69

5.25

CATEGORY - BEER

DOMESTIC PREMIUM

IMPORT

DOMESTIC SUP PREM

CRAFT

PAB's

DOMESTIC SUB-PREM

CIDER

NA's

MALT LIQUOR

Weighted Weeks, Any Merch

(0.01)

0.21

0.23

0.56

0.77

0.60

(0.83)

5.27

(0.72)

0.12

CATEGORY - BEER

DOMESTIC PREMIUM

IMPORT

DOMESTIC SUP PREM

CRAFT

PAB's

DOMESTIC SUB-PREM

CIDER

NA's

MALT LIQUOR

Change vs YA


Cider, Craft, PAB’s and Super Premium received the highest increases in merchandising support in 2014.


TOP 10 BEER VENDORS 2014 RANKED BY DOLLAR SALESTOTAL U.S. SUPERMARKETS


$3,521,747,111

$2,329,829,230

$753,328,443

$560,233,777

$354,342,671

$186,069,406

$162,821,328

$137,036,321

$132,047,262

$131,289,375

ANHEUSER-BUSCH INBEV

MILLERCOORS BREWING

CONSTELLATION BEER

HEINEKEN USA INC

BOSTON BEER CO

DIAGEO GUINNESS USA

PABST BREWING CO

D G YUENGLING & SON INC

SIERRA NEVADA BREWING CO

MARK ANTHONY BRANDS INC

Dollar SalesDollar

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

-2.4% 1.93 -0.13

-2.6% 1.69 -0.11

6.7% 1.42 0.04

13.1% 1.37 0.11

0.3% 1.36 -0.05

Boston Beer and Constellation Beer achieved the largest Dollar Share gains amongst the Top 10 Beer Vendors in 2014


TOP 15 BEER BRANDS 2014 RANKED BY DOLLAR SALESTOTAL U.S. SUPERMARKETS


$1,208,438,308

$654,003,217

$554,648,994

$447,351,590

$381,877,352

$264,451,049

$218,697,055

$203,335,773

$183,692,149

$170,887,173

$132,401,911

$124,464,863

$119,037,734

$118,509,234

$103,508,682

BUD LIGHT

COORS LIGHT

MILLER LITE

BUDWEISER

CORONA EXTRA

MICHELOB ULTRA LIGHT

HEINEKEN

NATURAL LIGHT

BUSCH LIGHT

MODELO ESPECIAL

MILLER HIGH LIFE

CORONA LIGHT

STELLA ARTOIS LAGER

BUSCH

BLUE MOON BELGIAN WHITE ALE

Dollar SalesDollar

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

1.1% 2.27 -0.06

-2.5% 2.11 -0.14

0.1% 1.90 -0.07

22.2% 1.77 0.26

-3.2% 1.37 -0.10

2.1% 1.29 -0.02

9.9% 1.23 0.07

-2.1% 1.23 -0.08

1.9% 1.07 -0.02

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


TOP BEER VENDORS - NEW PRODUCT DOLLAR SALES IN 2014TOTAL U.S. SUPERMARKETS

• Total New Beer Product Sales Case Sales = 8.7MM

• Total New Beer Product Sales Dollar Sales = $281.5MM


A record 18 Vendors generated over $1MM in new product sales in 2014

$93,209,058

$57,725,908

$23,663,167

$15,364,914

$12,486,115

$8,863,243

$8,320,550

$5,377,634

$4,578,654

$4,049,406

$3,300,355

$2,974,335

$2,907,173

$2,655,667

$2,332,052

$2,019,612

$1,228,251

$1,225,526

ANHEUSER-BUSCH INBEV

MILLERCOORS BREWING

BOSTON BEER CO

MARK ANTHONY BRANDS INC


HEINEKEN USA INC

NEW BELGIUM BREWING COMPANY

DIAGEO GUINNESS USA

DESCHUTES BREWERY

CRAFT BREW ALLIANCE INC

NORTH AMERICAN BREWERIES

FOUNDERS BREWING CO

STONE BREWING CO.

SWEETWATER BREWING COMPANY LLC

AMERICAN VINTAGE BEVERAGE INC.

BELLS BREWERY INC

DUVEL MOORTGAT USA

CROSBY LAKE SPIRITS COMPANY

Dollar Sales


CLASS OF 2014 TOP 15 NEW BEER BRANDS – DOLLAR SALESTOTAL U.S. - SUPERMARKETS

Year # of New

Beer Brands

Total New Beer Brand Case Sales

Top New Beer Brand (Based on $ Sales)

2014 612 7,403,257 Bud Light Lime Mang O Rita

2013 530 5,473,905 Bud Light Lime Straw Ber Rita

2012 415 6,953,181 Bud Light Platinum Lager

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

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


$32,336,953

$27,451,132

$21,115,842

$18,617,215

$11,374,248

$10,099,778

$9,774,599

$9,758,753

$7,952,905

$7,802,765

$7,532,473

$4,530,928

$4,260,432

$4,083,194

$3,440,432

BUD LIGHT LIME MANG O RITA

BUD LIGHT LIME RAZ BER RITA

SAMUEL ADAMS REBEL IPA

MILLER FORTUN SPIRITD GOLDN LAGR

SIERRA NEVADA VARIETY PACK

REDDS VARIETY PACK

COORS LIGHT SUMMER BREW

SMITH AND FORGE HARD CIDER

REDDS WICKED APPLE ALE

JOHNNY APPLESEED APPLE HARD CIDR

BUD LIGHT LIME MIX A RITA

NEW BELGIUM SNAPSHOT WHEAT

GUINNESS BLONDE AMERICAN LAGER

DOS EQUIS XX DOS A RITA

BUSCH SIGNATURE COPPER LAGER

Dollar Sales


CLASS OF 2011 BEER BRANDS REVISITEDTOTAL U.S. SUPERMARKETS

$6,451

$2,634

$2,280

$2,116

$2,005

$1,862

$1,638

$1,238

$1,203

$1,070

$1,036

$908

$591

$522

$497

SHOCK TOP RASPBERRY WHEAT ALE

MIKES HARD RASPBERRY LEMONADE

MGD LIGHT 64 LEMONADE

KONA VARIETY PACK

SHOCK TOP SEASONAL

JEREMIAH WEED ROADHOUSE TEA

MARGARITAVILLE SPIKED LEMONADE

MARGARITAVILLE SPIKED TEA

DOUBLE TAKE IPA

BRIDGEPORT KINGPIN DOUBLE RD ALE

JEREMIAH WEED SPIKED COLA

DOUBLE TAKE AMBER ALE

NEW BELGIUM BELGO IPA

SIERRA NEVADA BEER CAMP BEERS

SHOCK TOP VARIETY PACK

2014 Dollar Sales % Chg. YA

-38.70%

17.30%

25.10%

-25.40%

-19.30%

-5.40%

-47.10%

-51.30%

-38.70%

-93.90%

-99.00%

-95.10%

-99.30%

-100.00%

n/a

$13,001

$9,359

$6,877

$6,454

$2,463

$1,056

$869

$546

$116

$5

$2

$2

$1

$0

$0

SHOCK TOP SEASONAL

SHOCK TOP VARIETY PACK

KONA ISLAND HOPPER VARIETY PACK

SHOCK TOP RASPBERRY WHEAT ALE

MIKES HARD BLK RASPBERRY…

BRIDGEPORT KINGPIN DOUBLE RD…

DOUBLE TAKE IPA

DOUBLE TAKE AMBER ALE

SIERRA NEVADA BEER CAMP BEERS

JEREMIAH WEED ROADHOUSE TEA

MARGARITAVILLE SPIKED LEMONADE

JEREMIAH WEED SPIKED COLA

MARGARITAVILLE SPIKED TEA

NEW BELGIUM BELGO IPA

MGD LIGHT 64 LEMONADE


Dollar Sales 2011 (000’s)

3 Year (2012-2014) Dollar Sales (000’s)

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

ON-PREMISE CHANNEL OVERVIEW


SPIRITS OUTPERFORMED OTHER ALCOHOL CATEGORIES, BUT ALL THREE ALCOHOL CATEGORIES LAGGED FOOD SALES

2.7%

1.8%

0.6%0.1%

-0.4%

-2%

-1%

0%

1%

2%

3%

4%

Food Spirits Wine Beer Non-AlcBev

Y/Y $ Sales Growth by Food & Beverage Category (2014)

Source: GuestMetrics Full Year Ending Dec 31, 2014


SPIRITS TOOK SHARE FROM BEER, WHILE WINE SHARE WAS FLATTISH VERSUS THE PRIOR YEAR

0.4

-0.1

-0.3-0.4

-0.3

-0.2

-0.1

0.0

0.1

0.2

0.3

0.4

Spirits Wine Beer

Y/Y $ Share Change in Alcoholic Beverage Mix (2014)



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

GuestMetrics data reflects new definition of Total BA Craft which includes Yuengling

0.67

0.38

-0.09

-0.95

-1.2

-1.0

-0.8

-0.6

-0.4

-0.2

0.0

0.2

0.4

0.6

0.8

Beer -- Craft Spirits Wine Beer -- Other

Y/Y Change Alcohol Sales Mix (points)(2014 vs. 2013)



CRAFT BEER MAKES UP NEARLY 10% OF TOTAL BEVERAGE ALCOHOL $ SALES AND ~27% OF TOTAL BEER $ SALES


9.8%

23.5%

24.0%

42.8%

Category Mix (by Retail $ Sales) -- Alcoholic Beverages (2014)

Beer -- Craft

Beer -- Other

Wine

Spirits



CRAFT AND PREMIUM LIGHT ARE THE TWO LARGEST BEER SEGMENTS IN ON-PREMISE VOLUME-WISE


26.5% 26.3%

18.2%

13.6%

9.9%

3.6%1.9%

0%

5%

10%

15%

20%

25%

30%

CRAFT PREMIUMLIGHT

IMPORT VALUE /FMB /

OTHER

PREMIUMPLUS

PREMIUMREGULAR

CIDER

Share of Beer Category by Segment (% of total units sold, 2014)



2.1

0.5

-0.1 -0.2 -0.2 -0.3

-1.8-2.5

-2.0

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

CRAFT CIDER VALUE /FMB /

OTHER

PREMIUMREGULAR

IMPORT PREMIUMPLUS

PREMIUMLIGHT

Y/Y Change in Beer Volume Share -- by Segment(2014 vs. 2013)

CRAFT AND CIDER SHARE GAINS HAVE COME PRIMARILY AT THE EXPENSE OF PREMIUM LIGHTS




19.2

%

11.2

%

10.6

%

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

%

0%

5%

10%

15%

20%

25%

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Volume Mix by Style within Craft (2014)

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




SPIRITS DOMINATES LATE NIGHT, WINE IMPORTANT AT DINNER

41% 39%31% 30%

20% 22% 30%

11%

39% 40% 39%

59%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Lunch Happy Hour Dinner Late Night

Alcohol $ Sales Mix by Day Part (2014)

Spirits

Wine

Beer



CRAFT BEER REVIEW






BEER CATEGORY & CRAFT SEGMENT HISTORICAL DOLLAR SALES TRENDSTOTAL U.S. SUPERMARKETS

11.0%

12.7%

15.1% 15.6%14.7%

17.0%

18.3%

4.4% 4.1%

0.9% 0.9%

3.9% 4.0% 4.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

2008 2009 2010 2011 2012 2013 2014


CRAFT BEER


Craft’s momentum continued as it achieved its highest positive sales percent increase vs a prior year in 2014


TOP 15 BA CRAFT VENDORS BASED ON DOLLAR SALESTOTAL U.S. SUPERMARKETS

$215,850,731

$132,046,825

$117,292,305

$66,676,517

$59,785,186

$46,691,169

$31,891,195

$28,797,395

$23,097,454

$21,685,356

$20,198,168

$18,601,362

$14,537,417

$14,295,008

$13,971,248

BOSTON BEER CO



THE GAMBRINUS COMPANY

THE LAGUNITAS BREWING COMPANY

DESCHUTES BREWERY

STONE BREWING CO.

BELLS BREWERY INC


DOGFISH HEAD CRAFT BREWERY

GREAT LAKES BREWING CO.

DUVEL MOORTGAT USA

FIRESTONE WALKER BREWING COMPANY

NINKASI BREWING COMPANY

FOUNDERS BREWING CO

Dollar SalesDollar

Sales % Chg YA

Dollar Share of

Craft

Dollar Share

Chg YA

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%

38.7% 2.1% 0.3%

27.6% 1.9% 0.1%

38.8% 1.6% 0.2%

21.7% 1.5% 0.0%

7.6% 1.4% -0.1%

11.0% 1.3% -0.1%

52.0% 1.0% 0.2%

11.3% 1.0% -0.1%

68.9% 0.9% 0.3%


Sweetwater moved up three spots and entered the Top 10 at #9 Founders and Firestone Walker both entered the Top 15 BA Craft Vendors


TOP 10 NEW BA CRAFT VENDORS SELLING IN IRI TRACKED SUPERMARKETS


$782,539

$570,128

$413,540

$304,454

$264,785

$225,979

$208,175

$177,344

$132,695

$131,133

RHINEGEIST BREWERY

GRIFFIN CLAW BREWING COMPANY

SMALL TOWN BREWERY

GILGAMESH BREWING

EXILE BREWING COMPANY

BELCHING BEAVER BREWERY

OLD BUST HEAD BREWING COMPANY

EVERYBODYS BREWING

PISGAH BREWING COMPANY

GRAPEVINE CRAFT BREWERY

Dollar Sales Location

Cincinnati, OH

Birmingham, MI

Wauconda, IL

Salem, OR

Des Moines, IA

Vista, CA

Warrenton, VA

White Salmon, WA

Black Mountain, NC

Farmers Branch, TX

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


2014 TOP 15 NEW BA CRAFT BEER BRANDSTOTAL U.S. SUPERMARKETS

$21,116,309

$11,374,208

$4,530,783

$3,065,053

$2,019,261

$753,641

$722,419

$698,488

$667,338

$542,432

$423,127

$414,994

$413,540

$378,418

$363,303


SIERRA NEVADA VARIETY PACK

NEW BELGIUM SNAPSHOT WHEAT

DESCHUTES FRESH SQUEEZED IPA

STONE GO TO IPA

NEW BELGIUM SPECIAL RELEASE

SIERRA NEVADA BEER CAMP ACROSS AMERICA

ANCHOR IPA

DOGFISH HEAD NAMASTE WITBIER

CIGAR CITY INVASION PALE ALE

OMMEGANG GAME OF THRONS FIR & BLD

OMMEGANG GM OF THRNS VLR MORGHLS

SMALL TOWN NT YR FATHRS RT BEER

BALLAST POINT GRAPEFRT SCULPN IPA

RHINEGEIST TRUTH IPA

Dollar Sales

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


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.


2014 TOP 10 NEW BA CRAFT BEER PACKAGESTOTAL U.S. SUPERMARKETS

$12,879,872

$11,373,044

$8,166,532

$4,481,783

$3,049,712

$3,003,318

$2,250,736

$2,010,518

$1,335,689

$1,166,208

SAMUEL ADAMS REBEL IPA 12-PACK 11-12OZ BTL

SIERRA NEVADA VARIETY PACK 12-PACK 11-12OZ BTL

SAMUEL ADAMS REBEL IPA 6-PACK 11-12OZ BTL

NEW BELGIUM SNAPSHOT WHEAT 6-PACK 11-12OZ BTL

DESCHUTES FRESH SQUEEZED IPA 6-PACK 11-12OZ BTL

NEW BELGIUM VARIETY PACK 12-PACK 12OZ CAN

FOUNDERS ALL DAY IPA 15-PACK 12OZ CAN

STONE GO TO IPA 6-PACK 11-12OZ BTL

SWEETWATER 420 PALE ALE 12-PACK 12OZ CAN

BELLS TWO HEARTED ALE 4-PACK 16OZ CAN

Dollar Sales


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 $20.9MMTotal Craft new Glass package sales totaled $70.5MM

Total Craft New Product Dollar Sales

2014 $92,203,800

2013 $42,021,402

2012 $42,969,648

2011 $20,637,476

2010 $15,387,487

2009 $20,750,750


TOTAL CRAFT BEER KEY PACK SIZE DOLLAR SALE TRENDSTOTAL U.S. SUPERMARKETS


$708,124,353 13.9%

$474,053,611 14.3%

$102,614,871 17.8%

$53,633,464 96.6%

$45,591,853 64.4%

$38,158,922 24.6%

$16,796,487 29.9%

$13,246,556 50.6%

$10,078,797 82.9%

$4,624,543 32.7%

6-PACK 11-12OZ BTL

12-PACK 11-12OZ BTL

SINGLES 22OZ BTL

6-PACK 12OZ CAN

12-PACK 12OZ CAN

4-PACK 11-12OZ BTL

SINGLES 25.4OZ BTL

4-PACK 16OZ CAN

SINGLES 11-12OZ BTL

SINGLES 24OZ BTL


$12,527,472

$8,602,072

$8,499,572

$7,621,200

$5,251,957


BOSTON BEER CO


OSKAR BLUES BREWERY

THE GAMBRINUS COMPANY

Top 5 Craft Can Vendors

TOTAL CRAFT GLASS

$ Sales % Chg. YA

$1,367,359,160 15.16%

TOTAL CRAFT CAN

$ Sales % Chg. YA

$119,233,783 78.95%

Total Craft Can Sales nearly doubled in 2014 vs $62MM in 2013


BEER CATEGORY AND CRAFT DOLLAR SALES % CHANGE VS. YAEIGHT IRI SUPERMARKET REGIONS

Beer Dollar Trend

Craft Dollar Trend

19.5%

12.6%

21.3%15.8%

20.7%

15.2%

22.5%

22.9%4.4%

5.2%2.8%

4.6%

3.2%

5.0%

1.3%

5.4%

Source: IRI Infoscan IRI FOOD REGIONS 52 Weeks Ending Jan 4, 2015


TOTAL CRAFT DOLLAR SALES REGIONAL BREAKDOWNEIGHT IRI SUPERMARKET REGIONS

Dollar SalesDollar Sales

Chg. YACase Sales

Case Sales Chg. YA

Avg Price per Case

Avg Price per Case Chg YA

Weighted Weeks,

any merch

Weighted Weeks, any merch Chg

YA

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

Plains $63,040,790 $10,801,850 1,855,861 252,653 $33.97 $1.38 27.27 0.91

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



TOP 10 CRAFT BEER STYLESTOTAL 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%


$342,173,636

$253,533,887

$139,664,870

$132,926,892

$75,550,043

$63,678,170

$45,788,387

$36,646,614

$34,516,720

$28,027,353

CRAFT IPA

CRAFT SEASONAL

CRAFT PALE ALE

CRAFT VARIETY

CRAFT AMBER ALE

CRAFT AMBER LAGER

CRAFT WHEAT BEER

CRAFT BOCKS

CRAFT SPEC RELSE/SPECLTY/COLL

CRAFT OTHER PALE LAGERS

Dollar SalesDollar

Sales % Chg YA

Dollar Share of

Craft

Dollar Share

Chg YA

41.0% 23.1% 3.7%

12.6% 17.1% -0.9%

9.3% 9.4% -0.8%

26.0% 9.0% 0.5%

8.4% 5.1% -0.5%

1.4% 4.3% -0.7%

10.2% 3.1% -0.2%

7.3% 2.5% -0.3%

37.4% 2.3% 0.3%

6.2% 1.9% -0.2%


To Infinity and Beyond…

perdurable

absolute

Total Craft IPA Dollar Sales = $342MM741 Craft IPA Brands Selling 1,165 Craft IPA Packages Selling


http://www.google.com/url?url=http://www.wineenthusiast.com/spiegelau-ipa-craft-beer-glasses-(set-of-2).asp&rct=j&frm=1&q=&esrc=s&sa=U&ei=iYDwVJTzJoKWNpmKgNgN&ved=0CDQQ9QEwDw&usg=AFQjCNGea1YkjSd7hjZlO-gOhG0zGK7l_g

http://www.google.com/url?url=http://www.wineenthusiast.com/spiegelau-ipa-craft-beer-glasses-(set-of-2).asp&rct=j&frm=1&q=&esrc=s&sa=U&ei=iYDwVJTzJoKWNpmKgNgN&ved=0CDQQ9QEwDw&usg=AFQjCNGea1YkjSd7hjZlO-gOhG0zGK7l_g


BREWER ASSOCIATION’S IPA STYLE DEFINITIONS

Source: Brewers Association 2014 Beer Styles Guidelineshttp://www.brewersassociation.org/wp-content/uploads/2014/06/2014_BA_Beer_Style_Guidelines_FINAL.pdf

AMERICAN IPAColor 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 IPAColor 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 IPAColor 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 IPAGold 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 IPAColor 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 IPAAmerican 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’sIPA’s that are solely included in either Seasonal or Variety packs are not accounted for in this analysis


CRAFT IPA STYLE SALES TRENDS BY INDIVIDUAL CHANNEL



CRAFT IPA STYLES DOLLAR SALES & TRENDSTOTAL U.S. SUPERMARKETS

$217,147

$85,845

$11,440

$7,185

$2,145

$1,758

$1,402

AMERICAN IPAs

IMPERIAL IPAs

SESSION IPAs

ENGLISH IPAs

BELGIAN/WHITE IPAs

OTHER IPAs

BLACK IPAs

Dollar Sales (000s)


Total Craft IPA Dollar Sales were $342.2MM; +41.0% Change vs Year Ago

% Chg vs YA

42.3%

20.9%

338.8%

22.5%

-21.5%

-12.2%

6.3%


NUMBER OF IPA BRANDS SELLING TOTAL U.S. SUPERMARKETS


215

292

388

520

636

741

2009 2010 2011 2012 2013 2014

Count of IPA Brands

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


TOP 15 NEW CRAFT IPA BRANDSTOTAL U.S. SUPERMARKETS

*American IPA *Session IPA *Imperial IPA


$21,116,347

$3,065,214

$2,431,615

$2,019,258

$698,488

$378,418

$363,303

$239,082

$228,269

$224,560

$218,961

$168,827

$153,258

$144,746

$135,821


DESCHUTES FRESH SQUEEZED IPA

WIDMER BROS UPHEAVAL IPA

STONE GO TO IPA

ANCHOR IPA

BALLAST POINT GRAPEFRT SCULPN IPA

RHINEGEIST TRUTH IPA

HANGAR 24 BETTY IPA

TERRAPIN HI 5 IPA

BALLAST POINT HABANER SCULPN IPA

GRIFFIN CLAW NRMS RAGGDY ASS IPA

FAT HEADS SUNSHIN DAYDRM SESSN ALE

GOOSE ISLAND ILLINS IMPERL IPA

BALLAST POINT EVEN KL SESSN IPA

ALASKAN HOP O THERMIA DOUBLE IPA

Dollar Sales

Total Craft IPA Dollar Sales was $342.2MM Total New Craft IPA Dollar Sales was $35.4MM

117 New Craft IPA Brands

• 57 American• 32 Imperial• 14 Session• 5 Black• 5 Belgian/White• 4 Other


CRAFT IPA STYLES PACK SIZE BREAKDOWNTOTAL U.S. SUPERMARKETS

8.3%

32.5%39.3%

2.5% 3.9%

1.9%

22.4% 5.8%

0.1% 0.1%

65.8%

42.6%

46.4%

72.5%

82.2%

24.0%

2.6%

8.5%

24.9%

13.8%

AMERICAN IPAs IMPERIAL IPAs BELGIAN/WHITE

IPAs

SESSION IPAs ENGLISH IPAs

12-PACK 6-PACK 4-PACK SINGLES

*Session 12-Packs include 15-Packs

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.



CRAFT STYLES IPA PRICINGTOTAL U.S. SUPERMARKETS

$37.12

TOTAL CRAFT IPAs

$47.35

$42.21$38.80

$35.11 $35.06

$34.18

BELGIAN/WHITE

IPAs

IMPERIAL IPAs BLACK IPAs AMERICAN IPAs SESSION IPAs ENGLISH IPAs



37.8 35.3

22.8

5.5 5.5 1.9 1.0

TOTAL CRAFT IPA AMERICAN IPAs IMPERIAL IPAs ENGLISH IPAs SESSION IPAsBELGIAN/WHITE IPAs BLACK IPAs

TotalCraft46.1

3.95.0

1.9

0.8 3.4 1.1 0.2

0.5

Number of Category Weighted Weeks, Any Merchandising & Change vs YA

CRAFT STYLES IPA MERCHANDISING SUPPORTTOTAL U.S. SUPERMARKETS

American and Session IPAs received the highest Merch Support increase in 2014



CRAFT IPA & IPA STYLES REGIONAL OVERVIEW8 IRI REGIONS - SUPERMARKETS

Dollar Sales

% Chg vs YA

CALIFORNIA WEST GREAK LAKES MID-SOUTH NORTHEAST SOUTHEAST SOUTH

CENTRAL PLAINS

TOTAL CRAFT IPA $84,556,787 $80,546,862 $48,337,170 $37,859,644 $32,193,041 $33,486,860 $15,010,584 $11,111,326

CRAFT AMERICAN IPAs $45,601,039 $56,072,563 $26,140,183 $27,147,530 $22,790,330 $24,231,573 $9,234,715 $6,305,721

CRAFT IMPERIAL IPAs $25,081,520 $19,380,681 $9,688,159 $9,120,825 $7,007,458 $8,095,572 $5,205,518 $2,275,961

CRAFT SESSION IPAs $2,367,266 $1,082,356 $3,833,013 $825,504 $1,187,232 $178,280 $576,019 $827,794

CRAFT BELGIAN/WHITE IPAs $703,769 $107,619 $493,371 $122,651 $270,262 $113,109 $244,980 $89,032

CRAFT ENGLISH IPAs $684,070 $486,838 $1,130,993 $1,057,749 $1,985,045 $1,245,951 $209,921 $384,671

CRAFT BLACK IPAs $414,817 $271,828 $302,020 $184,527 $149,513 $10,472 $16,488 $52,732


CENTRAL PLAINS

TOTAL CRAFT IPA 40.6% 26.9% 59.3% 42.1% 53.5% 41.9% 44.9% 51.1%

CRAFT AMERICAN IPAs 41.7% 27.4% 58.6% 45.5% 47.1% 54.9% 47.0% 61.3%

CRAFT IMPERIAL IPAs 20.7% 11.7% 34.9% 25.0% 31.4% 11.1% 25.4% 38.8%

CRAFT SESSION IPAs 6328.8% 417.9% 182.3% 552.9% 355.2% 159.8% 715.5% 137.2%

CRAFT BELGIAN/WHITE IPAs 51.3% -46.0% -0.7% -71.6% -24.5% -69.2% -10.6% -37.1%

CRAFT ENGLISH IPAs 139.7% 80.1% 7.6% 19.1% 5.9% 24.3% 32.6% 14.3%

CRAFT BLACK IPAs 16.2% -25.8% 40.2% -3.9% 39.1% -55.8% 259.5% -0.9%



CRAFT IPA & IPA STYLES REGIONAL OVERVIEW8 IRI REGIONS - SUPERMARKETS

Dollar Share* of Craft IPAs

Share Chg vs YA

* Share is calculated from the total of the 6 IPA Styles highlighted


CENTRAL PLAINS

CRAFT AMERICAN IPAs 60.9% 72.4% 62.9% 70.6% 68.3% 71.5% 59.6% 63.5%

CRAFT IMPERIAL IPAs 33.5% 25.0% 23.3% 23.7% 21.0% 23.9% 33.6% 22.9%

CRAFT SESSION IPAs 3.2% 1.4% 9.2% 2.1% 3.6% 0.5% 3.7% 8.3%

CRAFT BELGIAN/WHITE IPAs 0.9% 0.1% 1.2% 0.3% 0.8% 0.3% 1.6% 0.9%

CRAFT ENGLISH IPAs 0.9% 0.6% 2.7% 2.8% 5.9% 3.7% 1.4% 3.9%

CRAFT BLACK IPAs 0.6% 0.4% 0.7% 0.5% 0.4% 0.0% 0.1% 0.5%


CENTRAL PLAINS

CRAFT AMERICAN IPAs 1.4 1.9 1.3 3.0 2.1 7.4 2.2 2.7

CRAFT IMPERIAL IPAs (4.9) (2.8) (3.5) (2.7) (1.8) (6.0) (4.3) (2.6)

CRAFT SESSION IPAs 3.1 1.1 4.1 1.7 2.4 0.2 3.1 2.9

CRAFT BELGIAN/WHITE IPAs 0.1 (0.2) (0.7) (1.2) (0.7) (1.2) (0.9) (1.3)

CRAFT ENGLISH IPAs 0.4 0.2 (1.2) (0.5) (2.1) (0.4) (0.1) (1.4)

CRAFT BLACK IPAs (0.1) (0.2) (0.1) (0.2) (0.0) (0.1) 0.1 (0.3)



TOP 15 FOOD MARKETS FOR TOTAL CRAFT IPA DOLLAR SALES

$22,206

$22,141

$20,247

$19,172

$16,533

$9,753

$8,705

$8,391

$7,110

$6,929

$6,546

$6,484

$5,938

$5,616

$5,015

1. Los Angeles, CA - Food

2. Portland, OR - Food

3. Seattle/Tacoma, WA - Food

4. San Francisco/Oakland, CA - Food

5. San Diego, CA - Food

6. Chicago, IL - Food

7. New England - Food

8. Baltimore, MD/Washington D.C. - Food

9. Sacramento, CA - Food

10. Atlanta, GA - Food

11. Raleigh/Greensboro, NC - Food

12. Phoenix/Tucson, AZ - Food

13. New York, NY - Food

14. Detroit, MI - Food

15. Charlotte, NC - Food

Dollar Sales (000s) % Change vs YA

Number of IPAs in

Market

1 50.8% 151

2 29.8% 210

3 21.8% 205

4 27.5% 145

5 43.4% 161

6 50.5% 192

7 51.0% 124

8 30.0% 161

9 40.5% 159

10 56.1% 94

11 34.1% 123

12 47.2% 141

13 49.9% 217

14 80.6% 106

15 51.2% 177

Source: IRI Infoscan IRI FOOD MARKETS 52 Weeks Ending Jan 4, 2015


TOP FOOD MARKETS FOR CRAFT IPA STYLESDOLLAR SALES & DOLLAR SALES CHANGE VS YEAR AGO

Craft IPA StyleTop 3 Food Markets Dollar

SalesDollar Sales

Top 3 Food Markets Dollar Sales Chg vs YA

Dollar Sales Chg vs YA

Los Angeles, CA $22.2MM Los Angeles, CA $7.5MM

Total Craft IPA Portland, OR $22.1MM Portland, OR $5.1MM

Seattle/Tacoma, WA $20.2MM San Diego, CA $5.0MM

Portland, OR $14.8MM Los Angeles, CA $4.9MM

Craft American IPA Seattle/Tacoma, WA $14.5MM Portland, OR $3.2MM

Los Angeles, CA $14.3MM Seattle/Tacoma, WA $2.9MM

Los Angeles, CA $5.9MM San Francisco/Oakland, CA $943K

Craft Imperial IPA San Francisco/Oakland, CA $5.9MM San Diego, CA $839K

Portland, OR $5.3MM Los Angeles, CA $744K

Grand Rapids, MI $1MM San Diego, CA $645K

Craft Session IPA Detroit, MI $700K Grand Rapids, MI $595K

San Diego, CA $667K Los Angeles, CA $526K

New England $679K Los Angeles, CA $154K

Craft English IPA Chicago $550K San Francisco/Oakland, CA $112K

New York $537K Tampa/St Petersburg, FL $62K

San Diego, CA $263K Los Angeles, CA $134K

Craft Belgian/White IPA Los Angeles, CA $258K San Diego, CA $73K

San Francisco/Oakland, CA $92K Milwaukee, WI $52K

San Francisco/Oakland, CA $190K San Francisco/Oakland, CA $23K

Craft Black IPA Richmond, VA $83K Buffalo/Rochester, NY $19K

Seattle/Tacoma, WA $69K Columbus, OH $15K

Source: IRI Infoscan IRI FOOD MARKETS 52 Weeks Ending Jan 4, 2015


OND SALES RECAP






TOP 15 SINGLE WEEKS FOR CRAFT CASE SALES 2010-2014 TOTAL U.S. SUPERMARKETS

1,203,395

1,101,146

1,096,094

1,052,130

1,016,544

1,009,142

975,710

974,832

972,851

967,573

914,418

904,571

901,387

900,815

878,917

July 6, 2014

December 28, 2014

November 30, 2014

July 7, 2013

August 31, 2014

December 21, 2014

December 29, 2013

May 25, 2014

December 1, 2013

December 22, 2013

September 7, 2014

November 2, 2014

November 23, 2014

September 1, 2013

January 4, 2015

Case Sales

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

Source: IRI Infoscan Total US FOOD Single Weeks, Week Ending Jan 3, 2010 through Week Ending Jan 4, 2015


OCT/NOV/DEC (OND) 2014 BEVERAGE ALCOHOL DOLLAR SHARE BREAKDOWN

TOTAL U.S. SUPERMARKETS

TOTAL WINE

38.0%

SPIRITS

18.2%

DOM PREM

15.9%

IMPORT

8.1%

CRAFT

6.9%

DOM SUB-

PREM

5.3%

DOM SUPER

PREM

4.5%PAB's

1.4%CIDER

0.9%

MALT

LIQUOR

0.4%

NA's

0.4%

Dollar Share OND 2013

Beer 43.9%

TOTAL WINE

38.5%

SPIRITS

18.2%

DOM PREM

15.0%

IMPORT

8.1%

CRAFT

7.6%

DOM SUB-

PREM

4.9%

DOM SUPER

PREM

4.4%PAB's

1.5%

CIDER

1.2%

MALT

LIQUOR

0.4%

NA's

0.3%

Dollar Share OND 2014

Beer 43.4%

Source: IRI Infoscan Total US FOOD, 13 Weeks Ending Dec 29, 2013 (OND 2013) and 13 Weeks Ending Jan 4, 2015 (OND 2014)

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.


CRAFT SHARE OF BEER & BEV ALC DOLLAR SALES OND 2014TOTAL U.S. SUPERMARKETS

12.6%13.9%

15.6%17.5%

0.0%

5.0%

10.0%

15.0%

20.0%

2011 2012 2013 2014

Craft Dollar Share of Beer

Craft increased its share of Total Beer Dollar Sales by nearly two full points during OND 2014 compared to OND 2013

Craft increased its share of Total Beverage Alcohol Dollar Sales by almost one full point in OND 2014

5.5%6.0%

6.8%7.6%

0.0%

2.0%

4.0%

6.0%

8.0%

2011 2012 2013 2014

Craft Dollar Share of Bev Alc

Source: IRI Infoscan Total US FOOD 13 Weeks Ending Jan 4, 2015 (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

Source: IRI Infoscan Total US FOOD, 13 Weeks Ending Jan 4, 2015 (OND 2014)

$6,126,443

$5,128,854

$4,650,145

$2,980,513

$2,019,331

$1,876,612

$1,813,345

$1,688,271

$1,449,421

$1,220,069

THE LAGUNITAS BREWING COMPANY



STONE BREWING CO.

BALLAST POINT BREWING COMPANY

DESCHUTES BREWERY


FOUNDERS BREWING CO

BELLS BREWERY INC

FIRESTONE WALKER BREWING COMPANY

Dollar Sales Change vs Year Ago

Dollar Share of

Craft

Dollar Share

Chg YA

4.2% 1.1%

8.8% 0.0%

7.4% 0.1%

2.3% 0.5%

0.9% 0.4%

3.0% 0.0%

1.5% 0.3%

1.1% 0.3%

1.6% 0.2%

1.0% 0.2%


NEW BEVERAGE ALCOHOL PRODUCTS RELEASED DURING OND 2014TOTAL U.S. SUPERMARKETS


TOTAL WINE,

$1,651,329

BEER, $2,601,662

SPIRITS, $4,444,377

Dollar Sales New Products OND 2014

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.

TOTAL WINE, 179

BEER, 127

SPIRITS, 152

New Item SKU Count OND 2014


NEW BEER PRODUCTS RELEASED DURING OND 2014TOTAL U.S. SUPERMARKETS

Small Town Brewery had the top selling new Craft beer package released during the OND 2014 time period


Segment 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

$1,977,000

$373,538 $158,420 $59,810 $31,403 $1,285 $206

Craft Cider Import Dom Sub

Prem

PABs Dom Sup

Prem

Dom Prem

Dollar Sales


4

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]

Documents

CRAFT BEER U.S. MARKET REVIEW - Brewers … BEER U.S. MARKET REVIEW TO INFINITY AND BEYOND… Dan Wandel Principle, Beverage Alcohol March, 5 2015. Copyright …