ALCOHOLIC BEVERAGE MONTHLY DASHBOARD MAY 2017 STRATEGIC & CAPITAL ADVISORY FOR CONSUMER COMPANIES

Transcription

1 ALCOHOLIC BEVERAGE MONTHLY DASHBOARD MAY 2017 STRATEGIC & CAPITAL ADVISORY FOR CONSUMER COMPANIES

2 May-1 Jun-1 Jul-1 Aug-1 Sep-1 Oct-1 Nov-1 Dec-1 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Page 2 PUBLIC COMPANY STOCK PERFORMANCE TWELVE MONTHS ENDING MAY 31, 2017 CRAFT BREWERS, LARGE BREWERS AND WINE & SPIRITS VS. S&P 500 INDEX 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% 19.5% 18.7% 15.1% -3.% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% ALCOHOLIC BEVERAGE RELATIVE SUBSECTOR STOCK PERFORMANCE 21.0% 18.8% 15.% 11.3% 9.0% 8.2%.5% 2.3% -5.0% -1.5% S&P 500 Craft Brewers Large Brewers Wineries & Distillers Note: Market-weighted index from Cody Peak Advisors' Alcoholic Beverage Index TOP PERFORMING ALCOHOLIC BEVERAGE STOCKS BY SUBSECTOR 7.2% 25.% 31.9% Craft Brewers Large Brewers Wine & Spirits EXCHANGE LISTED COMMODITY TRENDS MONTHLY AVERAGE Commodity Current Price Aluminum, LME, $ per metric ton $1,93.50 $1,95.50 $1, $1, Month 1 Year 2 Year 52 Week Range $1, $1, Barley - U.S. Prices Per Metric Ton $ $ $ $125.1 $18.0 Corn, No. 2 yellow. Cent. Ill. bu-bp,u 3.9 $3.38 $3.95 $3.0 $2.88 $3.50 Rice, 5% Broken White, Thailand-L,W $ $1.00 $38.00 $30.00 $20.00 Raw sugar FOB, $/metric ton-k $ $272.0 $ Wheat, No. 1 soft white, del Portland, Ore-U Source: Wall Street Journal.80 $.7 $5.22 $5.09 $.55 $ $ $5.22

3 Page 3 RELATIVE TRAILING 12-MONTH VALUATION MULTIPLES FOR ALCOHOLIC BEVERAGE COMPANIES EV / REVENUE RELATIVE SUBSECTOR VALUATION MULTIPLES EV / EBITDA RELATIVE SUBSECTOR VALUATION MULTIPLES 7.0x 25.0x.0x.1x 20.0x 19.9x 5.0x 1.1x.0x 15.0x 12.2x 3.0x 2.7x 10.0x 2.0x 1.7x 1.0x 5.0x 0.0x Wineries & Distillers Large Brewers Craft Brewers 0.0x Wineries & Distillers Large Brewers Craft Brewers TRAILING 12-MONTH VALUATION MULTIPLES FOR PUBLIC ALCOHOLIC BEVERAGE COMPANIES Market Data (Given in $Millions) Price 1 Yr Est. Price Performance Equity Firm Growth EV / LTM EBITDA Company ($ mm) Ticker 05/31/17 LTM Value Value Rate Sales EBITDA Margin Craft Brewers Big Rock Brewery Inc. TSX:BR $5.3.% $39 $ NA 1.x NM 5.0% The Boston Beer Company, Inc. NYSE:SAM % 1,752 1,92-5.7% 1.9x 9.x 20.5% Brick Brewing Co. Limited TSX:BRB % % 2.9x 15.1x 19.3% BJ's Restaurants, Inc. NASDAQGS:BJRI % 9 1,125 5.% 1.1x 8.9x 12.% Craft Brew Alliance, Inc. NASDAQGS:BREW % % 1.7x 25.1x.7% Average 35.8% 3.8% 1.8x 1.x 12.8% Median.%.1% 1.7x 12.2x 12.% Large Brewers Anheuser-Busch InBev SA/NV ENXTBR:ABI $ % $225,35 $350,29 2.9% 7.1x 20.1x 35.% Asahi Group Holdings, Ltd. TSE: % 18,300 31,338 NA 2.1x 17.2x 12.5% Heineken N.V. ENXTAM:HEIA % 5,117 70,1 NA 3.2x 15.0x 21.5% Kirin Holdings Company, Limited TSE: % 19,23 27, % 1.7x 12.8x 13.3% Molson Coors Brewing Company NYSE:TAP % 20,05 32, %.9x 2.2x 20.2% Sapporo Holdings Limited TSE: % 2,259,332 NA 0.9x 10.5x 8.% Average 7.3% 57.5% 3.3x 1.x 18.% Median.% 2.9% 2.7x 1.1x 1.7% Wineries & Distillers Brown-Forman Corporation NYSE:BF.B $ % $20,128 $22,157-1.% 7.3x 20.3x 3.0% Constellation Brands, Inc. NYSE:STZ % 35,572,2.3%.1x 17.9x 3.1% Diageo plc LSE:DGE % 75,395 89, %.x 19.9x 32.0% Pernod Ricard SA ENXTPA:RI % 35,891,155 NA 5.0x 1.9x 29.% Rémy Cointreau SA ENXTPA:RCO % 5,29 5,93 NA 5.0x 2.x 20.1% Average 18.%.% 5.9x 19.9x 30.3% Median 19.3%.3%.1x 19.9x 32.0% Source: Public company documents NA Not available NMF Not meaningful figure EBITDA Earnings before interest, taxes, depreciation & amortization Enterprise Value Market value of equity + interest-bearing debt - cash

4 Page MERGERS & ACQUISITIONS OVERVIEW ALCOHOLIC BEVERAGE M&A ACTIVITY BY SUBSECTOR* YTD 2017 Chart Source: Capital IQ & Cody Peak research Wineries Distilleries Breweries MEDIAN ALCOHOLIC BEVERAGE REVENUE MULTIPLES BY SUBSECTOR* MEDIAN ALCOHOLIC BEVERAGE EBITDA MULTIPLES BY SUBSECTOR* 3.2x 15.9x 13.5x 2.2x 1.x 9.7x Distilleries Wineries Breweries Note : Median from Distilleries Wineries Breweries Note : Median from HIGHLIGHTED 2017 ALCOHOLIC BEVERAGE M&A TRANSACTIONS Hunters Point Brewery Target: Brewer Clifton Buyer: Jackson Family Wines Transaction Value: NA TV / Rev: NA TV / EBITDA: NA Target: Speak Easy Ales & Lagers, Inc. Buyer: Hunters Point Brewery Transaction Value: $2.5 TV / Rev: NA TV / EBITDA: NA Brewer Clifton was acquired in its entirety by Jackson Family Wines; the transaction includes 0 acres of estate vineyards The acquisition compliments Jackson Family Wines portfolio of wines and adds a new vineyard appellation in the Sta. Rita Hills, CA Speak Easy Ales & Lagers was acquired from receivership by Hunters Point Brewery Ces Butner, a former beverage distributor and former owner of Horizon Beverage, created Hunters Point Brewery to acquire Speak Easy s assets, including the brewing equipment and brand There are no planned changes to Speak Easy s operations or beers

5 Page 5 SELECT ALCOHOLIC BEVERAGE TRANSACTIONS Closed Date Target/Issuer Total Transaction Value ($mm) Transaction Type Buyers Subsector Target Business Description 05/2/2017 Gem & Bolt, LLC - Financing First Beverage Group Distillery GEM & BOLT, LLC produces and sells wine and spirits. The company was founded in 201 and is based in the United States. 05/2/2017 Schill Malz GmbH & Co. KG - M&A BAMBERGER MÄLZEREI GmbH Brewery Schill Malz GmbH & Co. KG produces malts. The company s products include pilsen, Vienna, Munich, wheat, caramel, color, sour, and organic malts. 05/23/2017 Brewer-Clifton LLC - M&A Jackson Family Wines, Inc. Winery Brewer-Clifton LLC produces and sells red and white wines. The company was founded in 1995 and is based in Lompoc, California. 05/17/2017 Cerveceria San Juan S.A. (BVL:SNJUANC1) 05/1/2017 Public Joint- Stock Company "Synergy" (MISX:SYNG) $5.2 M&A Racetrack Peru S.R.L. Brewery Cerveceria San Juan S.A. brews and distributes malt and malted, non-alcoholic, and soft drinks. The company was founded in 1971 and is based in Yarinacocha, Peru. - M&A Undisclosed Distillery Public Joint-Stock Company Synergy, together with its subsidiaries, produces, distributes, and sells distilled spirits in the Russian Federation. 05/15/2017 Camino Brewing Co. LLC $1.2 Financing Undisclosed Brewery Camino Brewing Co. LLC produces beer. 05/11/2017 Arbor Brewing Company, North American operations - M&A Farm + Ferment Brewery North American operations of Arbor Brewing Company comprises business operations that operates brewery. The operation is located in the United States. 05/10/2017 Honey Bubbles, Inc. $0.1 Financing Undisclosed Winery Honey Bubbles, Inc. produces and sells grape wines. The company was incorporated in 201 and is based in Napa, California. 05/09/2017 Bacardi-Martini France, Beaucaire - M&A Konings NV Distillery Beaucaire of Bacardi-Martini France comprises business operations that manufactures vodka. The plant is located in France. 05/08/2017 Speakeasy Ales & Lagers Inc. $2.5 M&A Undisclosed Brewery Speakeasy Ales & Lagers Inc. produces and supplies beer in the United States and internationally. 05/08/2017 GMB Partners LLC $0.8 Financing Undisclosed Brewery GMB Partners LLC, doing business as Half Acre Beer Company, produces and sells beers and non-alcoholic beverages. 05/0/2017 Lagunitas Brewing Company - M&A HEINEKEN USA Incorporated Brewery Lagunitas Brewing Company produces and markets beer and ale. The company was founded in 1993 and is based in Petaluma, California. 05/03/2017 Australian Vintage Ltd (ASX:AVG) $12.3 Financing Vintage China Fund, L.P. Winery Australian Vintage Ltd engages in wine production, packaging, marketing, and distribution activities. Sources: Capital IQ / Cody Peak M&A database ABOUT CODY PEAK ADVISORS CONTACT Cody Peak Advisors is an independent strategic and capital advisory firm that focuses exclusively on the consumer sector. Our senior professionals have completed over 100 transactions with an aggregated value in excess of $7 billion. We have a successful track record of helping middle market branded and non-branded consumer manufacturing, marketing and distribution companies strategically unlock and enhance value through mergers, acquisitions and financings. Cody Peak Advisors, LLC 201 Continental Blvd, Suite 200 El Segundo, California Robert J. Parzick Managing Director bparzick@codypeakadv.com Jacques A. Perrone Managing Director jperrone@codypeakadv.com This report is for information purposes only and is not intended as an offer or solicitation with respect to any purchase or sale of any security. Cody Peak Advisors, LLC gathers its data from sources it considers reliable; however, it does not guarantee the accuracy of completeness of the information provided within this publication. The opinions presented herein reflect the current judgment of the authors and are subject to change. Cody Peak Advisors, LLC makes no warranties, expressed or implied, regarding the accuracy of this information or the subjective opinions expressed by the authors. Cody Peak Advisors, LLC, its officers, directors and partners may at any time have positions in the securities of the companies discussed herein. Copyright 2017 Cody Peak Advisors, LLC., all rights reserved. June 2017