Crown Imports Bill Hackett President, Crown Imports
Who we are 50/50Joint Venture between Constellationandbrand and owner Grupo Modelo. Commenced January 2007 Largest Imported beer company in the U.S. 43% Volume Share of Imported beer in U.S.* Third largest beer company in the U.S. by volume and dollar sales** FY 2011 Performance: Net Sales $2.4 billion +6% to Prior YR Operating Income $453million +2% to PriorYR *Source: Beverage Marketing Corporation (BMC) **Source: S IRI, Total FD/DG/CONV/MASS, 52wks ending 3/20/11 1
Our Portfolio of Brands 2
Our Brands FY2011 US Market Dollar Retail Sales Dollar Sales Rank BRAND 1 BUD LIGHT DOMESTIC 2 BUDWEISER DOMESTIC 3 COORS LIGHT DOMESTIC 4 MILLER LITE DOMESTIC 5 NATURAL LIGHT DOMESTIC overall beer brands in the U.S. 6 CORONA EXTRA IMPORTED Including 3 of the Top 4 Imported 7 BUSCH LIGHT DOMESTIC 8 BUSCH DOMESTIC Beers 9 HEINEKEN IMPORTED 10 MILLER HIGH LIFE DOMESTIC 11 KEYSTONE LIGHT DOMESTIC 12 MICHELOB ULTRA LIGHT DOMESTIC 13 NATURAL ICE DOMESTIC 14 BUD LIGHT LIME DOMESTIC 15 MODELO ESPECIAL IMPORTED 16 ICEHOUSE DOMESTIC 17 BUD ICE DOMESTIC 18 PABST BLUE RIBBON DOMESTIC 19 CORONA LIGHT IMPORTED 20 STEEL RESERVE HIGH GRAVITY LAGER DOMESTIC Crown represents 3 of the Top 20 SOURCE: S IRI Total Food/ Drug/ Conv/MassMerch Retail Sales 52 Weeks Ending 3/20/11 3
Our Brands The Nation s #1 Imported Beer Portfolio FY2011 Import Dollar Retail Sales Crown Represents over 43% of the Import Volume Share in the U.S. Corona Extra #1 imported beer Corona Light #1 imported light beer Modelo Especial #3 imported beer Negra Modelo #19 imported beer Pacifico #13 imported beer Victoria Newly Introduced TsingTao #1 imported Chinese beer St Pauli Girl #2 imported German beer SOURCE: S IRI Total Food/ Drug/ Conv/MassMerch Retail Sales 52 Weeks Ending 3/20/11 4
Quick Stats 43% Volume Vl Share of Imported dbeer in US U.S. * 5.5% Volume Share of Total U.S. Industry * 7.9% Dollar Share of Total U.S. Industry * 1 out of 3 high end beers sold in the U.S. Note: high end h includes Imports and Crafts ** * Source: BMC ** Source: S IRI, Total FD/DG/CONV/MASS, 52wks ending 3/20/11 5
Calendar Year 2010 Volume by Trade Channel Total U.S. Beer Industry Source: Crown Depletion Data Source: 2010 Beer Institute 6
Calendar Year 2010 Sales Results 7
Calendar Year 2010 Industry Depletions Results All Other Imports Total Domestics Total U.S. Beer Source: BMC 8
Top 4 Suppliers in the U.S.: Calendar Year 2010 Depletion Results Source: 2010 company reports and BMI estimates 9
Calendar Year 2010 Brand Results 2009 2010 % Pt Chg 4.2% +1.8% +6.0% 8.2% +4.9% +8.3% 2.0% 1.4% 14% +16.9% +6.2% 6.3% 63% +8.6% 4.8% +0.9% 6.7% +7.0% +0.4% 6.4% +11.8% 0.5% 05% +0.3% 4.2% 3.5% +0.7% Source: Crown depletion data 10
Calendar Year 2010 Success Drivers Consumer Focus Redesigned sales team Realigned marketing focus 11
CONSUMER FOCUS: General Market Millennials Key Age Group 21 34 yrs old *Source: Nielsen Millennials Study,2010 **Source: UBS Beer Study, 2010 Size/ Scale Prefer I Imports t 50+MM, 2nd largest consumer group g p and growing* Rate Corona as The best for most regularly consumed brand ** 12
CONSUMER FOCUS: Hispanics More than 50 of every dollar Hispanics spend on alcohol beverages is for beer 31% more than Non Hispanics 38.1% 30.3% 29.8% Dollar Share of Total Alcohol Beverages Purchased 50% Beer Wine Spirits PAB s/cider 24.9% 22.8% 1.8% Non Hispanic i Hispanici 2.4% Source: Nielsen Homescan Panel, 2010 13
CONSUMER FOCUS: Hispanics Hispanic males are 21% more likely to drink beer at least once a week than Non Hispanic males Hispanic males are 27% more likely to drink beer at least once a month than Non Hispanic males On average, Hispanics consume 71% more beer per occasion than Non Hispanics i Source: Crown Segmentation study 2010 14
CONSUMER FOCUS: Hispanics The Hispanic LDA population in the U.S. is projected to continue growing at a faster pace than other ethnic groups Hispanics as % of Total US LDA Adults Source: U.S. Census Bureau Projections 15
CONSUMER FOCUS: Hispanics Corona Extra is the favorite Beer among Hispanics % Almost 1 out of 3 Hispanics rank Corona Extra as their favorite beer Source: Crown Consumer Tracking Study, 2010 16
CONSUMER FOCUS: Hispanics Consumption Index among Hispanics Source: Nielsen Homescan Panel, 2010 17
Calendar Year 2010 Success Drivers Consumer Focus Redesigned sales team Realigned marketing focus 18
Redesigned sales team Realigned resources against markets of opportunity Increased resource application against on premise channel Increased resource application against off premise national and regional chain accounts 19
Calendar Year 2010 Success Drivers Consumer Focus Redesigned sales team Realigned marketing focus 20
Calendar Year 2010 Marketing 21
Calendar Year 2010 Marketing 22
Calendar Year 2010 Marketing 23
Calendar Year 2010 Marketing 24
Capturing p g New Opportunities pp 25
Calendar Year 2011 Building Momentum 26
Calendar Year 2011 Marketing 27
Calendar Year 2011 Marketing 28
Calendar Year 2011 Marketingg 29
Continuing to capture new Opportunities 30
Calendar Year 2011 Industry Projections Total Beer: Imported Beer: Total Domestic: Flat to down slightly Low to mid single digit growth Down slightly Total llight Beer: Flat to down slightly l SOURCE: BMC 31
Key Takeaways Leadership in Import category Strong portfolio Experienced, seasoned leadership Well positioned against beer consumers Salesand and Marketing momentum Category leadership Growth opportunities 32
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