SPIRITS MARKET TRENDS 2014 AND Q1 15 IN AUSTRIA AN IMPACT OF THE INCREASED TAXATION ON THE INDUSTRY

SPIRITS MARKET TRENDS 2014 AND Q1 15 IN AUSTRIA AN IMPACT OF THE INCREASED TAXATION ON THE INDUSTRY

2014: Reintroduction of Tax on Sparkling Wine & Increase of Alcohol Tax Tax on Sparkling Wine: introduced by March 2014: 1 per L. Alocohol Tax: With March 2014 increased by 20%. Tax was 10 per L of absolute alcohol, since March 12 per L absolute alcohol. The tax depends on the Vol% of alcohol within a spirit. AUSTRIAN TAX INCREASE HAPPENED IN 2014 Why does it hurt? Example of Calculation: Spirit Price: 5,- 40Vol%, 0,7L Alcohol Tax: 3,36 (=0,7*0,4*12) Balance: 1,64 VAT: 1,- Balance: 0,64

Copyright 2012 The Nielsen Company. Confidential and proprietary. TAX ON ALCOHOL & SPARKLING WINE CAUSES VOL LOSSES STILL WINE IS GAINING BENEFITS LH excl. H/L Absatz Tsd. Konvertiert in 1L Volume (L.), Market: Total Austrian Food stores excl. Hofer/Lidl SPIRITUOSEN TOTAL 2.346 1.517 1.650 1.423 1.492 1.201 1.348 1.537 1.528 1.342 1.205 1.250 1.371 1.993 SCHAUM/PERL WEIN TOTAL 3.191 1.769 1.332 1.165 1.130 1.095 1.204 1.127 1.237 1.001 910 957 1.105 2.372 4.507 3.438 3.525 3.699 3.611 3.446 3.566 3.735 3.877 3.674 3.514 3.376 3.692 4.518 WEIN TOTAL BIER TOTAL 32.738 34.224 27.925 33.323 36.312 33.633 43.031 40.230 37.055 34.941 31.220 31.307 30.777 33.853 Volume (L.), % Absatzver. Market: k. VJP Total Austrian Food stores excl. Hofer/Lidl Volume Change VS previous year 10,5 SPIRITUOSEN TOTAL SCHAUM/PERL WEIN TOTAL WEIN TOTAL -3,0-3,0-2,5-1,8 22,5 5,2 3,4-0,5 0,6 1,2-20,8-11,2-14,4 4,5-4,4-2,0-2,8-14,2 9,6-15,5-13,9-11,6 2,9 1,2 0,8 4,3-6,2-4,6-12,8-15,0-25,5-10,3-14,9-25,7 6,0 2,2 0,2 BIER TOTAL -1,4-0,6-0,1 9,0 1,8 6,3 9,5-1,8-20,8 27,8 2,8-22,2 0,4-1,1-4,7 10,6-8,1 3,4 W 49-52/13 W 01-04/14 W 05-08/14 W 09-12/14 W 13-16/14 W 17-20/14 W 21-24/14 Volume (L.), Market: Total Austrian Food stores excl. Hofer/Lidl W 25-28/14 W 29-32/14 W 33-36/14 W 37-40/14 W 41-44/14 W 45-48/14 W 49-52/14 3

TAX IMPACT ON THE HIGH SEASON: Christmas 2014 was low high season for the majority of spirits categories because of a negative tax impact on the prices

CONSIDERABLE DECLEINE OBSERVED IN BOTH VOL AND VAL DUE TO AVERAGE PRICE INCREASE What are the category trends? Food excl. H/L - SPIRITUOSEN AUSGEW. - Last 4 week - Period to: 4 W 2014 52 Volume (L.), Market: Total Austrian Food stores excl. Hofer/Lidl 5

MASSIVE LOSSES IN VOL OBSERVED AT ALL CATEGORIES Total Spirits - Drivers Food excl. H/L - Last 4 weeks- Period to: 4 W 2014 52 SPIRITUOSEN AUSGEW. - Volume Sales Tsd 2.847 SPIRITUOSEN AUSGEW. - Growth -15,0% 6

ONLY 3 CATEGORIES DEMONSTRATED POSITIVE VAL DYNAMIC Total Spirits - Drivers Food excl. H/L - Last 4 weeks - Period to: 4 W 2014 52 SPIRITUOSEN AUSGEW. - Value Sales Tsd EUR 29.166 SPIRITUOSEN AUSGEW. - Growth -5,7% 7

Finance Court considers Tax on Sparkling Wine unconstitutional?! Austrian Finance Court considers Tax on Sparkling Wine (reintroduced in March 2014) as unconstitutional & suggests to Constitutional Court (VfGH) to revoke this tax. Further developemnt is expected in 2015. Kritik an Sektsteuerfreiheit für Prosecco Das Finanzgericht ortet schwere Verstöße gegen die Grundsätze Erwerbsfreiheit, Eigentum und Gleichheit, für die es keine sachliche Begründung gebe. Dass Prosecco Frizzante nicht von der Steuer erfasst wird, sei nicht sachgerecht. Die 114 betroffenen Sekthersteller seien wegen der Abgabe ein verfassungsrechtlich bedenkliches Sonderopfer. Quelle: orf.at, 25.02.2015 SPIRITS MARKET OUTLOOK FOR 2015. WHAT WAS THE TREND IN Q1 2015?

SPIRITS MARKET DYNAMIC IN 1ST QUARTER 2015 What are the category trends? Food excl. H/L - SPIRITUOSEN AUSGEW. - Last 4 week - Period to: 4 W 2014 52 Volume (L.), Market: Total Austrian Food stores excl. Hofer/Lidl 9

IN Q1 2015 MAJORITY OF SPIRITS CATEGORIES STILL EXPERIENCE.. Total Spirits - Drivers Food excl. H/L - Last 4 weeks- Period to: 4 W 2014 52 SPIRITUOSEN AUSGEW. - Volume Sales Tsd 2.847 SPIRITUOSEN AUSGEW. - Growth -15,0% 10

IN Q1 2015 PRICE INCREASE HELPS SPIRITS CATEGORIES.. Total Spirits - Drivers Food excl. H/L - Last 4 weeks - Period to: 4 W 2014 52 SPIRITUOSEN AUSGEW. - Value Sales Tsd EUR 29.166 SPIRITUOSEN AUSGEW. - Growth -5,7% 11

PRICE INCREASE in Q1 2015 VARIES BY CATEGORY Price Development Food excl. H/L - 1. Qu. 15 (CW1-12) - Period to: 4 W 2015 12 12

GROWTH IN 1ST QUARTER 2015 Waterfall Chart in Tsd. : SPIRITUOSEN AUSGEW. Food excl. H/L - 1. Qu. 15 (CW1-12) - Period to: 4 W 2015 12 13

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