Investor Presentation July 2012

Transcription

1 Investor Presentation July 2012 Crown Imports Bill Hackett + Jim Sabia Investor Conference June 5, 2013 Building Brands That People Love

2 President, Crown Imports 2 Building Brands That People Love

3 Who We Are Largest Imported Beer Company in the U.S. 49% Volume Share of Imported beers in U.S.* Third Largest Marketer and Producer of Beer for U.S. Market** FY 2013 Performance: Net Sales $2.6 billion +5% vs. Prior YR Operating Income $448 million +4% vs. Prior YR Source : *Beer Institute Depletions Data, YTD Dec 2012 ** Beer Marketers INSIGHTS Building Brands That People Love

4 Crown Imports History ~1M ~23M ~21M ~16M ~15M ~15M ~17M ~46M ~158M ~152M ~170M Annual Volume Total U.S. Modelo Family Barton Inc. purchased by ADP Barton Beers, LTD formed to service Barton Inc. beer business which imported and marketed Corona Introduced Modelo Especial and Negra Modelo into select U.S. markets Acquired Monarch Import and Tsingtao import rights for U.S Peroni introduced into U.S Introduced Corona Light into U.S Acquired import rights for Pacifico in the U.S Barton acquires Associated Brands and Stevens Point Brewery Began Importing St. Pauli Girl and Double Diamond into U.S Barton acquired by Canadaigua Wine Company Corona Extra becomes #1 Imported Beer in U.S Crown Imports formed Introduced Victoria into U.S Constellation Brands announces plan to purchase remaining 50% interest in Crown Imports that it doesn t already own 4 Building Brands That People Love

5 The Crown Portfolio in 2012 Corona Extra: #1 Imported Beer in U.S.* Over 100M sold cases during 2012 Corona Light: #1 Imported Light Beer in U.S.* Over 13M cases sold during 2012 Modelo Especial: #3 Imported Beer in U.S.* Over 43M cases sold during 2012 Pacifico: #13 Imported Beer in U.S.* Over 5.7M cases sold during 2012 Negra Modelo: #15 Imported Beer in U.S.* Over 3.5M cases sold during 2012 Victoria: Limited Distribution, yet still a Top 20 Imported brand in U.S.* - Over 1.7M cases sold during 2012 Tsingtao: #1 Imported Chinese Beer in U.S.* - Over 700k cases sold during 2012 Source: * Beer Marketers INSIGHTS Building Brands That People Love

6 Industry Challenges Consumer Confidence Job Market Immigration Aging Population SKU Proliferation Decreased Disposable Income Alternative Channels Industry Consolidation Payroll Tax Increases Smaller Households Weather # of NEW High-End SKU s Gas Prices ABI-Modelo Acquisition High Unemployment Consumption 6 Building Brands That People Love

7 Crown Imports 2012 Results Driven by: +2.0% +2.4% Total Modelo Family +4.7% +5.7% +20.6% +6.0% +8.7% 2012 Record Year 4 of the 6 Modelo Brands Reached New Record Sales Volumes Source: Crown Internal Depletion Data Corona Extra Once Again Surpassed 100M Cases Sold 7 Building Brands That People Love

8 2012 Crown Share Gain/Loss by State Share Growth Share Loss Source: Beer Institute YTD December 2012 During 2012, Crown Grew Share of the Total Industry in 45 of 50 states Building Brands That People Love

9 Volume by Trade Channel Total U.S. Beer Industry GROCERY 18% ON PREMISE 18% MASS/ CLUB 7% GROCERY 21% ON PREMISE 16% MASS/ CLUB 8% LIQUOR 19% OTHER 3% LIQUOR 24% OTHER 4% CONV/ DRUG 35% CONV/ DRUG 27% Source: 2012 Beer Institute Source: Crown Depletion Data, Building Brands That People Love

10 Off-Premise Depletion Trends 15% 12% Monthly Volume Variance 3 Month Moving Average Source: Beer Institute and Crown Internal 9% 6% 3% 0% -3% -6% Total Off-Premise Industry -9% -12% -15% Jan 10 Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan 11 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 12 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 13 Feb Mar During the last 3 years Crown has consistently outperformed the industry in Off-Premise Channel 10 Building Brands That People Love

11 On-Premise Depletion Trends 15% 12% Monthly Volume Variance 3 Month Moving Average Source: Beer Institute and Crown Internal 9% 6% 3% 0% -3% -6% -9% -12% Total On-Premise Industry -15% Jan '10 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan '11 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan '12 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 13 Feb Mar On average, Crown On-Premise has out-performed the Industry by nearly 4ppts since Jan Building Brands That People Love

12 Industry Depletion Results March 2013 YTD Crown Imports -4.3% +1.8% +4.5% +4.7% 0.3% All Other Imports -4.6% -2.4% -1.1% +3.2% -0.7% Total Import Category -4.5% -0.3% +1.8% +4.0% -0.2% Total Beer Category -2.0% -2.7% -2.2% +0.6% -4.6% Source: Depletions from Beer Institute Crown returned to market share growth in 2010 Accelerated growth during 2011 and 2012 Outperforming the total beer category by nearly 5ppts YTD 12 Building Brands That People Love

13 Top 4 Supplier Depletion Trends Mar 2013 YTD -4.3% +1.8% +4.5% +4.7% +0.3% -2.0% -3.0% -2.2% +0.4% -5.0% -1.7% -3.0% -2.4% -1.2% -4.0% -6.5% -3.1% -3.1% +2.2% -2.0% Crown has significantly outperformed the other top suppliers over the last 3 Years Note: Source: Trends are estimates that are NOT adjusted to number of sell days Beer Marketer s INSIGHTS and Crown, March 2013 YTD 13 Building Brands That People Love

14 12 Consecutive Quarters of Growth Total Modelo Family 14.0% 9.0% 4.0% 0.3% CYTD Quarterly % volume change vs. YA 2010 YTD +2.0% 3.8% 0.7% 3.7% 6.6% 2011 YTD +5.0% 2.4% 6.5% 5.4% 9.5% 2012 YTD +5.7% 6.3% 3.2% 5.7% 1.5% -1.0% -6.0% -3.8% -1.3% -3.5% -6.2% -2.5% -3.8% -5.0% -0.9% -11.0% Source: Crown Internal Depletion Data - March 2013YTD 14 Building Brands That People Love

15 History of Growth Modelo Family Growth during 18 of the last 20 Years 20,000,000 15,000,000 10,000,000 5,000, ,000,000-10,000,000 Economic Downturn Source: Crown Internal Data Annual Volume Growth 15 Building Brands That People Love

16 2012 Top 20 Imports Total U.S. / On & Off-Premise Rank Brand Case Volume (000) Case Change (000) Trend% 1* Corona Extra 100,657 1, % 2 Heineken 57,316 1, % 3* Modelo Especial 43,103 7, % 4 Stella Artois 19,496 3, % 5 Dos Equis 18,945 3, % 6 Tecate 15, % 7 Guinness 14, % 8* Corona Light 13, % 9 Labatt Blue 8,956-1, % 10 Newcastle Brown 7, % 11 Labatt Blue Light 6, % 12 Heineken Light 6, % 13* Pacifico 5, % 14 Amstel Light 4, % 15* Negra Modelo 3, % 16 Molson Canadian 3, % 17 Peroni 2, % 18 St Pauli Girl 1, % 19 Presidente 1, % 20* Victoria 1,712-1, % Source: Beer Marketers INSIGHTS, 2012 Shipments Cases (000) Source: Crown Internal Data 2012 Depletions CE s (000) 16 Building Brands That People Love

17 Market Share 49% Volume Share of Imported beer in U.S.* Import Segment All Other Imports 51% Crown Imports 49% 6.0% Volume Share of Total U.S. Industry** 8.2% Dollar Share of Total U.S. Industry** *Source Beer Institute Depletions Data YTD Dec 2012 ** Source BMC Strategic Associates 17 Building Brands That People Love

18 Industry / Crown Projections Calendar Year 2013 Total Beer: Imported Beer: Total Domestic: Total Light Beer: Down low single digits* Low single digit growth* Down low single digits* Down low single digits* Crown Imports: Low to mid single digit growth** SOURCE: *BMC ** Crown Imports FY Building Brands That People Love

19 Opportunities for Growth Off Premise Continue to increase distribution on focus brands/packages Expanding occasions/usage Increase average SKU s per account Increase feature and display execution Focused execution/multiple points of interruption Opportunity Example: Modelo Especial is currently available in only 2/3 s of Off Premise accounts where Corona is sold Modelo Especial s 2 largest volume SKUs have significant upside ME 12-pk cans have 41% off premise distribution ME 12-pk bottles have 34% off premise distribution 19 Building Brands That People Love

20 Opportunities for Growth On Premise: Target the Right Brands in the Right Accounts Draft is a top priority Drives consumer awareness and trial, driving off premise growth Increase average packages per account 20 Building Brands That People Love

21 Opportunities for Growth Innovation Chelada New products driving incremental volume CoronaRita Expanded occasions, playing outside the beer space 21 Building Brands That People Love

22 Opportunities for Growth Continue to be Big When and Where it Matters Most High Priority execution to drive volume during key Beer sales periods 22 Building Brands That People Love

23 Opportunities for Growth Off Premise Continue to increase distribution on focus brands/packages Expanding occasions/usage Increase average SKU s per account Increase feature and display execution Focused execution/multiple points of interruption On Premise: Target the right brands in the right accounts Draft is a top priority Drives consumer awareness and trial, driving off premise growth Increase average packages per account Innovation Chelada New products driving incremental volume CoronaRita Expanded occasions, playing outside the beer space Continue to be Big When and Where it Matters Most High Priority execution to drive volume during key Beer sales periods 23 Building Brands That People Love

24 Key Takeaways The High End is and will continue to lead performance across the entire Beer Category during 2013 Crown is the leading performer of scale in the High End Volume and performance driver of Import category Strong portfolio Experienced, seasoned leadership Brands are optimally positioned across a range of consumers and occasions Sales and Marketing momentum Proven track record of success Growing volume and gaining share Category leadership Growth opportunities 24 Building Brands That People Love

25 Chief Marketing Officer, Crown Imports 25 Building Brands That People Love

26 Crown Imports Portfolio of Brands 26 Building Brands That People Love

27 25% Crown Imports Case Depletions Double Digits Increase YOY 8% 10% 5% 4% 5% 4% 2% Beer Base % YOY I Total US Food / Drug / C-store I 2012 vs (Excl. Familiar) 27 Building Brands That People Love

28 42% Hispanic Consumers 14% 9% 7% 5% 5% BUD LIGHT HEINEKEN BUDWEISER TECATE #1 Source: November Q4 12 Media Tracker - Total Hispanic Beer Sample Top of Mind 28 Building Brands That People Love

29 25% Hispanic Consumers 11% 10% 7% 4% HEINEKEN BUD LIGHT BUDWEISER TECATE #1 Source: November Q4 12 Media Tracker - Total Hispanic Beer Sample Brand Preference 29 Building Brands That People Love

30 Hispanic Consumers

31 Multicultural Consumers

32 47% 19% 14% 22% 35% Blue Moon Samuel Adams Heineken Dos Equis Corona Seen as Most Multicultural Brand Scarborough Research Survey: Aug Sep Building Brands That People Love

33 #1 Among African-Americans, Asians & Hispanics African Americans Boston Colorado Springs New York San Francisco/San Jose Seattle/Tacoma Tucson Austin Baltimore Fort Myers/Naples Harlingen/McAllen Kansas City Miami/Ft.Lauderdale Oklahoma City Phoenix Raleigh/Durham Asians Chattanooga Hartford/New Haven Jacksonville New York San Francisco/San Jose Albany/Schenectady Columbus Green Bay/Appleton Houston Las Vegas Lexington Oklahoma City Salt Lake City Syracuse Hispanics Baltimore Boston Charlotte Chicago Fort Myers/Naples Greensboro Hartford/New Haven Las Vegas Los Angeles Miami/Ft.Lauderdale Minneapolis/St. Paul New York Philadelphia Portland Richmond/Petersburg Rochester Sacramento/Stockton San Diego San Francisco/San Jose Seattle/Tacoma Spokane Syracuse Washington, D.C. West Palm Beach Orlando Phoenix Providence/New Bedford Salt Lake City Tampa/St.Petersburg Tulsa Albuquerque/Santa Fe Atlanta Bakersfield Birmingham Colorado Springs/Pueblo Columbus Dallas/Fort Worth Denver Fresno/Visalia Green Bay/Appleton Honolulu Houston Jacksonville Milwaukee Oklahoma City Scarborough Research Survey: Aug Sep Building Brands That People Love

34 #1 in NYC Among Beer Drinkers #1 New York Beer Brand Most People Drink Scarborough Research Survey: Aug Sep Building Brands That People Love

35 #1 or #2 Among Beer Drinkers #1 or 2 Scarborough Research Survey: Aug Sep 2012 New York San Francisco/Oakland/San Jose Atlanta Bakersfield Chicago Fresno/Visalia Las Vegas Los Angeles Miami/Ft. Lauderdale Phoenix Raleigh/Durham Sacramento/Stockton/Modesto Salt Lake City San Diego Seattle/Tacoma Tucson Washington, D.C. West Palm Beach/Fort Pierce 35 Building Brands That People Love

36 Hispanic and Multicultural Consumers are Key to Success Building Brands That People Love

37 37 Building Brands That People Love

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39 San Diego Pacifico #8 Largest Brand in San Diego IRI Multi Outlet Calendar Year 2012 ending in 12/30/2012

40 2012 Pacifico Draft Success

41 California Denver New York +18% Pacifico depletions YTD through December 31, 2012

42 +35% Brand Investment in 2013

43 First-ever Pacifico TV Ads

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46 Off-Premise Strategy: Increase presence through displays On-premise Strategy: Focus on draft and dining channel.

47 Negra Modelo Partnership with Chef Rick Bayless

48 Craft Beer Partnership with Chef Rick Bayless

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50 Los Angeles Boston Orlando Philly New York 9 of the Top 10 Corona Light DMAs Tampa Bay Grew in 2012 Miami Washington D.C. DMA = Designated Marketing Area Corona Light depletions YTD through December 31, 2012 Atlanta

51 1.2% Corona Light Opportunity Beer Institute 2012 Shipments >1.2 Billion Premium Lights

52 Miami Philadelphia 2012 Draft Introductions Tampa Phoenix

53 Philadelphia New Jersey Phoenix Tampa Florida Miami Draft Introductions

54 Corona Light 2013 TV

55 Corona Light 2013 TV Jim Gaffigan

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58 45,000 40,000 35,000 30,000 25,000 20,000 15, % INCREASE 7,400,000 CASES 10,000 5, Surpassed 43 MM Cases in 2012 Modelo Especial depletions YTD through December 31, 2012

59 Modelo Especial has become the #2 IMPORT BEER TOTAL U.S. CONVENIENCE IRI Total US Conv 13 wks ending June 3, 2012

60 Modelo Especial Grew Double-Digits in 42 of 50 States in 2012 Modelo Especial depletions YTD through December 31, 2012

61 Modelo Especial Opportunity Among year old Males 54% of General Market beer drinkers, ages 21-34, are still unaware of Modelo Especial......and 77% of them have never even tried it. Added Value Brand Health Tracker 2012

62 Modelo Especial Opportunity Among year old Males Among U.S. Hispanic beer drinkers ages 21-34, 48% are still unaware of Modelo Especial......and 73% of them have never tried it. Added Value Brand Health Tracker 2012

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65 Modelo Especial 2013 Hispanic TV

66 First-Ever Modelo Especial 2013 General Market TV

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68 Refresca como somos

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70 Corona Extra 2013 Hispanic TV

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73 2013 Corona Extra Retail Promotions MAR APR MAY JUNE JULY AUG SEPT OCT

74 Additional Innovation Opportunities

75 Corona Extra 2013 General Market Advertising

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77 What s Next for Innovation Packaging Line Extensions Potential New Brands

78 78 Building Brands That People Love