Post on 16-Jul-2020
Mark Luce, Group Marketing Operations Director Gary Leibowitz, SVP Investor Relations December 9 2013, London
Goldman Sachs Changing Consumer Conference
SABMiller 2013 © SABMiller plc 2013
25% 28%
Lager
11%
CSDs Other Soft Drinks Other Beer
12%
Spirits
14%
Wine
2%
Cider/RTDs
3%
Beer is the biggest value pool in global packaged beverages
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Strong, relevant brand portfolios that win in the local market
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Strong portfolio of leading local mainstream brands
Deep local heritage with leading consumer equity
Diverse local portfolios to target diverse
consumers and occasions
Leading market shares, superior profitability
Country Brand Rank
Poland Tyskie, Zubr 1,2
Czech Gambrinus 1
Romania Timisoreana 1
Italy Peroni 2
South Africa CBL, Hansa, Castle 1,2,3
Tanzania Safari, Kilimanjaro 1,2
Mozambique 2M 1
Uganda Eagle Extra 1
Colombia Aguila, Poker 1,2
Peru Cristal, Pilsen Callao 1,2
Ecuador Pilsener, Club 1,2
China Snow 1
India Haywards 5000 2
0
100
North America SABM LatAm C&E Europe China South Africa Africa
Clear Beer Sorghum Beer Wine Spirits Estimated informal alcohol
Sources: Canadean, Euromonitor, internal management estimates
Strong, relevant brand portfolios that win in the local market
Share of alcohol, indicative estimates
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Growing preference for beer due to societal development, category attractiveness and availability
Category development opportunity in emerging markets
Strong, relevant brand portfolios that win in the local market
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Rigorous approach to segmentation, delivering actionable plans
Rooted in deep local insights
– Local demographics, drinking culture
– Recognizing changing local trends, opportunities
Global methodology
– Consistently mapping consumers and occasions
– Enabling comparison and brand solution sharing across geographies
– Aided by global expertise within SABMiller
… To drive our portfolios across all relevant market segments
… To significantly grow the beer category nationally
… To maximize each local profit pool
Strong, relevant brand portfolios that win in the local market
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Italian style
US Mozambique WAMP
160
150
120
100
100
85
80
65
Artfully crafted
Come join us out here!
Rocky Mtn cold refreshment
Taste greatness
Good honest beer
Always smooth
Brewed for a mans taste
121
100
85
112
139
76
50
47
Choose interesting
Live well, drink the best
Black is really good
Our way, our beer
The beer that gives you more
Quality beer at a better price
Our way, our beer (draught)
More malt, more life
Beer is present across all key occasions
Occasion In a bar
Partying
Men only at home or with colleagues
Mixed gender at home
Celebrating
Small family relaxing
Eating in the evening, mixed gender
Afternoons & other
Beer
Wine
Spirits
Other alc/non alc
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Share of beverages
Category
Shaping
Consumer
lifetime value Women
Middle
class Premiumisation Fragmentation
Building
brands
Implications for SABMiller
Global trends
Shaping SABMiller‟s future success
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Millennial Truths Reaction
Millennials are the battlefield
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Environmental concerns Looking for shared values
Diversity Inclusivity
Corporations can‟t be trusted Go small (or “authentic”)
Income disparity and
un/underemployment Value
Technology driving information Two-way conversation
and fragmentation
New competition in beer
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Our 2 key challenges
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Lead the development of the beer category
Move core lager forward Expand to other beer styles
`
Move core lager forward
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1.
Splitting the
category
2.
Romancing
and refreshing
3.
Premiumising
4.
Affordability
Sameness
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1. Split the category
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White wine
Targeting white wine and white spirits
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White spirits
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2. Romancing core lager
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Our beliefs 1. The strategy is always
in the product
2. Brands that include a product truth innovate more effectively
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2006 2007 2008 2009 2010 2011 2012 18,500
21,000
19,000
19,500
20,000
20,500
Romancing core lager: Coors Light volume growth
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HLs/ „000s
18,500
19,000
19,500
20,000
20,500
21,000
2006 2007 2008 2009 2010 2011 2012
Romancing core lager: Victoria Bitter back in growth
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Percentage change vs. prior
10
8
6
4
2
0
-2
-4
-6
-8
-10
-12
-14
-16 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
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3. Premiumising
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Craft is a scaleable opportunity
Top case volume contributors to craft growth
Third Shift leinenkugel‟s
Shandy Line
Blue Moon
Belgian White
Shock Top
Seasonal
Batch 19 Leinenkugel‟s
Seasonal
Lagunitas IPA Sierra Nevada
Torpedo
Samuel adams
Variety
Samuel Adams
Boston Lager
Mix‟N Match Samuel Adams
Seasonal
Blue Moon
Variety
9.70% 8.80%
7.50% 7.20%
3.70% 2.60% 2.60% 2.50% 2.40% 2.30% 2.00% 1.90% 1.70%
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1.7%
1.9%
2.0%
2.3%
2.4%
2.5%
2.6%
2.6%
3.7%
7.2%
7.5%
8.8%
9.7%
Samuel Adams Seasonal
Blue Moon Variety
Samuel Adams Boston Lager
Mix'N Match
Samuel Adams Variety
Lagunitas
Sierra Nevada Torpedo
Batch 19
Leinenkugel's Seasonal
Blue Moon Belgian White
Shock Top Seasonal
Third Shift
Leinenkugel's Shandy Line
Beers‟ price ladder is compressed
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CSD Beer Wine Spirits
200
~150
300-350
250-300
Beers‟ price ladder is compressed
Getting to better
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CSD Beer Wine Spirits
200
400
300-350
250-300
Beers‟ price ladder is compressed
Getting to better
Getting to best
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CSD Beer Wine Spirits
200
600
300-350
250-300
4. Making beer affordable
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1. Informal alcohol – 20% of total alcohol
2. Low income consumers in Africa +400m
3. 80% of Lat Am consumers are low income
4. Making beer affordable
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4. Making beer affordable
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Expand to other beer styles
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Expand to other beer styles
Greater use of intrinsics and functional benefits to target premium occasions
Growth of mainstream has driven taste harmonization
Product landscaping highlights “white spaces”
New liquids help drive premium perception of beer and support pricing
Ingredients
Colour
Carbonation
Smell
Style
Flavourings
Filtration / Pasteurization
Fermentation
Beer has many variables to drive differentiation e.g.
Landscape and Sensory maps
Resinous
Spicy
Green
Floral Citrus
Fruity
Malty
Cucumber
Fresh Grass
Rose
Violets Grapefruit
Orange Lemon
Lychee
Passion Fruit
Blackcurrant
Spicy hop
Red Apple Tropical Fruit
Green Apple
Banana
Pine, Cedar Malty
Chocolate
Grainy
Toffee
Burnt
Caramel
Warming
Body
Sweet
Bitter Bitterness / sweetness
Alcohol level
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Illustrative
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Expand the Category (beyond beer)
32
Expand to other beer styles
Innovate to fuel growth
New liquids, packs and experiences
Attract incremental LDAC users
Retain existing users across more occasions
Encourage trade up
Motivate trade to continuously improve
execution
Develop the Category (within beer)
Romance the Category
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Changing perceptions of what beer can be
Engaging consumers and customers e.g.
Expand to other beer styles
Beer knowledge Styles / Flavours
Ingredients
Process
Bitterness
Food pairing
Premiumisation memes Styles
Hopping
Brewing process
Advocacy groups Upscale bartenders
Gastronomic societies
Hotels
Chefs / Sommeliers
Lifestyle commentators
Specialist liquor stores
Media Advertorials
Word of mouth
Digital / mobile
Experiential events
PR exercises
In store communications
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Engage, communicate and educate
Partner with customers to create new experiences
Revitalizing the on-premise experience
Greater tank distribution, unparalleled “fresh” experience
Quality of draught experience
Communication of the „beer story‟ and food pairings
New design concepts and theme pubs to contemporize the
consumer experience
Digital & location based marketing
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Questions and Answers
Thank You
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