Bridgepoint Investment Banking is a division of Bridgepoint Holdings, LLC. Securities offered through an unaffiliated entity, M&A Securities Group, Inc., member FINRA/SIPC. This entity is not affiliated or associated with, authorized or sponsored by Bridgepoint Advisers Limited

FOOD & BEVERAGE REPORT

OCTOBER 2019

Food & Beverage Industry Report

Food & beverage company deal flow and valuations have seen consistent growth over the past 5 years as many private food and beverage companies contemplate exit & growth / acquisition strategies Deal flow in both the food and beverage sectors are expected to remain robust through the end of 2019 – middle market food & beverage companies continue to be targeted by private equity groups due to strong industry tailwinds Bridgepoint Investment Banking advises food & beverage company owners seeking near-term liquidity or growth financing that it is imperative to consider exploring monetization, financing and other strategic options while valuation and credit markets remain competitive

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Note: Composite composed of selected public comparables as listed on page 2. Source: Bridgepoint Investment Banking, Capital IQ Bridgepoint Investment Banking is a division of Bridgepoint Holdings, LLC. Securities offered through an unaffiliated entity, M&A Securities Group, Inc., member FINRA/SIPC

October 2019 BRIDGEPOINT INSIGHTS

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KEY FOOD & BEVERAGE TRENDS

Increased attention to plastic waste has shifted focus to making

packaging more sustainable

Functional foods are one of the fastest growing growth segments of the

global food industry

Growing concern over sugar consumption has led to an increase in

artificial sweetener market

Consumer preference for simple, personalized food experiences should

spur growth for the meal-kit market

Plant-based food markets are seeing an increase in demand as consumers

seek healthy alternatives

Expanding world population is driving demand and innovation pushing

manufacturers to maximize potential

Macro trends are rapidly pushing sustainability, wellness & convenience

to the forefront

Food & Beverage Valuation Cycle

BIG PICTURE

10.0x

12.0x

14.0x

16.0x

18.0x

20.0x

TEV

/ LTM

EBI

TDA

Beverage TEV / EBITDA Historical TEV / EBITDA Food TEV / EBITDA Historical TEV / EBITDA

Food TEV / LTM EBITDA Beverage TEV / LTM EBITDA Current Median 12.1x 14.6x Historical Median 11.9x 17.5x Peak Median 13.4x 19.7x Trough Median 10.7x 13.8x

Source: Bridgepoint Investment Banking, Capital IQ

Food & Beverage Industry Report

bridgepointib.com October 2019

BRIDGEPOINT INSIGHTS

2 3

Selected Food Public Comparables

Selected Beverage Public Comparables ($ in millions, except per share data) 10/1/2019 Equity Enterprise P / E TEV / Revenue TEV / EBITDA TEV / EBIT

Company Name Country Share Price Value Value   LTM   LTM   LTM   LTM Ambev S.A. Brazil $4.67 $71,580.8 $69,649.0 -   5.57x   13.9x - Anheuser-Busch InBev SA/NV Belgium $93.34 $178,381.0 $286,556.5   -   5.50x   13.1x   - The Boston Beer Company, Inc. United States $370.03 $4,412.7 $4,491.6 40.4x   4.08x   23.0x 30.3x Brown-Forman Corporation United States $63.06 $29,147.8 $31,377.8   34.5x   9.44x   26.9x   27.1x The Coca-Cola Company United States $54.65 $226,971.5 $262,180.5 25.2x   7.99x   22.3x 25.3x Constellation Brands, Inc. United States $209.41 $39,391.8 $53,606.9   24.2x   6.53x   31.3x   20.8x Cott Corporation Canada $12.36 $1,668.3 $3,102.9 -   1.32x   11.4x - Keurig Dr Pepper Inc. United States $27.04  $37,855.6 $53,359.6   22.0x   4.91x   16.9x   18.4x MGP Ingredients, Inc. United States $49.56 $823.0 $869.5 18.6x   2.29x   14.7x 15.4x Molson Coors Brewing Company United States $58.11 $12,284.7 $21,851.9   12.8x   2.06x   9.9x   15.0x Monster Beverage Corporation United States $56.42 $30,033.7 $28,810.6 27.0x   7.22x   20.2x 20.3x National Beverage Corp. United States $46.06 $2,152.2 $1,997.1   18.6x   2.03x   11.3x   13.5x PepsiCo, Inc. United States $137.37 $187,270.8 $216,427.8 24.3x   3.31x   16.9x 20.4x The Unilever Group Netherlands $60.23 $156,233.4 $183,451.1   -   3.30x   11.8x   - Willamette Valley Vineyards, Inc. United States $7.07 $35.0 $58.5 -   2.49x   11.0x -

($ in millions, except per share data) 10/1/2019 Equity Enterprise P / E TEV / Revenue TEV / EBITDA TEV / EBIT Company Name Country Share Price Value Value   LTM   LTM   LTM   LTM

Alimentation Couche-Tard Inc. Canada $30.35 $34,221.8 $42,905.5 18.4x   0.75x   12.1x 17.0x Archer-Daniels-Midland Company United States $40.33 $22,123.0 $31,662.0   14.0x   0.50x   10.6x   18.5x Associated British Foods plc United Kingdom $28.22 $20,935.9 $20,566.7 16.0x   1.07x   8.6x 11.9x Conagra Brands, Inc. United States $29.48 $13,777.2 $24,584.2   13.5x   2.44x   11.4x   14.2x General Mills, Inc. United States $54.39 $31,978.5 $47,063.4 15.8x   2.81x   12.6x 16.0x George Weston Limited Canada $83.55 $12,786.4 $32,117.6   15.2x   0.86x   9.5x   12.0x The Hershey Company United States $154.89 $32,180.8 $36,175.1 26.7x   4.61x   18.0x 21.3x Hormel Foods Corporation United States $43.62 $22,821.9 $22,501.9   24.6x   2.36x   16.3x   19.2x Kellogg Company United States $63.10 $21,115.8 $31,113.8 16.1x   2.26x   13.2x 17.4x Kerry Group plc Ireland $115.94 $20,146.3 $22,455.0   26.9x   2.95x   21.1x   24.4x Koninklijke Ahold Delhaize N.V. Netherlands $25.19 $26,970.2 $39,978.2 13.9x   0.57x   8.8x 13.4x The Kraft Heinz Company United States $27.34 $32,390.8 $62,838.8   10.2x   2.45x   9.8x   12.8x The Kroger Co. United States $25.59 $20,065.1 $39,999.1 11.5x   0.33x   7.8x 14.1x Lamb Weston Holdings, Inc. United States $73.57 $10,713.7 $12,941.3   21.2x   3.38x   14.4x   18.3x Mondelez International, Inc. United States $54.64 $77,847.3 $97,041.3 21.8x   3.78x   18.3x 22.5x Nestlé S.A. Switzerland $106.90 $304,676.5 $343,775.5   23.8x   3.68x   17.3x   20.8x Pilgrim's Pride Corporation United States $30.87 $7,636.3 $9,740.7 15.5x   0.89x   12.1x 12.5x Post Holdings, Inc. United States $105.21 $7,525.9 $13,827.7   21.8x   2.36x   12.0x   17.2x Sysco Corporation United States $79.36 $40,259.1 $47,941.7 20.7x   0.80x   14.3x 16.5x TreeHouse Foods, Inc. United States $54.62 $2,989.9 $5,478.3   21.6x   1.01x   11.4x   19.3x Tyson Foods, Inc. United States $83.32 $30,039.2 $42,431.2 14.8x   1.02x   10.3x 14.0x

Food Public Comparables

High 27.4x   4.64x   21.4x   24.8x

Mean 18.8x   2.01x   13.2x   17.5x

Median 18.4x   2.38x   12.1x   17.5x

Low 10.5x   0.33x   7.8x   12.0x

Beverage Public Comparables High 40.0x   9.54x   27.2x   30.0x

Mean 25.1x   4.32x   16.2x   20.9x Median 24.6x   3.38x   14.6x   20.8x

Low 13.0x   1.26x   9.9x   13.0x

Source: Bridgepoint Investment Banking, Capital IQ, Hershey’s Press Release

Food & Beverage Industry Report

bridgepointib.com October 2019

BRIDGEPOINT INSIGHTS

3

Selected Recent Industry Transactions

Selected Beverage Transaction Selected Food Transaction

8/27/2019: The Hershey Company (NYSE:HSY) acquires ONE Brands, LLC for $397mm

Deal Rationale: Hershey is looking to strengthen its foothold in the health foods / snacks space

Acquisition Impact: ONE Brands breadth of snacking bars is a strong fit for Hershey’s strategic vision as a snacking powerhouse

5/9/2109: Boston Beer Co. acquires Dogfish Head Craft Brewery for $307mm

93%

55%

78%

Acquisition Impact: Bolsters the growth of the declining beer portfolio with an incremental line-up of IPAs; valuation appears reasonable and financially accretive

Deal Rationale: Move to bring in millennial and Generation Z drinkers to offset older customer demographics

Food & Beverage Transactions Snapshot

Private Public Distribution Products Retail Strategic Financial

40%

60%

20% 20%

60%

20%

80%

Announced Date Industry Target Buyer Buyer Type

Transaction Value ($mm)

9/18/19 Beverage Cameron's Coffee and Distribution Company Grupo Nuestra S.A. (BVC:NUTRESA) Strategic $397.0 9/9/19 Beverage Red Ace LLC Bhang Corporation Strategic $2.1 8/27/19 Food ONE Brands, LLC The Hershey Company (NYSE:HSY) Strategic $397.0 8/12/19 Beverage Berkshire Mountain Spring Water Dist. Co, Inc. Berkshire Springs Holding Co, LLC Strategic $2.1 8/1/19 Food Superior Cake Products, Inc. Sara Lee Frozen Bakers Strategic $65.0

5/23/19 Food CJ Foods America Corp. Bain Capital Private Equity, LP Financial $320.0 5/15/19 Food Clabber Girl Corporation B&G Foods North America, Inc. Strategic $80.0 5/9/19 Food Hain Pure Protein Corporation Aterian Investment Partners, LLC Financial $80.0

5/9/19 Beverage Off-Centered Way LLC The Boston Beer Company, Inc. (NYSE:SAM) Strategic $307.0

4/25/19 Food Three Limes, Inc. Oisix ra daichi Inc. (TSE:3182) Strategic $30.0

YTD September 2019

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4

Wm. Lee Merritt Managing Director

Gary Grote Managing Director

Mike Anderson Managing Director

Natasha Plooster COO

Subhash Marineni Vice President

Matt Plooster Managing Director

Adam Claypool Managing Director

Joe Liss Managing Director

EXECUTIVE SUMMARY Market-leading boutique investment bank providing M&A and capital raising advisory solutions

197+ years cumulative investment banking experience spanning 124 transactions

$102+ billion of M&A, capital raising, corporate finance and transaction advisory service experience

45 completed M&A assignments spanning more than $30 billion

79 completed corporate finance transactions, raising more than $73 billion in capital

HEALTHCARE INDUSTRIALS & TRANSPORTATION

SOFTWARE & TECHNOLOGY

CONSUMER & RETAIL

SECTORS OF FOCUS

Food & Beverage Industry Report October 2019

BRIDGEPOINT INSIGHTS

SELECTED BRIDGEPOINT TRANSACTION EXPERIENCE

Has been acquired by Has been acquired by USD60 million Global financing

Sole Financial Advisor Sole Financial Advisor

Has been acquired by

Sole Financial Advisor

Sole Financing Arranger

Unitranche financing for dividend

recapitalization

Sole Financing Arranger

Has been acquired by

Sole Financial Advisor Has been acquired by

Sole Financial Advisor

Has been acquired by

Sole Financial Advisor