Goldman Sachs Changing Consumers Conference · Ecuador Pilsener, Club 1,2 China Snow 1 India...

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

SABMiller 2013 © SABMiller plc 2013 1

Strong, relevant brand portfolios that win in the local market

2 SABMiller 2013 © SABMiller plc 2013

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


Share of alcohol, indicative estimates


Growing preference for beer due to societal development, category attractiveness and availability

Category development opportunity in emerging markets



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



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


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


Millennial Truths Reaction

Millennials are the battlefield


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


Our 2 key challenges


Lead the development of the beer category

Move core lager forward Expand to other beer styles

`

Move core lager forward


1.

Splitting the

category

2.

Romancing

and refreshing

3.

Premiumising

4.

Affordability

Sameness


1. Split the category


White wine

Targeting white wine and white spirits


White spirits

2. Romancing core lager



Our beliefs 1. The strategy is always

in the product

2. Brands that include a product truth innovate more effectively

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


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


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

3. Premiumising


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%


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


CSD Beer Wine Spirits

200

~150

300-350

250-300


Getting to better



200

400

300-350

250-300


Getting to better

Getting to best



200

600

300-350

250-300

4. Making beer affordable


1. Informal alcohol – 20% of total alcohol

2. Low income consumers in Africa +400m

3. 80% of Lat Am consumers are low income



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

SABMiller CAGNY Presentation 2012 © SABMiller plc 2012 31

Illustrative


Expand the Category (beyond beer)

32


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

SABMiller CAGNY Presentation 2012 © SABMiller plc 2012 32 SABMiller 2013 © SABMiller plc 2013 32

http://www.facebook.com/photo.php?pid=80194&id=106837179369543

http://www.google.co.uk/url?sa=i&rct=j&q=gambrinus+radlers&source=images&cd=&cad=rja&docid=3VfwP-Aa62AnEM&tbnid=rD7OEfokI5q6kM:&ved=0CAUQjRw&url=http://www.milujipivo.cz/2012-rok-ochucenych-piv/&ei=1M4HUfCbLei00QWOgIGgCA&bvm=bv.41524429,d.d2k&psig=AFQjCNFJqY9mwng98Xod7jZqbIk0g8bIaA&ust=1359552596903630

Changing perceptions of what beer can be

Engaging consumers and customers e.g.


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


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


Questions and Answers

Thank You


Goldman Sachs Changing Consumers Conference · Ecuador Pilsener, Club 1,2 China Snow 1 India...

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