Portfolio rationalization of Domestic Premium Lager Beer

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Group 2 Ankit | Anuradha | Meenal | Sachal | Varun
1/20/13

of

US Beer Industry Overview

% total volume market shares Anheuser-Busch InBev NV MillerCoors LLC Crown Imports LLC Heineken USA Inc 2008 50 30.2 5.6 4.3 2009 50.1 30.3 5.4 4.1 2010 48.9 30.3 5.6 4.2 2011 48.2 30.1 5.9 4.1

1/20/13 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

The US beer Sales

Change in 2011 Sales 2011 Sales sales 2006-11 by Volume by Value 2010/11 CAGR Dark Beer Lager - Premium Lager -- Domestic Premium Lager -- Imported Premium Lager - Standard Lager - Economy Lager Low/Non- Alcohol Beer Stout Beer 4% 94% 21% 8% 13% 49% 24% 1% 1% 100% 6% 91% 30% 10% 20% 43% 19% 1% 1% 100% 9.7 -2.1 1.2 1.1 1.2 -2 -5 -5.7 8.7 -1.7 10.9 -1.2 1.1 4.9 -0.8 -2.3 -0.7 18.2 3 -0.6 2006/11 Total 67.8 -5.7 5.7 27 -4 -10.9 -3.2 130.7 16.1 -3.1

1/20/13 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Future Trends
% local currency, constant value growth Lager - Premium Lager -- Domestic Premium Lager -- Imported Premium Lager - Standard Lager - Economy Lager Beer 2011-16 CAGR 1 2.4 2.9 2.2 0.8 -0.8 1.2 2011/16 TOTAL 5.3 12.7 15.3 11.4 4.1 -3.9 6.4

Americanbeerconsumption trends are upmarket towards premium beers due to the popularity of craftbeer
1/20/13 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Domestic Premium Lager

Anheuser-Busch MillerCoors

Source: Euromonitor International and company website

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MillerCoors Domestic Premium Lager

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Source: Companys website

ABs Domestic Premium Lager

Source: Companys website

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Analysis

To rationalize the portfolio

Pareto analysis - the 80/20 rule ABC costing Overlap of target segment Market share of the individual product Product life cycle

Introduce
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a product with high ABV