FINAL MARKETING PRESENTATION

BUD LIGHT RITASANHEUSER BUSCH’S EXTENSION INTO

THE MALT BEVERAGE INDUSTRY

PRESENTED BY:GABRIEL BARUCHDYLAN FOGARTYCHIP GROSSMANCARLY HEMMINGERLINA HUANG

AGENDA• Company Overview• Industry Overview• Bud Light Ritas• Quantitative Analysis• Recommendations• Conclusion• Q&A

COMPANY OVERVIEW

200+ other brands

LEADER IN BEER

AB-InBev

SABMille

r

Conste

llation

Heinek

enPa

bst

Boston

Beer

Yeun

gling

Other

0%5%

10%15%20%25%30%35%40%45%50%

44.7%

26.0%

6.7%3.9% 2.5% 1.9% 1.4%

12.9%

2014 MARKET SHARE OF BEER INDUSTRY

Source: Beer Marketer’s Insights

INDUSTRY OVERVIEWI don’t like beer. I like my drinks

sweet and fruity.

YOUR ANSWER:

Flavored Malt Beverages = Ready-to-Drink Beverages = Adult Progressive Beverages

FLAVORED MALT BEVERAGECATEGORY-BEER SALES % CHANGE

(2013 to 2014) MARKET SHARE

CRAFT 39.8% 22.89CIDER 57.9% 1.91DOMESTIC MALT LIQUOR 2.0% 0.70DOMESTIC PREMIUM 0.1% 37.67DOMESTIC SUB-PREMIUM -1.5% 12.58DOMESTIC SUPER PREMIUM 7.0% 10.73IMPORT 4.7% 18.84NON-ALCOHOLIC 1.0% 0.66

FLAVORED MALT BEVERAGES 7.3% 4.52BEER CATEGORY 4.5% 100.00

Source: IRI Infoscan Total US Multi-Outlet

FORCES IN INDUSTRY

ECONOMIC FORCES:

- $815 million revenue in RTD

category- Stable global

alcohol industry- Growth in craft

cocktails and distillers

COMPETITIVE FORCES:

- Craft beer- Many

competitors entering

TECHNOLOGICAL FORCES:

- E-commerce- Social media

networks

POLITICAL & LEGAL FORCES:

- Investor pressure

- Drinking laws- Regulators- Recycling

AB-INBEV SWOT ANALYSIS

STRENGTHSBrand recognitionProduct portfolio

Economies of scaleDistribution channels

WEAKNESSESDifficulty pivoting

Mass-production imageCraft-portfolio

OPPORTUNITIESCraft spirits

Craft breweriesHealth-conscious trend

THREATSDeclining domestic beer market

e-commerce

+ =BUD LIGHT RITAS

A margarita with a twist!

COMPETITOR: MIKE’S HARD

Bud Lig

ht Lim

e Rita

s

Mike's H

ard

Smirn

off Ice

Mike's H

arder

Twiste

d Tea

Four

Loko

Smirn

off Pr

emium

Mixed D

rinks

$0$100$200$300$400$500$600

$531

$239$204 $184

$142 $135$40

2014 SALES OF LEADING FLAVORED MALT BEVER-AGES (IN $US MILLIONS)

* *• First Mover Advantage

• 2nd in Market Share (22.9%)

• Strong brand recognition

• Focuses on male consumers

• Variety of flavors

FAVOABILITY DRIVERSAB-INBEV SHOULD CONTINUE BUD LIGHT RITA BRAND EXTENSION

Promising results on hierarchal regression

Attributes match up to industry & above competitor

Moderate probability of purchase

Leaderin malt beverage category

Continue Bud Light Rita

product line

TASTE AND CALORIES DRIVE FAVORABILITY FOR BUD LIGHT RITAS

Probability of Purchase for

Bud Light Ritas

Favorability ofBud Light Ritas

Taste

Calories

Alcohol Content

0.555

0.322 10.75

R2 = 0.460

R2 = 0.508

2.89

Flavored Malt Beverages = Ready-to-Drink Beverages = Adult Progressive Beverages

BRAND IMAGE, CALORIES, AND ABV DRIVE FAVORABILITY FOR MIKE’S HARD

Probability of Purchase for Mike’s

Hard Lemonade

Favorability of Mike’s Hard Lemonade

BrandImage

Calories

Alcohol Content

0.184

0.201 7.31

R2 = 0.205

R2 = 0.102

0.266

1.62

TITLEBUD LIGHT OUTPERFORMS COMPETITOR ON FIVE ATTRIBUTES

Alcohol Content Calories Taste Brand Image Flavor Variety Price0

1

2

3

4

5

6

7

Alcohol Industry Bud Light Rita Mike's Hard Lemonade

Source: Survey Results

* **

* denotes statistically significant at 95% confidence interval

PROBABILITY OF PURCHASE

Other

Mike's Hard Lemonade

Bud Light Ritas

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Source: Survey Results

Benchmark > 30%

Source: Survey Results

I don’t like beer.I like strawberries.

Figure 1: “Hi, I’m Rita”

GENDER DIFFERENCES

Probability of

Purchase

Favorability

Maximum Price

Probability of

Purchase

Favorability

Maximum Price

39.2% 4.1 $1.82 47.4% 4.4 $1.79

34.8% 3.3 $1.87 36.7% 3.9 $1.87

Prob

abilit

y

of Pu

rchas

eFa

vora

bility

Max

Price

Prob

abilit

y

of Pu

rchas

eFa

vora

bility

Max

Price

RECOMMENDATION FOR AB-INVEVRECOMMENDATIONS FOR AB-INBEV’S EXTENSTION: BUD LIGHT RITAS

Product Price

Place Promotion

PROMOTION RECOMMENDATIONSWHAT WORDS COME TO MIND WHEN YOU THINK ‘BUD LIGHT RITAS’?

PRODUCT RECOMMENDATIONS

Reduce Calories

Adjust Taste

Maintain Alcohol Content

Unchanged

Mean Score: 3.63

Mean Score: 4.31

Mean Score: 5.01

PRICE RECOMMENDATIONS

Maintain current price point

Mean Score: 5.11Difference with competitor not

statistically significant

PLACE RECOMMENDATIONS

Partner with music festivals

Leverage AB-InBev’s existing distribution

channels

PROMOTION RECOMMENDATIONS

“Tailgate Package”

Target females

Advertise during sporting events

35% have not tried Bud Light Ritas

Favorability:Female = 4.08

Male = 3.31

36% ranked malt beverages as 2nd

option during sporting events

QUESTIONS?