Quality in the Trade Presentation at IBD, Manchester, UK

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© 2002 By Default!

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Slide 1

Quality in the Quality in the trade trade -- USAUSA

Jaime JuradoJaime Jurado

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Slide 2

Ranking in sales by StateRanking in sales by State

�� TexasTexas�� OklahomaOklahoma�� New MexicoNew Mexico�� TennesseeTennessee�� CaliforniaCalifornia�� LouisianaLouisiana�� ArkansasArkansas�� ColoradoColorado�� OhioOhio�� ArizonaArizona

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IRI IRI InfoscanInfoscan YTD: Top 10 Import/CraftsYTD: Top 10 Import/CraftsSTORESSTORES

�� Corona ExtraCorona Extra�� HeinekenHeineken�� Corona LightCorona Light�� TecateTecate�� Labatt BlueLabatt Blue�� Heineken Premium LightHeineken Premium Light�� ModeloModelo EspecialEspecial�� Sierra Nevada Pale AleSierra Nevada Pale Ale�� Sam Adams Boston LagerSam Adams Boston Lager�� Newcastle Brown AleNewcastle Brown Ale

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IRI IRI InfoscanInfoscan YTD: Next 10 Import/CraftsYTD: Next 10 Import/Crafts

�� Guinness DraughtGuinness Draught�� BeckBeck’’ss�� FosterFoster’’s Lagers Lager�� Labatt Blue LightLabatt Blue Light�� PacificoPacifico�� AmstelAmstel LightLight�� Dos XX Special LagerDos XX Special Lager�� Sam Adams SeasonalSam Adams Seasonal�� Stella ArtoisStella Artois�� Saint Pauli GirlSaint Pauli Girl

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Top 10 imported beer countries

� Mexico

� Netherlands

� Canada

� Germany

� UK

� Eire

� Belgium

� Czech Republic

� Jamaica

� Dominican Republic

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Top 10 Beer Distributing coTop 10 Beer Distributing co’’ss20062006

�� Reyes Holdings, LLC (41 million Reyes Holdings, LLC (41 million cece))�� Ben E. Keith Co. (36 million Ben E. Keith Co. (36 million cece))�� GoldringGoldring/Moffett Family Holdings (33 million)/Moffett Family Holdings (33 million)�� Manhattan Beer Distributors, LLC (27.1 mill)Manhattan Beer Distributors, LLC (27.1 mill)�� Silver Eagle Distributors (26 million)Silver Eagle Distributors (26 million)�� TopaTopa Equities Ltd. (25.4 million)Equities Ltd. (25.4 million)�� JJ Taylor Companies, Inc. (23.7 million)JJ Taylor Companies, Inc. (23.7 million)�� Hensley (23.1 million)Hensley (23.1 million)�� The Sheehan Family (22.5 million)The Sheehan Family (22.5 million)�� Gold Coast Beverage Distributors (21.6 million)Gold Coast Beverage Distributors (21.6 million)

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Slide 9

Category TrendsCategory Trends

-10

-5

0

5

10

15

20

2000 2001 2002 2003 2004 2005

Premium

Sub Premium

Superpremium

Crafts/Imports

Light

Source: Beverage Marketing-Beer in the US 2001-2006 editions

% growth year-on-year

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Slide 10

Market segmentationMarket segmentation

12%

18%

10%

1%

6%

4%

49%

Imports

Premium

Sub-Premium

Super-Premium

Other

CRAFT

LightSource: IMPACT Databank 2006

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Slide 11

What does the consumer want?

� Increasingly…variety and desires for new beers are our business drivers.

�Shelf space remains finite in off-premise.

�Distributors & Brewers have requirements for efficiencies

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Hot Hot FlavorsFlavors in USAin USA

�� PomegranatePomegranate�� AcaiAcai BerryBerry�� MangosteenMangosteen�� GojiGoji BerryBerry�� MojitoMojito�� Blood OrangeBlood Orange�� Ginger RootGinger Root�� BlueberryBlueberry�� MangoMango�� LycheeLychee

Source: Bell Flavors & Fragrance

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Slide 13

Fastest growing Beverage Fastest growing Beverage FlavorsFlavorsin USAin USA

�� CardamonCardamon�� LavenderLavender�� LemongrassLemongrass�� Earl GreyEarl Grey�� DecaffeinatedDecaffeinated�� WhiskeyWhiskey�� HopHop�� AcaiAcai

Source: Datamonitor’s ProductScan Online July 2007

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Slide 14

Freshness?Freshness?

0

2

4

6

8

10

12

April May June July

Style 1

Style 2

Style 3

Style 4

Source: Audit of 8

supermarkets in Texas

% past Pull Date/BBD

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Slide 15

Railcar beer shippingRailcar beer shippingN. N. HuigeHuige, SABMiller, , SABMiller, MBAA TQMBAA TQ

Temperatures during transportation in a railcar

Avg. Outside Temp =80F / with sun

60

70

80

90

100

110

0 48 96 144 192 240 288

Hours in railcar

Te

mp

era

ture

de

gF

Effective outside Temp Temp of air in railcar Average beer temp

N. N. HuigeHuige, SABMiller, , SABMiller, MBAA TQMBAA TQ

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Slide 16

Trailer beer deliveryTrailer beer deliveryTemperatures during transportation in a trailer

Avg. Outside Temp =80F / with sun

60

70

80

90

100

110

0 24 48 72 96

Hours in trailer

Te

mp

era

ture

de

gF

Effective outside Temp Temp of air in trailer Average beer temp


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Slide 17

Lost shelf life due to railcar Lost shelf life due to railcar uninsulateduninsulated transporttransport

Effect of weather on shelf-life loss during rail transport

0

5

10

15

20

25

30

35

40

0 2 4 6 8 10 12

days in transit

da

ys

of

sh

elf

-lif

e l

os

t

86F, sunny

86F, no sun

77F, sunny

77F, no sun


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Slide 18

Impact of storage temperatureImpact of storage temperatureEffect of starting beer temperature during 4 days of staging on shelf-life loss for

10 pallets at 86 deg.F

0

2

4

6

8

10

12

14

16

18

20

68 77 86

Starting beer temperature (deg.F)

Days o

f sh

elf

-lif

e lo

ss

storage in railcar storage in trailer storage in warehouse


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Slide 19

NonNon--refrigerated keg shipmentrefrigerated keg shipment

45.0

55.0

65.0

75.0

85.0

10/25/10

0:00

10/26/10

0:00

10/27/10

0:00

10/28/10

0:00

10/29/10

0:00

10/30/10

0:00

10/31/10

0:00

11/1/10

0:00

11/2/10

0:00

Temp F

Outside Data

Keg Data

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Slide 20

Domestic Draft beer

� 1983: 22 million bbls of domestic draft beer shipped in USA, compared to 16.3 million shipped in 2004

(Source: Impact Databank)

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Slide 21

Time elements of keg cycleTime elements of keg cycle

14 21 30 21 7 45 30 30

0 20 40 60 80 100 120 140 160 180 200

Days

in-process

Days at warehouse

Wholesaler Full

Trade Full

Trade Empty

Wholesaler Empty

Satellite Logistics Empty

Transit to Brewery

b

‘Pipeline’ developed by Satellite Logistics

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Slide 22

Keg TrackingKeg Tracking

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Slide 23

Keg TrackingKeg Tracking

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Slide 24

Carlsberg recyclable kegCarlsberg recyclable keg

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Slide 25 Contamination

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

1st

2004

2nd

2004

3rd

2004

4th

2004

1st

2005

2nd

2005

3rd

2005

4th

2005

1st

2006

2nd

2006

3rd

2006

4th

2006

1st

2007

2nd

2007

3rd

2007

4>400

3<400

2<100

1<10

00

RatingContamination Lactobacilli CFU/ml

Quality in the Trade Presentation at IBD, Manchester, UK

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Transcript of Quality in the Trade Presentation at IBD, Manchester, UK