Molson Coors Canada Inc. Class A · TSX:TPX.A
Molson Coors Canada Inc. Class A — Molson Coors Brewing Company — Investor Day (June 2009)
80 slides from Molson Coors Canada Inc. Class A's investor day presentation, Jun 9, 2009
Slide 1: MillerCoors LLC – Divisional Seminar
SABMiller plc Quarterly divisional seminar series Molson Coors Brewing Company MillerCoors LLC – Divisional Seminar June 9, 2009 – New York
Slide 2: Introduction
Introduction Gary Leibowitz Senior Vice President, Investor Relations SABMiller plc Dave Dunnewald Vice President, Global Investor Relations Molson Coors Brewing Company © SABMiller plc 2005 F09 annual results 2
Slide 3: Forward looking statements
Forward looking statements This presentation includes ‘forward-looking statements’. These statements contain the words “anticipate”, “believe”, “intend”, “estimate”, “expect” and words of similar meaning. All statements other than statements of historical facts included in this presentation, includi
Slide 4: Contribution to global parent companies' profits
Contribution to global parent companies’ profits SABMiller plc, F09 EBITA* Molson Coors, 2008 Inner %s are F09 org cc EBITA growth rates % of Business Unit Income** - 8% +11% +16% - 5% +22% * Before corporate costs; operating profit before exceptionals and amortization of intangibles; incl. share of
Slide 5: Our speakers today
Our speakers today Leo Kiely Chief Executive Officer, MillerCoors Andy England Chief Marketing Officer, MillerCoors Gavin Hattersley Chief Financial Officer, MillerCoors © SABMiller plc 2005 F09 annual results 5
Slide 6: Seminar agenda
Seminar agenda Opening and industry overview People Brands Revenue management Scale Partners Conclusion and Q&A © SABMiller plc 2005 F09 annual results 6
Slide 7: Winning in Beer
Winning in Beer Leo Kiely, Chief Executive Officer
Slide 8: Becoming America's Best Beer Company
BECOMING AMERICA’S BEST BEER COMPANY PEOPLE Build a winning culture Leverage our powerful brands PARTNERS Win at retail SCALE Save to reinvest in our r
Slide 9: MillerCoors Q1 results
MillerCoors Q1 results Total net sales 3.8% Underlying EBITA 46.3% STRs 0.4% NRPB 5.6%
Slide 10: Industry Overview
Industry Overview © MillerCoors”
Slide 11: U.S. beverage landscape
U.S. beverage landscape Alcohol is only 20% of Volume but 60% of Industry Value* *not including: Coffee, Tea, Milk Source: MBI, Datamonitor, Beverage Marketing
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Slide 13: Wine & Spirits growth slowing
Wine & Spirits growth slowing Spirits Wine CAGR CAGR ‘04-’08 ’09-’12 VOL (MM GAL) Beer 0.9% 0.6% Beer Wine 2.9% 1.3% Spirits 2.7% 1.1% Total 1.2% 0.7% Source: Beer Institute, Commercial Insights Estimates
Slide 14: Millennials (21-30) drink beer more frequently
Millennials (21-30) drink beer more frequently Base: All Millennial respondents to screening question #5 (n=1449) Q5: How often do you drink each of the following types of alcoholic beverages? (Multiple Answers)
Slide 15: Beer is the right place to be and we're in the right segments
Beer is the right place to be and we’re in the right segments Volume CAGR ’08-’12 Total 0.6% Craft 2.9% Import 2.3% Super-Premium -0.6% High Alc / Malt -0.1% Below Prem Full Cal 0.0% Below Prem Light 2.2% Premium Full Cal -4.0% Premium Light 1.1% Source: Commercial Insights
Slide 16: Challenges
Challenges • Economy • Channel shifts • Excise taxes
Slide 17: People
People © MillerCoors”
Slide 18: Our team
Our team • Approximately 8,800 employees at MillerCoors
Slide 19: Our goal: build a winning culture
Our goal… Build a winning culture at MillerCoors by building a customer-focused and learning organization.
Slide 20: Building the MillerCoors sales organization
Building the MillerCoors sales organization 1. Focus on our customers 2. Closer to the market 3. Broad jobs with deep accountability 4. Strong teams…teams with clear roles
Slide 21: GM Structure
Mountain Northeast Great Lakes Pacific Central Mid-Atlantic Southwest GM Structure Southeast • 31 General Managers • Fully loaded P&L • Local brand building • Local business plans
Slide 22: Wisconsin – Coors Light 30/pk
Wisconsin – Coors Light 30/pk
Slide 23: Ohio – On-premise Miller Lite velocity driving programs
Ohio – On-premise Miller Lite velocity driving programs
Slide 24: a U = @ S @
a 8 U = @ S @
Slide 25: Brands
Brands Andy England, Chief Marketing Officer
Slide 26: A powerful portfolio
A powerful portfolio
Slide 27: Bas
aT Bas GENUINE
Slide 28: Premium Light drivers of consumer choice
Premium Light drivers of consumer choice Key brand dimensions Correlation with loyalty Refreshment Sociability Calories/ Relaxing Taste Carbs Value Cold Source: Project Volume Consumer Research
Slide 29: Z me A
Z me A 4B UG a Og RAFT) 3 ‘a O {s ~~ GENUINE fold Ac
Slide 30: Great Gatherings
Great Gatherings ie J - Deserve Cold Beer. That's our policy. 5 a co ARES Son Sie (ker cre: Fixe etait, g 1%. a take ore
Slide 31: Coors Light Roll Ad Spot
Coors Light Roll Ad Spot © MillerCoors”
Slide 32: Miller Lite
LIVE RESPONSIBLY v 7) YOU CAN CALL IT “MAN. THAT TASTES GREAT.” TASTE PROTECTOR LID” LOCKS IN GREAT PILSNER TASTE” @ MillerCoors
Slide 33: Taste Greatness Roll Ad Spot
Taste Greatness Roll Ad Spot © MillerCoors:
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Slide 35: Premium Light interaction
Premium Light interaction Volume Interaction 52 Weeks Ending 4/30/2009 Total U.S. All-Outlet (Off Premise) Miller Lite & Coors Light 14.3% Miller Lite & Bud Light 33.9% Coors Light & Bud Light 23.1% Source: ACNielsen Homescan
Slide 36: Opportunities
Opportunities Opportunity Dist Pts Vol Great Lakes: Coors Light 235,000 1,713,100 Northeast: Miller Lite 135,000 719,722 Annual Volume = 2.4 Million Cases
Slide 37: MGD 64
E oye § GENUINE
Slide 38: MGD Wine Glass Roll Ad Spot
MGD 64 “Wine Glass” Roll Ad Spot
Slide 39: Coors Light
UCOOWS \ oA? VCH I), Cold Activated Bottle @ @ M ill e rCoor Ss
Slide 40: Above Premium: Crafts and Imports
Above Premium Crafts Imports • 17% of segment • Peroni up high • Double the single digits segment growth
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Slide 42: [Sle
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Slide 43: Blue Moon Creation Roll Ad Spot
Blue Moon “Creation” Roll Ad Spot
Slide 44: Slide 44
Slide 45: Below Premium
Below Premium
Slide 46: Slide 46
Slide 47: High Life Roll Ad Spot
High Life Roll Ad Spot © MillerCoors”
Slide 48: Keystone
Wine KiStom UGHT LIGHT SA 4 : er KASTONE ®!; LGHT
Slide 49: Keystone Light Top Shelf Roll Ad Spot
Keystone Light “Top Shelf” Roll Ad Spot
Slide 50: Strong results in 5 of our 6 national focus brands
Strong results in 5 of our 6 national focus brands First quarter retail volume by brand (variance to PY) Miller Coors MGD64/ Miller Keystone Blue All Total Lite Light MGD High Life Light Moon Others Retail
Slide 51: Revenue Management
Revenue Management Gavin Hattersley, Chief Financial Officer
Slide 52: Pricing strong despite a tough economy
Pricing strong despite a tough economy Q1 net revenue per barrel up +5.6% over PY
Slide 53: Managing pricing gaps
Managing pricing gaps Miller Lite has been at price parity with Bud Light for two consecutive quarters, while Coors Light has continued to price above Bud Light Miller Lite Price Gaps Coors Light Price Gaps Actual Price Gap Actual Price Gap 2008 CY08 Q3 CY08 Q4 CY09 Q1 2008 CY08 Q3 CY08 Q4 CY09 Q1 I
Slide 54: Reduced reliance on price promotions
Reduced reliance on price promotions Reducing reliance on price promotions continued in ‘09 across all segments… despite larger than usual frontline increases. Result: $15M savings Source: Internal data, actual distributor pricing to retail
Slide 55: Casual and fine dining, off-premise
CASUA | & FINE DININ x Lt OFF-PR EMISE
Slide 56: Scale
Scale © MillerCoors:
Slide 57: $500 million in annual savings in three years
$500 million in annual savings in three years
Slide 58: Where are synergies coming from?
Where are synergies coming from?
Slide 59: Brewery optimization
: 7 3 ‘ On d Milwaukee , —3 a | 7 ‘ Shenandoah | \ = Trenton —./ OL 2-2 ~ Irwindale = | Eden ~ j _ eit Albany — / : 2
Slide 60: Network transformation: where we're headed
Network transformation: where we’re headed Coors Miller MillerCoors
Slide 61: Supply chain optimization
Supply chain optimization • Forecasting • Inventory • Keg Identification • Pallet Conversion
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Slide 63: Agency consolidation
Agency consolidation DRAFTFCB arc) SAATCHI & SAATCHI integer
Slide 64: MillerCoors Distributor Conference 2009
MillerCoors Distributor Conference 2009
Slide 65: COGS reflect low single digit increases
COGS reflect low single digit increases
Slide 66: Commodities
Commodities Aluminum 250-day moving average QiLHREQEEUeee Natural Gas 250-day moving average
Slide 67: Project Unicorn and Resources for Growth
Project Unicorn and Resources for Growth Project Unicorn Resources for • World Class Growth Manufacturing • Operational • Asset care efficiencies initiatives • Innovation • Procurement • Procurement savings • Shared • Freight services savings • Outsourcing
Slide 68: Partners
Partners © MillerCoors”
Slide 69: Slide 69
Slide 70: MillerCoors Advantage
MillerCoors Advantage • Best players on the field • Channel-focused teams • Dedicated resources for our top retailers
Slide 71: Chain game plan
Chain game plan • Gain space • Win share in premium lights and crafts • Take share in C-Stores
Slide 72: Space and assortment solutions
Space and assortment solutions
Slide 73: Win share in premium lights and crafts
WIN SHARE IN LIGHTS & CRAFTS PREMIUM
Slide 74: Take share in C-stores
TAKE SHARE IN C-STORES
Slide 75: Building the most effective distributor network
- Tl 2 BUILDING F HE MOST EFFEC) IVE =TWORK DISTRIBUTOR NE
Slide 76: High Life
ee, Higu LiFe Light | HIGH LIFE SOSTOME: Fin, i ay “MY
Slide 77: Building an effective distributor network
Building an effective distributor network • Value creation • Purchasing power • Simplicity
Slide 78: Where we expect to be … America's Best Beer Company
Where we expect to be … America’s Best Beer Company • Build the most talented team in the beer business • Drive value and volume in premium light • Win in above premium • Deliver innovation and quality that excites consumers • Strong net revenue management • Drive chain growth • Build and motivate t
Slide 79: Q&A
Q&A © MillerCoors”
Slide 80: © MillerCoors’
© MillerCoors’
Molson Coors Brewing Company — Investor Day (June 2009) on 6ix