Anheuser-busch Inbev Sa/nv · EURONEXT:ABI
Anheuser-busch Inbev Sa/nv — Investor Day (2019)
63 slides from Anheuser-busch Inbev Sa/nv's investor day presentation, 2019
Slide 1: Anheuser-Busch InBev Investor Seminar 2019
Anheuser-Busch InBev Investor Seminar 2019 ABInBev
Slide 2: Legal Disclaimer
Legal Disclaimer Certain statements contained in these presentations that are not statements of historical fact constitute forward-looking statements, notwithstanding that such statements are not specifically identified. In addition, certain statements may be contained in the future filings of the C
Slide 3: Michel Doukeris
Michel Doukeris North America Zone President Born: Lages, Brazil Time at ABI: 23 years Favorite Beer: Budweiser
Slide 4: We have met before…
WE HAVE MET BEFORE… APAC ZONE INTRODUCTION: MICHEL DOUKERIS, ZONE PRESIDENT APAC (SEPTEMBER 1, 2015)
Slide 5: Let's get to know each other
LET’S GET TO KNOW EACH OTHER
Slide 6: Slide 6
Slide 7: Slide 7
Slide 8: Slide 8
Slide 9: I'm a beer guy, I'm a family man, I love simplicity
I’M A BEER GUY I’M A FAMILY MAN I LOVE SIMPLICITY
Slide 10: Welcome to…
,WEEGOME TO...
Slide 11: Why the US?
WHY THE US? 101MHL 18,000+ VOLUME IN 2018 COLLEAGUES $13.6B 430 2018 NET REVENUE WHOLESALERS (25% of AB InBev) $5.5B 24 2018 EBITDA BREWERIES (25% of AB InBev)
Slide 12: CA UK TX
AUSTRALIA REGION 6 MEXICO REGION 4 UK REGION 3 JAPAN REGION 1 GERMANY REGION 7 CA UK FRANCE TX REGION 2 INDIA REGION 5 CANADA Source: IMF, US Bureau of Productivity Analytics
Slide 13: Rich heritage
RICH HERITAGE
Slide 14: Diverse
DIVERSE
Slide 15: Sophisticated
SOPHISTICATED
Slide 16: Trendsetter
TRENDSETTER
Slide 17: Innovative
INNOVATIVE
Slide 18: Always rising to the challenge
ALWAYS RISING TO THE CHALLENGE
Slide 19: Our agenda for today
OUR AGENDA FOR TODAY THE US JOURNEY TO LEAD FUTURE GROWTH ü REFRAME THE OPPORTUNITY ü RE-ENERGIZE OUR STAKEHOLDERS ü RECONNECT WITH CONSUMERS
Slide 20: 32 markets visited in 2018
32 MARKETS VISITED IN 2018
Slide 21: Industry observations
INDUSTRY OBSERVATIONS
Slide 22: Total alcohol industry is growing but beer is not taking its fair share
TOTAL ALCOHOL INDUSTRY BUT BEER IS NOT TAKING IS GROWING ITS FAIR SHARE +7% -7pp 2008 2017 2008 2017 ALCOHOL VOLUME (LBE) BEER SHARE OF THROAT (VOLUME) Source: IWSR Alcohol Industry Volumes 2008-2017
Slide 23: Occasions
OCCASIONS
Slide 24: Slide 24
Slide 25: Unstoppable trends and key demographic shifts
UNSTOPPABLE TRENDS AND KEY DEMOGRAPHIC SHIFTS UNSTOPPABLE TRENDS HEALTH & WELLNESS PREMIUMIZATION PURPOSE DRIVEN BRANDS DEMOGRAPHIC SHIFTS AGING MALE 28-49 HISPANICS WOMEN LDAs
Slide 26: These trends are impacting the beer industry
THESE TRENDS ARE IMPACTING THE BEER INDUSTRY BEER INDUSTRY MIX AB MIX 27% 20% 25% 36% 2013 2017 2013 2017 Above Mainstream Above Mainstream Mainstream Mainstream Source: Internal Study, IRI
Slide 27: To the consumer, the category is cluttered and confusing
TO THE CONSUMER, THE CATEGORY IS CLUTTERED AND CONFUSING
Slide 28: The way we were looking at the category was also cluttered
THE WAY WE WERE LOOKING AT THE CATEGORY WAS ALSO CLUTTERED PREVIOUSLY… PRICE RANGES HIGH END 13.99 19.99 IMPORTS 12.99 19.99 PREMIUM DOMESTIC 11.99 16.99 DOMESTIC VALUE 7.99 10.99 Illustrative Example: 12un Case Equiv
Slide 29: We reframed the way we look at our category and brands
WE REFRAMED THE WAY WE LOOK AT OUR CATEGORY AND BRANDS PREVIOUSLY… NOW… >160 HIGH END SUPER PREMIUM 130 PREMIUM 160 PRICE PARTITIONS IMPORTS 110 CORE+ 130 PREMIUM DOMESTIC 90 CORE 110 DOMESTIC <90 VALUE VALUE
Slide 30: The new segmentation highlights how we under-index in growing segments
THE NEW SEGMENTATION HIGHLIGHTS HOW WE UNDER-INDEX IN GROWING SEGMENTS Source: Internal Estimates, IRI
Slide 31: We are the beer industry leader, but not driving revenue growth
WE ARE THE BEER INDUSTRY LEADER, BUT NOT DRIVING REVENUE GROWTH AB IS ALREADY THE INDUSTRY …BUT WE ARE FAR FROM BEING LEADER BY SIZE… THE INDUSTRY GROWTH LEADER INDUSTRY REVENUE CONTRIBUTION ($B) OTHERS AB 2011 INDUSTRY AB OTHER 2017 INDUSTRY
Slide 32: And stakeholders were less engaged
AND STAKEHOLDERS WERE LESS ENGAGED America is falling out of love with Budweiser VOICE OF THE WHOLESALER Nov, 2017 Millennials' tastes brought about the downfall of one of -11pp 85% America's most iconic beer brands Apr, 2018 74% Drinkers don’t care about Anheuser-Busch anymore Oct, 2017 Latest Earn
Slide 33: What could we do about it?
WHAT COULD WE DO ABOUT IT? “Insanity is doing the same thing over and over again and expecting different results.”
Slide 34: If we do not address these gaps, the present forward will be more of the same
IF WE DO NOT ADDRESS THESE GAPS, THE “PRESENT FORWARD” WILL BE MORE OF THE SAME PRESENT FORWARD GAPS TO BE ADDRESSED AB REVENUE BEER IS LOSING SHARE OF THROAT TRADE-UP BUD & BUD LIGHT LOSING SHARE IN MAINSTREAM POSITION WITHIN BEYOND BEER SEGMENT AB HAS LOST THE STATUS OF “GROWTH CHAMPION” 2008 2017
Slide 35: From present forward to reshaping the future
FROM “PRESENT FORWARD” TO RESHAPING THE FUTURE INDUSTRY REVENUE CONTRIBUTION ($B) FROM TO 2011 INDUSTRY AB OTHERS 2017 INDUSTRY REVENUE REVENUE CURRENT AB OTHERS FUTURE INDUSTRY INDUSTRY REVENUE REVENUE ILLUSTRATIVE
Slide 36: Lead future growth
LEAD FUTURE GROWTH
Slide 37: We have evolved our strategy
WE HAVE EVOLVED OUR STRATEGY , es wR Build Winning ¥ SS ; f ‘ be a) > Boe FRA Oofie Lead Categor y Capture Growth Beyond Beer _ i Operational Efficiency Consumer Insights & Data Analytics Dream, People, Culture
Slide 38: With 5 clear commercial priorities
WITH 5 CLEAR COMMERCIAL PRIORITIES 22% 42% 6% 15% 9% 6% 100% 7% 80% 43% 43% 2017 60% 80% 81% 94% 99% 40% 57% 57% 20% 20% 19% 0% 1% Value Core Core Plus Premium SP FMB 4 1 3 2 5 PRIORITY AMBITION 1 EXPAND CORE PLUS DOUBLE INDUSTRY SEGMENT MIX 2 LEAD & DEVELOP SUPER PREMIUM DOUBLE SHARE OF SEGMENT 3 D
Slide 39: We re-aligned our team with the strategy
WE RE-ALIGNED OUR TEAM WITH THE STRATEGY Michel Doukeris PRESIDENT AND CEO Fabricio Zonzini Marina Hahn Marcel Marcondes Brendan Whitworth Bob Tallett Marcelo Michaelis Kyle Norrington STRATEGY BEYOND BEER MARKETING SALES WHOLESALER BREWERS CANADA DEVELOPMENT COLLECTIVE Ingrid De Ryck Cesar Vargas D
Slide 40: We re-aligned our team with the strategy
WE RE-ALIGNED OUR TEAM WITH THE STRATEGY Michel Doukeris PRESIDENT AND CEO Fabricio Zonzini Marina Hahn Marcel Marcondes Brendan Whitworth Bob Tallett Marcelo Michaelis Kyle Norrington STRATEGY BEYOND BEER MARKETING SALES WHOLESALER BREWERS CANADA DEVELOPMENT COLLECTIVE Ingrid De Ryck Cesar Vargas D
Slide 41: We re-aligned our team with the strategy
WE RE-ALIGNED OUR TEAM WITH THE STRATEGY Michel Doukeris PRESIDENT AND CEO Fabricio Zonzini Marina Hahn Marcel Marcondes Brendan Whitworth Bob Tallett Marcelo Michaelis Kyle Norrington STRATEGY BEYOND BEER MARKETING SALES WHOLESALER BREWERS CANADA DEVELOPMENT COLLECTIVE Ingrid De Ryck Cesar Vargas D
Slide 42: Reasons to believe
REASONS TO BELIEVE
Slide 43: Expand core plus
1 EXPAND CORE PLUS #1 TOP 15 SHARE GAINER SHARE GAINERS CORE PLUS SEGMENT MIX FOR 4 CONSECUTIVE YEARS LINE EXTENTIONS ARE OF TOTAL INDUSTRY (AND STILL #1 in Q1) ENABLING CONSUMERS IS GROWING +19% 3-yr CAGR TO TRADE-UP 7% 6% 5% 2013 2017 2018 Source: IRI TUS MULC
Slide 44: Lead and develop super premium
2 LEAD AND DEVELOP SUPER PREMIUM CRAFT +19% IN Q1, 19% WELL ABOVE THE SEGMENT 12% 12% 5% 2% 1% 2017 2018 1Q19 AB Craft Craft Industry Source: Internal estimates, IRI
Slide 45: Disrupt premium
3 DISRUPT PREMIUM TOP 10 SHARE GAINER IN 2018 AND Q1 2019 ~$100M ANNUALIZED REVENUE 10% INCREMENTAL TO THE BEER CATEGORY SOURCE: IRI; INFOSCOUT
Slide 46: Stabilize mainstream
4 STABILIZE MAINSTREAM HIGHEST PENETRATION AND VALUE GREW CONSIDERATION ‘HIGH QUALITY OVERALL SHARE IN SINCE 2017 BRAND’ NEAR THREE- Q1 FOR THE FIRST SHARE TREND OF YEAR HIGHS TIME SINCE 2017 MAINSTREAM (CORE + VALUE) In p.p. 2017 2018 2019 Q1 0,04 -0,35 -0,58 Source: BIR, Kantar Millward Brown
Slide 47: Share of light beers
SHARE OF LIGHT BEERS SHARE TREND OF LIGHT BEERS In p.p. 2017 2018 2019 Q1 0,80 0,54 -0,12 Source: IRI
Slide 48: Capture growth beyond beer
5 CAPTURE GROWTH BEYOND BEER VOLUME GROWTH 4% 1% -11% 2017 2018 1Q19 TRIPLE DIGIT STRONG INNOVATIONS CAPTURING GROWTH VOLUME GROWTH PIPELINE IN WINE & SPIRITS Source: Internal estimates, FMB only
Slide 49: Across the commercial priorities, we delivered 9 of the top 15 share gainers
ACROSS THE COMMERCIAL PRIORITIES, WE DELIVERED 9 OF THE TOP 15 SHARE GAINERS IN THE INDUSTRY SHARE Q1 TOP 15 SHARE GAINERS RANK CHANGE MICHELOB ULTRA 1 0.63pp MODELO ESPECIAL 2 0.58pp WHITE CLAW HARD SELTZER ASSORTED 3 0.29pp CORONA PREMIER 4 0.24pp TRULY ASSORTED 5 0.19pp MICHELOB ULTRA PURE GOLD 6
Slide 50: And there is more innovation to come…
AND THERE IS MORE INNOVATION TO COME… FROM TO 2 YEARS TO MARKET 100 DAYS TO MARKET REVAMPED APPROVAL OF 30+ STAKEHOLDERS INNOVATION AUTONOMOUS, DEDICATED TEAMS FRAMEWORK LARGE-SCALE NATIONAL LAUNCH LOCAL PILOTS
Slide 51: We need more than consumer safaris
WE NEED MORE THAN “CONSUMER SAFARIS” THIS IS A HUMAN BUSINESS BEER BRINGS PEOPLE TOGETHER
Slide 52: We have unique capabilities to connect with more people in real time
WE HAVE UNIQUE CAPABILITIES TO CONNECT WITH MORE PEOPLE IN REAL TIME FROM TRADITIONAL RESEARCH TO ONLINE PANEL POWERED BY ARTIFICIAL INTELLIGENCE FROM DOZENS OF PEOPLE TO +6,500 PEOPLE ON DEMAND
Slide 53: With relevant consumer connections and regionalization as key pillars of our strategy
WITH RELEVANT CONSUMER CONNECTIONS AND REGIONALIZATION AS KEY PILLARS OF OUR STRATEGY +1.6B EARNED 3X GROWTH IN SOCIAL MOST COMMENTS ON +560M EARNED IMPRESSIONS MENTIONS VS LY YOUTUBE VIDEO AMONG IMPRESSIONS SUPER BOWL ADVERTISERS +1.81 SHARE OF VOLUME UP 1.3% YTD, AWARENESS INCREASED +3% VS LY STR
Slide 54: Our agency partners are engaged
OUR AGENCY PARTNERS ARE ENGAGED “Dear Budweiser Geniuses: When we took our group licensing rights back, my vision was to give the power back to the players; the power to build new and authentic relationships for themselves and to tell their own stories on their own terms. I wanted to help them find
Slide 55: And our wholesalers are re-energized!
AND OUR WHOLESALERS ARE RE-ENERGIZED! VOICE OF THE WHOLESALER KEY QUESTION SCORES “For the first time in a long time I believe we are on the right TOTAL SCORE 2018 VS 2017 track to growth and success.” 90% +25pp STRATEGIC DIRECTION “We are optimistic about the 74% “Lead Future Growth” +24pp MARKETIN
Slide 56: All in all, we are building top line momentum
ALL IN ALL, WE ARE BUILDING TOP LINE MOMENTUM TOTAL US REVENUE GROWTH VS. YA 1.6% 1.4% -2.0% -2.8% 2017 2018 H1 2018 H2 2019 Q1
Slide 57: Our share performance is where our strategy comes to life…
OUR SHARE PERFORMANCE IS WHERE OUR STRATEGY COMES TO LIFE… TOTAL AB SHARE CHANGE VS. YA (BPS) -10 -20 -35 -45 -70 2017 FY 2018 H1 2018 H2 2018 Q4 2019 Q1 Source: Internal estimates, BIR
Slide 58: And the pockets of growth have consistently increased
AND THE POCKETS OF GROWTH HAVE CONSISTENTLY INCREASED 2017 SHARE PERFORMANCE 2018 SHARE PERFORMANCE AK WA ME MT ND OR MN VT NH MA ID SD WI NY WY MI RI PA CT IA PA NE NV IL OH NJ IN DE UT CO WV MD CA KS VA DC MO KY NC TN AZ OK NM AR HI SC MS AL GA TX LA FL ` Growing vs. LY Declining vs. LY but improv
Slide 59: In summary
IN SUMMARY
Slide 60: It is about… reframe, re-energize, reconnect
IT IS ABOUT… REFRAME RE-ENERGIZE RECONNECT
Slide 61: With 5 clear priorities
WITH 5 CLEAR PRIORITIES 1 EXPAND CORE PLUS 2 LEAD & DEVELOP SUPER PREMIUM 3 DISRUPT PREMIUM 4 STABILIZE SHARE OF MAINSTREAM 5 CAPTURE GROWTH BEYOND BEER
Slide 62: We can reshape the future
WE CAN RESHAPE THE FUTURE TODAY FUTURE
Slide 63: We can reshape the future
WE CAN RESHAPE THE FUTURE TODAY FUTURE