Anheuser-busch Inbev Sa/nv · EURONEXT:ABI
Anheuser-busch Inbev Sa/nv — Investor Day (2023)
121 slides from Anheuser-busch Inbev Sa/nv's investor day presentation, 2023
Slide 1: Marcel Marcondes, Chief Marketing Officer
MARCEL MARCONDES C h i e f M a r k e t i n g O f f i c e r
Slide 2: Legal disclaimer
Legal disclaimer Certain statements contained in these materials are not statements of historical fact constitute forward-looking statements, notwithstanding that such statements are not specifically identified. Forward-looking statements are not guarantees of future performance. Rather, they are ba
Slide 3: My Career
MY CAREER 1998 - 2005 2014 - 2017 2022 U N I L E V E R G L O B A L B R A N D S G L O B A L C M O B R A Z I L / L A T A M / G L O B A L A B I N B E V A B I N B E V 2005 - 2014 2017 - 2022 M A R K E T I N G / S A L E S U S C M O A M B E V A N H E U S E R - B U S C H
Slide 4: AB InBev's Journey
AB INBEV’S JOURNEY {__ oe d S ° / 'nBev = asinB&v ABInBev 1366 1987 1995 2002 2008 2013 2016 'nSev if —_ | <¢ABInBev cy os a © o © N ° ° ° N ° ° nN <eABinBev
Slide 5: We evolved our strategy to drive organic growth
WE EVOLVED OUR STRATEGY TO DRIVE ORGANIC GROWTH
Slide 6: Focus Today
FOCUS TODAY MEGABRANDS CATEGORY EXPANSION MODEL
Slide 7: Focus Today
FOCUS TODAY MEGABRANDS FOCUSED EFFECTIVE SCALABLE PORTFOLIO CREATIVITY INNOVATION CATEGORY EXPANSION MODEL
Slide 8: Megabrands Focused Portfolio
MEGABRANDS FOCUSED PORTFOLIO MEGABRANDS FOCUSED EFFECTIVE SCALABLE PORTFOLIO CREATIVITY INNOVATION CATEGORY EXPANSION MODEL
Slide 9: Portfolio management starts with focus
FOCUSED EFFECTIVE SCALABLE PORTFOLIO CREATIVITY INNOVATION PORTFOLIO MANAGEMENT STARTS WITH FOCUS AT A COUNTRY LEVEL, PRINCIPLES 80% OF GROWTH IS DELIVERED BY UP TO 5 BRANDS AROUND 5 BRANDS PER MARKET 500+ BRANDS Average Growth Contribution by market (LOCAL + GLOBAL) 70% OF S&M INVESTMENT 70% OF GRO
Slide 10: Because organic growth starts with megabrands
FOCUSED EFFECTIVE SCALABLE PORTFOLIO CREATIVITY INNOVATION BECAUSE ORGANIC GROWTH STARTS WITH MEGABRANDS PRICE BRAND CATEGORY MEGABRANDS GROWTH POWER VOLUME
Slide 11: Megabrands leading power and volume growth
FOCUSED EFFECTIVE SCALABLE PORTFOLIO CREATIVITY INNOVATION MEGABRANDS LEADING POWER AND VOLUME GROWTH INVESTMENT BRAND POWER VOLUME (S&M weight) +15 pp +2.2pp +5% CAGR 2019 2020 2021 2022 YTD Jun 2019 2020 2021 2022 YTD Jun 2019 2020 2021 2022 LTM 2023 2023 2023 Source: ABI internal financial data S
Slide 12: ABI well positioned for a focused portfolio strategy
FOCUSED EFFECTIVE SCALABLE PORTFOLIO CREATIVITY INNOVATION ABI WELL POSITIONED FOR A FOCUSED PORTFOLIO STRATEGY TOP 10 MOST VALUABLE BEER BRANDS 7/10 7/10 MOST VALUABLE BEER 1 6 BRANDS 2 COMPETITOR #1 7 #1 COMPETITOR #2 MOST VALUABLE BEER 3 8 BRAND 4 9 #1 5 10 COMPETITOR #3 BIGGEST INCREASE IN VALUE
Slide 13: Only beer brand in the world with a double-double
FOCUSED EFFECTIVE SCALABLE PORTFOLIO CREATIVITY INNOVATION ONLY BEER BRAND IN THE WORLD WITH A DOUBLE-DOUBLE BRAND POWER # OF COUNTRIES > 10% >10
Slide 14: Brand power ahead of share
FOCUSED EFFECTIVE SCALABLE PORTFOLIO CREATIVITY INNOVATION BRAND POWER AHEAD OF SHARE POWER POWER COUNTRY vs SHARE COUNTRY vs SHARE ECU +13.2pp CHN +3.9pp PER +11.0pp FRA +2.4pp COL +10.7pp BRA +2.4pp DR +9.4 pp UK +1.7pp CAN +6.9pp NL +1.5pp ARG +5.3pp SAF +0.8pp CHI +5.1pp KOR +0.6pp Source: B
Slide 15: Megabrands Effective Creativity
MEGABRANDS EFFECTIVE CREATIVITY MEGABRANDS FOCUSED EFFECTIVE SCALABLE PORTFOLIO CREATIVITY INNOVATION CATEGORY EXPANSION MODEL
Slide 16: Creativity is the largest contributor to effectiveness
FOCUSED EFFECTIVE SCALABLE PORTFOLIO CREATIVITY INNOVATION CREATIVITY IS THE LARGEST CONTRIBUTOR TO EFFECTIVENESS UNLOCKING BUSINESS OPPORTUNITES Creativity contributes 47% Creative solutions for to total ad effectiveness consumer or business problems CONTRIBUTION TO AD EFFECTIVENESS CONSUMER BUSINE
Slide 17: Creative Spectrum
CREATIVE CREATIVE CRITIQUE BRAINTRUST THE TRAINING THE PROCESS CREATIVE SPECTRUM >500 60 25 THE UNIVERSAL LANGUAGE campaigns brands countries 2.5k THE RECOGNITION THE ASSESSMENT People Trained CREATIVE X CREATIVE Awards AWARDS COUNCIL
Slide 18: Focused Portfolio Effective Creativity rankings
FOCUSED EFFECTIVE SCALABLE PORTFOLIO CREATIVITY INNOVATION 2017 2018 2019 2020 2022 2023 #1 #2 #7 #7 #4 #1 #1 #3 #4 #2 #5 #3 #4 #24 #5
Slide 19: Creative Marketer of the Year
FOCUSED EFFECTIVE SCALABLE PORTFOLIO CREATIVITY INNOVATION CREATIVE MARKETER OF THE YEAR 2017 2018 2019 2020/21 2022 2023 ABI TOTAL LIONS AWARDS 50 48 40 LIONS LIONS LIONS 23 20 LIONS LIONS 8 LIONS 2017 2018 2019 2020/21 2022 2023
Slide 20: Truly global capability: all zones & 14 brands recognized
FOCUSED EFFECTIVE SCALABLE PORTFOLIO CREATIVITY INNOVATION TRULY GLOBAL CAPABILITY: ALL ZONES & 14 BRANDS RECOGNIZED NAZ:10 lions Global: 3 lions EUR: 2 lions APC: 2 lions MAZ: 12 lions AFR: 1 lions SAZ: 18 lions 2023 Lions by Region
Slide 21: Growing brand power and total volume
FOCUSED EFFECTIVE SCALABLE PORTFOLIO CREATIVITY INNOVATION GROWING BRAND POWER AND TOTAL VOLUME BRAND POWER VOLUME VOLUME 2019 2020 2021 2022 2019 2020 2021 2022 Source: KANTAR Source: ABI Financial reports
Slide 22: Listen / Love
NAVIGATING A COMPLEX SOCIAL ENVIRONMENT BRANDS CONSUMERS LISTEN / LOVE STRATEGY
Slide 23: Loved by our consumers
Loved by our consumers Number of Brand Lovers (MM) +12MM 342 330 19 20 21 22 Source & Scope: Lover is a metric calculated using Brand Guidance Affinity Top Box (love). Global Affinity is calculated on P4W Beer Incidence on legal drinking age country population
Slide 24: Megabrands Scalable Innovation
MEGABRANDS SCALABLE INNOVATION MEGABRANDS FOCUSED EFFECTIVE SCALABLE PORTFOLIO CREATIVITY INNOVATION CATEGORY EXPANSION MODEL
Slide 25: Principle 1: Simplify to grow
FOCUSED EFFECTIVE SCALABLE PORTFOLIO CREATIVITY INNOVATION PRINCIPLE 1: SIMPLIFY TO GROW TOTAL # SKU’S ~15% PORTFOLIO SIMPLIFICATION ~1,000 SKUS DELISTED HEALTHIER PORTFOLIO IMPROVING PROFITABILITY 2019 2020 2021 2022 JUN-2023
Slide 26: Principle 2: Sustainable superiority
FOCUSED EFFECTIVE SCALABLE PORTFOLIO CREATIVITY INNOVATION PRINCIPLE 2: SUSTAINABLE SUPERIORITY SUPERIORITY ASSESSMENT: ANNUAL RENOVATION FOR SUSTAINABLE SUPERIORITY Brand Brand Brand High Quality Shelf Reach Attribute 1 Attribute 2 Brand 1 Superior Superior Parity Superior Brand 2 Parity Superior P
Slide 27: Principle 3: For new launches, prove and move
FOCUSED EFFECTIVE SCALABLE PORTFOLIO CREATIVITY INNOVATION PRINCIPLE 3: FOR NEW LAUNCHES, PROVE AND MOVE HEALTH & WELLNESS TREND NON-ALCOHOL BEER MALT PREMIUMIZATION 1. 1. 1. Proven success Proven success Piloted 3 brands in the US in Canada in Brazil 2. 2. 2. Expanded to Expanded Proven Success Can
Slide 28: Scalable and consistent innovations built with focus
FOCUSED EFFECTIVE SCALABLE PORTFOLIO CREATIVITY INNOVATION SCALABLE AND CONSISTENT INNOVATIONS BUILT WITH FOCUS EXPANSION TO PROVEN SUCCESS IN THE US OTHER MARKETS 20 MHL 15 MHL + 10 Markets 10 MHL 5 MHL 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2
Slide 29: Main goal: scalable innovation
FOCUSED EFFECTIVE SCALABLE PORTFOLIO CREATIVITY INNOVATION MAIN GOAL: SCALABLE INNOVATION PRINCIPLE 1: INNOVATION NET REVENUE Simplify to grow $ 5.5 Bn LTM June 2023 PRINCIPLE 2: Sustainable superiority INNOVATION CONTRIBUTION PRINCIPLE 3: For new launches, prove and move ~9% LTM June 2023 Source: A
Slide 30: Megabrands
MEGABRANDS FOCUSED EFFECTIVE SCALABLE PORTFOLIO CREATIVITY INNOVATION
Slide 31: Focus Today
FOCUS TODAY MEGABRANDS CATEGORY EXPANSION MODEL
Slide 32: Beer + Beyond Beer Consumption
CATEGORY EXPANSION MODEL ACCEPT FORMALIZE SOCIALIZE ROUTINIZE SOPHISTICATE 90 85 EMERGING DEVELOPING DEVELOPED 80 75 70 Beer + Beyond Beer Consumption 65 60 55 50 45 40 35 30 25 20 15 10 5 0 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 Market Maturity Score
Slide 33: Five category expansion levers with proven results
FIVE CATEGORY EXPANSION LEVERS WITH PROVEN RESULTS ACCEPT FORMALIZE SOCIALIZE ROUTINIZE SOPHISTICATE EMERGING DEVELOPING DEVELOPED Beyond Beer Beer + Beyond Beer Consumption Premiumization Occasions Development Core Superiority Category Participation Market Maturity Score
Slide 34: Reshaping the beer category
RESHAPING THE BEER CATEGORY 1 2 3 Emerging - Accept & Formalize Developing- Socialize Developed Routinize & Sophisticate HIGH Category expansion levers Beer + Beyond Beer Consumption LOW LOW MARKET MATURITY SCORE HIGH
Slide 35: Category expansion levers strategy in action
CATEGORY EXPANSION LEVERS STRATEGY IN ACTION CATEGORY CORE OCCASIONS PREMIUMIZATION BEYOND PARTICIPATION SUPERIORITY DEVELOPMENT BEER 10´ per expansion lever
Slide 36: Category expansion levers strategy in action
CATEGORY EXPANSION LEVERS STRATEGY IN ACTION CATEGORY CORE OCCASIONS PREMIUMIZATION BEYOND PARTICIPATION SUPERIORITY DEVELOPMENT BEER 10´ per expansion lever
Slide 37: Replicable model global results
REPLICABLE GLOBAL MODEL RESULTS PARTICIPATION (P4W) P.O.S. SYSTEM 2022 vs 2019 +0.6 pp PARTICIPATION OCCASIONS SERVINGS 2019 2020 2021 2022 Source: Kantar, P4W Scope: Top 32 markets
Slide 38: Daniel Wakswaser, CMO Brazil
DANIEL WAKSWASER C M O, B R A Z I L
Slide 39: P.O.S. System
The first step for category expansion is participation PARTICIPATION OCCASIONS SERVINGS P.O.S. SYSTEM Expanding consumer Increasing the frequency of Growing the total Participation into the Beer + Beer + Beyond Beer amount of Beer + Beyond Beyond Beer category consumption occasions Beer servings
Slide 40: Beer category was under pressure
Beer category was under pressure CACHAÇA GAINING PARTICIPATION INSIDE BEER, CORE SEGMENT UNDER IMPACTING ABI AGAINST BEER PRESSURE MARKET SHARE (2019) CATEGORIES MIX CORE SEGMENT MIX MARKET SHARE CORE VS TOTAL -0.7pp -3.4pp ~25pp +0.8pp 2015 2019 2015 2019 2015 2019 CORE TOTAL BEER CACHAÇA Source: E
Slide 41: Returnable glass bottles were declining and impacting profitability
The context: returnable glass bottles were declining and impacting profitability 2019 MARGINS GAP RGB VS OW (%) ABI RGB VOLUMES BEFORE COVID (MMhL) ~ 24 pp -8.4% (CAGR 15-19) OW RGB 2015 2016 2017 2018 2019 Source: Internal ABI Data
Slide 42: The solution was to expand RGB, driving affordability while increasing margins
The solution was to expand RGB, driving affordability while increasing margins #1 #2 #3 #4 FIX PRICE RELATIVITY BETWEEN MAKE RGB MORE LEVERAGE ABI EXPAND ENTRY RGB FORMAT RGB AND OW APPEALING TO CONSUMERS DIGITAL PLATFORMS (300ML) FROM: OW < RGB 360º ACTIVATION PLAN TO DTC + B2B = FROM: #3 RGB FORMA
Slide 43: Started by fixing the price relativity vs. OW
Started by fixing the price relativity vs. OW #1 RGB/OW PRICE INDEX (%) FIX PRICE RELATIVITY BETWEEN RGB AND OW FROM: OW < RGB 100% TO: RGB < OW 90% VS 2015 2016 2017 2018 2019 2020 2021 2022 Source: Internal Data
Slide 44: Making RGB more appealing to consumers
Making RGB more appealing to consumers #2 BARRIERS TOUGH ECONOMIC SCENARIO IN BRAZIL RGB IS SEEN AS AN OLD & NOT TRENDY RGB JOURNEY IS COMPLEX AND NOT PRATICAL MAKE RGB MORE PACK APPEALING TO CONSUMERS MESSAGE RGB IS AFFORDABLE RGB IS SUSTAINABLE ZÉ DELIVERY = CONVENIENCE 360º ACTIVATION PLAN (no ne
Slide 45: Leveraging ABI's digital capabilities
Leveraging ABI’s digital capabilities #3 ABI DIGITAL PLATFORMS LEVERAGE DTC + B2B = CONVENIENCE + ADVANTAGES
Slide 46: Expanding out of pocket proposition with 300 ml
Expanding out of pocket proposition with 300 ml RGB VOLUME BY FORMAT (MMhL, %) ABI RGB VOLUMES (MMhL) #4 EXPANSION OF ENTRY RGB -8.4% +16.8% FORMAT (300ML) (CAGR 15-19) (CAGR 20-22) FROM: #3 RGB FORMAT TO: #1 RGB FORMAT 38% 28% 2019 2022 2015 2016 2017 2018 2019 2020 2021 2022 1L 600ML 300ML Source:
Slide 47: Expanding consumer participation and growing the beer category profitably
Expanding consumer participation and growing the beer category in a profitable way PARTICIPATION (P4W) CORE VOLUME % OF INDUSTRY BEER SHARE OF THROAT +2.4PP +6.2PP +2.2PP (vs 2019) (vs 2019) (vs 2019) 88.6% 86.2% 57.8% 64.1% 69.7% 71.9% 31.7% 18.2% 19.0% 16.3% 2019 2022 2019 2019 2022 2022 2019 2022
Slide 48: Replicable Model Replicability
REPLICABLE MODEL REPLICABILITY P.O.S. SYSTEM BRAND PORTFOLIO PARTICIPATION OCCASIONS SERVINGS
Slide 49: Category expansion levers strategy in action
CATEGORY EXPANSION LEVERS STRATEGY IN ACTION CATEGORY CORE OCCASIONS BEYOND PREMIUMIZATION PARTICIPATION SUPERIORITY DEVELOPMENT BEER 10´ per expansion lever
Slide 50: Replicable model global results: superiority framework
REPLICABLE GLOBAL MODEL RESULTS SUPERIORITY MAINSTREAM NET REVENUE CAGR LTM JUNE 2023 vs 2019 FRAMEWORK +5% SUPERIOR SUPERIOR PRODUCT POSITIONING 2019 2020 2021 2022 LTM 2023 SUPERIOR SUPERIOR Source: ABI internal financial data Scope: All markets from 2019 FY till LTM 2023 VALUE PLATFORMS
Slide 51: Ben Verhaert, BU President East Asia
BEN VERHAERT B U P R E S I D E N T E A S T A S I A
Slide 52: Keep core vibrant: Cass is strong market leader
KEEP CORE VIBRANT CASS IS STRONG MARKET LEADER FOR MORE THAN A DECADE MARKET LEADER Market Share % 1993 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Q1 Cass Hite Competition Launches 52
Slide 53: Cass leading innovation in Korean beer history
KEEP CORE VIBRANT CASS IS STRONG MARKET LEADER FOR MORE THAN A DECADE CASS became market leader Leading innovation by being the voice of generations in Korean beer history Innovation 1. Brewing 2. Packaging Innovation Innovation 3. Product
Slide 54: Core superiority framework
CORE SUPERIORITY FRAMEWORK SUPERIOR SUPERIOR SUPERIOR SUPERIOR PRODUCT POSITIONING RECRUITMENT PLATFORMS VALUE BRAND IMAGERY RELATIVE DISTRIBUTION WORTH PERCEPTION LIQUID & PACKAGE & COMM. VISIBILITY & CONSUMER PARTICIPATION & AFFORDABILITY TOOLS
Slide 55: A distinctive and superior beer experience
A DISTINCTIVE AND SUPERIOR BEER EXPERIENCE STAYING TRUE TO CASS DNA Brand Renovation Pack Liquid Comms Activation
Slide 56: Cass keeps raising the bar
CASS KEEPS RAISING THE BAR TO DELIVER A SUPERIOR MIX IN EVERY TOUCH POINT SUPERIOR SUPERIOR SUPERIOR SUPERIOR PRODUCT POSITIONING PLATFORM VALUE LIQUID PACKAGING > +400 bps +0.4 MARKET SHARE BRAND POWER 2022 Korea FY22 vs FY21 FY22 vs FY21 Most Effective Marketer Source: ABI Internal data base Sourc
Slide 57: Replicable model replicability: superiority framework
REPLICABLE REPLICABILITY MODEL SUPERIORITY FRAMEWORK SUPERIOR SUPERIOR PRODUCT POSITIONING SUPERIOR SUPERIOR VALUE PLATFORMS Prophet Proprietary and confidential. Do not distribute. 57
Slide 58: Category expansion levers strategy in action
CATEGORY EXPANSION LEVERS STRATEGY IN ACTION CATEGORY CORE OCCASIONS PREMIUMIZATION BEYOND PARTICIPATION SUPERIORITY DEVELOPMENT BEER 10´ per expansion lever
Slide 59: Replicable model global results: DTC NA beer
REPLICABLE GLOBAL MODEL RESULTS DTC NA BEER NA BEER NET REVENUE CAGR LTM JUNE 2023 vs 2019 +10% 2019 2020 2021 2022 LTM 2023 Source: ABI internal financial data Scope: All markets from 2019 FY till LTM June 2023
Slide 60: Brian Perkins, BU President West Europe
BRIAN PERKINS B U P R E S I D E N T, W E S T E U R O P E
Slide 61: Non-alcohol beer expands occasions, driving frequency
NON-ALCOHOL BEER EXPANDS OCCASIONS, DRIVING FREQUENCY 1 IN 10 FREQUENCY 76% INCREMENTAL BEER CONSUMERS OPTING VIA EXPANDED TO THE BEER CATEGORY FOR A NON-ALCOHOL BEER OCCASIONS Source: CROSSIP x CGA by NielsenIQ Source: beertoday; Low and No: The Customer Perspective UK Source: GFK switching analysi
Slide 62: In spirit of focus, Corona Cero is the horse to bet on
IN SPIRIT OF FOCUS, CORONA CERO IS THE HORSE TO BET ON
Slide 63: Corona Cero is a superior non-alcohol beer
CORONA CERO IS A SUPERIOR NON - ALCOHOL BEER, RECOGNIZ ED WITH INDUSTRY AWARDS LEADING COMPETITION BRAND PURCHASE INTENT 66% 53% PREFERENCE 56% 44% Source: GS&CS, July 2021 Consumer Liquid Research
Slide 64: Since launch the results have been incredible
SINCE LAUNCH THE RESULTS HAVE BEEN INCREDIBLE 1 2 3 FASTEST GROWING NAB LARGEST PAN-EUROPEAN NAB #1 PREFERRED NAB IN YEAR 1 IN EUROPE LAUNCH OF LAUNCH +0.6% MARKET SHARE #1 +14 MARKETS Note: Total UK/NL/BE/GE/FR excl. private label/ Source: Nielsen June 2023 MAT vs 2022 MAT volume share of NAB
Slide 65: Corona Cero enables expansion into white space markets
CORONA CERO ENABLES EXPANSION INTO WHITE SPACE MARKETS FOR THE BRAND NORDICS 450+ KHL MARKET MIDDLE EAST 700+ KHL MARKET
Slide 66: Executed with a simple, premium, scalable family toolkit
EXECUTED WITH A SIMPLE, PREMIUM, SCALABLE FAMILY TOOLKIT THAT WORKS EVERYWHERE
Slide 67: Replicable Model Replicability: DTC NA Beer
REPLICABLE MODEL REPLICABILITY DTC NA BEER
Slide 68: Category expansion levers strategy in action
CATEGORY EXPANSION LEVERS STRATEGY IN ACTION CATEGORY CORE OCCASIONS PREMIUMIZATION BEYOND PARTICIPATION SUPERIORITY DEVELOPMENT BEER 10´ per expansion lever
Slide 69: Premiumization represents a big upside opportunity
Premiumization represents a big upside opportunity Of Total PREMIUM MIX Category ~3x 2x Hard Liquor Across the Category 32% 23% 16% 11% 8% Emerging Developing Developed Total Total Markets Markets Markets Beer Hard Liquor Source: Euromonitor, Internal Estimates Note: 1. Gross/hl based on ABI global
Slide 70: Beer consumption occasions follow four broad motivation types
BEER CONSUMPTION OCCASIONS TYPICALLY FOLLOWS FOUR BROAD TYPES OF MOTIVATIONS HIGHER ENERGY LEVEL OCCASION PROJECT AN IMAGE BUILD ENERGY UNWIND CREATE BONDS LOWER SMALL GROUP LARGE GROUP SIZE 70
Slide 71: Replicable model global results: occasions
REPLICABLE GLOBAL MODEL RESULTS GLOBAL BRANDS ABOVE CORE NET REVENUE HIGHER CAGR LTM JUNE 2023 vs 2019 +11% ENERGY LEVEL OCCASIONS 2019 2020 2021 2022 LTM 2023 LOWER +13% CORONA CAGR LTM JUNE 2023 vs 2019 SMALL LARGE Source: ABI internal financial data Scope: All markets from 2019 FY till LTM June 2
Slide 72: Kyle Norrington and Matt Che
KYLE NORRINGTON C H I E F C O M M E R C I A L O F F I C E R , U S A MATT CHE C M O, A PA C
Slide 73: Health & Wellness and Premiumization key macro trends in US market
Health & Wellness and Premiumization have been two of the key macro trends shaping the us market HEALTH & WELLNESS DRIVING CHOICE PREMIUMIZATION DRIVING GROWTH 79% OF CONSUMERS 83% OF CATEGORY VALUE CONSIDER H&W TO BE GROWTH COMING AN IMPORTANT FROM ABOVE CORE PRIORITY BEER SOURCE: McKinsey H&W Repo
Slide 74: Michelob Ultra
Michclob a ULTRA. LIVE LIFE TO THE
Slide 75: Beer of choice for those who aspire to an active lifestyle
BEER OF CHOICE FOR THOSE WHO ASPIRE TO AN ACTIVE LIFESTYLE
Slide 76: Active Living
ACTIVE NBA PGA FIFA LIVING
Slide 77: It's only worth it if you enjoy it
I T ’ S O N LY W O R T H I T I F YO U E N J OY I T
Slide 78: The road to the 2026 FIFA World Cup
THE ROAD TO THE 2026 FIFA WORLD CUP
Slide 79: Michelob ULTRA has doubled volume in the last five years
Michelob ULTRA has doubled volume in the last five years 13.5 2x 12.5 Volume 11.2 9.8 8.6 7.3 Volume (Million BBLs) 6.1 2003 2016 2022 SOURCE: : VIP A-B Internal Volume FY ’03 through ‘22
Slide 80: Michelob ULTRA has headroom for growth outside its strongholds
MICHELOB ULTRA HAS HEADROOM FOR GROWTH OUTSIDE OF ITS STRONGHOLD REGIONS IN THE SOUTH STRONGHOLD STATES EXPANSION STATES Stronghold Rest of US 5.4 SOURCE: : BIR Volume Share of Category YTD Thru July 2023
Slide 81: It's only worth it if you enjoy it
I T ’ S O N LY W O R T H I T I F YO U E N J OY I T
Slide 82: Kyle Norrington and Matt Che
KYLE NORRINGTON C H I E F C O M M E R C I A L O F F C I E R , U S A MATT CHE C M O, A PA C
Slide 83: China portfolio strategy with each brand playing a unique role
STEERED BY GLOBAL DEMAND PLATFORM, CHINA DEVELOPED A CLEAR PORTFOLIO STRATEGY WITH EACH BRAND PLAYING A UNIQUE ROLE IN DRIVING PREMIUMIZATION OCCASIONS GROSS UNWIND PROJECT AN IMAGE CREATE BONDS BUILD ENERGY MARGINS SUPER PREMIUM ～11.0x PREMIUM ~6.0x CORE+ ~2.0x
Slide 84: China growth fueled by premiumization and profitability
IN CHINA, THE WORLD’S LARGEST BEER MARKET, OUR GROWTH IS FUELED BY CONTINUOUS EFFORTS TOWARDS PREMIUMIZATION AND ENHANCING PROFITABILITY CHINA MIDDLE CLASS KEEPS GROWING PREMIUM+ SEGMENT IS MORE PROFITABLE LEAD THE MARKET WITH PORTFOLIO CHOICES GROSS MARGIN TO PORTFOLIO C/V 8% 11% 11% 27% PREMIUM 24
Slide 85: Budweiser has led and grown premium segment over 20 years
OVER THE PAST 20 YEARS, BUDWEISER HAS CONTINUOUSLY LED AND GROWN PREMIUM SEGMENT 2019 2014 EXCEEDED 20 1995 2009 EXCEEDED MHL 1st BREWERY IN EXCEEDED 4MHL 15MHL CHINA NO.1 >35% >45% INTERNATIONAL PREMIUM SEGMENT PREMIUM BEER BRAND BY SHARE SEGMENT SHARE SALES
Slide 86: Budweiser leads premiumization through 3 strategic approaches
TO OWN BUILD ENERGY OCCASIONS – BUDWEISER CONSISTENTLY LEADS THE PREMIUMIZATION THROUGH 3 KEY STRATEGIC APPROACHES OWN MEANINGFUL LEAD AND SHAPE ICON OF CELEBRATION THE CULTURE AUTHENTIC PREMIUM
Slide 87: Corona is another big growth engine for China
CORONA IS ANOTHER BIG GROWTH ENGINE FOR CHINA TO DRIVE PREMIUMIZATION OCCASIONS GROSS UNWIND PROJECT AN IMAGE CREATE BONDS BUILD ENERGY MARGINS SUPER PREMIUM ～11.0x PREMIUM ~6.0x CORE+ ~2.0x 87
Slide 88: Corona grows as most aspirational super premium lifestyle brand
TO OWN UNWIND OCCASIONS - CORONA GROWS AS THE MOST ASPIRATIONAL SUPER PREMIUM LIFESTYLE BRAND IN CHINA FESTIVAL WORLD TOUR Beach lifestyle Lime WORK WITH LOCAL COMMUNITY TO OWN THE MOST UNWIND OCCASION THE MOST UNIQUE PROMOTE SUSTAINABILITY WITH SUNSETS WORLD TOUR PACKAGING AND DRINKING INITIATIVES
Slide 89: Corona established Lime company
CORONA ESTABLISHED LIME COMPANY TO PROVIDE OUR MOST UNIQUE DRINKING EXPERIENCE TO CONSUMERS Lime THE MOST UNIQUE HIGH-QUALITY LIME DIGITIZED RETAIL PACKAGING AND PRODUCTION SUPPLY CHAIN PROMOTION DRINKING RITUAL DUOLI
Slide 90: Our premiumization strategy is leading performance since 2019
AS A RESULT, OUR PREMIUMIZATION STRATEGY IS LEADING PERFORMANCE SINCE 2019 130 PREMIUM PERCEPTION 125 \ 120 P&SP VOLUME P&SP NET 115 GROWTH REVENUE GROWTH 110 + 16% > + 20% 105 Competitor Competitor 4 3 100 Competitor 2 Competitor 1 95 H1’ 23 vs H1’ 19 H1’ 23 vs H1’ 19 90 85 BRAND POWER 80 0% 5% 10%
Slide 91: China seeding Michelob Ultra to tap health and wellness trends
CHINA IS SEEDING MICHELOB ULTRA TO TAP INTO HEALTH AND WELLNESS TRENDS, SHOWING PROMISING PROGRESS China will have the world largest fitness population of 463.5 MM by 2027 Keep is China's NO.1 Digital fitness App with 2.1 Bn MAU in 2022 China's Organic Food 2017~2022 grew 3x “0 add” or “Lower Sugar”
Slide 92: Replicable model replicability: global brands
REPLICABLE REPLICABILITY MODEL GLOBAL BRANDS HIGHER ENERGY LEVEL OCCASION LOWER SMALL LARGE GROUP SIZE
Slide 93: Category expansion levers strategy in action
CATEGORY EXPANSION LEVERS STRATEGY IN ACTION CATEGORY CORE OCCASIONS BEYOND PARTICIPATION PREMIUMIZATION BEER SUPERIORITY DEVELOPMENT 10´ per expansion lever
Slide 94: Replicable model global results: sweet seekers framework
REPLICABLE GLOBAL MODEL RESULTS SWEET SEEKERS FRAMEWORK NET REVENUE CONTRIBUTION LTM JUNE 2023 vs 2019 ~ 2X PARTY FLAVOURFUL & LIGHT & BAR QUALITY MIXES REFRESHING REFRESHING COCKTAILS PREMIUMIZATION 2019 2020 2021 2022 LTM 2023 Source: ABI internal financial data Scope: All markets from 2019 FY til
Slide 95: Leanne Owens and Kyle Norrington
LEANNE OWENS A F R I C A Z O N E V P, B E YO N D C O . KYLE NORRINGTON C H I E F C O M M E R C I A L O F F I C E R , U S A
Slide 96: Beyond Co.
»*> Beyond Co. eABinBev
Slide 97: Inclusive, incremental, profitable
INCLUSIVE INCREMENTAL PROFITABLE #1 or #2 + 50% ~ 40%+ Females and LDAs incremental to beer average higher gross participation in mature BB profit/hl than beer markets Source: True Data FY '22, Brand Guidance: P4W Female 18-34 & P4W LDA+, Internal Data LE’23 vs Business
Slide 98: The Sweet Seekers
‘THE SWEET SEEKERS’ SWEET, FRUITY, FLAVORFUL AS THE #1 ATTRIBUTE 30% EUR 30% NAZ 28% APAC 25% MAZ 24% SAZ 23% AFR 22% 20% Note: AFR includes RSA, TAN, NIG. SAZ includes ECU, PER, COL, BRA, URU, CHL, ARG. MAZ includes DOM, MEX. APAC includes CHN, KOR. NAZ includes CAN, USA. EUR includes BEL, UK. Sour
Slide 99: We studied the Sweet Seekers using two lenses
WE STUDIED THE SWEET SEEKERS TO UNDERSTAND WHAT CONSUMERS LOOK FOR, USING TWO LENSES: Consumer Needs Product Attributes Level of overlap in consumer Product clusters based on key attributes around purchasing behavior ABV, ingredients and price
Slide 100: Sweet Seeker segmentation
‘SWEET SEEKER’ SEGMENTATION SUB- FLAVOURFUL & LIGHT & BAR QUALITY PARTY MIXES CATEGORIES REFRESHING REFRESHING COCKTAILS Elevate the moment with sweet Sessionable, flavorful and Sessionable, refreshing and Bring the convenience of bar beverages familiar flavors with alcohol familiar flavors with low
Slide 101: ABI International Portfolio
ABI INTERNATIONAL PORTFOLIO SUB- PARTY MIXES FLAVOURFUL & LIGHT & BAR QUALITY CATEGORIES REFRESHING REFRESHING COCKTAILS PREMIUMIZATION
Slide 102: ABI International Portfolio
ABI INTERNATIONAL PORTFOLIO SUB- PARTY MIXES FLAVOURFUL & LIGHT & BAR QUALITY CATEGORIES REFRESHING REFRESHING COCKTAILS PREMIUMIZATION
Slide 103: Flavourful & refreshing in South Africa
FLAVOURFUL & REFRESHING IN SOUTH AFRICA FLAVOURFUL & REFRESHING CO-ED MIXED GENDER SOCIAL OCCASIONS SOCIAL MIXED GENDER
Slide 104: Flavourful & refreshing
FLAVOURFUL & REFRESHING 9 Countries in Africa >65% Incremental Volume #2 FAB Brand 2X Size vs. 2018 Source: True Data YTD’23, Internal ABI Data FAB: Flavored Alcohol Beverage
Slide 105: Flavourful & refreshing: ~1 million HL
FLAVOURFUL & REFRESHING ~1 Million HL +26pp Fastest Growth in Female Participation #1 Female Brand >70% Revenue/ hl vs Country Average Source: Brand Guidance: Q1 ’19 vs. Q2 ’23 P4W Female 18-34, Internal ABI Data
Slide 106: Beyond Beer results in South Africa
BEYOND BEER RESULTS IN SOUTH AFRICA INCLUSIVE INCREMENTAL PROFITABLE Beyond Beer To date Beyond Beer Fastest growth brands brands are #1 in Female participation >50% ~50% incremental to beer higher average revenue Amongst #2 LDAs in participation in all segments per hl than beer Source: True Data FY
Slide 107: ABI International Portfolio
ABI INTERNATIONAL PORTFOLIO SUB- PARTY MIXES FAMILIAR LIGHT & BAR QUALITY CATEGORIES FLAVORS REFRESHING COCKTAILS PREMIUMIZATION
Slide 108: US Beyond Beer retail sales
US Beyond Beer Retail Sales ($Bn) $16 18% Spirit Based $8 $4 82% Malt $2 96% 1% Based $1 $1 98% 99% 1990 … 2000 … 2010 … 2017 2018 2019 2020 2021 2022 Source: Retail Dollar Value Based on IRI Dollar Sales per Volume
Slide 109: Bar quality cocktail, light & refreshing
BAR QUALITY COCKTAIL LIGHT & REFRESHING CO-ED LDA+ 21-34 y/o SOCIAL SOCIAL MIXED GENDER SOCIAL MIXED GENDER
Slide 110: Light & refreshing
LIGHT & REFRESHING 7.7% Share of Segment +210% Growth vs. LY #2 in Segment >70% Incremental Source: Share of Segment IRI TUS MULC +PL Max - July Volume Growth A-B Internal VIP STR Data - Q2 Incrementality IRI OmniChannelTM Scan Panel, TUS MULO 08.13.23
Slide 111: Vodka, seltzer, real juice
Vodka, seltzer, real juice — cv
Slide 112: NÜTRL consistently gaining share
NÜTRL CONSISTENTLY GAINING SHARE 7.7 4.1 3.2 2.2 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul 2022 2023 Source: Share of Segment IRI TUS MULC +PL Max Source: CIRCANA, TUS MULC + PL MAX, WE 07-23-23
Slide 113: Bar quality cocktails
BAR QUALITY COCKTAILS 22.6% Share of Segment +22% Growth vs. LY #1 in Segment >70% Incremental Source: Share of Segment IRI TUS MULC +PL Max - July Volume Growth A-B Internal VIP STR Data - Q2 Incrementality IRI OmniChannelTM Scan Panel, TUS MULO 08.13.23
Slide 114: Slide 114
Slide 115: Beyond Beer results in US
BEYOND BEER RESULTS IN US INCLUSIVE PROFITABLE INCREMENTAL Beyond Beer Beyond Beer brands brands LDA+ >50% >70% over-index with more profitable than beer incremental to beer Co-ed & 21-34 y/o demographics on average NR/HL in all segments Source: Share of Segment IRI TUS MULC +PL Max - July Volume Gr
Slide 116: Replicability family flavour
REPLICABLE REPLICABILITY MODEL FAMILY FLAVOUR SWEET SEEKERS FRAMEWORK PARTY FLAVOURFUL & LIGHT & BAR QUALITY MIXES REFRESHING REFRESHING COCKTAILS PREMIUMIZATION
Slide 117: Category expansion levers strategy in action
CATEGORY EXPANSION LEVERS STRATEGY IN ACTION CATEGORY CORE OCCASIONS PREMIUMIZATION BEYOND PARTICIPATION SUPERIORITY DEVELOPMENT BEER Replicable P.O.S. CORE DTC + 4 GLOBAL SWEET SEEKERS Model SYSTEM SUPERIORITY NA BEER BRANDS SEGMENTATION
Slide 118: Focus Today
FOCUS TODAY MEGABRANDS CATEGORY EXPANSION MODEL
Slide 119: Results since 2019
RESULTS SINCE 2019… BRAND POWER VOLUME NET REVENUE BEER MARKET SHARE Source: Kantar Source: ABI internal financial data Source: ABI internal financial data (Source: Plato Logic) +0.5pp 2022 vs 2019 Scope: Total ABI Footprint
Slide 120: The beer category has been expanding while we gain share of throat
THE BEER CATEGORY HAS BEEN EXPANDING, WHILE WE’VE BEEN GAINING SHARE OF THROAT BEER PER CAPITA SHARE OF THROAT CONSUMPTION BEER +RTD +1.4pp 52.9% 57.3 55.9 51.5% 2019 2020 2021 2022 2019 2020 2021 2022 * Plato Logic taking into consideration ABI Footprint
Slide 121: Key takeaways
1 One global strategy for organic growth KEY 2 Five category expansion levers TAKEAWAYS 3 Unique portfolio of loved megabrands 4 To lead and grow the category with focus, efficiency and scale