Slide 1: Analyst Day 2016
Ry) Coe MARSTON ’S. ANALYST DAY 2016
Slide 2: MBC Vision and Strategy
MBC VISION AND STRATEGY “UK’s leading Ale Brewer” Extending our No1 position with brands demanded and loved by customers and consumers Vision Big Brands Localness Customer Service Supply Chain Innovation Outstanding Highest quality at Strategy Pillars customer service and optimum cost Leverage our D
Slide 3: Key Messages
KEY MESSAGES Brewing • Original craft; Unions, Cooper and Burton water • Innovative styles and technologies; fastcask Sales and Marketing • Core brands delivering current and future growth • Market share gains in premium categories Innovation • Insightled NPD executed with pace • Future pipeline of
Slide 4: Brewing
BREWING
Slide 5: Total Group Brewing Volume
TOTAL GROUP BREWING VOLUME 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 6: Brewing Expertise
BREWING EXPERTISE WE HAVE A WEALTH OF EXPERTISE ACROSS OUR BREWING TEAM THAT INCLUDES; • 1 Fellow of the Institute of Brewing and Distilling • 8 Master Brewers (+ 5 in training) • 1 Beer Sommelier (+ 1 in training) • 1 All Beer Parliamentar y Beer Group Brewer of the Year 2014 15 BEERS WINNING 20 AW
Slide 7: Slide 7
Slide 8: Slide 8
Slide 9: Sales and Marketing
SALES AND MARKETING
Slide 10: MBC Marketing Strategy
MBC MARKETING STRATEGY Extend our No1 position with brands demanded and loved by our customers and consumers Deliver incremental growth through industry leading insight & NPD Drive Hobgoblin, Pedigree and Wainwright nationally while growing local brand families regionally
Slide 11: Most shopped brand in Off Trade
• The most shopped brand in Off Trade with 1.9m shoppers in 2015 • Number 90 in The Grocer Top 100 Alcohol Brands 2016 • Recruiting new consumers; • Gold PBA £3m RSV in 1st Year* • Ruby is number 1 PBA Recruiter Brand** *Source: IRI All Outlets, 28 Feb 16 **Source: RBD Shoppertrack 16
Slide 12: Find Your Mountain
FIND • Relaunched with contemporary branding • Authentic/unique with individual appeal • 5 awards won in 4 years YOUR • Golden ales - Drive trial & recruitment of younger drinkers MOUNTAIN
Slide 13: Local Strategy
LOCAL STRATEGY Regional brand families account for 60% of total own ale volume
Slide 14: MBC Share Growth in Ale Market
MBC SHARE GROWTH IN ALE MARKET 5.75M 16% 770k 14% 5.72 5.7M 12% 5.65M 614k 10% 5.63 MBC Share 5.6M 526k Brls 8% 5.55M 6% 5.52 5.5M 4% 5.45M 2% 5.4M 0% 2013 2014 2015 2016 2017 2018 2019 2020 TOTAL ALE MARKET VOLUME MARSTON’S SHARE % Source: BBPA ABS 2016
Slide 15: Beer Volume Share
ON TO OFF SHIFT WILL CONTINUE On Trade Off Trade 60% 55% BEER VOLUME SHARE 50% 45% 40% 35% 30% 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: BBPA ABS 2016 + MBC Forecast
Slide 16: Cask Ale Category Leader
CASK ALE CATEGORY LEADER TENANTED AND LEASE BREWER SHARE OF CASK ALE FREE TRADE BREWER SHARE OF CASK ALE TENANTED AND LEASE 12.2%BREWER SHARE OF CASK ALE FREE 11.8% TRADE BREWER SHARE O Marston’s Marston’s 12.2% 12.1% 12.2% Marston’s 10.5% Marston’s 11.3% Molson Coors Greene King 12.2% 9.8% 11.3% 10
Slide 17: Unrivalled Brands and Service
UNRIVALLED BRANDS AND SERVICE 5 REGIONAL BREWERIES AND 8 DIFFERENT BRAND FAMILIES We craft some of the nation’s favourite cask, craft, keg and bottled ales SUPPLIER IN THE LAST 3 National 2016 READERS’ POLLS Wide range of network of market leading TRADE standard, premium AWARD A range of 24 permanen
Slide 18: PBA Category Growth
PBA CATEGORY GROWTH £1bn £1bn £900m £800m £700m £600m £538m RSV £500m £400m £280m £300m £200m £100m £0m 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Using BBPA volume and IRI Avg. Price Data; 52 W/E to 2 Jan 2016
Slide 19: Top Brewers by Value
TOP 10 BREWERS BY VALUE MARKET SHARE YOY VALUE CHANGE Marston’s 18.0% +9% Greene King 12.9% +1% Molson Coors 6.6% +50% Hall & Woodhouse 6.2% -9% Shepherd Neame 5.8% -12% Fullers 4.6% -9% Heineken 4.3% -9% Charles Wells 4.1% +4% Brewdog 3.6% +119% St Austell 2.7% +28% Source: IRI All outlets, W/E 23
Slide 20: 2020 Off Trade Plan
2020 OFF TRADE PLAN £250m £194m +26.5% £200m £152.5m +77% £150m RSV £86.4m £100m +£41.5m RSV NPD +£17.5m Craft +£11.4m £50m +£66m RSV 26% of total category growth Hobgoblin +£23m NPD +£36.5m 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 21: Innovation
INNOVATION
Slide 22: Younger and Better
YOUNGER AND BETTER DRINKING OUT WEEKLY ON TRADE CONSUMPTION 35% 51% TOTAL GB 18-34 YEAR OLDS +£1.5bn Value vs 2012 FUTURE PBA PURCHASING INTENT -860m INTENT TO BUY MORE Serves vs 2012 51% 55% 19% 3% -1% -17% BUY LESS 18 to 24 25 to 34 35 to 44 45 to 54 55 to 65 66+ Source: CGA strategy Brand Index d
Slide 23: Craft Beer
CRAFT BEER 7.1million OFF TRADE 5,000 4,500 4,000 VOLUME (000’s LITRES) GB consumers now typically 3,500 drink craft beer when out-of-home. A figure higher than the equivalent 4.8m for gin. 3,000 2,500 +68% ON TRADE 2,000 1,500 +34% VOLUME VALUE +44% +50% 1,000 500 0 2014 2015 2016 Source: SIG BWS O
Slide 24: Marston's 22% of Total NPD Value
MARSTON’S 22% OF TOTAL NPD VALUE TOTAL NPD VALUE £17.5M RSV 22% = £3.8m RSV NPD currently 5.4% of category value. 2020 vision 20% of category value. Source: IRI All outlets, W/E 23 April 2016
Slide 25: Top On Trade Craft Brands
TOP 5 ON TRADE CRAFT BRANDS #1 #2 #3 #4 #5 BROOKLYN BREWDOG SHIPYARD MEANTIME CAMDEN LAGER PUNK IPA PALE ALE HELLS LAGER 4.7% SHARE 2.5% SHARE AMERICAN 1.8% SHARE 1.6% SHARE (+56.6% vs YA) (+99.8% vs YA) PALE ALE (+70.5% vs YA) (+127.6% vs YA) 1.9% SHARE (+269.8% vs YA) Shipyard is the fastest growi
Slide 26: Production and Logistics
PRODUCTION AND LOGISTICS
Slide 27: Bottling and Warehouse Volumes
BOTTLING AND WAREHOUSE VOLUMES FY 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Delivered Volumes Bottling Volumes
Slide 28: Home Keg Innovation
2014 2015 HOME KEG INNOVATION £5.0m MINIKEG CATEGORY VALUE £4.5m Marstonʼs £4m Other £3.5m £3m 56% RSV £2.5m £2.4m £2m £1.5m £1m £1.9m £0.5m £0m 2014 2015 2016 • 28% incremental • MiniKeg shoppers are twice as likely to be under 45 Source: IRI All outlets, W/E 23 April 16. Kantar WPO Marstonʼs Oth
Slide 29: Leveraging Localness in Off Trade
2014 2015 LEVERAGING LOCALNESS IN OFF TRADE £20m MIXED PACK CATEGORY VALUE £18m Marstonʼs £16m Other £14m £12m 61% RSV £10m £10.7m £8m £6m £4m £2m £6.8m £0m 2014 2015 2016 The Mixed Pack Categor y is growing at +25% YoY Source: IRI All outlets, W/E 23 April 16 Marstonʼs Other
Slide 30: Beer Company
BEER COMPANY