Anheuser-busch Inbev Sa/nv · EURONEXT:ABI
Anheuser-busch Inbev Sa/nv — AB InBev — Investor Day (2018)
57 slides from Anheuser-busch Inbev Sa/nv's investor day presentation, 2018
Slide 1: AB InBev Investor Seminar 2018
ABInBev INVESTOR SEMINAR 2018
Slide 2: Legal Disclaimers
Legal Disclaimers 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
Slide 3: David Almeida
• Born in 1976 DAVID • 20 Years in our company ALMEIDA • Favourite Beer Hoegaarden • I’m most proud of the Brahma Chief People Officer to AB InBev Journey & Interim Chief Sales Officer
Slide 4: To Recap…
To Recap… Excitement Category Expansion Framework Market Maturity, Country Clusters Global & Local Brands, Consumer Connections
Slide 5: Case for Change: What does this mean for Customers?
Case for Change: What does this mean for Customers?
Slide 6: From…
From…
Slide 7: eae ih a die\ i
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Slide 8: Putting it all together…
Putting it all together… From To… • Limited Portfolio of brands & suppliers • Wide range of brands & suppliers Customer • Volume concentrated in few packs / sizes • Volume fragmented in more different SKUs • Limited differentiation by price / styles • More price segments / beer styles • Simple sales
Slide 9: Customer Enablers
Customer Enablers Markets $ Cluster 1 Cluster 2 Clusters 2 & 3 Main Penetration Frequency Premiumization Priority Key Affordability Availability Coolers In Home Occasion Easy Drinking Core+ Premium Drivers Super Premium Customer Enablers 0 100 0 100 0 100 Base model Evolved model Full model
Slide 10: Customer Enablers
Customer Enablers Markets $ Cluster 1 Cluster 2 Clusters 2 & 3 Main Penetration Frequency Premiumization Priority Key Affordability Availability Coolers In Home Occasion Easy Drinking Core+ Premium Drivers Super Premium Contact Strategy Customer High End Company Enablers Retail Solutions
Slide 11: AB InBev is upgrading its sales approach - contact strategy 2.0
AB InBev is upgrading its sales approach - contact strategy 2.0 Traditional model Contact strategy 2.0 Results EFFECTIVENESS Transaction MKT SHARE Service COST TO SELL Experience MATURITY LEVEL SERVICE LEVEL Relationship
Slide 12: Contact strategy evolves in line with market maturity model
Contact strategy evolves in line with market maturity model Maturity 1 Maturity 2 Maturity 3 Accept | Formalize Early | Socialize | Late Routinize | Sophisticate High market Field sales & distribution Telesales B2B share Telesales Telesales Teleales Low market Distribution Distribution B2b Distribut
Slide 13: Contact strategy 2.0 achieved significant results and will continue to accelerate
Contact strategy 2.0 achieved significant results and will continue to accelerate Effectiveness Cost to sell Service level TT Revenue ($B) FTE $ / 100 hl B2B users (% Of total customer base) TRADITIONAL (sales reps) NON-TRADITIONAL (telesales+b2b+eletronic direct invoice) 0% -3% 40% -8% 22% 32% 11%
Slide 14: Scaling of contact strategy 2.0
Scaling of contact strategy 2.0 Key Figures #160 Operations in 25 different business units implemented 40% Non-traditional TT Revenue ($23 Bio) in 2018 20 Customer interaction centers with 3,050 Telesales representatives Main Results Volume Uplift Cost to Sell SKU / POC +1.9% -12.1% +0.2%
Slide 15: From telesales to customer interaction center
From telesales to customer interaction center MEXICO UNITED STATES CANADA COLOMBIA
Slide 16: Increasing relevance of B2B solution
Increasing relevance of B2B solution December 2018 +100x $630M 650 K users December 2017 $360M Jan 2016 $6.1M 22k users Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2016 2017
Slide 17: Evolution of B2B experience
Evolution of B2B experience December 2018 $ Transaction +100x Experience Personalization $630 Mio 650 K Users Phase 1 Phase 2 Phase 3 (2015-2016) (2017-2018) December 2017 (2019-2020) $360 Mio Jan 2016 Jan 2016 $6.1 $6.1 Mio Mio Jan 2016 $6.1Users 22K Mio App / Web Frontend Behavioral Data 22KMinimu
Slide 18: AB InBev must evolve digitally and is uniquely positioned to do so
AB InBev must evolve digitally and is uniquely positioned to do so New distribution space Unique position to leverage DEPTH (Services) REACH (Customer Base)
Slide 19: Current digital structure to be complemented with new products and services
Current digital structure to be complemented with new products and services Full POCM Marketplace POCM B2B E-Commerce Marketing Digital E-Learning Credit Programs Payment Partner AB InBev Products Credit Products (soda, snacks) Management Tools & Financial Education Services Core Digital Identity Ca
Slide 20: Contact Strategy 2.0 Sales Transformation
CONTACT SALES STRATEGY 2.0 TRANSFORMATION
Slide 21: Customer Enablers
Customer Enablers Markets $ Cluster 1 Cluster 2 Clusters 2 & 3 Main Penetration Frequency Premiumization Priority Key Affordability Availability Coolers In Home Occasion Easy Drinking Core+ Premium Drivers Super Premium Contact Strategy Customer High End Company Enablers Retail Solutions
Slide 22: Where does High End Company fit?
Where does High End Company fit? Premiumization Other Beer Styles Flavored Beer Easy Drinking Classic Affordability
Slide 23: High End: Expected to grow faster and more profitable than core
High End: Expected to grow faster and more profitable than core 4.3% 2x & CAGR Revenue per hl HIGH END 5x Faster growth ~2x More profitable than core than core Source: 1) Industry Growth expectation based on Industry Volume from PlatoLogic (Release June 2016); Growth rate = CAGR 2014 – 2020. 2) Prof
Slide 24: High end expected to reach over 200M hl by 2020
High end expected to reach over 200M hl by 2020 High End Industry (Estimation) 220M hl 2020 185M hl 2016 Source: PlatoLogic. Release Jun ‘16 & extrapolation based on Zones Subm. 1YP ‘17 on Nov / Dec ‘16 to reflect Price Points where our HE Co plays in (ie: ~>=130% index) *Source: Internal data
Slide 25: Identified 22 markets that account for ~70% of the opportunity
Identified 22 markets that account for ~70% of the opportunity
Slide 26: Opportunity to grow share across beer styles
Opportunity to grow share across beer styles Base case - market share 2016 By Segment By Beer Style -11pp -11pp -10pp -18pp -30pp -36pp FAIR SHARE (22 countries) LAGER WHEAT ALE ALE-IPA STOUT Source: Market Submission during 3YP 2018 (April-May 2018) + USA & BEL are based on original 2020 Plan. Calc
Slide 27: Two main focus areas to capture opportunities and close gaps
Two main focus areas to capture opportunities and close gaps ONE HIGH END SPECIALIZATION PORTFOLIO FOR HIGH END SEGMENT PROFILE SKILLS TRAINING TOOLS
Slide 28: Our Dream
Our Dream Revenue Contribution to Leadership by People & AB InBev growth beer style capabilities Revenue by 2020 #1 Contributor to #1 Leader in every #1 Talent & capabilities (vs. 2016 Base Case) revenue growth relevant beer style for AB InBev
Slide 29: “Outside-in” approach to high-end company design
“Outside-in” approach to high-end company design OUTSIDE IN Craft 22 Targeting POCs Focus Tier 1 Premium POCs Countries Regions Mainstream POCs
Slide 30: Specialized structure to build and develop brands
Specialized structure to build and develop brands OUTSIDE IN Dedicated Owners Company within Company Zone President 20 Owners Mktg VP Sales VP VP High End Brands Sales & Logistics Mktg High High End End
Slide 31: Portfolio Strategy informed by market maturity model
Portfolio Strategy informed by market maturity model Illustrative example Market Lifestyle / Origin / Maturity Lager Wheat Ale Ale - IPA Stout Prestige Stage Order of Priority L1 / C1 Order of Priority L2 / C2 Early Order of Priority L2 / C2 Late Local Brands Order of Priority L3 / C3 Local Brands
Slide 32: High End Company: Platform to deploy and build brands via global toolkits
High End Company: Platform to deploy and build brands via global toolkits TOOLKITS
Slide 33: The Beer Connections
THE BRAND EQUITY BEER POSITIONING DESIGN CONNECTIONS COMMERCIAL BETTER EXPERIENTIAL PROGRAMS WORLD
Slide 34: Knowledge and creativity unleashed by integrating craft breweries
Knowledge and creativity unleashed by integrating craft breweries 35 Brands 15 Countries AWARDED ALMOST 200 MEDALS Source: # of Medals based on Major International Beer Competitions as reported in 2017 20-F SEC filing.
Slide 35: 2017 foundational and transformational year
2017 foundational and transformational year
Slide 36: Successful roll out delivering strong commercial performance
Successful roll out delivering strong commercial performance Roll out in 22 markets Revenue growth acceleration Closing gap vs. fair share 2016 2017 Fair share Go Live 22 countries +1pp +0.4pp +1pp 22 COUNTRIES +14% +26% +4pp +4pp ~flat Experienced owners & specialized teams Before After Lager Wheat
Slide 37: Success stories across several markets
Success stories across several markets China Colombia South Africa “Developing super premium with “18 months after, we’re leading “Growing triple digit, gaining share consistent share growth” international premium segment” by doing things differently” Position in Premium / Super premium (Volume mark
Slide 38: High End is our single biggest opportunity…
High End is our single biggest opportunity… SINGLE BIGGEST = OPPORTUNITY Segment is growing Is more We under-index faster profitable 5x Faster 2x More profitable 10pp Gap vs. than core than Core fair share
Slide 39: … and we’re on track to deliver our Dream!
… and we’re on track to deliver our Dream! Contribution to Leadership by beer People & Revenue dream AB InBev growth style capabilities Revenueby 2020 #1 Contributor to #1 Leader in every #1 Talent & capabilities (vs. 2016 Base Case) revenue growth relevant beer style for AB InBev
Slide 40: Customer Enablers
Customer Enablers Markets $ Cluster 1 Cluster 2 Clusters 2 & 3 Main Penetration Frequency Premiumization Priority Key Affordability Availability Coolers In Home Occasion Easy Drinking Core+ Premium Drivers Super Premium Contact Strategy Customer High End Company Enablers Retail Solutions
Slide 41: Different solutions for different market maturities
Different solutions for different market maturities 1 Base Model 2 Evolved Model 3 Full Model Basic trade infrastructure to Retail integration to boost Digital trade programs to grow increase penetration frequency and premiumization category and premiumize
Slide 42: In low maturity markets focus on the basics to gain penetration
In low maturity markets focus on the basics to gain penetration Basic trade infrastructure to Retail integration to boost Digital trade programs to grow 1 increase penetration 2 frequency and premiumization 3 category and premiumize USING COOLERS FOR PENETRATION AND AVAILABILITY TRADE PROGRAMS CREAT
Slide 43: +170 khl
+50% 17,832 # of on premise POC’s +170 khl Feb 2018 vs. 2016
Slide 44: In medium maturity markets drive frequency and shape the category
In medium maturity markets drive frequency and shape the category Basic trade infrastructure to Retail Integration to boost Digital Trade Programs to grow 1 increase penetration 2 frequency and premiumization 3 category and premiumize 11,000 MEXICO OWNED & FRANCHISED MODELORAMAS: STORES WORLDWIDE Fr
Slide 45: Better and more convenient locations
Better and more convenient locations Growth Zones City Center Now on Google Maps! + Beer Store delivery via Pepe Delivery Premium Beer Trucks Uber Eats connecting POCs w/ consumers
Slide 46: Pit Stops in Brazil
Pit Stops in Brazil Container Piloting C-Store Concept Returnable Glass Bottle Shop
Slide 47: BBC Pub, BBC Bodega, BBC Container
BBC PUB BBC BODEGA BBC CONTAINER
Slide 48: A sound retail strategy can drive growth
A sound retail strategy can drive growth Basic trade infrastructure to Retail Integration to boost Digital Trade Programs to grow 1 increase penetration 2 frequency and premiumization 3 category and premiumize Incremental distribution • Whitespace regions Highly scalable • Geolocation -> high potent
Slide 49: Data-driven Trade Programs in high maturity markets
Data-driven Trade Programs in high maturity markets 1 Base Model 2 Evolved Model 3 Full Model Basic Trade Infrastructure to Retail Integration to boost Digital Trade Programs to grow increase penetration frequency and premiumization category and premiumize
Slide 50: Online category management approach
Online category management approach On Trade Industry Landscape Example - Illustrative 1 3 Increase AB InBev market share 1 2 2 Increase beer penetration and share of throat FOOD SHARE OF BEER NA 3 Upsize on trade business / Beverage expanding occasions 7% NON ALCOHOL BEVERAGE WINE
Slide 51: Connected POC: technology driving growth
Connected POC: technology driving growth
Slide 52: 3 key pillars of Connected POC
3 key pillars of Connected POC 1 Data acquisition & cleansing 2 Data analytics 3 Data driven activities Integrate with POS transaction Strategic data POS integration Tactical Key insights Capture data through LOT technologies Possible solutions Operational Smart flowmeter 3G hub Test & learn in POC’
Slide 53: The Connected POC: data-driven platform for high-maturity markets
The Connected POC: data-driven platform for high-maturity markets Unprecedented industry data • Full industry data, beyond beer • High granularity of transactional data • Nearly real time to enable fast action Drive category expansion • Crack the code for category driver metrics • Actionable insight
Slide 54: Different solutions for different market maturities
Different solutions for different market maturities 1 Base Model 2 Evolved Model 3 Full Model Basic trade infrastructure to Retail integration to boost Digital trade programs to grow increase penetration frequency and premiumization category and premiumize
Slide 55: Customer Enablers
Customer Enablers Mkts $ Cluster 1 Cluster 2 Clusters 2 & 3 Main Penetration Frequency Premiumization Priority Key Affordability Availability Coolers In Home Occasion Easy Drinking Core+ Prem / S Prem Drivers Contact Strategy Customer High End Company Enablers Retail Solutions
Slide 56: In Summary…
In Summary… Contact Strategy High End Company Retail Solutions “Driving digital sales “Strong portfolio & specialized “From Hardware to full online transformation for the future” teams to win in High End” CatMan & analytics” SPECIALIZATION 1 3 FOR HIGH END SEGMENT PROFILE 2 SKILLS TRAINING TOOLS
Slide 57: Thanks!
Thanks!