Anheuser-busch Inbev Sa/nv · EURONEXT:ABI
Anheuser-busch Inbev Sa/nv — Investor Presentation (2013)
64 slides from Anheuser-busch Inbev Sa/nv's investor presentation, 2013
Slide 1: Paul Chibe, VP, Marketing
Paul Chibe VP, Marketing
Slide 2: Slide 2
Slide 3: Agenda
1 Key Mega Trends Shaping our Consumer 2 The Changing Landscape of the American Consumer 3 A Deeper Look into the Digitally Savvy Millennial 4 The ABI Segmentation 5 US Brand Portfolio: Structured to Win 6 Our Key Strategic Priorities 7 The Marketing Scale to Win
Slide 4: Key Mega Trends Shaping Our Consumer
KEY MEGA TRENDS SHAPING OUR CONSUMER
Slide 5: Megatrend: Individualism
Megatrend: Individualism Consumers seek self-expression, freedom and wisdom; break convention and create new rules I wish I had more opportunities to customize products to really fit my lifestyle* 100% 67% 62% 48% 34% 50% 0% Millennials Gen Xers Boomers Matures Individuality* Millennials Boomers I h
Slide 6: Source: Internal ABI STRs + industry estimates based on IRI and other public sources
Source: Internal ABI STRs + industry estimates based on IRI and other public sources
Slide 7: Megatrend: Sense of Well-Being
Megatrend: Sense of Well-Being Consumers seek health of mind, body and soul through balance, enjoyment and control Anti-Aging U.S. Market will continue to grow from $80 billion to more than $114 billion by 2015 Huffington Post (08/20/11) 13.1 million cosmetic plastic surgery procedures performed in
Slide 8: Michelob ULTRA taps into the well-being megatrend
Michelob ULTRA taps into the well-being megatrend a 4 A 7.6 GRAMS CARBS 95 CALORIES
Slide 9: Megatrend: Premiumization
Megatrend: Premiumization Consumers are trading up in quality and price in mass market "Connoisseurship has never been more popular... it is now applied to an endless cascade of pursuits... coffee, cupcakes, craft beers, cars, watches, fountain pens, stereo system, TVs, computers, tacos, pizza, pick
Slide 10: Stella Artois leverages premiumization through its imagery
Stella Artois leverages premiumization through its imagery
Slide 11: Megatrend: Localization
Megatrend: Localization Consumers buying locally for more authentic and personal experience LOCAL, QUALITY and ACCESS were the three words heard the most from Rusty Woodland (beer buyer for HEB), David Jabour (President of Twin Liquors) and John Lane (VP of Operations for Winking Lizard Tavern) 10th
Slide 12: Budweiser emphasizes localization through its US breweries
Budweiser emphasizes localization through its 12 breweries in the US
Slide 13: Megatrend: Flavor
Megatrend: Flavor Consumers seek stronger, more intense flavors in all food & beverages “Instead, operators are subbing them out for an adoption of sophisticated and unique ingredients, fun experimentation with bold, less-familiar flavors within ethnic cuisines, and a focus on health and whole foods
Slide 14: The Rita Family addresses the flavor megatrend
The Rita Family addresses the consumer megatrend towards more flavor email m ENA a ~OW tylge- “. }
Slide 15: The Changing Landscape of the American Consumer
THE CHANGING TANDSCAPE OF THE AMERICAN CONSUMER
Slide 16: Estimated U.S. Population - Total and 21+
Estimated U.S. Population (000) - Total and 21+ 380,000 Total 358,471 360,000 21+ Years 340,000 316,439 320,000 300,000 280,000 265,208 260,000 229,315 240,000 220,000 200,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Source: US Census – 2012 National
Slide 17: Estimated U.S. Population 21-27 by Hispanic Ethnicity
Estimated U.S. Population (000) - 21-27 By Hispanic Ethnicity 40,000 Hispanic 6,463 8,516 Non-Hispanic 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Source: US Census – 2012 National Population Projections
Slide 18: Hispanic consumer growth statistics
5x Beer Category sales growth rate vs. total US $1.4 Trillion Dollar Economy driven by Hispanic consumers 70% Hispanics are under 40 years of age while Non-Hispanics are 50 years of age 1 in 3 US residents will be Hispanic by 2060 versus 1 in 6 today 39% Real expenditure growth in 2011 came from His
Slide 19: Boomers 50+
Boomers 50+ (% of total US population) 39 39 40 40 38 37 38 38 36 34 34 32 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: USBP/ Total Alcohol Poll Study – Calendar year 2001-2012
Slide 20: Boomers, Gen X and Millennials
Boomers Gen X Millennials 120 Million 61 Million 126 Million Born 1945 - 1965 Born 1965 - 1980 Born 1980 - 2000 Source: US Census Bureaus
Slide 21: A Deeper Look into the Digitally Savvy Millennial
A DEEPER LOOK INTO THE pe DIGITALLY SAVVY MILLENNIAL
Slide 22: 20% of Millennials are Hispanic
20% of Millennials are Hispanic • Higher percentages in key states • Status and image driven trendy aspire • Enjoy partying, want to fit in • Seek brand with high value perception success pride Arizona California Texas Source: Pew Research Center February 2010 study “Millennials: Confident, Connecte
Slide 23: Traditional vs. Millennials life stages
GET MARRIED LIVING WITH GET AN START HAVE CHILDREN PARENTS EDUCATION CAREER CHILDREN LEAVE HOME BUY HOME Traditional life stages COHABIT GET AN START BUY HOME WITH EDUCATION CAREER PARTNER MOVE IN LIVING WITH TRAVEL GET HAVE CAREER OLDER KIDS WITH PARENTS ABROAD MARRIED CHILDREN CHANGE LEAVE HOME FR
Slide 24: Millennial texting and social network usage
Millennials sent an average of 20 75% of Millennials have a profile text messages in the last 24 hours on a social networking site Average 9 Average 41% Millennial 20 Millennial 75% Gen X 12 Gen X 50% Boomer 5 Boomer 30% Source: Pew Research Center February 2010 study “Millennials: Confident, Connec
Slide 25: Value can mean convenience, location and global responsibility
Value can mean convenience, location, Millennials care about the source and ease of trip and global responsibility make-up of their food products For some Millennial consumers: “…they might want to know what the company or manufacturer does to help their community and protect the environment, or whe
Slide 26: Factors Driving Brand Selection
Factors Driving Brand Selection % of Millennials Price is one basis for Item Price 87% brand selection. Previous Brand Experience/Trust 70% Coupons from home 68% Trust and loyalty to a Shopper loyalty discounts 53% brand also are major Request by household member 52% factors for Millennials. In-stor
Slide 27: The ABI Segmentation: Winning in the Total Alcohol Landscape
THE ABISEGMENTATION: WINNING IN THE TOTAL ALCOHOL LANDSCAPE
Slide 28: Beer taste segments
Sweet Sweet and Pleasantly Bitter Full-Bodied Light and Easy Savorable Craft Style American American
Slide 29: Estimated Alcohol Segment Share - Total Adults
Estimated Alcohol Segment Share – Total Adults 100% Hard Liquor 90% 18% 19% 19% 20% 19% 20% 19% 19% 20% 22% 22% 23% Wine 80% Beer 20% 20% 21% 70% 22% 23% 23% 24% 23% 23% 23% 23% 23% 60% 50% 40% 30% 62% 62% 61% 58% 58% 57% 57% 58% 57% 55% 55% 54% 20% 10% 0% 2001 2002 2003 2004 2005 2006 2007 2008 200
Slide 30: Past Week Usage vs. Alcohol Category
Past 4 Week Usage vs. Alcohol Category Beer Only 15% 15% 13% 23% Hard Wine Liquor 12% Only 15% Only 7% Source: Total Alcohol Poll Past 4 Week Alcohol Drinkers age 21+ (12MM March ‘13)
Slide 31: Comprehensive consumer-focused view of adult beverage drinkers
— en ‘ ¥ We developed a comprehensive; consumer-focused view of all adult beveragé drinkers — s 7 ap
Slide 32: Some images not visible to protect commercial confidentiality
Some images not visible to protect commercial confidentiality
Slide 33: Relax & Unwind, Treat Myself, Let Go
Relax & Unwind Treat Myself Let Go Some images not visible to protect commercial confidentiality
Slide 34: Need States
Consumer Type Share of Beer Opportunity Win in Beer 1 centric occasions Need States Gain share of Food 2 occasions Share of Throat Opportunity 3 Innovate for mood shift 4 Innovate for party time occasions Source: ABI Consumer Segmentation
Slide 35: Relax and wind down
I WANT TO… Relax and wind down WITH A DRINK THAT… Is refreshing and easy to drink FUNCTIONAL NEEDS Correlation Is easy to drink Is refreshing Is a good value Does not upset my body Has a light taste Is not filling/bloating Source: ABI Consumer Segmentation: functional / emotional drivers of need sta
Slide 36: Optimize my food enjoyment
I WANT TO… Optimize my food enjoyment WITH A DRINK THAT… Complements my meal FUNCTIONAL NEEDS Correlation Is good for savoring Enhances the meal Is good with food Is superior quality Is worth paying more for Has a strong, intense flavor Source: ABI Consumer Segmentation: functional / emotional drive
Slide 37: Reward myself with a treat
I WANT TO… Reward myself with a treat WITH A DRINK THAT… Delivers sweet, fruity refreshment FUNCTIONAL NEEDS Correlation Has a sweet taste Has a fruity flavor Is refreshing Is fun to drink Is easy to drink Source: ABI Consumer Segmentation: functional / emotional drivers of need states
Slide 38: Let loose, have fun
I WANT TO… Let loose, have fun WITH A DRINK THAT… Mixes well, can be consumed easily FUNCTIONAL NEEDS Correlation Mixes welll Is fun to drink Has a sweet taste Is easy to drink Source: ABI Consumer Segmentation: functional / emotional drivers of need states
Slide 39: US Brand Portfolio: Structured to Win
US BRAND PORTFOLIO: STRUCTURED TO WIN
Slide 40: Need States
Consumer Type Share of Beer Opportunity Win in Beer 1 centric occasions Need States Gain share of Food 2 occasions Share of Throat Opportunity 3 Innovate for mood shift 4 Innovate for party time occasions Source: ABI Consumer Segmentation
Slide 41: Need States
Consumer Type Need States 1
Slide 42: Need States
Consumer Type Need States 2
Slide 43: Need States
Consumer Type Need States 3
Slide 44: Need States
Need States Consumer Type 4
Slide 45: Our Strategic Priorities
OUR STRATEGIC PRIORITIES
Slide 46: We will become the #1 CPG in Digital
1 We will become the #1 CPG in Digital 2 We will invest in content & technology to reach and engage the Millennial consumer 3 We will measure success by sales & brand health
Slide 47: Our Bud Light Mega strategy is working
1 Our Bud Light Mega strategy is working 2 Bud Light base has a big opportunity with Millennials 3 We have an unmatched portfolio of properties & assets
Slide 48: Committed to continue stabilizing the brand
1 We are committed to continue stabilizing the brand 2 We have strong programs to retain Traditionalist drinkers 3 We have strong platforms to target Millennial consumers
Slide 49: ULTRA is well positioned for Premiumization & Well Being
1 ULTRA is well positioned for Premiumization & Well Being megatrends 2 Brand is realizing consistent growth (>6% CAGR last 3 years) 3 Brand is leveraging active lifestyle positioning to add new consumers
Slide 50: High End continues to grow
1 High End continues to grow, driven by big brands and brewers 2 We have a strong, scalable High End portfolio 3 We are increasing investment in the High End
Slide 51: Our Value business has scale & delivers resources to win
1 Our Value business has scale & delivers resources to win 2 We are closing our price gap to Premium 3 Our Value share is at an all-time high
Slide 52: Volume: AB Value, Craft, Industry
VOLUME (MILLION HL) 32 18 AB Value Craft Industry Source: A-B Competitive Monitoring Estimates, 2012
Slide 53: Value Price as % of Premium
VALUE PRICE AS % OF PREMIUM 77 +6PP 71 2008 2009 2010 2011 2012 2013 YTD Source: IRI MULC, 2013 YTD through 4 wks ending 8/11/13
Slide 54: IRI MULC share trend 2009-2013
58.0 +0.2 57.0 56.0 55.0 2009 2010 2011 2012 2013 Source: IRI MULC 4wks 2/1/09 – 10/06/13 Source: IRI MULC
Slide 55: The Marketing Scale to Win
THE MARKETING SCALE TO WIN
Slide 56: Top Brands Total U.S. 2013
Top 10 Brands Total U.S. 2013 Bud Light 20.6 Coors Light 8.4 Budweiser 7.3 Miller Lite 6.6 Bud Light is bigger than all competitive Natural Light 5.1 brands in the top 10 Busch Light combined. 4.0 Busch 3.1 Corona Extra 2.9 Keystone Light 2.4 ULTRA 2.2 Source: IRI MULC, Share YTD thru October 20, 20
Slide 57: Austin City Limits sponsorship
AUSTIN CITY LINAITZ. BUMBERSH@OT
Slide 58: Major League Baseball, Olympics
MAJOR LEAGUE BASEBALL OLYMPICS 5 8
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Slide 60: ULTRA properties
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Slide 61: Stella Artois sponsorships
‘A lila AMOIs spons ors tne Most sopnisticated ana it properties in the world FESTIVAL DE CANNES Official Partner FESTIVAL aMNNES. i CATALINA [GUREEIATIE PEBBLE BEACH FOODEWINE 081: cH FEST
Slide 62: Summary: changing consumer, segmentation, portfolio, marketing scale
1 We understand our changing consumer 2 Our segmentation enables us to address their needs 3 We have the brand portfolio to win 4 We have the marketing scale to win
Slide 63: Introducing the US Marketing Team
INTRODUCING THE US MARKETING TEAM
Slide 64: Marketing Topic Presenter
Marketing Topic Presenter Digital Azania Andrews Rob McCarthy Brian Perkins Lori Shambro Adam Oakley Innovation Pat McGauley