Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — Molson Coors Brewing Company — Investor Day (December 2011)
91 slides from Molson Coors Beverage's investor day presentation, Dec 5, 2011
Slide 1: Investor Day/Seminar
Investor Day/Seminar Gary Leibowitz Senior Vice President, Investor Relations SABMiller Dave Dunnewald Vice President, Global Investor Relations Molson Coors Brewing Company 1
Slide 2: Tom Long, Chief Executive Officer
TOM LONG Chief Executive Officer 2
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Slide 4: $750M Commitment to be Delivered One Year Early
$750M Commitment to be Delivered One Year Early Annualized Savings & Synergies ($'s in millions) $800 $700 $600 $500 $400 $300 $200 $100 $- 2008-2009 2008-2010 2008-2011 Q3 Savings $76 $150 $192 Synergies $273 $505 $546 4
Slide 5: Beer Share Losses to Wine and Spirits
Beer Share Losses to Wine and Spirits 2000 Share of Alcohol Servings 2000 to 2010 Beer: 59.2% 1.0% Spirits: 27.6% 0.5% Wine: 13.2% 0.0% 2000-10 Beer: -5.2% -0.5% Spirits: +2.7% Wine: +2.5% -1.0% 2010 -1.5% Beer: 54.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Spirits: 30.3% Beer Spirits
Slide 6: Wine and Spirits Expansion Into Beer Occasions
Wine and Spirits Expansion Into Beer Occasions High Energy / Extroversion Spirits Sociability & Belonging Stand Out Fit in Cut Above the Rest Premium Lights From Group Crafts With Group Imports Wine IMP/SYS™ Low Energy / Introversion 6
Slide 7: Wine and Spirits Commercial Strategies
Wine and Spirits Commercial Strategies Wine and spirits employed commercial strategies that allowed them to break into traditional beer drinking occasions Spirits Wine • Launched new flavor • Educated consumers extensions • Improved availability • Increased advertising • Developed new packaging • Em
Slide 8: Big Opportunities for Beer in Broadening Reach
Big Opportunities for Beer in Broadening Reach High Energy / Extroversion Spirits Sociability & Belonging Stand Out Cut Above the Rest Fit in From Group Crafts Premium Lights With Group Imports Wine IMP/SYS™ Low Energy / Introversion 8
Slide 9: Innovations
Innovations 9
Slide 10: Sports Alliances
Sports Alliances College Alliances 10
Slide 11: Tenth and Blake
Tenth and Blake 11
Slide 12: Winning in Beer 2.0
Winning in Beer 2.0 Elevate Society Resources Earn Brands People Distributor Customer Retailer Consumer Preference Fuel Embrace Growth Responsibility Engage People 12
Slide 13: Evolve
EVOLVE
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Slide 15: Andy England, Chief Marketing Officer
ANDY ENGLAND Executive Vice President & Chief Marketing Officer 15
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Slide 17: Winning in Beer 2.0
Winning in Beer 2.0 Society Earn Elevate Resources People Customer Brands Distributor Retailer Preference Consumer Fuel Embrace Growth Responsibility Engage People 17
Slide 18: Elevate Brands
Elevate Brands • Take share in Premium Lights • Maintain Below Premium portfolio net contribution • Build a presence in emerging specialty segments • Deliver consumer-preferred quality • Accelerate share in Crafts and Imports ? Cider ? 18
Slide 19: Take Share in Premium Lights
Take Share in Premium Lights 19
Slide 20: Take Share in Premium Lights
Take Share in Premium Lights Premium Light Down Premium Light Up Category Up Category Up Total Category Premium Light Down Premium Light Up Category Down Category Down Premium Lights 20
Slide 21: Revitalize Miller Lite
Revitalize Miller Lite Multicultural Programs Innovation Strategic Partnerships New Advertising Sports and Media 21
Slide 22: Accelerate Coors Light Growth
Accelerate Coors Light Growth Aluminum Pint Re-launch Strategic Partnerships 22
Slide 23: Re-Invent MGD 64
Re-Invent MGD 64 New Advertising New Graphics & Brand Name 360 Summer Activation 23
Slide 24: Take Share in Premium Lights
Take Share in Premium Lights 24
Slide 25: Maintain Below Premium Net Contribution
Maintain Below Premium Net Contribution 25
Slide 26: Keystone Light
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Slide 27: Miller High Life
Miller High Life 27
Slide 28: Build a Presence in Emerging Specialty Segment
Build a Presence in Emerging Specialty Segment ? Cider ? 28
Slide 29: Deliver Consumer Preferred Quality
Deliver Consumer Preferred Quality 29
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Slide 32: Tom Cardella, Tenth and Blake Beer Company
TOM CARDELLA President & Chief Beer Merchant Tenth and Blake Beer Company 32
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Slide 34: Continued Craft Growth Forecasted
Continued Craft Growth Forecasted 14% Volume in Million BBLs Annual % Volume Growth 14.0 12% 12.8 11.5 10% 10.2 9.1 8.5 8% 7.9 8.1 7.0 6.4 6.6 6% 6.1 6.3 5.8 6.0 5.7 4% 2% 0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Sources: Brewers Association, Nielsen 34
Slide 35: Wine and Spirits Expansion Into Beer Occasions
Wine and Spirits Expansion Into Beer Occasions High Energy / Extroversion Spirits Sociability & Belonging Stand Out Fit in Cut Above the Rest From Group Crafts Premium Lights With Group Imports Wine IMP/SYS™ Low Energy / Introversion 35
Slide 36: Different Capabilities Drive Success
Different Capabilities Drive Success “Mainstream” beer world “Specialty” beer world • Mature, slow growth segments – accessible brands • Innovative, rapidly growing segment – discovery brands • A few players lead because size matters – scale • Many competitors – fragmented, unique, authentic – • Les
Slide 37: Tenth and Blake Provides Right Strategic Platform
Tenth and Blake Provides Right Strategic Platform Tenth and Blake Strategy Galvanize resources and build capability to acclerate craft and import growth Great Beers Great Beer Partnerships Great Beer Merchants Organic growth Distributor segment capability Deep beer culture and capability Inn
Slide 38: Great Beer
GLUE MOON & BREWING CO.
Slide 39: Great Beer: Expanding in Key Segments
Great Beer: Expanding in Key Segments PRESTIGE INVITATION EXPLORATION EXPERIMENTATION ORGANIC GROWTH INNOVATION PARENT COMPANY OFFERING (Molson/Coors) (SABM) REGIONAL CRAFT EQUITY 39
Slide 40: Great Beer Partnerships: BrewPrint
Great Beer Partnerships: BrewPrint Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 BrewPrint Orientation Ideation Exercise Ideas to Actions Brewprint Plan Brewprint Plan & Activation Discovery “Understand the “What ideas will “Create the plan” “Activate the plan” “Whiteboarding process and set-up be agreed
Slide 41: Great Beer Partnerships: Apollo Planning
Great Beer Partnerships: Apollo Planning • Holistic three-year planning process with the distributor • Provides a framework for the distributor to enhance their internal sales and marketing efforts against Crafts & Imports • Provides consistency of direction and investment on the Tenth and Blake por
Slide 42: Great Beer Merchants
Great Beer Merchants • Beer Merchant culture • Selling skills • Consumer insights • Entrepreneurial brand management • Cross functional development • Beer Merchant 101, 201 and Cicerone 42
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Slide 44: Ed McBrien, President, Sales & Distributor Operations
ED McBRIEN President, Sales & Distributor Operations 44
Slide 45: Winning in Beer 2.0
Winning in Beer 2.0 Earn Society Customer Elevate Resources Preference People Brands Distributor Retailer Consumer Fuel Embrace Growth Responsibility Engage People 45
Slide 46: Earn Customer Preference
Earn Customer Preference Distributor Survey Retailer Survey • #2 ranking overall • #1 beer supplier • Improved all 13 categories • #1 in grocery • #1 in Category Management • #1 in liquor • #1 in C-Stores • #1 in category strategies • Chain on-premise improvement • #1 in executable solutions 46
Slide 47: Winning in Beer 2.0
Winning in Beer 2.0 Society Resources Earn People Distributor Customer Retailer Preference Consumer • Retail execution • Most effective distributor network • Growth in chains 47
Slide 48: Distribution and SKU Reduction
Distribution and SKU Reduction 48
Slide 49: SKU Reduction
SKU Reduction SKUs Identified Sell-Through Replacement Only 0.1 0 +300 SKUs eliminated -0.1 -0.2 “Replace the Space” -0.3 Jan Feb Mar April May June July Aug Sept Oct Nov Dec Swap % Change vs. YA Balance of Portfolio % Change YA 49
Slide 50: Execution Focus
Execution Focus • 31,000 PODs • 6 focus brands: +2.9% FOUR ON THE FLOOR Grocery Monthly Planner: January • Regional singles: +9.8% JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Artfully Football Football Game In Crafted 50
Slide 51: Winning in Beer 2.0
Winning in Beer 2.0 Society Resources Earn People Distributor Customer Retailer Preference Consumer • Retail execution • Most effective distributor network • Growth in chains 51
Slide 52: Enabling the Most Effective Network
Enabling the Most Effective Network • Defend three-tier system • GM structure Resources closer to market Local decision making Fully-loaded P&Ls 52
Slide 53: MillerCoors Pricing Strategy
MillerCoors Pricing Strategy 1. All pricing is local 2. Compete in Below Premium 3. Mind the Gaps on Premium Lights 53
Slide 54: MillerCoors Pricing Strategy
MillerCoors Pricing Strategy 1. All pricing is local 2. Compete in Below Premium 3. Mind the Gaps on Premium Lights 54
Slide 55: Premium Lights Drive Overall Category Health
Premium Lights Drive Overall Category Health -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 10.0 8.0 Premium Light Down Premium Light Up Category Up Category Up 6.0 Total Category 4.0 2.0 0.0 -2.0 -4.0 -6.0 -8.0 Premium Light Down Premium Light Up Category Down Category Down -10.0 Premium Lights 55
Slide 56: Pricing
Pricing 2011 vs. 2008 Average Case Price Price Change Price % Change MillerCoors $1.36 +8.4 ABI $1.36 +8.1 Imports $0.27 +1.0 Craft $1.90 +6.6 Source: Nielsen Total U.S. over 2MM Grocery through WE 09/17/11; 52 WE 09/17/11/vs. 52 WE 09/13/08 56
Slide 57: Premium Light Share
Premium Light Share Source: Nielsen 57
Slide 58: Winning in Beer 2.0
Winning in Beer 2.0 Society Resources Earn People Distributor Customer Retailer Preference Consumer • Retail execution • Most effective distributor network • Growth in chains 58
Slide 59: Kevin Doyle, Chief Customer Officer
KEVIN DOYLE Chief Customer Officer 59
Slide 60: Why Chain?
Why Chain? • It‟s big and getting bigger • Higher margin (mix) • It‟s where the volume‟s going • ABI historically dominated 60
Slide 61: Retailer Dynamics Require New Approach
Retailer Dynamics Require New Approach • Retailers are becoming more powerful and sophisticated • Segmenting on specific shoppers • Driving supply chain efficiency • New formats/entrants Retailers are looking for suppliers who bring solutions. 61
Slide 62: What it Will Take to Succeed
What it Will Take to Succeed Can’t just play the game better; must create the new game • Business dynamics changing rapidly • Ambiguity, volatility, increase complexity • Will we lead or be forced to follow? Creating competitive advantage: Where are we today? Where do we want to go? How long will it
Slide 63: The MillerCoors Advantage
The MillerCoors Advantage The MillerCoors Advantage Five Things We’ll Be Famous For: • Customer Marketing • The Way We Sell • Profitable Beer Marketing • Revenue-Based Selling • Space and Assortment WHAT WE SELL Our Bundle of Goods and Services 63
Slide 64: Core Beliefs for Space and Assortment
Core Beliefs for Space and Assortment • Drive overall category growth to benefit both MillerCoors and Retailers • Recognize that all segments play a role in category growth • Support segments that are “Hot” with consumers • Understand and leverage distinct channel strengths • Invest in balanced vari
Slide 65: Thought Innovation Fuels Our Category Success
Thought Innovation Fuels Our Category Success MillerCoors addresses three critical areas of Space and Assortment with innovative category strategies Innovative ways to utilize How Big Is The Cooler Box? warm space, add variety, 1 reduce OOS and create Beer Category Space Optimization category growth
Slide 66: Year Two Results for MillerCoors Captained Accounts
Year Two Results for MillerCoors Captained Accounts • We deliver stronger category dollar growth compared to the comp market • We deliver more category value than ABI MillerCoors Captain ABI Captain + 3.7 pts + 0.7 pts DOLLARS DOLLARS 2.3 + 2.7 pts over ABI MC Comp ABI Comp -1.4 -0.4 Year-2 Captaine
Slide 67: Taking the Mouse
Taking the Mouse • Aggressive goals to increase captainship – 2009: 24% – 2010: 30% – 2011: 35%+ – 2012: 40%+ 67
Slide 68: Chain Progress
Chain Progress • Focus brands have gained 0.5 share X-Channel • Price up 6.3 percent X-Channel • Coors Light has gained share in every channel • Blue Moon X-Channel share doubled (0.4) • Grocery Miller Lite feature activity up 7 points (59.8 percent ACV) • Grocery Coors Light feature activity up 11.
Slide 69: Chain Progress
Chain Progress 69
Slide 70: Customer Positioning
Customer Positioning MCA PLANK CHAIN SCORE CHANGE Brands 3.9 2.6% Business-building 3.8 5.6% solutions Distributor services 3.4 3.0% Innovation 3.9 2.6% People 3.9 2.6% 70
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Slide 72: Gavin Hattersley, Chief Financial Officer
GAVIN HATTERSLEY Executive Vice President & Chief Financial Officer 72
Slide 73: Winning in Beer 2.0
Winning in Beer 2.0 Elevate Society Resources Earn Brands People Distributor Customer Retailer Preference Consumer Fuel Embrace Growth Responsibility Engage People 73
Slide 74: Increase Efficiencies
Increase Efficiencies • Decrease our breakeven goal: 1% per year – Explore untapped efficiencies in integrated supply chain – Continue rigorous line item annual budgeting process and identify trade offs between functions across enterprise – Reallocate resources to maximize investment pressure on sal
Slide 75: Deliver Improved Capabilities
Deliver Improved Capabilities • Simplify and standardize our systems – DRIVE: New single ordering tool for distributors – RIO: New retail sales, distributor inventory and outlet connection system – DEM: New data exchange model to facilitate decision making, reduce costs and improve retail execution
Slide 76: Business Transformation
Business Transformation • Establish a seamless set of integrated processes to run our business end to end • Analyze core processes across the enterprise; create standard approaches to key tasks • Create simple, repeatable ways of working at MillerCoors to support our focus on elevating our brands an
Slide 77: Top-Line Growth
Top-Line Growth • Effective Revenue Management Narrowing the gap between Below Premium and Premium Light Widening the gap between Premium Light and Above Premium 77
Slide 78: Medium-Term Value Driver Outlook
Medium-Term Value Driver Outlook • Volume – Until employment levels improve among key beer drinkers, average annual decline of c. (1-2%) with a return to modest growth thereafter • Revenue per hectoliter – In line with recent performance of c. +2-3% • EBITA margin – Growth of +25-50 bps average per
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Slide 80: Tom Long, Chief Executive Officer
TOM LONG Chief Executive Officer 80
Slide 81: Winning in Beer 2.0
Winning in Beer 2.0 Elevate Society Resources Earn Brands People Distributor Customer Retailer Consumer Preference Fuel Embrace Growth Responsibility Engage People 81
Slide 82: Alcohol Responsibility
Alcohol Responsibility • Promote and protect the responsible enjoyment and marketing of beer 82
Slide 83: Environmental Sustainability
Environmental Sustainability • Embed sustainability in the way we operate 83
Slide 84: Community Engagement
Community Engagement • Build local relevance and relationships in key markets 84
Slide 85: Winning in Beer 2.0
Winning in Beer 2.0 Elevate Society Resources Earn Brands People Distributor Customer Retailer Preference Fuel Consumer Growth Embrace Engage Responsibility People 85
Slide 86: Developing and Attracting a Diverse Workforce
Developing and Attracting a Diverse Workforce LEADERSHIP Commitment to diversity and inclusion is required. TALENT Developing talent is the most important role of a leader. RELATIONSHIPS Lasting relationships with our employees, partners and consumers is how we will win. 86
Slide 87: Focusing on People and Capability Development
Focusing on People and Capability Development Sales • Chain Academy Marketing • DSM/ASM Academy Tenth and Blake • Creative Process • Monthly Business ISC • Commercial Mindset • Flexible Brewing and Planning • Selling Skills Manufacturing • Market Activation and • World Class • Multicultural Expertis
Slide 88: Anchoring an Inclusive, Flexible, Safe Work Environment
Anchoring an Inclusive, Flexible, Safe Work Environment Inclusive Environment • Building leader capabilities to harness talent • Engaging employees to drive productivity • Giving voice to individuals to drive team success Safety in the Workplace • Building capabilities to entrench a safety culture •
Slide 89: Winning in Beer 2.0
Winning in Beer 2.0 Elevate Society Resources Earn Brands People Distributor Customer Retailer Consumer Preference Fuel Embrace Growth Responsibility Engage People 89
Slide 90: Our goal is to…
In the Wake of the Worst Recession since the Great Depression… Our goal is to… • Grow share • Grow the top-line of our business • Grow EBITA • Position MillerCoors for future growth 90
Slide 91: Creating America's Best Beer Company
C R E AT I N G AMERICA’S BEST BEER COMPANY 91
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