alcoholic drinks - us - marketline

United States - Alcoholic Drinks 0072 - 2201 - 2014

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MarketLine Industry Profile

Alcoholic Drinks in the United States July 2015

Reference Code: 0072-2201

Publication Date: July 2015

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MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED



EXECUTIVE SUMMARY

Market value The United States alcoholic drinks market grew by 1.6% in 2014 to reach a value of $189,246.3 million.

Market value forecast In 2019, the United States alcoholic drinks market is forecast to have a value of $205,775.8 million, an increase of 8.7%

since 2014.

Market volume The United States alcoholic drinks market remained at a volume of 30,230.4 million liters in 2014.

Market volume forecast In 2019, the United States alcoholic drinks market is forecast to have a volume of 30,879.8 million liters, an increase of

2.1% since 2014.

Category segmentation Beer, cider & fabs is the largest segment of the alcoholic drinks market in the United States, accounting for 43.7% of the

market's total value.

Geography segmentation The United States accounts for 16.4% of the global alcoholic drinks market value.

Market share AB InBev is the leading player in the United States alcoholic drinks market, generating a 40.5% share of the market's

volume.

Market rivalry Since it stagnated in 2009, the US alcoholic drinks market has been growing at a steady, however, low rate, which may

attract newcomers and increase the intensity of rivalry to some extent. Rivalry is intensified between existing incumbents

once the profitability of firms should be affected by low rates of market growth.



TABLE OF CONTENTS

Executive Summary ....................................................................................................................................................... 2

Market value ............................................................................................................................................................... 2

Market value forecast ................................................................................................................................................. 2

Market volume ............................................................................................................................................................ 2

Market volume forecast .............................................................................................................................................. 2

Category segmentation .............................................................................................................................................. 2

Geography segmentation ........................................................................................................................................... 2

Market share .............................................................................................................................................................. 2

Market rivalry .............................................................................................................................................................. 2

Market Overview ............................................................................................................................................................ 7

Market definition ......................................................................................................................................................... 7

Market analysis .......................................................................................................................................................... 7

Market Data ................................................................................................................................................................... 8

Market value ............................................................................................................................................................... 8

Market volume ............................................................................................................................................................ 9

Market Segmentation ................................................................................................................................................... 10

Category segmentation ............................................................................................................................................ 10

Geography segmentation ......................................................................................................................................... 11

Market share ............................................................................................................................................................ 12

Market distribution .................................................................................................................................................... 13

Market Outlook ............................................................................................................................................................. 14

Market value forecast ............................................................................................................................................... 14

Market volume forecast ............................................................................................................................................ 15

Five Forces Analysis .................................................................................................................................................... 16

Summary .................................................................................................................................................................. 16

Buyer power ............................................................................................................................................................. 17

Supplier power ......................................................................................................................................................... 18

New entrants ............................................................................................................................................................ 19

Threat of substitutes ................................................................................................................................................. 20

Degree of rivalry ....................................................................................................................................................... 21

Leading Companies ..................................................................................................................................................... 22



Anheuser-Busch InBev SA/NV ................................................................................................................................. 22

Constellation Brands, Inc. ........................................................................................................................................ 26

Heineken N.V. .......................................................................................................................................................... 29

MillerCoors LLC ....................................................................................................................................................... 33

Macroeconomic Indicators ........................................................................................................................................... 34

Country Data ............................................................................................................................................................ 34

Methodology................................................................................................................................................................. 36

Industry associations ................................................................................................................................................ 37

Related MarketLine research ................................................................................................................................... 37

Appendix ...................................................................................................................................................................... 38

About MarketLine ..................................................................................................................................................... 38



LIST OF TABLES

Table 1: United States alcoholic drinks market value: $ million, 201014 ...................................................................... 8

Table 2: United States alcoholic drinks market volume: million liters, 201014 ............................................................. 9

Table 3: United States alcoholic drinks market category segmentation: $ million, 2014 .............................................. 10

Table 4: United States alcoholic drinks market geography segmentation: $ million, 2014 ........................................... 11

Table 5: United States alcoholic drinks market share: % share, by volume, 2014 ....................................................... 12

Table 6: United States alcoholic drinks market distribution: % share, by volume, 2014 ............................................... 13

Table 7: United States alcoholic drinks market value forecast: $ million, 201419 ...................................................... 14

Table 8: United States alcoholic drinks market volume forecast: million liters, 201419 .............................................. 15

Table 9: Anheuser-Busch InBev SA/NV: key facts ....................................................................................................... 22

Table 10: Anheuser-Busch InBev SA/NV: key financials ($) ........................................................................................ 24

Table 11: Anheuser-Busch InBev SA/NV: key financial ratios ..................................................................................... 24

Table 12: Constellation Brands, Inc.: key facts ............................................................................................................ 26

Table 13: Constellation Brands, Inc.: key financials ($) ................................................................................................ 27

Table 14: Constellation Brands, Inc.: key financial ratios ............................................................................................. 27

Table 15: Heineken N.V.: key facts .............................................................................................................................. 29

Table 16: Heineken N.V.: key financials ($) ................................................................................................................. 30

Table 17: Heineken N.V.: key financials () ................................................................................................................. 30

Table 18: Heineken N.V.: key financial ratios ............................................................................................................... 31

Table 19: MillerCoors LLC: key facts ........................................................................................................................... 33

Table 20: United States size of population (million), 201014 ..................................................................................... 34

Table 21: United States gdp (constant 2005 prices, $ billion), 201014 ...................................................................... 34

Table 22: United States gdp (current prices, $ billion), 201014 .................................................................................. 34

Table 23: United States inflation, 201014 .................................................................................................................. 35

Table 24: United States consumer price index (absolute), 201014 ............................................................................ 35

Table 25: United States exchange rate, 201014 ........................................................................................................ 35



LIST OF FIGURES

Figure 1: United States alcoholic drinks market value: $ million, 201014 ..................................................................... 8

Figure 2: United States alcoholic drinks market volume: million liters, 201014 ............................................................ 9

Figure 3: United States alcoholic drinks market category segmentation: % share, by value, 2014 .............................. 10

Figure 4: United States alcoholic drinks market geography segmentation: % share, by value, 2014 .......................... 11

Figure 5: United States alcoholic drinks market share: % share, by volume, 2014 ...................................................... 12

Figure 6: United States alcoholic drinks market distribution: % share, by volume, 2014 .............................................. 13

Figure 7: United States alcoholic drinks market value forecast: $ million, 201419 ..................................................... 14

Figure 8: United States alcoholic drinks market volume forecast: million liters, 201419 ............................................ 15

Figure 9: Forces driving competition in the alcoholic drinks market in the United States, 2014 ................................... 16

Figure 10: Drivers of buyer power in the alcoholic drinks market in the United States, 2014 ....................................... 17

Figure 11: Drivers of supplier power in the alcoholic drinks market in the United States, 2014 ................................... 18

Figure 12: Factors influencing the likelihood of new entrants in the alcoholic drinks market in the United States, 201419

Figure 13: Factors influencing the threat of substitutes in the alcoholic drinks market in the United States, 2014 ....... 20

Figure 14: Drivers of degree of rivalry in the alcoholic drinks market in the United States, 2014 ................................. 21

Figure 15: Anheuser-Busch InBev SA/NV: revenues & profitability.............................................................................. 24

Figure 16: Anheuser-Busch InBev SA/NV: assets & liabilities ..................................................................................... 25

Figure 17: Constellation Brands, Inc.: revenues & profitability ..................................................................................... 28

Figure 18: Constellation Brands, Inc.: assets & liabilities ............................................................................................. 28

Figure 19: Heineken N.V.: revenues & profitability ....................................................................................................... 31

Figure 20: Heineken N.V.: assets & liabilities ............................................................................................................... 32



MARKET OVERVIEW

Market definition The alcoholic drinks market consists of retail sale of beers, ciders & FABs, spirits and wines. The market is valued

according to retail selling price (RSP) and includes any applicable taxes. Any currency conversions used in the creation

of this report have been calculated using constant 2013 annual average exchange rates.

For the purposes of this report, North America consists of Canada, Mexico, and the United States.

South America comprises Argentina, Brazil, Colombia, and Venezuela.

Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy,

Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey, and the United

Kingdom.

Scandinavia comprises Denmark, Finland, Norway, and Sweden.

Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines,

Singapore, South Korea, Taiwan, Thailand, and Vietnam.

Middle East comprises Saudi Arabia and United Arab Emirates. The global market is the sum of North and South

America, Europe, Asia-Pacific, Middle East, Nigeria, and South Africa

Market analysis The US alcoholic drinks markets value grew over last five years at slow pace. The market is expected to practically

maintain the same expansionary pace over the forecasted period.

The US alcoholic drinks market had total revenues of $189,246.3m in 2014, representing a compound annual growth

rate (CAGR) of 1.8% between 2010 and 2014. In comparison, the European and Asia-Pacific markets grew with

compound annual growth rate (CAGR)s of 1.3% and 6% respectively, over the same period, to reach respective values

of $495,658.6m and $346,860.8m in 2014.

Globally, the alcoholic drinks market is dominated by Europe, which accounted for 43% of the revenues in 2014.

However, the United States accounts for 16.4% of the global market.

Market consumption volumes declined with a compound annual rate of change (CARC) of -0.2% between 2010 and

2014, to reach a total of 30,230.4 million liters in 2014. The market's volume is expected to rise to 30,879.8 million liters

by the end of 2019, representing a CAGR of 0.4% for the 2014-2019 period.

The beer, cider & FABs segment was the market's most lucrative in 2014, with total revenues of $82,629.5m, equivalent

to 43.7% of the market's overall value. The spirits segment contributed revenues of $69,055.7m in 2014, equating to

36.5% of the market's aggregate value.

The performance of the market is forecast to follow a similar pattern with an anticipated CAGR of 1.7% for the five-year

period 2014 - 2019, which is expected to drive the market to a value of $205,775.8m by the end of 2019. Comparatively,

the European and Asia-Pacific markets will grow with CAGRs of 1.8% and 7.7% respectively, over the same period, to

reach respective values of $543,189.7m and $503,160.4m in 2019.



MARKET DATA

Market value The United States alcoholic drinks market grew by 1.6% in 2014 to reach a value of $189,246.3 million.

The compound annual growth rate of the market in the period 201014 was 1.8%.

Table 1: United States alcoholic drinks market value: $ million, 201014

Year $ million million % Growth

2010 175,878.4 132,338.9

2011 179,296.1 134,910.5 1.9%

2012 182,857.1 137,590.0 2.0%

2013 186,190.1 140,097.9 1.8%

2014 189,246.3 142,397.5 1.6%

CAGR: 201014 1.8%

SOURCE: MARKETLINE M A R K E T L I N E

Figure 1: United States alcoholic drinks market value: $ million, 201014




Market volume The United States alcoholic drinks market remained at a volume of 30,230.4 million liters in 2014.

The compound annual rate of change of the market in the period 201014 was -0.2%.

Table 2: United States alcoholic drinks market volume: million liters, 201014

Year million liters % Growth

2010 30,445.3

2011 30,372.9 (0.2%)

2012 30,275.6 (0.3%)

2013 30,244.2 (0.1%)

2014 30,230.4 0.0%

CAGR: 201014 (0.2%)


Figure 2: United States alcoholic drinks market volume: million liters, 201014




MARKET SEGMENTATION

Category segmentation Beer, cider & fabs is the largest segment of the alcoholic drinks market in the United States, accounting for 43.7% of the

market's total value.

The Spirits segment accounts for a further 36.5% of the market.

Table 3: United States alcoholic drinks market category segmentation: $ million, 2014

Category 2014 %

Beer, cider & FABs 82,629.5 43.7%

Spirits 69,055.7 36.5%

Wine 37,561.1 19.8%

Total 189,246.3 100%


Figure 3: United States alcoholic drinks market category segmentation: % share, by value, 2014




Geography segmentation The United States accounts for 16.4% of the global alcoholic drinks market value.

Europe accounts for a further 43% of the global market.

Table 4: United States alcoholic drinks market geography segmentation: $ million, 2014

Geography 2014 %

Europe 495,658.6 43.0

Asia-Pacific 346,860.8 30.1

United States 189,246.3 16.4

Rest of the World 120,245.4 10.4

Total 1,152,011.1 99.9%


Figure 4: United States alcoholic drinks market geography segmentation: % share, by value, 2014




Market share AB InBev is the leading player in the United States alcoholic drinks market, generating a 40.5% share of the market's

volume.

MillerCoors accounts for a further 23.6% of the market.

Table 5: United States alcoholic drinks market share: % share, by volume, 2014

Company % Share

AB InBev 40.5%

MillerCoors 23.6%

Constellation Brands, Inc. 5.2%

Heineken N.V. 4.9%

Other 25.9%

Total 100%


Figure 5: United States alcoholic drinks market share: % share, by volume, 2014




Market distribution Supermarkets/hypermarkets form the leading distribution channel in the United States alcoholic drinks market,

accounting for a 55.2% share of the total market's volume.

On-trade accounts for a further 21.3% of the market.

Table 6: United States alcoholic drinks market distribution: % share, by volume, 2014

Channel % Share

Supermarkets/hypermarkets 55.2%

On-trade 21.3%

Specialist Retailers 15.2%

Service Stations 3.5%

Other 4.8%

Total 100%


Figure 6: United States alcoholic drinks market distribution: % share, by volume, 2014




MARKET OUTLOOK

Market value forecast In 2019, the United States alcoholic drinks market is forecast to have a value of $205,775.8 million, an increase of 8.7%

since 2014.

The compound annual growth rate of the market in the period 201419 is predicted to be 1.7%.

Table 7: United States alcoholic drinks market value forecast: $ million, 201419

Year $ million million % Growth

2014 189,26.3 142,397.5 1.6%

2015 192,508.4 144,852.0 1.7%

2016 195,848.0 147,364.9 1.7%

2017 199,163.6 149,859.7 1.7%

2018 202,465.0 152,343.8 1.7%

2019 205,775.8 154,835.1 1.6%

CAGR: 201419 1.7%


Figure 7: United States alcoholic drinks market value forecast: $ million, 201419




Market volume forecast In 2019, the United States alcoholic drinks market is forecast to have a volume of 30,879.8 million liters, an increase of

2.1% since 2014.

The compound annual growth rate of the market in the period 201419 is predicted to be 0.4%.

Table 8: United States alcoholic drinks market volume forecast: million liters, 201419

Year million liters % Growth

2014 30,230.4 0.0%

2015 30,306.9 0.3%

2016 30,400.0 0.3%

2017 30,516.1 0.4%

2018 30,655.7 0.5%

2019 30,879.8 0.7%

CAGR: 201419 0.4%


Figure 8: United States alcoholic drinks market volume forecast: million liters, 201419




FIVE FORCES ANALYSIS

The alcoholic drinks market will be analyzed taking brewers, distillers, and winemakers as players. The key buyers will

be taken as food and drink retailers and on-trade establishments, and providers of raw materials and bottling supplies as

the key suppliers.

Summary

Figure 9: Forces driving competition in the alcoholic drinks market in the United States, 2014


Since it stagnated in 2009, the US alcoholic drinks market has been growing at a steady, however, low rate, which may

attract newcomers and increase the intensity of rivalry to some extent. Rivalry is intensified between existing incumbents

once the profitability of firms should be affected by low rates of market growth.

The market leaders produce their own, recognized brands and operate in various segments of the market, which is

possible due to the ease of capacity increases, once a company is established.

There is a high degree of product differentiation, due to the variety of products offered within the three defined segments,

which include: beers, ciders & FABs (flavored alcoholic beverages), spirits and wines.

Buyer power varies, depending on buyers reliance on alcoholic drinks sales to generate revenues. Therefore, buyer

power is greater amongst larger retailers (supermarkets/hypermarkets), as alcoholic drinks are just one of many products

they have on offer. In the US, supermarkets account for over 55% of sales in value terms and this strengthens buyer

power.

A recent trend in the alcoholic drinks market has been the gradual move to higher price segments and increased interest

in imported brands. The wide range of brands available, with an accompanying variance in quality and price, boosts

buyer power. This is, however, diminished to some extent if consumers favor particular brands as retailers will be forced

to store them. This is the case with well established brands such as Budweiser and Coors.

Entering a niche segment may form a successful strategy, as there is a rising demand for specialty alcoholic beverages

and these are marketed on the basis of quality and can be sold at higher prices.



Buyer power

Figure 10: Drivers of buyer power in the alcoholic drinks market in the United States, 2014


The main buyers within the alcoholic drinks market are supermarkets/hypermarkets, on-trade businesses and specialist

retailers. Together these channels account for 91.7% of all sales. The sheer number of buyers reduces their power to

some extent. The alcoholic drinks market is controlled wholly by consumers preferences. Due to this fact leading players

invest considerably in marketing campaigns to promote their products. This is particularly the case for on-trade

businesses and specialist retailers, as alcoholic drinks are essentially their business; this reduces the buyer power

somewhat.

The switching costs for buyers are not particularly high, and due to existing possibilities of product differentiation across

the three segments in this market (beers, ciders & FABs, spirits and wines) consumer demand is likely to influence

retailers stocking decisions.

Additionally, brand loyalty is of importance in this market and customers preferences towards some brands influence

players stocking decisions, weakening buyer power to some extent. This is prevalent in the United States with well-

established big brands such as Budweiser, Coors, and Miller.

However, alcoholic drinks are not the only products on most retailers offer, which indicates that they are not reliant upon

the sale of these alone. Consequently, this increases buyer power and with supermarkets accounting for 55.2% of all

sales in the US, buyer power is boosted.

Possibilities of backward integration exist, i.e. in the form of supermarket chains producing their own drinks which are

often cheaper than their branded counterparts. However, in terms of brand quality, the major alcoholic drinks

manufacturers have the edge over their supermarket rivals, diminishing their buyer power.

Overall, buyer power is moderate in the alcoholic drinks market.



Supplier power

Figure 11: Drivers of supplier power in the alcoholic drinks market in the United States, 2014


Suppliers to the alcoholic drinks market are relatively diversified, as each segment (beers, ciders & FABs, spirits and

wines) requires different inputs to form the principle ingredients of each individual product. This illustrates that suppliers

are relatively fragmented, when the market is considered as a whole. Depending on market segment, specific inputs may

differ.

Key inputs to the beers, ciders & FABs segment include malted grain, hops, apples and other flavorings. The raw

materials required for the production of spirits are cereal grains, fruit and vegetables used in the distillation process.

Hops are generally bought from independent producers, with barley often bought from farmers. Apple growers are key

suppliers for the production of cider. Grapes are a key input for the production of wine, and although some larger players

own/lease vineyards, they also source grapes from independent suppliers. Constellation Brands' (a large scale US

company) latest annual report states that the company buys grapes from around 1,000 US-based independent growers

and around 200 in other countries around the world. These purchases are at prevailing market rates, which suggests that

even a large wine-making company such as this does not have much control over prices of its supplies. Its own 20,000

acre vineyards supply only a small proportion of its total needs, and are focused on super-premium products. As many of

these suppliers operate independently and on a relatively small scale, their influence on the market is weakened.

The beers, ciders & FABs segment is predominant, which suggests that suppliers to this segment have a greater

influence than that of remaining suppliers of raw materials.

Manufacturers have relatively little freedom to substitute alternative raw materials if they are to maintain consistent

product characteristics for the end-consumer. It is highly unlikely that suppliers would forward integrate (except perhaps

for grape growers), which reduces supplier power.

Overall, supplier power is moderate in the alcoholic drinks market.



New entrants

Figure 12: Factors influencing the likelihood of new entrants in the alcoholic drinks market in the United States, 2014


New players may enter the market through one or multiple segments. Entry to the alcoholic beverages market may be

achieved on large or small scale by finding a niche market. There is a rising demand for specialty alcoholic beverages,

such as so-called real ales and flavored spirits. These are marketed on the basis of quality and diversity and can be

sold at higher prices. The American beer market has seen an unprecedented upsurge in the production of craft beer over

the last couple of years. Its production, in terms of market share in volumes, increased from 4.9% in 2009 to 7.8% in

2013, according to the Brewers Association in the United States.

Investment in production equipment can be recouped by adding a good margin to the price of the end-product. The

larger companies, however, tend to rely on the mass-market production of internationally palatable alcoholic drinks.

Here, margins may be much lower.

Producers need to distribute their product widely, which generally relies upon retail channels, such as supermarkets.

Despite the presence of company-owned on-trade outlets, these retail chains often have considerable buyer power,

which can force down the prices that beer producers are able to obtain.

In this market, scale economies of production become very important. As a result, barriers to entry, such as capital outlay

on large-scale production plants and the need to establish reliable supplies from multiple third-party growers, become

much higher. Government regulation of wine and other alcoholic beverages is stringent in the US, which may impede

market entry. Excise taxes are applied to all alcoholic beverages. Purchasers of alcohol must be at least 21 years of age

(high compared to most countries). Restrictions on the times and locations of alcohol sales are controlled at the state

level, and often include limitations of sales on election days, and on Sundays. However, there is little regulation of

marketing activities such as advertising, product, placement, or event sponsorship.

The market has been growing at a slow, however, steady rate in recent years and this may attract newcomers.

Overall, the threat from new entrants is weak in this market.



Threat of substitutes

Figure 13: Factors influencing the threat of substitutes in the alcoholic drinks market in the United States, 2014


Substitutes to the alcoholic drinks market include non-alcoholic beverages, such as juices, carbonated soft drinks or

water. Some alcoholic drink producers offer their own alternatives, like alcohol free lager. These alcohol-free drinks do

not carry the same tax/duty as beer, wine, spirits etc. and so are often cheaper alternatives.

There is scope for inter-segmental substitutes, as most operators focus on one production segment within the market,

e.g. beers, ciders & FABs (flavored alcoholic beverages), spirits or wines. For such players, substitutes could include

spirits if the main product they manufacture is beer. Many of the large players already sell these products in addition to

alcoholic drinks, resulting in much less overall damage to revenues if there is mass consumer movement away from

main products. Smaller firms, however, will have to invest in building brand loyalty as a means to keep customers.

There is some difficulty with assessing the benefits of substitutes within the defined segments of the alcoholic drinks

market. For example, not only beer but also champagne and white wine are optimally stored in chilled cabinets, which

make storage more expensive; more concentrated forms of alcohol (spirits) may offer better returns on shelf space than

higher-volume wines and beers, but the per-unit-volume price is often scaled with alcohol content.

In terms of non-alcoholic beverages, there are health benefits associated with ingredients, such as fruit, which have

vitamin content. This is in stark contrast to the potential detrimental effects of the over-consumption of alcohol, which

include liver damage, and addiction. Some medical research has argued for the benefits of consuming wine in

moderation. There is however, no general agreement on this. Health considerations could influence the performance of

the market leading to changes in market trends, with consumers becoming more health conscious and switching over to

health drinks such as Glaceaus "vitaminwater".

Ultimately, due to extensive product differentiation within the alcoholic drinks market, and the wide variety of non-

alcoholic drinks available, the threat from substitutes is boosted and is assessed as moderate overall.



Degree of rivalry

Figure 14: Drivers of degree of rivalry in the alcoholic drinks market in the United States, 2014


The US alcoholic drinks market is tending towards consolidation with AB InBev, MillerCoors, Constellation Brands and

Heineken accounting for over 74.1% of the market in volume terms.

In the US, the beers, ciders & FABs (flavored alcoholic beverages) segment is by far the largest within the alcoholic

drinks market, accounting for 43.7% of the markets value.

Relatively strong product differentiation across the three segments of this market (beers, ciders & FABs, spirits and

wines) reduces rivalry to some extent.

Although specialty products are available, significant players largely operate mass-marketed products. This implies high

fixed costs, because of the need to operate large breweries, distilleries, and requirement of significant storage space and

facilities for fermentation.

Also, strong branding does allow certain players to stand out, which also reduces rivalry slightly. However, the

competitors have to consider not only brand but also product quality, flavor, packaging and promotion.

The market has been posting low rates of growth in recent years and with this trend expected to continue in the forecast

period, rivalry should intensify somewhat but is still assessed as moderate overall.



LEADING COMPANIES

Anheuser-Busch InBev SA/NV

Table 9: Anheuser-Busch InBev SA/NV: key facts

Head office: Brouwerijplein 1, 3000 Leuven, BEL

Telephone: 32 16 27 61 11

Fax: 32 16 50 61 11

Local office: Anheuser-Busch Cos. Inc., One Busch Place, St. Louis, Missouri 63118, USA

Telephone: 1 800 342 52 83

Fax: 1 800 342 52 83

Website: www.ab-inbev.com

Financial year-end: December

Ticker: ABI

Stock exchange: Euronext Brussels

SOURCE: COMPANY WEBSITE M A R K E T L I N E

AB InBev is engaged in the production, distribution and sale of beer and soft drinks. The company has operations in 24

countries across the world. The company offers a portfolio of over 200 brands, including global flagship brands

Budweiser, Stella Artois and Corona (except in the US) and multi-country brands Beck's, Leffe and Hoegaarden. In

addition, the company offers local brands including Bud Light, Michelob Ultra, Corona Light, Modelo Especial, Modelo

Light, Negra Modelo, Victoria, Pacifico, Skol, Brahma, Antarctica, Quilmes, Jupiler, Hasseroder, Klinskoye, Sibirskaya

Korona, Chernigivske, Harbin and Sedrin. The company also produces and distributes soft drinks, particularly in Latin

America. As of December 31, 2014, the company operated 153 beverage manufacturing facilities globally, including 123

beer production plants, 13 soft drinks production plants and 17 production plants that produce both beer and soft drinks.

Additionally, the company owns 48 production facilities that produce raw materials and packaging materials for its

beverages.

AB InBev operates through eight business segments: North America, Latin America North, Western Europe, Asia Pacific,

Latin America South, Mexico, global export and holding companies and Central and Eastern Europe.

The North American segment includes operations in the US and Canada. Some of the key global brands sold in this

zone include Budweiser, Stella Artois and Corona, and the international brands include Beck's, Hoegaarden and Leffe.

Additionally, the company sells several local brands such as Bass, Bud Light, Busch, Michelob, Goose Island, Shock

Top and Natural Light in the US and Alexander Keith's, Bass, Bud Light, Kokanee, Labatt, Lucky, Lakeport and Oland in

Canada. The company operates 21 beverage manufacturing plants through this segment.

The Latin America North segment encompasses the company's operations in Brazil, the Dominican Republic and

Guatemala. In Brazil, the company operates through its subsidiary, Companhia de Bebidas das Americas-AmBev

(AmBev), which sells local beer brands such as Antarctica, Bohemia, Brahma and Skol, amongst other international

brands. The segment is also engaged in the manufacture and sale of several soft drinks brands including Guarana

Antarctica, Pepsi, 7UP and Red Rock. The segment operates 30 manufacturing plants across the region.



The Latin America South segment includes operations in Bolivia, Paraguay, Uruguay, Argentina, Chile, Ecuador and

Peru. In Argentina, AB InBev operates through its subsidiary Cerveceria y Malteria Quilmes. The segment is also

engaged in the manufacture and sale of soft drinks under licensed brand names (Pepsi, H2OH!, 7UP, Concordia, and

Triple Kola) in Argentina, Bolivia, Uruguay and Peru. The segment operates nine beverage manufacturing units in the

region that produce and sell international brands such as Hoegaarden and Leffe. The company also sells several local

brands in the region, including Andes, Brahma, Norte, Patagonia, Quilmes, Antarctica, Bohemia and Skol.

The Western Europe segment includes the company's operations primarily in Belgium, Germany and the UK. InBev

Belgium and AB InBev UK are the operating subsidiaries of the company in the respective countries, while the company

operates through Anheuser-Busch InBev Deutschland in Germany. The segment operates 12 beverage manufacturing

units in the region that produce and sell international brands such as Budweiser, Corona, Stella Artois and Beck's. The

segment also sells several local brands in the region, including Belle-Vue, Jupiler, Vieux Temps, Diebels, Franziskaner,

Haake-Beck, Hasseroder, Lowenbrau, Spaten and Gilde.

The Asia Pacific segment primarily consists of the company's operations in China through the Anheuser-Busch InBev

China subsidiary. The company has 39 beer manufacturing facilities across China that manufacture and sell several

international, multi-country and local brands including Budweiser, Stella Artois, Beck's, Hoegaarden, Leffe, Double Deer,

Harbin, Jinling, Jinlongquan, KK, Sedrin and Shiliang.

The Mexico segment primarily consists of beer and packaging businesses. The company operates seven manufacturing

plants through this segment. The key brands of AB InBev sold in this region include Corona, Budweiser, Bud Light,

Modelo Especial, Victoria, Pacifico, and Negra Modelo.

The global export and holding companies segment includes the export sales as well as the intra-group transactions.

The Central and Eastern Europe segment primarily comprises the company's operations in Russia and Ukraine through

SUN InBev Russia and SUN InBev Ukraine subsidiaries, respectively. Besides the international brands, the segment

manufactures and sells beers under several local brands such as Bagbier, Brahma, Klinskoye, Lowenbrau, Sibirskaya

Korona, T and Tolstiak in Russia. Additionally, the Ukrainian subsidiary manufactures and sells local brands of beer such

as Chernigivske, Rogan and Yantar in the country. The segment operates six beverage manufacturing plants in Russia,

and three in Ukraine.

Anheuser Busch operates 13 breweries in the US: St. Louis, Missouri; Newark, New Jersey; Los Angeles, California;

Houston, Texas; Columbus, Ohio; Jacksonville, Florida; Merrimack, New Hampshire; Williamsburg, Virginia; Fairfield,

California; Baldwinsville, New York; Fort Collins, Colorado; Cartersville, Georgia; and Chicago, Illinois. Local brands

produced and sold in the US include: Bass, Brahma, Bud Light, Busch, Michelob, Natural Light, and Goose Island 312

Urban Wheat Ale.

Key Metrics

The company recorded revenues of $43,195 million in the fiscal year ending December 2013, an increase of 8.6%

compared to fiscal 2012. Its net income was $14,394 million in fiscal 2013, compared to a net income of $7,243 million in

the preceding year.

More recent financial information was not available for this company at the time of publication.



Table 10: Anheuser-Busch InBev SA/NV: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 36,758.0 36,297.0 39,046.0 39,758.0 43,195.0

Net income (loss) 4,613.0 4,026.0 5,885.0 7,243.0 14,394.0

Total assets 112,525.0 114,342.0 112,427.0 122,621.0 141,666.0

Total liabilities 79,354.0 75,543.0 71,383.0 77,180.0 86,358.0

Employees 116,000 114,000 116,000 116,278 117,632

SOURCE: COMPANY FILINGS M A R K E T L I N E

Table 11: Anheuser-Busch InBev SA/NV: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 12.5% 11.1% 15.1% 18.2% 33.3%

Revenue growth 56.4% (1.3%) 7.6% 1.8% 8.6%

Asset growth (0.6%) 1.6% (1.7%) 9.1% 15.5%

Liabilities growth (11.2%) (4.8%) (5.5%) 8.1% 11.9%

Debt/asset ratio 70.5% 66.1% 63.5% 62.9% 61.0%

Return on assets 4.1% 3.5% 5.2% 6.2% 10.9%

Revenue per employee $316,879 $318,395 $336,603 $341,922 $367,205

Profit per employee $39,767 $35,316 $50,733 $62,290 $122,365


Figure 15: Anheuser-Busch InBev SA/NV: revenues & profitability




Figure 16: Anheuser-Busch InBev SA/NV: assets & liabilities




Constellation Brands, Inc.

Table 12: Constellation Brands, Inc.: key facts

Head office: 207 High Point Drive, Building 100, Victor, New York 14564, USA

Telephone: 1 888 724 2169

Website: www.cbrands.com

Financial year-end: February

Ticker: STZ

Stock exchange: New York


Constellation Brands is a multi-category supplier of alcoholic beverages. The company conducts its business through

wholly-owned subsidiaries as well as through a variety of joint ventures and other entities. The company operates 18

wineries in the US, nine wineries in Canada, five wineries in Italy and four wineries in New Zealand.

The company operates through two business segments: wine and spirits, and beer.

Constellation Brands produces and markets premium wine brands across the table wine, sparkling wine and dessert

wine categories. It has presence across all price points: popular, premium, super-premium and fine wine. The portfolio of

super-premium and fine wines is supported by vineyard holdings in the US, Canada, New Zealand and Italy. The

company markets wine produced in the US domestically and in Canada and the UK. Wine produced in Canada is

primarily marketed domestically and wine produced in New Zealand is marketed in the US, Canada, Australia, the UK,

and domestically. The company sells wine produced in Italy in the US, Canada and domestically. Constellation Brands

also exports its wine products to other major wine consuming markets of the world.

The company's key wine brands include Robert Mondavi, Clos du Bois, Blackstone, Estancia, Arbor Mist, Toasted Head,

Simi, Mark West, Black Box, Ravenswood, Rex Goliath, Kim Crawford, Franciscan Estate, Wild Horse, Ruffino, Nobilo,

Mount Veeder, and Inniskillin. Constellation Brands also offers spirits under the Black Velvet Canadian Whisky and

Svedka Vodka brand names.

In the beer segment, the company has exclusive right to import market and sell Corona Extra, Corona Light, Modelo

Especial, Pacifico, Negra Modelo and Victoria brands in all 50 states of the US.

Constellation Brands also operates a brewery, wineries, a distilling plant and bottling plants, many of which include

warehousing and distribution facilities on the premises. Additionally, some of the company's businesses maintain office

space for sales and similar activities and offsite warehouse and distribution facilities in a variety of geographic locations.

In the US, the company operates one winery in New York, 16 wineries in California and one winery in Washington. Of

these, 16 wineries are owned and two wineries are leased. In Canada, it operates nine wineries, of which seven wineries

are owned and two wineries are leased. The company also owns and operates a distilling plant in Lethbridge, Canada. In

New Zealand, Constellation Brands owns and operates four wineries. In Italy, the company operates five leased

wineries. Constellation Brands also operates four leased warehouse, distribution and other production facilities in the US;

three owned and one leased warehouse, distribution and other production facilities in Canada; and one owned and

seven leased warehouse, distribution and other production facilities in Italy.

Key Metrics

The company recorded revenues of $4,864 million in the fiscal year ending February 2014, an increase of 74.0%

compared to fiscal 2013. Its net income was $1,943 million in fiscal 2014, compared to a net income of $388 million in

the preceding year.



Table 13: Constellation Brands, Inc.: key financials ($)

$ million 2010 2011 2012 2013 2014

Revenues 3,364.8 3,332.0 2,654.3 2,796.1 4,864.0

Net income (loss) 99.3 559.5 445.0 387.8 1,943.0

Total assets 8,094.3 7,167.6 7,109.9 7,638.1 14,302.0


Employees 6,000 4,300 4,400 4,500 6,300


Table 14: Constellation Brands, Inc.: key financial ratios

Ratio 2010 2011 2012 2013 2014

Profit margin 3.0% 16.8% 16.8% 13.9% 39.9%

Revenue growth (28.8%) (1.0%) (20.3%) 5.3% 74.0%

Asset growth 0.7% (11.4%) (0.8%) 7.4% 87.2%

Liabilities growth 44.1% (16.4%) (3.9%) 7.8% 95.1%

Debt/asset ratio 68.2% 64.4% 62.4% 62.6% 65.2%

Return on assets 1.2% 7.3% 6.2% 5.3% 17.7%






Figure 17: Constellation Brands, Inc.: revenues & profitability


Figure 18: Constellation Brands, Inc.: assets & liabilities




Heineken N.V.

Table 15: Heineken N.V.: key facts

Head office: Tweede Weteringplantsoen 21, 1017 ZD Amsterdam, NLD

Telephone: 31 20 523 92 39

Fax: 31 20 626 35 03

Website: www.theheinekencompany.com

Financial year-end: December

Ticker: HEIA

Stock exchange: NYSE, Euronext, Amsterdam


Heineken is a brewing company, with a wide international presence through a global network of distributors and

breweries. The company owns, markets and sells more than 250 beer brands including international premium, regional,

local and specialty beers. Its principal brands are Heineken, Amstel, Anchor, Birra Moretti, Cruzcampo, Desperados, Dos

Equis, Foster's, Newcastle Brown Ale, Ochota, Primus, Sagres, Sol, Star, Tecate, Tiger and Zywiec. Additionally, the

company markets several brands through joint ventures, which include Cristal and Kingfisher. In addition to its global

beer portfolio, Heineken is a large global player in the cider market, with brands such as Strongbow and Bulmers.

The company's brands are sold in about 178 countries, while it has operations in more than 70 countries across Western

Europe, Central and Eastern Europe, Africa and the Middle East, the Americas, and the Asia Pacific region. The

breweries are either owned by the company or are joint ventures in different countries.

The company operates in five segments, defined based on geographic presence: Western Europe, the Americas,

Central and Eastern Europe, Africa and the Middle East, and Asia Pacific.

Western Europe is Heineken's largest segment. In Western Europe, the company has operations in nine countries,

including the UK, France, Italy, the Netherlands, Belgium, Ireland, Portugal, Spain and Switzerland. In these regions, the

company operates through subsidiaries, joint ventures and licenses. The company also operates one export and duty-

free business in Western Europe. In this region, Heineken operates 26 breweries.

In the Americas, the company acquired the beer operations of Fomento Economico Mexicano (FEMSA) in 2010, through

which it gained access to a large market in Mexico and Brazil. The company also has significant interests in Compania

Cervecerias Unidas (CCU). In addition, the Heineken brand is brewed under license in a number of markets, mostly in

Canada. In all, the company has about 19 majority-owned breweries and eight joint venture breweries in the region.

For Central and Eastern European market, Heineken licenses its breweries or imports beers from other breweries under

the Heineken and Amstel brands. In this region, the company owns more than 50 breweries and has operating

companies in 14 countries, including Austria, Belarus, Bulgaria, the Czech Republic, Croatia, Germany, Greece,

Hungary, Macedonia, Poland, Romania, Russia, Slovakia and Serbia.

In Africa and the Middle East, Heineken operates through owned breweries. The company manufactures Heineken and

Amstel for local distribution and export, besides distributing several local brands like Fayrouz, Laziza and Harar. In this

region, Heineken's operations are spread across 23 countries.

Heineken operates in the Asia-Pacific region through Heineken Asia Pacific Pte, a Singapore-based beverage company.

The company also holds a 36.1% stake in United Breweries Limited (UBL) for Indian operations. Heineken Asia Pacific

Pte has 25 breweries in 19 countries across Asia Pacific, while UBL owns 18 breweries in India.



The company's beer production and manufacturing operations in the above segments are managed by several

subsidiaries, including Heineken Brouwerijen, the Netherlands; Heineken UK; Brau Union, Austria; Heineken France;

and Heineken USA among others.

Key Metrics

The company recorded revenues of $25,485 million in the fiscal year ending December 2013, an increase of 4.5%

compared to fiscal 2012. Its net income was $1,810 million in fiscal 2013, compared to a net income of $3,914 million in

the preceding year.

More recent financial information was not available for this company at the time of publication.

Table 16: Heineken N.V.: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 19,510.3 21,410.7 22,724.6 24,396.8 25,485.1

Net income (loss) 1,351.0 1,920.4 1,897.8 3,913.7 1,810.2

Total assets 26,781.7 35,384.2 36,001.3 47,749.2 44,242.9


Employees 55,301 65,730 64,252 76,191 80,933


Table 17: Heineken N.V.: key financials ()

million 2009 2010 2011 2012 2013

Revenues 14,701.0 16,133.0 17,123.0 18,383.0 9,203.0

Net income (loss) 1,018.0 1,447.0 1,430.0 2,949.0 1,364.0

Total assets 20,180.0 26,662.0 27,127.0 35,979.0 33,337.0





Table 18: Heineken N.V.: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 6.9% 9.0% 8.4% 16.0% 7.1%

Revenue growth 2.7% 9.7% 6.1% 7.4% 4.5%

Asset growth (1.9%) 32.1% 1.7% 32.6% (7.3%)

Liabilities growth (7.8%) 10.9% 3.6% 36.3% (9.6%)

Debt/asset ratio 73.5% 61.7% 62.8% 64.5% 62.9%

Return on assets 5.0% 6.2% 5.3% 9.3% 3.9%




Figure 19: Heineken N.V.: revenues & profitability




Figure 20: Heineken N.V.: assets & liabilities




MillerCoors LLC

Table 19: MillerCoors LLC: key facts

Head office: 250 South Wacker Drive, Chicago, Illinois 60606 5888, USA

Telephone: 1 800 645 5376

Website: www.millercoors.com


MillerCoors, a joint venture between SABMiller and Molson Coors Brewing Company (MCBC), sells beer in the US

market. The company's brands include Miller Lite, Coors Banquet, Coors Light, Blue Moon Belgian, Foster's, Henry

Weinhard's, Icehouse, Keystone Premium, Leinenkugel's, Killian's Irish Red, Miller Genuine Draft, Miller High Life,

Milwaukee's Best, Molson Canadian, Peroni Nastro Azzurro, Pilsner Urquell, Red Dog.

The company operates eight breweries in the US, and Leinenkugel's craft brewery in Chippewa Falls, Wisconsin; and

two microbreweries, the Tenth Street Brewery in Milwaukee, and the Blue Moon Brewing Company at Coors Field in

Denver. MillerCoors operates in the US, where it is headquartered in Chicago, Illinois.

Key Metrics

As a joint venture between SABMiller and Molson Coors Brewing Company, MillerCoors is not obliged to publish its

financial results.



MACROECONOMIC INDICATORS

Country Data

Table 20: United States size of population (million), 201014

Year Population (million) % Growth

2010 309.3 0.8%

2011 311.6 0.7%

2012 313.9 0.7%

2013 316.4 0.8%

2014 318.9 0.8%


Table 21: United States gdp (constant 2005 prices, $ billion), 201014

Year Constant 2005 Prices, $ billion % Growth

2010 13,597.2 2.5%

2011 13,815.0 1.6%

2012 14,135.6 2.3%

2013 14,449.3 2.2%

2014 14,799.6 2.4%


Table 22: United States gdp (current prices, $ billion), 201014

Year Current Prices, $ billion % Growth

2010 14,964.4 3.8%

2011 15,517.9 3.7%

2012 16,163.2 4.2%

2013 16,768.1 3.7%

2014 17,420.2 3.9%




Table 23: United States inflation, 201014

Year Inflation Rate (%)

2010 1.6%

2011 3.2%

2012 2.1%

2013 1.5%

2014 1.8%


Table 24: United States consumer price index (absolute), 201014

Year Consumer Price Index (2005 = 100)

2010 111.7

2011 115.2

2012 117.6

2013 119.3

2014 121.5


Table 25: United States exchange rate, 201014

Year Exchange rate (/$)

2010 1.3279

2011 1.3912

2012 1.2856

2013 1.3281

2014 1.3290




METHODOLOGY

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checked and presented in a consistent and accessible style.

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provide the foundation for all related industry profiles

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profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market

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market and our clients

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trends

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be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can

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Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date



Industry associations

International Federation of Wines and Spirits

18, rue d'Aguesseau, F-75008 - Paris, FRA

Tel.: 33 1 4268 8248

Fax: 33 1 4006 0698

www.fivs.org

Master Brewers Association of the Americas 3340 Pilot Knob Road - St. Paul, MN 55121, USA

Tel.: 1 651 454 7250

Fax: 1 651 454 0766

www.mbaa.com

Distilled Spirits Council 1250 Eye Street, NW, Suite 400, Washington, D.C. 20005, USA

Tel.: 1 202 628 3544

www.discus.org

Related MarketLine research

Industry Profile

Global Alcoholic Drinks

Alcoholic Drinks in Asia-Pacific

Alcoholic Drinks in Europe

Alcoholic Drinks in China

Alcoholic Drinks in the UK



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