Miller Brands 24 th October 2013

1. Miller Brands24th October 2013

2. Agenda • Miller Brands – who we are • Beer Market Overview • How to build a winning range • Peroni • Czech Category • Pilsner Urquell • Kozel

3. MILLER BRANDS UK. A MORE REWARDING WAY TO DO BUSINESS • Miller Brands UK is part of SABMiller, the world’s second largest brewer. • Recognised globally for our best-selling World Beers. • Our iconic brands include Peroni Nastro Azzurro, Pilsner Urquell, Kozel, Miller GenuineDraft, • St. Stefanus, Tyskie and Lech. • We have a unique approach to business and how we build worthmore brands. • Our proven brand creation strategies can make a rewarding change to your business. • Miller Brands occupy a premium position in every segment. • For every beer occasion, our brands provide an opportunity to trade consumers up into more premium • World Beers and a more profitable sale for you.

4. WINNING WITH WORLD BEER A genuine Italian import, it is the UK’s number 1 World Beer1 that consumers are prepared to pay more for2. By stocking the number 1 product, you are giving consumers what they want. The Original pilsner from Pilsen. Pilsner Urquell was the first ever golden beer produced. Distribution is growing at a faster rate than its competitors1. Be part of this growing brand.

5. WINNING WITH WORLD BEER Czech 4% lager offering a fuller flavour in the lower ABV category. Exclusive to the On Trade, available in draught format only. This gives you a point of difference vs the Off Trade. Number 1 packaged lager in Scotland1. Perceived as a cool brand amongst target 18-24 year old fun-seekers3. Matures in the bottle, allowing you to age the product to drive more premium pricing.

6. WE TURN PASSION INTO PROFIT • We are passionate about World Beers and are leaders in the category • We know that people will pay more for authentic brands6 • Our quality brands command a genuine price premium so you enjoy more profit • The average World Beer drinker spends 20% more on lager than the average beer drinker2 • TRADE UP WITH WORLD BEER BRANDS TO BRING MORE CASH TO YOUR TILL WE INVEST IN OUR BRANDS • Our creative campaigns raise awareness and drive sales • We produce premium point of sale and promotions to maximise the opportunity in your outlet • Our unique founts and glassware are eye-catching and encourage trial • World Beers are outperforming the market; 20.7% value growth vs. 10% for premium lager2 • YOU CANNOT AFFORD NOT TO HAVE WORLD BEERS ON YOUR BAR

7. World Beer Market Status Total Lager Value - £11,068M (-0.2%) Volume – 28,665khl (-3.5%) Standard Lager Value Volume Val £5,704M (+0.7%) Vol 15,842khl (-3.4%) Everyday Premium Lager Value Volume Val £3,191M (-7.1%) Vol 8,512khl (-9.3%) World Beer Value Volume Val £1,889M (+8.7%) Vol 3,369khl (+9.2%) Speciality Value Volume Val £124M (+24.8%) Vol 191khl (+12.5%) Source: Nielsen Answers MAT to 22/06/2013 & CGA to 20/04/13

8. Market Status While lager overall is in decline, there are some positive trends in the market that act as a beacon of hope for the future Some brands have managed to successfully differentiate their image and are driving value in the market World Beers Consumers are being more exploratory and looking to try new and different beers and beer styles Discovery, Speciality and Craft

9. The On Trade is Premiumising The average price per pint has increased by 11% over the last 2 years and the more premium segments are gaining share – it’s where to play Average PPL CGA Value Sales, April 2013

10. Premium Segments are gaining space on bar The more premium segments – World and Discovery – have seen significant increases in distribution and space on bar. World beer has seen a 32% increase in footprint, whilst at the same time Standard lager has seen ranging drop by 10% as outlets look to drive more value from their offering Less pubs , but better higher end, higher quality where consumers want to spend money CGA Value Sales, April 2013

11. How to build a winning range! “It’s our choices, Harry, that show who we truly are…” JK Rowling

12. The ‘6 immutable laws of ranging’ • Less is More • Consumers on average look at 5-6 brands before making up their mind • Ranges are independent • Most consumers have already decided on the format of drink wanted and so will not consider other formats. Dual stock brands if they brand merit consideration in both draught and packaged • Consumers can be tempted • Less than half consumers have pre-determined brand choices and so can be tempted to trade up if interesting options are available • Width not depth • With only 5-6 brands to range a bar needs to appeal to a wide selection of occasions and consumer needs. • Don’t range multiple brands that have heavily overlapping brand profile • Balance in everything • While low awareness brands deliver excitement for some, they deliver fear for others and all consumers look for the comfort of familiarity at some occasions • A place for everything and everything in its place • Consider your range on a holistic basis – don’t include brands which jar with everything else or consumers will wonder why they are included • Source: TNS Magasin, On Trade Research, May 2010, Cardinal Research, On Trade Ranging, March 2011

13. A question: How important is getting the range right? • When going into an outlet… • 19% • were open to influence – e.g. Any drink • 48% • of consumers knew the exact drink they wanted – e.g. Pint of Peroni • 33% • knew the type/format of drink they wanted – e.g. Bottled Lager • …and 97% of people got the type of drink they wanted. • So 52% are open to influence from the range • Source: TNS Magasin May 2010

14. Less is More • In our sample, the bars averaged 15lager founts available • Consumers looked at an average of 6 before making their decision! • Outlets have to ensure an acceptable offering in just 6 brands! • Source: TNS Magasin, On Trade Research, May 2010

15. Ranges are independent • When entering an outlet,… • 48% • of consumers knew the exact drink they wanted – e.g. Pint of Peroni • 33% • knew the type/format of drink they wanted – e.g. Bottled Lager • 19% • were open to influence – e.g. Any drink • Over 80% of consumers have pre-chosen the format of drink before entering a bar and so will not look at other ranges – • Dual Stock brands which deliver in both formats • Source: TNS Magasin, On Trade Research, May 2010

16. Balance in everythingWe asked consumers to look at different ranges • Regular, familiar and big selling major brands • Well known big brands, but width more width • Some smaller brands brought in and standard lager removed • Some well known premium brands, allied to less known • Low awareness smaller interesting brands • Source: Cardinal – May 2011

17. Width not depth • Offer your consumers a ranges of different choices, instead of brands that play similar roles. • Try to offer brands from as many different groupings as relevant • Offer consumers width not depth of choice

18. PERONI NASTRO AZZURRO Brand Health Update London Team Meeting 14th October 2013

19. Peroni sees strong volume growth (up 4.5%, vs. 1.4% last update), with the brand now comparable in value terms to Stella. Desperados’ continued growth has moved it into the top 10 edging out Staropramen Bottle and Draught Please note: Budweiser has moved up the ranking due to an error in calculation in previous packs (only Packaged previously shown) Source: CGA Strategy On-Trade MAT to 10/08/2013

20. PNA draught sales are driving the overall brand sales within the On Trade, with growth at a faster rate than last update, likely due to the good weather (vol 14% vs. 11% previously). Draught Only Source: CGA Strategy On-Trade MAT to 10/08/2013

21. PERONI NASTRO AZZURRO and CLOC London Team Meeting 14th October 2013

22. THE TRUTH ABOUT WHY THEY DRINK PERONI: URBANITES SAY THEY DRINK PERONI BECAUSE OF THE TASTE, BUT IN REALITY CONSIDERATION IS LARGELY DRIVEN BY DELIVERY, WHERE IT IS STOCKED AND WHO IS SEEN DRINKING IT Distribution Delivery I didn’t drink it when I was younger. It was when I started working, and going to nicer places that I started to see it in cool bars and classy restaurants Bristol, Boys The label is really sophisticated and it comes in a cool glass. That’s really important to me, If ever they give me Peroni in a generic pint glass, I die a little bit inside London, Boys Targeting Advertising I see quite a lot of advertising for Peroni on the tube recently. It’s a woman with sunglasses on in front of a white background. It’s very classy London, Girls The thing with Peroni is that you only see young, trendy professionals drinking it. That’s what makes it a cool choice Edinburgh, Boys CLOC is ensures 2 of the key drivers behind consumption of Peroni

23. Czech is known by consumers to produce quality lagers.. “These are your high-end Czech beers; I’m always happy to order one of these” “You know you’re going to get a nice taste and a reasonable strength beer” “I can trust them to deliver” “High quality beer generates a sense of pride in drinking it” Source: SPA Beer Categorisation July 2013

24. Czech Brands are segmented by consumers in a broader group of high appeal, high frequency European brands Premium Premium Beers/ Light Continental Strong/ Wheat Beer Craft Beer Czech / European beer Everyday Premium Lagers Low Frequency High Frequency Standard Lager Flavoured Standard Lagers Mainstream Source: SPA Beer Categorisation July 2013

25. There are different tastes between Central European brands at differing price points £3.78 £3.29 £4.06 £3.78 £3.37 £3.74 Low Price High • Czech brands as a group have a more flavoursome taste profile than German beers. • Within the Czech subset, Pilsner Urquell and Budvar are more full flavoured than Kozel and Staropramen. • While PU and Kozel have remanined true to their brewing heritage, Staropramen has sacrificed some of its quality credentials (shorter lagering time, brewing adjuncts) whilst driving distribution and volume. £3.14 £4.14 £4.22 Light Taste Flavoursome Source – CGA On Trade MAT Jun 13

26. Czech brands are worth £126M and in decline of -5.5% YOYHowever, Pilsner Urquell and Kozel are driving growth with strong and growing RoS at a higher price point Source – CGA On Trade MAT Jun 13

27. Pilsner Urquell and Kozel are clearly differentiated • Targeting 30-50 year old men, successful in their careers, comfortable with where he is in life • Searching for a fuller-bodied beer, showing an appreciation of authentic well-crafted premium brands • After work professional drinks occasions and catching up with friends or family at the weekend • Targeting 25-35 year old, city dwelling professional men who have an active social life with friends • Entry level World Beer drinkers beginning to trade up and discover new beers • Catch up drinks and casual food occasions with friends

28. Brand Roles - Why Stock Pilsner Urquell?Pilsner Urquell offers clear differentiation Pilsner Urquell compliments the different Lager segments on bar by covering a breadth of customer and consumer demands. • PU offers a trade up from Standard lager and EDPL • Margin development ahead of EDPL • More flavour and beer credentials than other World Beers • Offers excitement and discovery ahead of more well known World Beers

29. Kozel Category Story

30. Kozel – An Award Winning Czech Beer “Kozel is an easy to drink, award-winning, flavoursome Czech beer” A genuine import brewed with all natural ingredients, including world renowned Saaz hops from the Žatec region, Pilsner malted barley and soft forest spring water Kozel has won numerous awards over the years including Czech Beer of the Year in 2008, 2009 and 2010 Crafted in the small Czech village of Velké Popovice and genuinely imported Kozel is produced to “České pivo” (the internationally recognised Czech brewing standard) Great tasting, accessible 4% ABV

31. Kozel – trading up Standard Lager & EDPL consumers Kozel is an accessible, flavoursome, ‘entry level’ World Beer that encourages consumers to trade up from standard lager or EDPL to a higher cash margin brand. An authentic, premium choice only available on draught in the on-trade.

32. Kozel CLOC Consumer • 25-35 year old male professionals. Beer life • Entry level world beer drinkers • Active discoverers of quality beers • Enjoy talking about beer choices with friends Social life • Frequently spend time in the pub with a group of close friends • Work is important, but is balanced by a busy social life Occasion Two key occasions, both centred on conversation: 1. Catch up drinks with friends Regular mid-week after work drinks with close friends. The pub is their social hub 2. Casual food with friends Here it’s about good food, quality beer and a relaxing environment Outlet • The range: Beer that encourages experimentation. May include, other Czech beers, cask ales, premium spirits and craft bottled beers • Décor: Refurbished, traditional pub made cool. exposed brick; feature wallpaper, beer garden • Atmosphere: Feels like an independent outlet; ‘buzzy not busy’; low level background music • Food & Offering: Bar staff who care about good beer. Quality pub food menu offering a good roast and burgers

33. LowHigh Perceived Specialness Standard Lager Easy drinking More challenging Taste Profile Where does Kozel fit? In consumers eyes, the lager category has a number of different segments and they are performing at different levels. Speciality World Beer Everyday Premium Kozel fits best into a range as a ‘trade up’ entry-level World Beer option for consumers looking for more taste than Mediterranean / Asian World Beers and a more crafted product than on offer in the ‘Premium 4%’ market.

34. Why stock Kozel? - Trade Up Kozel is a high quality World Beer and delivers real value to consumers who are willing to pay a premium for it. It acts as a trade-up option and every pint which is transferred to Kozel from a mainstream offering can drive value to an outlet, demonstrated here... 2x Standard Lagers Standard Lager 1 311 pints/wk x £3.07 = £955/wk = £49,660/yr Standard Lager 2 311 pints/wk x £3.07 = £955/wk = £49,660/yr Total 622 pints/wk = £1,910/wk = £99,320/yr • Core standard lager drinkers substitute into the other brand • Entry-level World Beer drinkers trade up to Kozel • Total lager volume remains constant 1x Standard Lager & Kozel Standard Lager 1 539 pints/wk x £3.07 = £1,655/wk = £86,060/yr Kozel 83 pints/wk x £4.14 = £344/wk = £17,888/yr Total 622 pints/wk = £2,001/wk = £103,948/yr +£4,628 per year by trading up only 13% of standard lager consumers Source: CGA, 10.08.013, Standard Lager & Kozel ROS & price per pint, London

35. Why stock Kozel? – Shape of Range • Kozel compliments the different Lager segments on bar by covering a breadth of customer and consumer demands. At a lower ABV, Kozel’s taste and quality cues deliver an accessible trade up option – facets that cannot be matched by other individual draught lager segments. • Kozel offers a trade up from Standard lager and EDPL • Margin development ahead of EDPL • More flavour and beer credentials than other World Beers • Offers excitement and discovery ahead of more well known World Beers • An accessible lower ABV option

36. Kozel Pint Finder App & Shortlist promotionPhase 2 Live 12th September – 31st October Building brand consideration and trial through digitally enabled sampling Digital toolkits sent to every account including Facebook/Twitter/email assets DOWNLOAD APP & RATE AS ‘5 STAR’ Mobile App Sampling • Updated mobile App redemption mechanic for smartphones • Base of 7,000 users from April burst • Push notifications to drive redemption • 148 London stockists signed up across 12 customer groups Shortlist Advertising • In print for 5 weeks across September & October • Full page branded adverts • Stronger promotional offer – 2 pints per phone LAUNCHES SEPTEMBER 12th ‘Mobsta’ and ‘Blis’ geo-targeted mobile advertising within 500 yards of participating pubs. 3,900,000 impressions Outlet activation: staff app training, mystery shopping, incentives and POS Facebook mobile advertising : 29,000 impressions All promotion details held on kozelpintfinder.co.uk