M&A Update | Craft Beverage 2017

2017

CRAFT BEVERAGE

M&A UPDATE

PUBLICATION CONTENT PROVIDED BY BAKER TILLY CAPITAL

Baker Tilly Capital, LLC’s Craft beverage M&A Update provides an overview of the U.S. craft brewery and craft spirits distillery markets, as well as select transactions. Craft brewery market trends The number of craft breweries in the U.S. continues to grow, now at an all-time high of over 6,000 active breweries. Off- premise sales of craft beer grew an estimated 6 percent in 2017 and craft beer gained an estimated 0.5 percent share of overall off-premise beer sales in 2017. Large beer companies continued to lose ground as wine and craft spirits each gained an estimated 2.5 percent share of total off-premise alcohol sales. Canned beer is also on the rise as it grew from 17 percent of total craft beer sales in 2016 to 23 percent in 2017. Select brewery transactions are highlighted in the tables below. One interesting development in 2017 is the use of minority equity investments to create production and sales alliances between the companies to leverage each other’s resources geographically. Brooklyn Brewing sold a 24.5 percent interest in its company to Japan’s Kirin Brewery late last year and utilized some of the capital to purchase a minority interest in 21 st Amendment and Funkworks. This is a more risk-averse strategy compared to building additional facilities to generate growth. Also, while the large breweries have signaled to the market that they will be less acquisitive in the craft space, Anheuser-Busch InBev continues to invest in craft breweries through acquisitions via its ZX Ventures investment unit. ZX Ventures announced it acquired 4 Pines Brewery in Australia in September 2017.

Source: Brewers Association, Brewbound, public news sources, Baker Tilly Insights

Table 1: M&A activity with reported transaction value and multiple data – Breweries

Transaction Comps

Enterprise

EV

EV

EV

Date

Target Company

Transaction Overview

Acquiring Company

Value

Revenue CM EBITDA

Anchor Brewing Company, LLC

Sapporo Holdings Limited (TSE:2501) agreed to acquire Anchor Brewing Company from Anchor Brewers and Distillers, LLC for $85 million on August 3, 2017.

Sappro Holdings Limited (TSE:2501)

08/03/17

$85.0

2.6x

n/a

n/a

Charles Wells Ltd. Is the holding company of the Charles Wells Brewery and Pub Company based in the U.K. and founded in 1876. The brewing and brands sales interests, which includes ale brands Bombardier, Courage, and McEwan's as well as distribution rights, was sold to Marston's. Asahi Group entered into a binding agreement to acquire Anheuser-Busch InBev's Central and Eastern European beer production business located in the Czech Republic. China Resources Snow Breweries Limited produces, markets, and sells beer under the Snow Beer brand name in China. The company also offers various spirits, was founded in 1993, and is based in Beijing, China. Molson Coors entered into a difinitive agreement to acquire the remaining 58% joint- venture interest in MillerCoors from Miller Brewing Company for approximately $12 billion in cash. Molson Coors will also acquire full ownership of the Miller brand portfolio outside the U.S. and retain the rights to all the brands currently in the MillerCoors portfolio for the U.S. market, including Redd's and import brands. Anheuser-Busch entered into a definitive agreement (and subsequently completed the acquisition in October 2016) to acquire SAB Miller, which sources, brews, bottles, and distributes various beer. The company was founded in 1895 and is based in London, UK. Tibet Galaxy Science & Technology Development Co. produces and sells beer under the Lhasa brand in China. The company also offers liquor and other alcoholic drinks and is based in Lhasa, China.

Marston's PLC

$71.5

0.6x

n/a

9.2x

06/02/17

Charles Wells Limited

Central and Eastern Europe Beer Business from Anheuser-Busch InBev SA/NV (ENXTBR:ABI)

Asahi Group Holdings, Ltd. (TSE:2502)

12/13/16

$7,774.2

4.4x

n/a

14.8x

China Resources Beer (Holdings) Company Limited (SEHK:291)

China Resources Snow Breweries Limited

10/11/16

$3,265.3

0.7x

n/a

n/a

Molson Coors Brewing Company (NYSE:TAP)

11/11/15

MillerCoors LLC

$20,689.7

2.7x

8.8x

12.4x

SAB Miller plc (nka:SABMiller Limited)

Anheuser-Busch InBev SA/NV (ENXTRA:ABI)

11/11/15

$111,961.0

7.5x

13.5x 18.5x

Tibet Galaxy Science & Technology Development Co., Ltd. (SZSE:000752)

Tibet Tianyi Longxing Investment Co., Ltd.

07/16/16

$953.6

2.7x

11.1x 12.8x

Pivovarna Lasko produces and sells beer and malt in Slovenia and internationally. The company was founded in 1925 and is based in Lasko, Slovenia.

Heineken International B.V.

01/18/16

Pivovarna Lasko DD

$422.8

2.2x

n/a

14.5x

Mean

$18,152.9 $2,109.5

2.9x 11.1x 13.7x 2.6x 11.1x 13.6x

Median

Note: Contribution Margin (CM) is defined as Gross Profit less Advertising and Marketing Expenses Source: Capital IQ (February 26, 2018)

1

Table 2: M&A activity without reported transaction value or multiple data – U.S. based breweries

Transaction Date

Transaction Overview

Target Company

Acquiring Company

Seaboard Craft Beer Holdings LLC acquired all the assets of Cape Coral Brewing Co. on December 7, 2017. As part of the transaction, Seaboard will rebrand the former Cape Coral location as a Big Storm taproom and brewing facility. Epic Brewing Company, LLC acquired Telegraph Brewing Co., Inc. on December 6, 2017. Telegraph Brewing will remain an independent craft brewery. Catawba Brewing Co. agreed to acquire the assets of Palmetto Brewing Company from Lipov family on November 13, 2017. Under the terms of the transaction, two companies will be joined into a single entity, but Palmetto will retain the same name.

Seaboard Craft Beer Holdings LLC

All Assets of Cape Coral Brewing Co. Telegraph Brewing Co., Inc.

12/07/17

Epic Brewing Company, LLC

12/06/17

Palmetto Brewing Company

11/13/17

Catawba Brewing Co.

Massachusetts Bay Brewing Company, Inc.

10/30/17

Clown Shoes Beer

Massachusetts Bay Brewing Company, Inc. acquired Clown Shoes Beer from Gregg Berman on October 30, 2017.

Good People Brewing Co. acquired the assets of Avondale Brewing Co. from Avondale Holdings Limited on October 16, 2017. Good People plans to keep the name and location of Avondale Brewing brewery unchanged, and all events and performances already scheduled will take place. Guests and fans will continue to see the same faces they've seen at Avondale Brewing over the years. The leadership team will not be overseeing management of any of Avondale's previously affiliated restaurants.

Avondale Brewing Company

Good People Brewing Comoany, LLC

10/16/17

South Bend Brew Werks LLC

Steve Lowe and Michele Lowe agreed to acquire South Bend Brew Werks from Drew Elegante on October 1, 2017.

-

10/01/17

Constellation Brands, Inc. (NYSE:STZ, STZ.B) acquired Funky Buddha Brewery from the Sentz family on August 9, 2017. Funky Buddha will form part of Constellation's Craft & Specialty Beer Group in the beer division. Constellation Brands and Funky Buddha Brewery's team of employees will continue to work together following the acquisition, with founder Ryan Sentz and his brother KC Sentz running the day-to-day operations.

Funky Buddha Brewery LLC

Constellation Brands, Inc. (NYSE:STZ)

08/10/17

New Belgium Brewing Company, Inc.; BVBA Oud Beersel

Magnolia Brewing Co, Inc.

New Belgium Brewing Company, Inc., BVBA Oud Beersel, and Dick Cantwell signed a definitive agreement to acquire Magnolia Brewing Co. assets out of bankruptcy for $2.7 million.

08/10/17

Cold Spring Brewing Company Monkey Paw Brewing Company

Brynwood Partners VII L.P. managed by Brynwood Partners acquired Cold Spring Brewing Company from Lenore family on August 3, 2017. Coronado Brewing Company, Inc. agreed to acquire a majority stake in Monkey Paw Brewing Company from Scot Blair on July 18, 2017. Coronado Brewing Company, Inc. will use cash flow from its production brewery and brewpub operations to finance the transaction.

08/03/17

Brynwood Partners

Coronado Brewing Company, Inc.

07/18/17

Molson Coors Brewing Company (NYSE:TAP)

07/15/17

Birradamare S.r.l.

Molson Coors Brewing Company (NYSE:TAP) acquired Birradamare S.r.l. on July 14, 2017.

06/16/17

Tin Man Brewing, LLC

Neace Ventures acquired Tin Man Brewing, LLC from Davidson family on June 16, 2017.

Neace Ventures

Paul Casey and Sarah Casey acquired Benefit Brewing, Inc. from Andrew Dahm on June 1, 2017. After the acquisition, Andrew Dahm will continue at Benefit Brewing and the management team of Benefit Brewing will also be retained. - Bigalora Wood Fired Cucina acquired North American operations from Arbor Brewing Company on May 11, 2017. Under the transaction, Bigalora Wood Fired Cucina will acquire Arbor Brewing's brewpub in Ann Arbor and Arbor's Corner Brewery and brewhouse in Ypsilanti. Cestra Butner acquired assets of Speakeasy Ales & Lagers Inc. from Forest Gray on May 8, 2017. The sale did not include Speakeasy’s previous debt liability. Sam Cappione is appointed as Vice President and general manager of Speakeasy Ales. - HEINEKEN USA Incorporated acquired the remaining 50% stake in Lagunitas Brewing Company on May 4, 2017. HEINIKEN USA orignally purchased 50% of Lagunitas Brewing Company on September 8, 2015. Lagunitas Brewing Company will continue to operate as an independent entity within HEINEKEN and will report within the HEINEKEN Americas Region. Anheuser-Busch Companies, LLC signed an agreement to acquire Wicked Weed Brewing LLC from Walt Dickinson and his brother, Luke Dickinson along with Ryan Guthy, and his parents, Richard A. Guthy and Denise A. Guthy on May 3, 2017. As of May 22, 2017, FTC granted early termination for the transaction. Walt Dickinson, Luke Dickinson, Ryan Guthy, Rick Guthy, Denise Guthy and the entire team of Wicked Weed Brewing will join Anheuser-Busch Companies. The transaction is subject to regulatory approval.

06/02/17

Benefit Brewing, Inc.

Arbor Brewing Company, North American operations Speakeasy Ales & Lagers Inc.

Bigalora Wood Fired Cucina

05/11/17

05/08/17

The Lagunitas Brewing Company

HEINEKEN USA Incorporated

05/04/17

Wicked Weed Brewing LLC

Anheuser-Busch Companies, LLC

05/03/17

05/01/17

Rolling Boil, LLC

John and Judy Jordan acquired Pug Ryan's Brewing Co. from Travis Holton and his wife Annie on May 1, 2017.

-

Seaboard Craft Beer Holdings acquired Fat Point Brewing on April 25, 2017. Fat Point Brewing will continue to operate independently as it concerns the taproom and local brewing operations. Fat Point will retain its local canning operation, but that will be used mainly for small-batch and limited-run brews.

Seaboard Craft Beer Holdings LLC

04/25/17

Fat Point Brewing LLC

03/02/17

Boxing Cat Brewery

ZX Ventures LLC acquired a stake in Boxing Cat Brewery on February 27, 2017.

ZX Ventures LLC Anheuser-Busch InBev SA/NV (ENXTBR:ABI)

Karbach Brewing Company

01/13/17

Karbach Brewing Company was considered the fastest-growing craft brewery in Texas at the time of the acquisition.

Sources: Capital IQ and public news sources (February 27, 2018)

2

Craft spirits market trends Many believe the craft spirit industry is currently positioned where the craft brewing industry was 10 years ago. According to the American Craft Spirits Association, there were 1,589 craft distillers (defined as U.S. licensed producers that have removed less than 750,001 proof gallons from bond) in the United States as of August 2017, up 20.8 percent from the same period last year. The new entrants to the market focus on whiskey production, but a significant amount also focus on vodka. The emphasis of the craft distillers is on ultra-premium bourbon and variations of whiskey that can be sold at high margins. Craft sprits producers are estimated to have a 3.8 percent market share of the total spirits market measured in retail value. By comparison, craft brewers have a 22 percent share of the total U.S. beer market measured in retail sales. Based on a survey done in its Craft Spirits Data Project by the American Craft Spirits Association, many retailers and wholesalers see the potential for craft spirits to perform in line or better than craft beer over time. Industry deal-making shows the large spirits distillers (refer to Comparable public company analysis) are paying greater attention to the craft spirits category, with various acquisitions closed in the past few years (see Tables 3 and 4). While most small distillers are not considering exit strategies yet and are instead focusing on volume growth and portfolio diversification, wholesalers surveyed by the American Craft Spirits Association believe that the majority of craft spirits producers will be acquired by larger suppliers.

Source: American Craft Spirits Association, IBISWorld, Baker Tilly Insights

Table 3: M&A activity with reported transaction value and multiple data – Distilled spirits producers

Transaction Comps

Enterprise

EV

EV

EV

Date

Target Company

Transaction Overview

Acquiring Company

Value

Revenue CM EBITDA

Heaven Hill Brands entered into an agreement to acquire T.J. Carolan & Son Ltd from Davide Campari-Milano S.p.A. (BIT:CPR) for an enterprise value of approximately €140 million on July 24, 2017. As part of the transaction, Gruppo Campari and Heaven Hill Brands will enter into a multi-year exclusive distribution agreement, under which Gruppo Campari will continue to distribute the Carolans and Irish Mist brands in the international markets outside the United States. Eastside Distilling, Inc. acquired 90% stake in Big Bottom Distilling for $0.12 million on May 1, 2017. Eastside Distilling issued 84,286 shares as consideration. Big Bottom Distilling will be maintained as independent entity underneath the operational umbrella of Eastside Distilling. Davide Campari-Milano S.p.A. agreed to acquire CK3 LLC for €54.1 million. The purchase consideration also includes working capital and assumed liabilities of €3.1 million. The terms of the transaction also include an earn-out payable upon the achievement of certain incremental sales volumes according to agreed volume targets. The deal leaves cash-on- hand and other assets on CK3's balance sheet, resulting in approximate proceeds of $70 million (€64.9 million) at closing to BULLDOG's shareholders. Societe Des Produits Marnier Lapostolle Societe Anonyme produces and sells liquors globally, including wines, spirits, cocktails, cognacs, and others. The company was founded in 1827 and is based in Paris, France. The BenRiach Distillery produces and sells single malt whiskies and operates a network of stockiests and outlets in the U.K. and internationally. The company was founded in 1898 and is based in Edinburgh, U.K. The purchase will include brand trademarks, three malt distilleries, a bottling plant, and the company's headquarters in Edinburgh. Hitejinro Holdings sold a 4.09% stake in Hitejinro Co. for $70 million. Hitejinro Co produces and sells whiskey, beer, wine, soju, and other alcoholic beverages in South Korea under various brands. The company was founded in 1924 and is based in Seoul, South Korea. Diageo produces, markets and sells various alcoholic beverages, including many premium brands such as Johnnie Walker, Smirnoff, Captain Morgan, Baileys, Tanqueray, and Guinness. The company was founded in 1886 and is based in London, UK. The transaction involved US and UK wine operation assets.

Heaven Hill Brands

07/24/17

TJ Carolan & Son Ltd

$165.0

4.2x

n/a

n/a

Eastside Distilling, Inc. (NasdaqCM:EAST)

05/01/17

Big Bottom Distilling, LLC

$0.1

0.7x

n/a

n/a

Davide Campari-Milano S.p.A. (BIT:CPR)

02/02/17

CK3 LLC

$70.0

5.7x

13.6x

n/a

Societe Des Produits Marnier Lapostolle Societe Anonyme (ENXTPA:MALA)

Davide Campari - Milano SpA (BIT:CPR)

06/27/16

$716.1

4.3x

n/a

21.1x

Brown-Forman Corporation (NYSE:BF.B)

The BenRiach Distillery Company Limited

06/01/16

$414.5

6.9x

n/a

24.7x

Hitejinro Co., Ltd. (KOSE:A000080)

Hitejinro Holdings, Ltd. (KOSE:A000140)

04/01/16

$2,609.5

1.6x

5.5x

11.8x

Diageo plc (LSE:DGE) - US and UK Wine Operations

Treasury Wine Estates Limited (ASX:TWE)

01/01/16

$600.0

n/a

n/a

7.9x

Mean

$653.6 $414.5

3.9x 4.2x

9.5x 16.4x 9.5x 16.5x

Median

Source: Capital IQ (February 26, 2018)

3

Table 4: M&A activity without reported transaction value or multiple data – Distilled spirits producers

Transaction Date

Target Company

Transaction Overview

Acquiring Company

Becle, S.A.B. de C.V. entered into a definitive agreement to acquire Pendleton Whisky Brands of Hood River Distillers, Inc. for approximately $210 million on December 13, 2017. In addition to the core Pendleton Whisky Expression, the acquisition includes the Pendleton Midnight, Pendleton 1910 and Pendleton Directors' Reserve expressions. Hood River Distillers will continue to bottle the Pendleton portfolio of products for Proximo and will also continue to operate with its remaining brands. The transaction is subject to the receipt of regulatory approvals, anti-trust approvals and other customary closing conditions. The transaction is expected to close in the first quarter of 2018. Milestone Brands LLC acquired a majority stake in Pura Vida Spirits Company LLC, Rights of Naranja Brand from Stewart Skloss and Pura Vida Spirits Company, LLC on November 13, 2017. Stewart Skloss will retain a minority stake in the Naranja brand. Deutsch Family Wine & Spirits acquired Bib & Tucker Bourbon and Masterson's Rye Whiskey brands from 3 Badge Beverage Corporation on August 2, 2017. Bacardi Ltd. took a minority stake in Dublin-based Teeling, marking its first foray into the Irish whiskey segment. Established in 2012, Teeling is known for its flagship 46%-abv Small Batch Irish whiskey. Bacardi Ltd. will become the exclusive U.S. importer for the Teeling Irish whiskey range. Moët Hennessy USA, Inc. acquired Woodinville Whiskey Company from Orlin Sorenson and Brett Carlile recently. Co- founders of Woodinville Whiskey, Orlin Sorensen and Brett Carlile, will continue to oversee the distillery's operations. No employees’ jobs will be affected. Diageo North America Inc. entered into a definitive agreement to acquire Casamigos Spirits Co. from George Clooney, Rande Gerber, Michael Meldman and others for $1 billion on June 21, 2017. The other owners include Lee Einsidler, Schuyler Joyner and Glenn Rotner. Under the terms of the agreement, Diageo will pay initial consideration of $700 million and a further potential $300 million based on a performance linked earn-out over 10 years. The acquisition will be funded through existing cash resources and debt. George Clooney, Rande Gerber and Michael Meldman are expected to stay with Casamigos after its acquisition. International Spirit & Beverage Group, Inc. (OTCPK:ISBG) agreed to acquire assets including RWB vodka brand from Aristocrat Group Corp. (OTCPK:ASCC) on September 12, 2017.

Pendleton Whisky Brands of Hood River Distillers, Inc.

Becle, S.A.B. de C.V. (BMV:CUERVO *)

11/27/17

10/27/17

Rights of Naranja Brand

Milestone Brands LLC

Aristocrat Group Corp., Assets Including RWB Vodka Brand

International Spirits & Beverage Group, Inc. (OTCPK:ISBG) Deutsch Family Wine & Spirits

08/16/17

3 Badge Beverage Corporation

07/24/17

06/30/17

Teeling Whiskey

Bacardi Ltd.

Woodinville Whiskey Company, LLC

Moët Hennessy USA, Inc.

06/27/17

Diageo North America Inc.

06/16/17

Casamigos Spirits Co.

06/08/17

Tin Man Brewing, LLC

Neace Ventures acquired Tin Man Brewing, LLC from Davidson family on June 16, 2017.

Neace Ventures

Pernod Ricard USA, LLC signed an agreement to acquire an unknown majority stake in Del Maguey Single Village Mezcal on June 7, 2017. Under the terms of the transaction, the management team of Del Maguey including the founder Ron Cooper along with Michael Gardner, Steve Olson, and the rest of the Del Maguey team will remain in place.

Pernod Ricard USA, LLC

05/01/17

Del Maguey Inc.

William Grant & Sons Limited

04/17/17

Tuthilltown Spirits LLC

William Grant & Sons Limited acquired Tuthilltown Spirits on April 18, 2017.

The Windquest Group acquired 51% stake in Ridge Cider Company on April 4, 2017. Matt DeLong, Founder of Ridge, will become the Head Cidermaker.

03/14/17

Ridge Cider Company

The Windquest Group

Equity Stakes In Fat Dog Spirits, LLC and 3R Distribution, LLC

Turbo Global Partners, Inc. (OTCPK:TRBO)

02/28/17

Turbo Global Partners, Inc. acquired Equity Stakes In Fat Dog Spirits, LLC and 3R Distribution, LLC on March 28, 2017.

Remy Cointreau Group

02/06/17

Westland Distrillery

Remy Cointreau Group acquired Westland Distillery, a distinctly American-style single malt whiskey.

Eastside Distilling, Inc. acquired Motherlode, LLC from Allen Barteld for $0.39 million on March 8, 2017. Under the terms of deal, Eastside Distilling issued 0.26 million shares as consideration. Post acquisition, Allen Barteld will be appointed as the President and the Chief Executive Officer of Motherlode and continue to serve as its manager. NBV Investments Inc. (“NBVI”), a subsidiary of Austin Nichols & Co. Incorporated (d/b/a Pernod Ricard North America) and an affiliate of New York-based Pernod Ricard USA, LLC, announced the signing and completion of the acquisition of a majority share of Smooth Ambler, the award-winning West-Virginia based distiller and producer of Smooth Ambler Contradiction Bourbon, Old Scout Single Barrel Bourbon and other high-end spirits. Stoli Group USA, LLC acquired Kentucky Owl, LLC on January 25, 2017. Under the terms of the agreement, Kentucky Owl's Dixon Dedman will continue to manage the business he co-founded in 2008. Constellation Brands acquired a minority stake in Catoctin Creek Distilling Company, LLC, a distillery producing an award winning 100% rye single-barrel whiskey in Purcellville in Loudoun County, Virginia. This investment provides the company with new capital to grow production, marketing, and to provide more jobs in Virginia.

Eastside Distilling, Inc. (NasdaqCM:EAST)

02/02/17

Motherlode, LLC

Smooth Ambler Spirits Co.

Pernod Ricard USA, LLC

01/31/17

01/09/17

Kentucky Owl, LLC

Stoli Group USA, LLC

Catoctin Creek Distilling Company, LLC

01/05/17

Constellation Brands

Source: Capital IQ (February 26, 2018)

4

Comparable public company valuation summary Market value data is provided for the following publicly traded breweries and spirits distilleries. All alcoholic beverage companies traded at higher multiples than the composite S&P 500 index from 2013 to the present. Publicly traded brewery valuations have declined recently due to lowering sales as craft breweries have acquired market share. Spirit valuations have diverged from breweries as consumers are gravitating toward the “cocktail culture.”

Table 5: Average historical trading multiples (EV/EBITDA)

18.0x

Breweries

Spirits Distilleries

S&P 500 Index

16.7x

16.0x

14.0x

12.8x 13.5x

12.0x

10.0x

8.0x

6.0x

Mar June Sept

Dec Mar June Sept

Dec Mar June Sep Dec Mar

Jun Sept

Dec Mar

Jun Sept

Dec Current

2013

2014

2015

2016

2017

Note: Multiples are based on average enterprise values for each quarterly period and certain outliers were removed from the analysis

Table 6: Comparable public company analysis

Enterprise LTM

LTM LTM Gross Profit

EBITDA

Total Debt

Enterprise Value / LTM

Revenue CAGR

($ in millions)

Company Name

Ticker

Value Revenue Gross Profit EBITDA Margin Margin Revenue EBITDA EBITDA 3-Year Hist.

Breweries Anheuser-Busch InBev SA/NV (ENXTBR:ABI)

334,803

56,444

35,058

21,028

62% 37% 38% 17% 52% 20% 51% 21% 40% 22% 44% 14% 44% 24% 45% 20% 44% 20% 67% 36% 52% 19% 51% 37% 58% 23% 62% 33% 43% 16% 62% 29% 67% 23% 49% 22% 57% 26% 58% 23% 31% 7%

5.9x 1.6x 2.1x 2.2x 1.8x 2.1x 1.7x 2.5x 2.5x 2.1x 9.0x 2.0x 6.9x 4.7x 5.9x 2.0x 4.8x 5.5x 2.6x 4.8x 4.8x

15.9x

0.0x 0.0x 0.0x 1.9x 1.8x 3.3x 1.8x 4.3x 1.6x 1.8x 1.9x 3.9x 3.4x 4.0x 2.5x 1.5x 3.2x 1.8x 1.6x 2.6x 2.5x

6.2% -1.3% -1.5% -1.4% 1.7% 4.4% -5.3% 38.4%

ENXTBR:ABI TTSE:AMCL NYSE:SAM CPSE:CARL B

1,406 1,824

884 863

332 450

148 169

9.5x

ANSA McAL Limited (TTSE:AMCL) Boston Beer Co., Inc. (NYSE:SAM)

10.8x 10.6x 26.0x 12.3x 10.5x 13.1x 10.7x 9.6x

22,306

9,968

5,077

2,108

Carlsberg A/S

371

207

64

14

Craft Brew Alliance, Inc. Heineken Holding N.V.

NASDAQGS:BREW

54,150 28,927 27,674 58,932 24,990

26,282 16,547 11,003

10,433 7,214 4,796

5,670 2,350 2,627

ENXTAM:HEIO

Kirin Holdings Company, Limited Molson Coors Brewing Company

TSE:2503 NYSE:TAP

Mean

$

15,275 $

$

7,928 4,937

4,264 $

5.2% 0.2%

Median

10,485

2,229

Enterprise LTM

LTM LTM Gross Profit

EBITDA

Total Debt

Enterprise Value / LTM

Revenue CAGRs

($ in millions)

Company Name

Ticker

Value Revenue Gross Profit EBITDA Margin Margin Revenue EBITDA EBITDA 3-Year Hist.

Spirits Distilleries Brown-Forman Corporation

$

28,327 1,269 51,331 9,820 96,758 2,867 52,087 7,308

$

3,140

$

2,119

1,142 $

24.8x 10.6x 18.8x 20.9x 17.8x 12.1x 16.6x 24.0x 12.1x 17.5x 17.8x

0.9% -6.9% 7.7% 6.5% 5.9% 5.8% 4.1% 6.0% 52.2%

NYSE:BF.B ISE:GCC NYSE:STZ BIT:CPR LSE:DGE JSE:DST ENXTPA:RI

624

325

119

C&C Group plc

7,447 2,085

3,800 1,214

2,735

Constellation Brands, Inc. Davide Campari - Milano SpA

469

16,434 1,447 10,844 1,331

10,144

5,439

Diageo plc

624

237

Distell Group Limited Pernod-Ricard SA Remy Cointreau SA Stock Spirits Group plc

6,777

3,138

895 148

305

ENXTPA:RCO

797

302

66

LSE:STCK

Mean

$

27,840 9,820

$

4,851 2,085

$

2,894 1,214

1,517 $

9.1% 5.9%

Median

469

Sources: Capital IQ, Baker Tilly Insights (as of March 1, 2018)

5

All information and analysis in this report is provided by Baker Tilly Capital, LLC, which provides investment banking services before, during, and after a sell-side or buy-side transaction. Baker Tilly Capital, member FINRA and SIPC, is a wholly- owned subsidiary of Baker Tilly Virchow Krause, LLP. RubinBrown and Baker Tilly Virchow Krause are independent members of Baker Tilly International, the world’s ninth largest network of accountancy and business advisory firms.

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