M&A Update | Craft Beverage 2017

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