RubinBrown Food & Beverage Year in Review 2013

Public Equity Markets: Food & Beverage Returns

Food & Beverage Index Experiencing Continued Growth, Outperforms Market The S&P Food & Beverage Select Index continues to see record growth and outsized returns, with the index value reaching an all time high of 3,384 on December 31, 2013. These gains come amid strong performances from overall U.S. public equity markets, as the S&P 500 index also reached an all time high on the last day of the year. While the industry demonstrates pro-cyclical behavior, its performance has outpaced the broader market over the past year, achieving total returns approximately 37% higher than the S&P 500. The Beverage Companies subsector index (see pages 10-12 for subsector constituents) had remarkably strong overall performance over the course of the year, outperforming the next closest Food & Beverage subsector index, Food Production Companies, by approximately 122.0%. In fact, 6 of the companies in the Beverage Companies subsector index achieved annual returns in excess of 45.0%. The Food Production Companies subsector index also outperformed the S&P 500 index, with an annual return of nearly 29.6%, while the Agriculture/Food Production Ingredients subsector index slightly underperformed with an annual return of 23.2%.

Equity Performance by Index

Equity Performance by Subsector

80%

80%

S&P 500 Index

S&P 500 Consumer Staples Sector Index

65.7%

30% 40% 50% 60% 70% 10% 20%

30% 40% 50% 60% 70% 10% 20%

Food Production Companies

S&P Food & Beverage Select Industry Index S&P 500 Index

Beverage Companies

Agriculture/Food Production Ingredients

36.1%

29.6%

26.4%

26.4%

26.9%

23.2%

-10% 0%

-10% 0%

Source: Capital IQ

Source: Capital IQ

Food & Beverage Sector: 2013 Review

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