ALCOHOLIC BEVERAGE MONTHLY DASHBOARD FEBRUARY 2018

STRATEGIC & CAPITAL ADVISORY FOR CONSUMER COMPANIES

WWW.CODYPEAKADV.COM

Commodity Current Price 1 Month 1 Year 2 Year 52 Week Range

Aluminum, LME, $ per metric ton $2,158.50 $2,229.00 $1,908.00 $1,588.50

Corn, No. 2 yellow. Cent. Ill. bu-BP,U $3.55 $3.42 $3.50 $3.47

Rice, Long Grain Milled, No. 2 AR-U,W $25.50 $25.00 $20.25 $23.00

Raw sugar FOB, $/metric ton-K $258.30 $266.00 $305.90 $255.00

Wheat, No. 1 soft white, del Portland, Ore-U

$5.58 $5.37 $4.83 $5.22

TOP PERFORMING ALCOHOLIC BEVERAGE STOCKS BY SUBSECTOR

56.9% 50.8% 53.5%

Craft Brewers Large Brewers Wine & Spirits

CRAFT BREWERS, LARGE BREWERS AND WINE & SPIRITS

VS. S&P 500 INDEX

ALCOHOLIC BEVERAGE

RELATIVE SUBSECTOR STOCK PERFORMANCE

Source: Wall Street Journal

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PUBLIC COMPANY STOCK PERFORMANCE – TWELVE MONTHS ENDING FEBRUARY 28, 2018

EXCHANGE LISTED COMMODITY TRENDS – MONTHLY AVERAGE

Note: Market-weighted index from Cody Peak Advisors' Alcoholic Beverage Index

21.9%

35.7%

14.8%

4.9%

$305.90 $251.10

25.5% 22.8%

20.0%

16.0% 14.0%

6.8%

-5.3% -8.8%

-17.3% -20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Mar

-17

Ap

r-1

7

May

-17

Jun

-17

Jul-

17

Au

g-1

7

Sep

-17

Oct

-17

No

v-1

7

De

c-1

7

Jan

-18

Feb

-18

S&P 500 Craft Brewers

Large Brewers Wineries & Distillers

$1,713.00 $2,246.00

$3.55 $3.13

$25.50 $20.25

$5.58 $4.55

EV / REVENUE

RELATIVE SUBSECTOR VALUATION MULTIPLES

EV / EBITDA

RELATIVE SUBSECTOR VALUATION MULTIPLES

Source: Public company documents NA – Not available NMF – Not meaningful figure

EBITDA – Earnings before interest, taxes, depreciation & amortization Enterprise Value – Market value of equity + interest-bearing debt - cash

Page 3

RELATIVE TRAILING 12-MONTH VALUATION MULTIPLES FOR ALCOHOLIC BEVERAGE COMPANIES

TRAILING 12-MONTH VALUATION MULTIPLES FOR PUBLIC ALCOHOLIC BEVERAGE COMPANIES

18.7x

14.8x

13.0x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

18.0x

20.0x

Wineries &Distillers

Craft Brewers Large Brewers

6.0x

2.2x 1.8x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

Wineries & Distillers Large Brewers Craft Brewers

Price 1 Yr Est.

Price Performance Equity Firm Growth EV / LTM EBITDA

Company ($ mm) Ticker 02/28/18 LTM Value Value Rate Sales EBITDA Margin

Craft Brewers

Big Rock Brewery Inc. TSX:BR $4.44 -3.7% $31 $39 NA 1.0x NM 4.1%

The Boston Beer Company, Inc. NYSE:SAM 163.05 2.8% 1,877 1,811 2.7% 2.1x 10.7x 19.6%

Brick Brewing Co. Limited TSX:BRB 3.43 56.9% 121 128 17.8% 3.3x 18.9x 17.6%

BJ's Restaurants, Inc. NASDAQGS:BJRI 43.50 19.7% 892 1,031 4.6% 1.0x 9.2x 10.9%

Craft Brew Alliance, Inc. NASDAQGS:BREW 17.85 21.4% 344 370 2.1% 1.8x 24.2x 7.4%

Average 19.4% 6.8% 1.9x 15.7x 11.9%

Median 19.7% 3.6% 1.8x 14.8x 10.9%

Large Brewers

Anheuser-Busch InBev SA/NV ENXTBR:ABI $106.81 -2.5% $206,545 $330,730 2.5% 5.9x 15.4x 38.0%

Asahi Group Holdings, Ltd. TSE:2502 51.45 45.2% 23,572 34,859 NA 1.9x 13.8x 13.7%

Heineken N.V. ENXTAM:HEIA 104.44 26.3% 59,554 76,979 NA 2.9x 13.6x 21.5%

Kirin Holdings Company, Limited TSE:2503 26.04 50.8% 23,760 29,321 8.8% 1.8x 12.5x 14.2%

Molson Coors Brewing Company NYSE:TAP 76.25 -24.0% 16,445 27,548 2.0% 2.5x 10.5x 23.9%

Sapporo Holdings Limited TSE:2501 28.53 13.2% 2,222 4,412 NA 0.9x 11.2x 8.1%

Average 18.1% 4.4% 2.6x 12.8x 19.9%

Median 19.7% 2.5% 2.2x 13.0x 17.9%

Wineries & Distillers

Brown-Forman Corporation NYSE:BF.B $55.83 43.1% $26,520 $28,512 9.1% 8.9x 24.2x 36.8%

Constellation Brands, Inc. NYSE:STZ 215.48 35.7% 42,039 51,250 3.4% 6.9x 18.7x 36.7%

Diageo plc LSE:DGE 33.94 20.4% 83,325 98,325 7.7% 6.0x 18.1x 33.1%

Pernod Ricard SA ENXTPA:RI 164.84 43.9% 43,521 52,766 NA 4.9x 16.8x 28.9%

Rémy Cointreau SA ENXTPA:RCO 136.63 53.5% 6,822 7,350 NA 5.5x 24.1x 22.9%

Average 39.3% 6.7% 6.4x 20.4x 31.7%

Median 43.1% 7.7% 6.0x 18.7x 33.1%

HIGHLIGHTED 2018 ALCOHOLIC BEVERAGE M&A TRANSACTIONS

Target: Avion Spirits, LLC Buyer: Pernod Ricard USA Transaction Value: NA TV / Rev: NA TV / EBITDA: NA

Pernod Ricard completed the acquisition of Avion Spirits in 2018, acquiring the remaining 16% of the business. The terms of the transaction were not disclosed.

Avion Spirits is a lifestyle brand that produces ultra premium tequila. Next to Olmeca Altos, Avion will be the second premium tequila brand that Pernod Ricard adds to its brand portfolio

Pernod Ricard has focused on adding premium brands and building brands. Pernod Ricard will provide resources to further grow Avion and expand the brand’s distribution.

Target: Patron Spirits International AG Buyer: Bacardi Ltd. Transaction Value: $5.1 billion TV / Rev: NA TV / EBITDA: NA

Bacardi announced the acquisition of Patron for $5.1 billion. The company had previously owned a 30% stake in Partron. The transaction is expected to close during the first quarter of 2018.

According to IWSR data, this transaction will make Bacardi the second largest player of spirits in the US.

Bacardi intends to further expand the distribution of Patron in international markets.

After the acquisition is completed, the current executive team will remain in place and continue to operate Patron.

ALCOHOLIC BEVERAGE M&A ACTIVITY

BY SUBSECTOR*

MEDIAN ALCOHOLIC BEVERAGE REVENUE MULTIPLES BY

SUBSECTOR*

MEDIAN ALCOHOLIC BEVERAGE EBITDA MULTIPLES BY

SUBSECTOR*

Note : Median from 2004 – 2018 *U.S. & Canada targets

Page 4

Chart Source: Capital IQ & Cody Peak research *U.S. & Canada targets

Note : Median from 2004 – 2018 *U.S. & Canada targets

MERGERS & ACQUISITIONS OVERVIEW

2.8x 2.8x

2.2x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

Breweries Distilleries Wineries

14.0x

13.7x

13.2x

12.6x

12.8x

13.0x

13.2x

13.4x

13.6x

13.8x

14.0x

14.2x

Distilleries Wineries Breweries

13 10 8

21 26 26

10 13

26 29

4

5 4 4

4 6 5

11 14

13 14

11

4 4 7

4

7 4

6

10

16

22

14

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD 2018

Wineries Distilleries Breweries

This report is for information purposes only and is not intended as an offer or solicitation with respect to any purchase or sale of any security. Cody Peak Advisors, LLC gathers its data from sources it considers reliable; however, it does not guarantee the accuracy of completeness of the information provided within this publication. The opinions presented herein reflect the current judgment of the authors and are subject to change. Cody Peak Advisors, LLC makes no warranties, expressed or implied, regarding the accuracy of this information or the subjective opinions expressed by the authors. Cody Peak Advisors, LLC, its officers, directors and partners may at any time have positions in the securities of the companies discussed herein.

Cody Peak Advisors is an independent strategic and capital advisory firm that focuses exclusively on the consumer sector. Our senior professionals have completed over 100 transactions with an aggregated value in excess of $7 billion. We have a successful track record of helping middle market branded and non-branded consumer manufacturing, marketing and distribution companies strategically unlock and enhance value through mergers, acquisitions and financings.

Robert J. Parzick Managing Director 310.616.0782 bparzick@codypeakadv.com

Jacques A. Perrone Managing Director 310.616.0781 jperrone@codypeakadv.com

ABOUT CODY PEAK ADVISORS CONTACT

Cody Peak Advisors, LLC 201 Continental Blvd, Suite 200 El Segundo, California 90245 www.codypeakadv.com

March 2018 Copyright© 2018 Cody Peak Advisors, LLC., all rights reserved.

Sources: Capital IQ / Cody Peak M&A database

Page 5

SELECT ALCOHOLIC BEVERAGE TRANSACTIONS

Closed Date Target/Issuer

Total Transaction Value ($mm)

Transaction Type Buyers Subsector Target Business Description

02/28/2018 United Spirits Nepal Private Limited

$3.3 M&A - Distillery United Spirits Nepal Private Limited manufactures and sells alcoholic beverages. The company is headquartered in Kathmandu, Nepal.

02/27/2018 Pedernales Brewing Company, LLC

- M&A Uncle Billy's Brewery Brewery Pedernales Brewing Company, LLC produces and markets beer. The company was founded in 2009 and is based in Fredericksburg, Texas.

02/21/2018 Karmo Spirit S.L. - Financing H.I.G. Europe Distillery Karmo Spirit S.L. operates a distillery that manufactures gin in Strawberry, Classic, and Pure Black Edition variants. The company was founded in 1880 and is headquartered in Seville, Spain.

02/21/2018 Remedia AS - M&A Amber Beverage Group Ltd. Distillery Remedia AS manufactures alcoholic beverages. The company was founded in 1994 and is based in Tallinn, Estonia.

02/21/2018 The Dark Star Brewing Co. Ltd

- M&A Fuller, Smith & Turner P.L.C. Brewery The Dark Star Brewing Co. Ltd produces beers. The company was founded in 1994 and is based in Partridge Green, United Kingdom.

02/20/2018 Hop Stuff Brewery Limited $1.1 Financing - Brewery Hop Stuff Brewery Limited produces and supplies beer. The company was incorporated in 2013 and is based in London, United Kingdom.

02/19/2018 Patriarch Distillers LLC $0.8 Financing - Distillery Patriarch Distillers LLC produces and sells whiskeys and vodka. The company was incorporated in 2012 and is based in La Vista, Nebraska.

02/14/2018 Black Lion LLC - M&A JSC Georgia Capital Brewery Black Lion LLC owns and operates a brewery and produces craft beer. The company is based in Tbilisi, Georgia. As of February 8, 2018, Black Lion LLC operates as a subsidiary of JSC Georgia Capital.

02/13/2018 Olympic Brewery S.A. - M&A Carlsberg A/S Brewery Olympic Brewery SA operates a brewery. The company was founded in 1997 and is based in Thessaloniki, Greece.

02/09/2018 Dead Man's Fingers Spiced Rum brand of The Rum & Crab Shack

- M&A Halewood Wines & Spirits Distillery As of February 6, 2018, Dead Man's Fingers Spiced Rum was acquired by Halewood Wines & Spirits. Dead Man's Fingers Spiced Rum comprises alcoholic drinks brand.

02/07/2018 Jeju Soju Co.,Ltd $4.7 Financing E-MART Inc. Distillery As of January 2, 2017, Jeju Soju Co.,Ltd produces alcoholic beverages. The company was founded in 2011 and is based in Jeju, South Korea.

02/06/2018 Aviation American Gin - M&A Ryan Renolds Distillery Aviation American Gin operates spirits distilleries in the United States. The company was founded in 2006 and is based in Portland, Oregon.

02/06/2018 Pat's Backcountry Beverages, Inc.

$5.7 Financing - Brewery Pat's Backcountry Beverages, Inc. produces beer and soda concentrates. The company also offers portable carbonators and wine products. The company was incorporated in 2008 and is based in Talkeetna, Alaska.

02/02/2018 Source Brewing LLC $0.5 Financing - Brewery Source Brewing LLC engages in producing hand-crafted beer and soda using the local ingredients. The company as founded in 2017 and is based in Colts Neck, New Jersey.