trends in beer consumption and inbev’s approach · wine spirits decline growth inconsistent ......

1 Copyright © 2005 InBev – All rights reserved

Trends in Beer Consumptionand InBev’s Approach

Steve Cahillane, Chief Commercial Officer

Copyright © 2005 InBev – All rights reserved2

140 Markets140 MarketsLeader in 20 major marketsLeader in 20 major markets

GearedGeared toto growthgrowth


China

USA

Germany

Brazil

Russia

Argentina

UKBelgium

Serbia

Czech

Canada

Hungary

South Korea

Ukraine

RomaniaParaguay

Venezuela

Bolivia

Netherlands

DECLINE GROWTH

INCONSISTENT

CONSISTENTBeer – Absolute per Capita Consumption


Carbonates

Still Drinks

Squash/Syrups

Fruit Powders

Pk. Water

Juices_

Iced/Rtd Tea

Sports Drinks

Milk_

CoffeeTea

Beer

Wine

Spirits

DECLINE GROWTH

INCONSISTENT

CONSISTENTWorld – Share of Throat


Pk. Water

Carbonates

Juices_

Still Drinks

Iced/Rtd TeaMilk_

Coffee

Tea

Beer

Spirits

DECLINE GROWTH

INCONSISTENT

CONSISTENTChina – Share of Throat


Pk. Water

Carbonates

Juices_

Milk_

Coffee

Tea Beer

Wine

Spirits

FAB

DECLINE GROWTH

INCONSISTENT

CONSISTENTRussia – Share of Throat


Diversified Geographic ReachInBev is in 7 of the 10highest contributing

markets…2005 2020

44%

16%

9%

5% 4% 4% 3% 3% 3% 3%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

China Russia Mexico Thailand Poland USA Brazil Spain Vietnam Ukraine

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% of the Growth Cumulative Growth %


Western Europe

25%

North America

17%

Asia Pacific

7%

Central & Eastern

Europe

12%

Latin America

39%

Holding Cies &

Global Export

0%

Geared to Growth3Q05: % of EBITDA


Winning BrandPortfolio

Winning at thePoint of

Connection

World ClassEfficiency

TargetedMergers &

Acquisitions

Innovation

People / Culture

Financial Discipline

Strategic Pillars and Enablers

InBev Strategy


Optimal brand portfolio by countryDevelop sustainable core domestic brandsDrive global premium brands

Revenue Management

Global roll-out of Brahma

Broaden consumer appeal for InBev portfolio

WinningBrand

Portfolio


Connection


TargetedMergers &

Acquisitions

Innovation

People / Culture



InBev Strategy


WinningBrand

Portfolio


Connection


TargetedMergers &

Acquisitions

Innovation

People / Culture



Cost-discipline rollout• Ownership culture• Zero-Based Budgeting (ZBB)• Plant Optimization

World Class Commercial Program:Secure and customize route-to-marketValues based brandsBest in class with management and selling systemsOptimize Margin Pool Split6

Performance-based culture enables improvements

InBev Strategy


Commitment to value creation builton margin expansion and EBITDAgrowth

New operating model

Increase marketing

and sales

1 4Grow

volumes

Reducecost base

Effective portfolio

2 3

investmentsmanagement

Increase marketing

and sales

1 4Grow

volumes

Reducecost base

2 3

investments


Progress Report – YTD Performance

Operating Targets YTD 05

• Organic volume + 4 to 5% +5.6%

• Price/mix + 1% +1.7%

• EBITDA margin expansion +2.6%

EBITDA margin of 27.7% vs 25.1% YTD 04

• EBITDA organic growth +17.0%


Premium Growth

Volume Progress in 3Q05:

Beck’s +10.2%

Brahma +14.6%

Stella Artois + 8.4%

Total InBev + 6.0%

trends in beer consumption and inbev’s approach · wine spirits decline growth inconsistent ......

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