BEVERAGE ALCOHOL MEDIA REPORT in previous reports, we also detail media behaviors and media...

1 Copyright © 2017 The Nielsen Company (US), LLC, All Rights Reserved.

Copyright © 2017 The Nielsen Company (US), LLC, All Rights Reserved.

BEVERAGE ALCOHOL MEDIA REPORT Q2 2017


WELCOME For craft breweries of all stripes, digital advertising is an increasingly important tool to engage with consumers and combat slow growth. In fact, craft digital advertising spend now accounts for 12.5% of total beer digital spend, and brands of all sizes are testing the digital waters. In the following pages we take a look at digital videos and campaigns for several different types of breweries—those with national, regional and local distribution—to better understand the impact of digital advertising in the craft beer space.

SUSAN LAUINGER

SVP, MARKETING EFFECTIVENESS

In addition to this deep dive into the craft space, the report details the top resonating beer, spirits, wine, flavored malt beverage & cider television ads for the second quarter of 2017 —including a three-way tie for beer. As in previous reports, we also detail media behaviors and media consumption by legal drinking age consumer groups—age, generations, race/ethnicity—across TV, online and mobile. And finally, this quarter’s report includes a more granular breakdown of beverage alcohol industry media spend by industry sub-category and channel.

We hope you find these highlights useful and informative as we continue to strive for a true understanding of total audience behavior within a fragmented and fast-moving media landscape.

Susan

“CRAFT DIGITAL ADVERTISING SPEND NOW ACCOUNTS FOR 12.5% OF TOTAL BEER DIGITAL SPEND, AND BRANDS OF ALL SIZES ARE TESTING THE DIGITAL WATERS.*”

*Source: Nielsen Ad Intel – Digital Media Spend, powered by Pathmatics and Nielsen(Digital Coverage: Display + Video on Desktop; Display on Mobile + Tablet Web)

Susan


CRAFT BEER DIGITAL ADVERTISING As craft beer continues to evolve in a landscape of more modest growth than it has seen in the past, many brands are breaking into digital advertising as a way to reach their consumers. In 2016, more than $7 million was spent on digital advertising by craft beer brands of varying sizes, accounting for 12.5% of total measured beer digital media spend¹. This begs the questions…is digital advertising a fruitful avenue for craft beer brands?

2016 craft beer digital advertising aligned nicely with popular beer holidays. Starting with the Super Bowl, craft beer brands spent 32% more on digital advertising in February than in the average month. Warm weather holidays followed next, Memorial Day in May and Independence Day in July also saw spikes in digital advertising spend, 33% and 35%, respectively. The leanest months were April, November and December.

To better understand the impact of digital advertising in the craft beer space we looked at several different types of breweries. Digital videos were analyzed using our Creative Evaluation tool which measures consumer reaction to ads through a survey panel. Creative Evaluation assesses Emotive Power and Information Power, bringing together the power of emotional connection with feelings on value in the ads. Digital campaigns extend beyond the realm of videos so we also used Social Standards to capture the impact these campaigns had on social media (specifically Twitter and Instagram). Social Standards connects social and sales data to discover in-depth consumer insights.

CRAFT BEER DIGITAL SPEND BY MONTH

¹ Source: Nielsen Ad Intel – Digital Media Spend, powered by Pathmatics and Nielsen (Digital Coverage: Display + Video on Desktop; Display on Mobile + Tablet Web)

Jan 2016

Feb 2016

Mar 2016

Apr 2016

May 2016

Jun 2016

Jul 2016

Aug 2016

Sep 2016

Oct 2016

Nov 2016

Dec 2016


NEW BELGIUM CREATIVE EVALUATION

² Source: Nielsen Scantrack All Nielsen Measured Off-Premise Outlets (xAOC + Liq Plus + Conv + Military) 52 Wks W/E 10/07/17

Craft breweries take a variety of shapes and sizes. Some brands focus on a small, localized region while others have gained national distribution, and still others fall somewhere in between. Despite a great degree of variation in brewery size and distribution, digital advertising is starting to take a role across many craft beer brands.

NATIONAL DISTRIBUTION It is unsurprising that craft brands owned by larger beer brands posted the largest spend on digital advertising. Big beer owned craft accounts for about 85% of total craft beer digital advertising spend. However, there are several brands that carry national distribution and presence that are not owned by big beer companies. Among these brands, you find New Belgium Brewing. Located in Fort Collins, Colo., New Belgium has been around since 1991. Accounting for more than 5% of all Nielsen measured off-premise craft dollar sales, New Belgium continues to grow—up 5% vs. year ago².

New Belgium’s Voodoo Ranger, an American IPA, is the second largest New Belgium offering—making up over 14% of the New Belgium portfolio. In February of 2017, New Belgium launched a digital video pairing the Voodoo Ranger himself with an orangutan named Frank. Humor and entertainment were among the strongest traits of the video according to Creative Evaluation, both outscoring the database benchmark. Panelists also found the ad to be clever and original, much like the Voodoo Ranger brand itself.

26%

33%

18%

36%

28%

34%

35%

47%

Entertaining

Clever

Humorous

Original

New Belgium Ad CE Database Norm


DESCHUTES CREATIVE EVALUATION

The video hit home beyond Creative Evaluation as well. New Belgium saw a 16% increase in Instagram mentions in February 2017 compared to the previous month. While the increase in Twitter mentions was more modest, only a 3% gain, the number of mentions stayed at the elevated level for the next three months, carrying through to April 2017.

REGIONAL DISTRIBUTION Many craft brands have achieved a strong regional base, creating a presence that extends beyond their immediate micro-region but are still below the national level. Deschutes is one such brand. Deschutes holds nearly 2% share of craft dollars (Nielsen measured off-premise outlets) and has grown more than 10% in the last two years. The Oregon-based brand features outdoor scenery and landscapes on the bottles of their year-round portfolio. This theme is carried over in a video montage of outdoor scenery and activities highlighting the new Pilsner addition, called Pacific Wonderland, to their year-round line-up. Release of the video aligned with the late 2016/early 2017 launch of the new Pacific Wonderland item. Deschutes’ video outscored the Creative Evaluation database norm for being both Stylish and delivering a soft sell. Panelists also found the video to be original and likable.

Following the launch of the new Pacific Wonderland item and its corresponding video, Deschutes gained more Instagram chatter. In fact, there was a 2% increase in Instagram mentions in the two months following the launch as compared to the two months prior. Twitter mentions remaining fairly steady, riding a previous increase in Deschutes mentions that began mid 2016. With this digital support, Pacific Wonderland already accounts for nearly 4% of the Deschutes portfolio, making it one of the 10 brands from the brewery as it joins the ranks of year-round brands.

41% 36% 35%

32%

Soft Sell Stylish

Deschutes Ad CE Database Norm


23%

21%

20%

18%

18%

Soft Sell

In-Tune

Stylish

Believable

Original

GREAT LAKES CREATIVE EVALUATION

LOCAL DISTRIBUTION Brands like Great Lakes Brewing have a more local presence, focusing distribution a handful of key cities and states. Hailing from Cleveland, Ohio, Great Lakes accounts for 0.7% of Nielsen measured off-premise craft dollars. The brewery has maintained sales over the past two years, with dollar sales up nearly 1% compared to year ago. Holding true to their local roots, Great Lakes year-round beers derive their names from local places, people, and events.

One such brand, Eliot Ness, is named for the infamous Prohibition enforcement agent and the Amber Lager is a permanent fixture in the Great Lakes portfolio. Accounting for more than 6% of the Great Lakes portfolio, Eliot Ness is growing 12.0% dollar sales vs. year ago. The short video spot featuring the Eliot Ness brand and “reopening a cold case” scored well as a soft sell among Creative Evaluation panelists but also was a strong contender for being in-tune, stylish, and believable.

Much like the growth Eliot Ness is experiencing in the latest year, fourth-quarter 2016 brought a steep increase in Social Media mentions for Great Lakes. On Instagram, Great Lakes had a 33% increase in mentions in fourth-quarter 2016 as compared to the prior quarter and there was a 25% increase in mentions on Twitter during the same time frame.

7 Copyright © 2017 The Nielsen Company (US), LLC, All Rights Reserved. Copyright © 2017 The Nielsen Company (US), LLC, All Rights Reserved.

So how do craft brands best capitalize on digital advertising? Ensuring that video materials and campaigns clearly communicate the message of the brand as well as the broader brewery is key. Is your ad meant to be humorous and clever or are you aiming for originality and education? A digital advertising campaign can benefit from these best practices:

HOOK THEM IN The first 3-5 seconds of the ad needs to grab your consumers’ attention, even with the sound off. Give consumers a reason to want to watch your entire creative.

GET TO THE POINT Consider using short-form content (e.g, 6-second vines) in addition to longer (:15, :30, :60) video.

TELL A STORY Montages and product shots are not as effective as storyline based content that leverages humor or sentimentality.

COMMUNICATE BRAND EARLY, OFTEN, & VISUALLY Rely more heavily on visual brand cues. Use multiple brand communication tactics such as iconography, product shots, a consistent creative look and feel across all media types, or a prominent logo.


THE BEST OF THE BEST: TOP BEV-AL TV ADS


HOW TO READ TOP AD PERFORMANCE

Today’s consumers have more access to more information than ever before, and we are consuming information at a faster and faster rate. The average adult (21+) watches about five hours of TV per day. This equates to about 300 ad impressions each day, or 1,750 ad impressions per week.

The ads showcased in this section were able to break through the clutter of real-world TV ad viewing—including the impact of multi-tasking and life’s many other distractions—to deliver high performance in brand memorability.

AD NAME BRAND

CATEGORY

AD ICON

AD DURATION

AD THUMBNAILS

AD DESCRIPTION

SCORE

BEST PRACTICES MATRIX

Indicates the effectiveness of the ad breaking through in-market and connecting back to the brand in comparison to the ad’s category norm.

Displays the best practices identified in ad.

HUMOR/SENTIMENTALITY

Brand A leverages the production process, including images of barrel production, fire burning, and smoking charcoal, as ownable concepts to connect with viewers.

Brand Memorability Index: 230

BRAND A “AD ONE” :15 BA

SIMPLE STORYLINE

BA

RELATABLE CHARACTERS

BA

CATEGORY ONE

CHARACTER DIALOGUE

BEST PRACTICES


Source: Nielsen TV Brand Effect, data limited to performance from 4/1/17 - 6/30/17, 21+ Evaluating English-language ads on English-language networks within TV Brand Effect coverage only. Only includes ads that have debuted since 7/1/16 with > 100 Brand Linkage sample in 2Q'17.. Ads with less than 100 sample were not considered Branded Memorability indexed against the 2014-2016 Beverage Alcohol norm for Branded Memorability

Breakthrough Best Practices

Simple Storyline Relatable Characters

Character Dialogue Humor/Sentimentality

BB DE ME JD LR BW BB ME JD LR

BB DE ME JD LR

Branding Best Practices

Early Visual/Verbal Cues Leverage Brand Icon

Ownable Concept Brand in Storyline

BB ME LR BW

BB DE JD

DE

BB ME LR BW

TOP TV BEVERAGE ALCOHOL ADS: Q2 2017

Busch may have a new concept – from the look of the spokesman – but the outdoorsy everyman “Busch Guy” is here to remind us that Busch still has the same great taste and sound. Q2-2017 Brand Memorability Index: 150

BUSCH – “BUSCHHHHH” :30 BB

The (new) legend of “the Most Interesting Man in the World” continues with a spicy party spot celebrating Cinco de Mayo that’s both humorous and easy to follow. Q2-2017 Brand Memorability Index: 150

DOS EQUIS – “CINCO DE MAYO” :15 DE

Following the journey of Master Brewer Jorge Burgos, Modelo continues to highlight stories of fighting spirits, and connecting with LDA consumers by giving a face to the people behind the beer. Q2-2017 Brand Memorability Index: 150

MODELO – “FIGHTING FOR PERFECTION” :30 ME

BEER

NIELSEN TV BRAND EFFECT


Source: Nielsen TV Brand Effect, data limited to performance from 4/1/17 - 6/30/17, 21+ Evaluating English-language ads on English-language networks within TV Brand Effect coverage only. Only includes ads that have debuted since 7/1/16 with > 100 Brand Linkage sample in 2Q'17.. Ads with less than 100 sample were not considered Branded Memorability indexed against the 2014-2016 Beverage Alcohol norm for Branded Memorability

Breakthrough Best Practices

Simple Storyline Relatable Characters

Character Dialogue Humor/Sentimentality

BB DE ME JD LR BW BB ME JD LR

BB DE ME JD LR

Branding Best Practices

Early Visual/Verbal Cues Leverage Brand Icon

Ownable Concept Brand in Storyline

BB ME LR BW

BB DE JD

DE

BB ME LR BW

Black Box’s “Souvenir” emphasizes it’s quality at an affordable price driving strong brand association by anchoring the ad with the product itself. Q2-2017 Brand Memorability Index: 100

WINE BLACK BOX– “SOUVENIR” :15 BW

TOP TV BEVERAGE ALCOHOL ADS: Q2 2017 NIELSEN TV BRAND EFFECT

In “Rooftop” Lime-a-Ritas, along with humorous, relatable characters and a recognizable song from the early 2000s, turn a pregame into the party. Q2-2017 Brand Memorability Index: 168

FMBs & CIDERS LIME-A-RITA – “ROOFTOP” :30 LR

JACK DANIEL’S – “OUR TOWN” :30 JD

Back for the second quarter in a row, Jack Daniels’ “Our Town,” which features relatable characters in a sentimental creative, continues to resonate with LDA consumers. Q2-2017 Brand Memorability Index: 182

SPIRITS


TOP TV BEVERAGE ALCOHOL ADS: Q2 2017

NIELSEN CREATIVE EVALUATION (CE)

CE OFFERS INSIGHT ON HOW VIEWERS ARE CONNECTING WITH AN AD

EMOTIVE POWER

Provides insight on consumer perceptions of the emotive content in the ad

EMPATHY

The ad’s ability to make people empathize and feel closer to the brand

CREATIVITY

The ad’s ability to make the brand seem imaginative

and in-touch

ALCOHOLIC BEVERAGES

SPOTLIGHT

BLACK BOX WINES “SOUVENIR” :15

INFORMATION POWER

Provides insight on whether consumers feel the message in the ad is

valuable to them

BUD LIGHT LIME-A-RITA “ROOFTOP” :30

EXAMINING THE EMOTIVE AND INFORMATIVE POWER BEHIND THE ADS


NIELSEN CREATIVE EVALUATION (CE) BLACK BOX WINES “SOUVENIR” :15

INFORMATION POWER

123

VERBATIMS

“INFORMATIVE AND CALMING TO WATCH”“SEEMS LIKE IT WOULD

BE A TRENDY WINE BRAND”

“LESS EXPENSIVE WINE THAT’S JUST

AS GOOD” “SIMPLE AND CLEAR BUT TO THE POINT”

50% 42%

Factual

33% 28%

Newsy

43% 39%

Informative

Solid arrows indicate statistical significance vs. Benchmark at 90% confidence

TOP TV BEVERAGE ALCOHOL ADS: Q2

Tell us how well you think these adjectives describe this ad: Souvenir Database Norm


EMOTIVE POWER

107

Tell us how well you think these adjectives describe this ad: Signature Move Database Norm

“UPBEAT AND FUN”

“FUNNY REALISTIC DEPICTION” “CUTE” “MADE THE PRODUCT

LOOK FUN FOR A GIRLS’ NIGHT OUT”

VERBATIMS

Solid arrows indicate statistical significance vs. Benchmark at 90% confidence

38% 37%

Likeable

50% 37%

In-tune

43% 32%

Stylish

32% 26%

Entertaining

TOP TV BEVERAGE ALCOHOL ADS: Q2

NIELSEN CREATIVE EVALUATION (CE) BUD LIGHT LIME-A-RITA “ROOFTOP” :30


GENERATIONAL SNAPSHOT


GENERATIONAL SNAPSHOT: A LOOK AT MILLENNIALS, GENERATION X AND BABY BOOMERS The following snapshot outlines the media behavior of Millennials, Generation X and Baby Boomers.

The snapshot contains an audience profile across a variety of demographic factors and looks at TV, online and mobile.

AUDIENCE COMPOSITION, % OF PERSONS

30% 26% 32% 12%

MILLENNIALS 21-37

GENERATION X 38-52

BABY BOOMERS

53-70

GREATEST GENERATION

71-99

Source: NPOWER, based on scaled installed counts; May '17

SHARE OF GENERATION

78%

71%

61%

58%

9%

13%

14%

14%

8%

11%

18%

21%

3%

3%

5%

5%

Greatest Generation

Baby Boomers

Generation X

Millennials

White (Non-Hispanic) Black (Non-Hispanic) Hispanic Asian


DEVICE PENETRATION BY GENERATION

60%

51%

39%

88%

46%

97%

78% 71% 67%

75%

62%

40%

94%

39%

96%

71% 75%

61%

80%

59%

29%

95%

30%

87%

53%

64%

32%

DVD DVR Enabled Smart TV

High Definition TV

Multimedia Device

Smartphone Subscription Video On Demand

Tablets Video Game Console

Millennials Generation-X Baby Boomers

Source: NPOWER, based on scaled installed counts; May'17


TOP TV PROGRAMS

Source: NPOWER, May 2017. Excludes Specials, Programs less than 5 min, Repeats, Sports & shows w/ only one telecast. Rank is based on average time spent by program.

BROADCAST

MILLENNIALS GENERATION X BABY BOOMERS

NETWORK PROGRAM MM:SS NETWORK PROGRAM MM:SS NETWORK PROGRAM MM:SS

ABC GOOD MORNING, AMERICA 7:50 NBC TODAY SHOW 25:15 ABC GOOD MORNING,

AMERICA 47:01

UNI DESPIERTA AMERICA 7:36 ABC GOOD MORNING,

AMERICA 23:23 NBS TODAY SHOW 37:01

NBC VOICE 7:17 NBC VOICE 20:10 NBC VOICE 36:16

FOX EMPIRE 7:13 CBS YOUNG AND THE RESTLESS 16:21 CBS YOUNG AND THE

RESTLESS 35:14

NBC TODAY SHOW 7:12 CBS SURVIVOR 13:51 ABC ABC WORLD NEWS TONIGHT 29:59

CABLE



CNN CNN NEWSROOM 9:18 CNN CNN NEWSROOM 23:18 CNN CNN NEWSROOM 43:06

USA WWE ENTERTAINMENT 7:43 FNC FOX AND FRIENDS 15:45 FNC FOX AND FRIENDS 41:04

CNN ANDERSON COOPER 360 4:36 CNN ANDERSON

COOPER 360 11:52 FNC AMERICAS NEWSROOM 27:46

MTV TEEN MOM 4:26 CNN NEW DAY 10:51 FNC AMERICAS NEWS HQ 27:38

AMC BETTER CALL SAUL 3:58 USA WWE ENTERTAINMENT 10:23 MSNBC MORNING JOE 26:55


SYNDICATED PROGRAMS STRIP (MON-FRI)



WB. TV BIG BANG THEORY 8:28 WB. TV BIG BANG THEORY 20:37 CBS JUDGE JUDY 39:43

20TH TV FAMILY FEUD 7:51 CBS JUDGE JUDY 18:16 CBS DR. PHIL SHOW 35:54

CBS DR. PHIL SHOW 7:47 CBS DR. PHIL SHOW 17:32 20TH TV FAMILY FEUD 33:32

20TH TV FAMILY GUY 7:39 20TH TV FAMILY FEUD 17:03 CBS JEOPARDY 31:40

20TH TV MODERN FAMILY 7:25 DISNEY LIVE WITH KELLY AND RYAN 12:07 CBS WHEEL OF FORTUNE 31:35

SYNDICATED PROGRAMS ONCE-A-WEEK (SAT-SUN)



NBC LAW & ORDER: SVU 3:07 WB. TV BIG BANG THEORY 5:52 WB. TV BIG BANG THEORY 6:57

WB. TV BIG BANG THEORY 2:24 NBC LAW & ORDER: SVU 5:16 NBC LAW & ORDER:

SVU 6:29

20TH TV FAMILY GUY 1:39 DADT WEEKEND ADVENTURE 3:18 DADT WEEKEND

ADVENTURE 6:17

20TH TV MODERN FAMILY 1:34 NBC ACCESS HOLLYWOOD LIVE 3:14 CBS BLUE BLOODS 4:28

20TH TV BOBS BURGERS 1:34 20TH TV MODERN FAMILY 2:20 NBC ACCESS HOLLYWOOD LIVE 3:55

Source: NPOWER, May 2017. Excludes Specials, Programs less than 5 min, Repeats, Sports & shows w/ only one telecast. Rank is based on average time spent by program.


DIGITAL ACTIVITY TOP MOBILE APPLICATIONS


NAME UA (000) TPP (HH:MM) NAME UA (000) TPP

(HH:MM) NAME UA (000) TPP (HH:MM)

FACEBOOK 53,015 19:49 FACEBOOK 41,845 20:19 FACEBOOK 50,578 17:36

FACEBOOK MESSENGER 48,726 2:50 FACEBOOK

MESSENGER 36,611 2:26 FACEBOOK MESSENGER 43,447 1:37

YOUTUBE 47,606 5:16 YOUTUBE 33,789 3:14 GOOGLE SEARCH 40,059 2:23

GOOGLE MAPS 43,049 2:38 GOOGLE MAPS 33,118 2:05 GOOGLE MAPS 38,318 1:48

INSTAGRAM 37,410 5:44 GOOGLE SEARCH 31,435 2:27 GOOGLE PLAY 34,221 0:29

Source: Mobile Netview, May'17; Online Netview: Top Overall Brands, Top Member Communities,May'17 Note: UA = Unique Audience; TPP = Time per Person

TOP ONLINE SOCIAL NETWORKS




FACEBOOK 23,164 06:08 FACEBOOK 23,891 10:44 FACEBOOK 29,142 11:34

TWITTER 7,915 01:24 TWITTER 8,523 00:56 TWITTER 8,710 00:53

PINTEREST 7,379 00:31 PINTEREST 8,305 00:27 PINTEREST 8,675 00:29

INSTAGRAM 6,238 00:25 LINKEDIN 6,450 00:41 LINKEDIN 6,861 00:30

REDDIT.COM 5,306 02:11 INSTAGRAM 5,734 00:17 BLOGGER 5,848 00:12


Source: Mobile Netview, May'17; Online Netview: Top Overall Brands, Top Member Communities,May'17 Note: UA = Unique Audience; TPP = Time per Person

TOP ONLINE SITES




GOOGLE 36,102 05: 03 GOOGLE 34,497 05: 47 GOOGLE 37,019 03: 42

MSN 23,182 01: 46 MSN 25,421 02: 54 MSN 31,279 03: 12

FACEBOOK 23,164 06: 08 FACEBOOK 23,891 10: 44 FACEBOOK 29,142 11: 34

YOUTUBE 21,569 05: 30 YAHOO 20,820 02: 57 YAHOO 25,012 03: 37

YAHOO 17,652 01: 25 YOUTUBE 20,600 04: 08 AMAZON 22,427 01: 11


LDA AUDIENCE MEDIA CONSUMPTION


AVERAGE TIME SPENT PER ADULT 21+ PER DAY

TOTAL LDA AUDIENCE MEDIA CONSUMPTION

Exhibit 1 - Based on the Total Population

4:18

4:17

4:03

0:30

0:32

0:33

1:52

1:54

1:51

0:07

0:07

0:06

0:11

0:12

0:12

0:09

0:14

0:19

0:45

0:59

0:53

1:09

1:45

2:29

0:21

0:33

0:31

Q2 2015

Q2 2016

Q2 2017

Live TV DVR/Time-shifted TV AM/FM Radio DVD/Blu-Ray Device Game Console Multimedia Device Internet on a Computer App/Web on a Smartphone App/Web on a Tablet


Video on a Computer methodology has changed prior reports. Video on a Smartphone is inclusive of video focused sites only. See Sourcing & Methodologies section for additional information.

TABLE 1A – WEEKLY TIME SPENT IN HOURS: MINUTES AMONG U.S. POPULATION FOR Q2 2017

A 21-34

A 25-34

A 35-49

A 50-64

A 65+

A 21+

BLACK 21+

HISP. 21+

ASIAN AM. 21+

LIVE+DVR/TIME-SHIFTED TV 16:59 18:23 26:59 39:35 48:04 32:14 47:07 24:37 15:07

DVR/TIME-SHIFTED TV 2:17 2:38 3:55 4:40 4:39 3:51 3:50 2:19 1:59

AM/FM RADIO 10:41 10:54 13:28 15:11 12:22 12:59 13:47 13:57 n/a

DVD/BLU-RAY DEVICE 0:40 0:43 0:53 0:46 0:33 0:43 0:45 0:37 0:25

GAME CONSOLE 3:26 3:05 1:18 0:23 0:08 1:21 1:39 1:24 0:53

MULTIMEDIA DEVICE 3:27 3:34 2:40 1:43 1:01 2:16 2:24 2:25 3:09

INTERNET ON A COMPUTER 5:14 5:56 8:07 7:03 4:20 6:17 6:46 4:12 3:51

VIDEO ON A COMPUTER 3:14 3:19 3:27 1:41 0:44 2:21 3:33 2:02 1:58

APP/WEB ON A SMARTPHONE 20:19 17:51 20:36 21:38 4:46 17:29 20:43 20:04 13:31

VIDEO ON A SMARTPHONE 1:23 1:12 0:59 0:40 0:06 0:49 1:18 1:26 0:44

A 21-34

A 25-34

A 35-49

A 50-64

A 65+

A 21+

BLACK 21+

HISP. 21+

ASIAN AM. 21+

LIVE+DVR/TIME-SHIFTED TV 19:38 20:56 29:00 40:18 48:38 33:40 49:50 26:27 16:43

DVR/TIME-SHIFTED TV 2:23 2:44 4:00 4:21 4:01 3:41 3:28 2:25 2:09

AM/FM RADIO 11:10 11:20 13:42 15:15 12:37 13:15 13:48 14:04 n/a

DVD/BLU-RAY DEVICE 0:52 0:57 1:01 0:52 0:38 0:52 1:00 0:48 0:34

GAME CONSOLE 3:26 3:06 1:20 0:24 0:06 1:22 1:33 1:23 0:52

MULTIMEDIA DEVICE 2:33 2:43 1:50 1:12 0:46 1:38 1:31 1:37 2:54

INTERNET ON A COMPUTER 6:55 7:40 8:23 7:39 3:58 6:54 7:50 5:08 4:31

VIDEO ON A COMPUTER 2:38 2:49 2:12 1:33 0:39 1:49 3:02 1:46 1:31

APP/WEB ON A SMARTPHONE 16:05 13:46 14:48 13:10 2:54 12:15 13:11 14:36 10:16

VIDEO ON A SMARTPHONE 0:41 0:31 0:27 0:17 IFR 0:23 0:40 0:42 0:26

TABLE 1B – WEEKLY TIME SPENT IN HOURS: MINUTES AMONG U.S. POPULATION FOR Q2 2016


The data sources in Table 3 should not be added or subtracted; they are based on users of each medium and the bases vary by source.

TABLE 2 – USERS BY MEDIUM NUMBER OF USERS 21+ (IN 000’S) - MONTHLY REACH

COMPOSITE BLACK HISPANIC ASIAN AMERICAN

Q2 16 Q2 17 Q2 16 Q2 17 Q2 16 Q2 17 Q2 16 Q2 17

LIVE+DVR/TIME-SHIFTED TV 213,866 218,290 26,941 27,606 32,830 33,550 11,826 12,328

DVR/TIME-SHIFTED TV 147,652 154,380 18,225 19,810 19,513 20,419 7,170 7,817

AM/FM RADIO 227,105 230,606 28,060 28,569 35,045 36,084 N/A N/A

DVD/BLU-RAY DEVICE 82,525 70,188 9,550 7,711 11,691 9,203 3,603 3,066

GAME CONSOLE 52,771 50,590 6,541 6,439 9,309 9,069 2,865 2,616

MULTIMEDIA DEVICE 61,503 92,272 6,150 10,281 10,067 14,943 6,172 7,834

INTERNET ON A COMPUTER 152,967 153,595 18,872 19,112 17,496 18,092 5,467 5,413

VIDEO ON A COMPUTER 105,626 98,432 13,210 13,051 11,495 11,295 3,961 3,944

APP/WEB ON A SMARTPHONE 195,778 199,865 23,891 24,391 32,881 33,336 11,136 10,862

VIDEO ON A SMARTPHONE 151,048 162,054 18,762 21,430 25,680 28,530 8,364 8,319

TABLE 3 – MONTHLY TIME SPENT AMONG USERS HOURS: MINUTES AMONG P21+

COMPOSITE BLACK HISPANIC ASIAN AMERICAN

Q2 16 Q2 17 Q2 16 Q2 17 Q2 16 Q2 17 Q2 16 Q2 17

LIVE+DVR/TIME-SHIFTED TV 156:36 148:36 227:47 213:23 120:08 111:41 85:09 78:27

DVR/TIME-SHIFTED TV 24:46 25:07 23:26 24:09 18:30 17:20 18:08 16:13

AM/FM RADIO 57:59 56:58 60:35 60:15 59:55 58:47 n/a n/a

DVD/BLU-RAY DEVICE 10:21 10:21 12:48 12:16 10:13 10:07 9:26 8:41

GAME CONSOLE 25:48 26:59 29:19 32:05 22:11 23:37 18:19 21:42

MULTIMEDIA DEVICE 26:18 24:43 30:20 29:15 23:57 24:32 28:17 25:44

INTERNET ON A COMPUTER 44:27 40:41 50:33 43:41 43:12 34:53 49:29 45:03

VIDEO ON A COMPUTER 16:59 23:58 27:42 33:26 22:43 27:38 22:32 32:22

APP/WEB ON A SMARTPHONE 59:32 79:53 64:31 96:24 62:49 82:21 53:10 71:02

VIDEO ON A SMARTPHONE 2:24 4:35 4:12 6:59 3:51 6:47 3:02 4:50



TABLE 4A – MONTHLY TIME SPENT BY MEDIUM IN HOURS: MINUTES AMONG USERS AMONG COMPOSITE

A 21-34

A 25-34

A 35-49

A 50-64

A 65+

A 21+

LIVE+DVR/TIME-SHIFTED TV 83:17 88:42 123:29 178:27 214:07 148:36

DVR/TIME-SHIFTED TV 16:06 17:26 23:44 29:29 31:47 25:07

AM/FM RADIO 46:49 47:26 59:15 66:16 53:41 56:58

DVD/BLU-RAY DEVICE 12:52 12:51 10:59 9:41 8:03 10:21

GAME CONSOLE 38:38 34:33 19:00 14:02 12:43 26:59

MULTIMEDIA DEVICE 31:07 30:39 23:40 20:52 18:50 24:43

INTERNET ON A COMPUTER 35:29 37:46 46:48 43:11 33:38 40:41

VIDEO ON A COMPUTER 34:23 33:27 30:55 16:28 9:28 23:58

APP/WEB ON A SMARTPHONE 78:37 75:52 82:57 80:19 69:50 79:53

VIDEO ON A SMARTPHONE 6:25 6:11 4:47 3:08 1:50 4:35

TABLE 4B – MONTHLY TIME SPENT BY MEDIUM IN HOURS: MINUTES AMONG USERS AMONG BLACKS

A 21-34

A 25-34

A 35-49

A 50-64

A 65+

A 21+



AM/FM RADIO 47:38 48:27 62:02 72:14 60:49 60:15


GAME CONSOLE 44:18 36:27 22:37 17:53 16:38 32:05




APP/WEB ON A SMARTPHONE 97:25 98:18 100:52 93:20 IFR 96:24

VIDEO ON A SMARTPHONE 9:17 9:15 7:30 5:04 IFR 6:59



TABLE 4C – MONTHLY TIME SPENT BY MEDIUM IN HOURS: MINUTES AMONG USERS AMONG HISPANICS

A 21-34

A 25-34

A 35-49

A 50-64

A 65+

A 21+



AM/FM RADIO 49:53 51:19 64:13 69:18 56:33 58:47


GAME CONSOLE 31:11 27:44 15:48 12:34 15:29 23:37




APP/WEB ON A SMARTPHONE 84:14 81:39 84:53 79:20 IFR 82:21

VIDEO ON A SMARTPHONE 7:48 7:35 6:53 4:53 IFR 6:47

TABLE 4D – MONTHLY TIME SPENT BY MEDIUM IN HOURS: MINUTES AMONG USERS AMONG ASIAN AMERICANS

A 21-34

A 25-34

A 35-49

A 50-64

A 65+

A 21+




GAME CONSOLE 30:29 29:41 17:54 10:16 8:09 21:42




APP/WEB ON A SMARTPHONE 71:32 71:50 66:52 IFR IFR 71:02

VIDEO ON A SMARTPHONE 6:03 5:57 3:09 IFR IFR 4:50


Exhibit 2: Mobile Device Penetration by Ethnicity Among Mobile Subscribers 21+

89%

11%

88%

12%

94%

6%

90%

10%

95%

5%

COMPOSITE WHITE BLACK

HISPANIC ASIAN AMERICAN

Smartphone Feature Phone


BEV-AL MEDIA SPEND


Source: Nielsen Ad Intel Digital spend data powered by Pathmatics and Nielsen. Digital data partially included in historical data.

BEVERAGE ALCOHOL INDUSTRY ANNUAL TOTAL AD SPEND

$1.

25B

$1.

43B

$1.

53B

$16

2M

$18

2M

$15

2M

$39

1M

$35

7M

$40

1M

$99

M

$11

5M

$12

9M

Q3 '14 - Q2 '15 Q3' 15 - Q2 '16 Q3'16 - Q2 '17

Beer FMBs, Ciders, Other Spirits Wine

BEVERAGE ALCOHOL INDUSTRY ANNUAL AD SPEND BY CATEGORY

Q3 '14 - Q2 '15 Q3' 15 - Q2 '16 Q3'16 - Q2 '17

All Other Media in Billions Digital in Billions

$1.90B $2.09B $2.21B

TOTAL INDUSTRY MEDIA SPEND BY YEAR & CATEGORY


31%

29%

18%

6%

4% 3%

3% 3%

Network TV

Cable TV

Spanish Language Network TV

Outdoor

Spanish Language Cable TV

National Magazine

Digital

Spot TV

Spot Radio

Syndicated TV

Network Radio

Business to Business

Local Newspaper

Local Magazine

National Cinema

Regional Cinema

National Newspaper

Local Sunday Supplement


% Change vs YA

-63%-65%

478% -71%-67%

-25%22%

-24%-29%-12%

23% -10%

-9%10%

9% -8%

5% 10% 3%

N/A

$35 $60 $361 $428 $2,384 $3,258 $4,769 $5,929 $6,085 $7,237 $8,656 $27,399

$59,560 $89,318

$126,849 $146,028

$215,519 $290,978

$519,107 $699,357

FSI Coupon Local Sunday Supplement

Regional Cinema National Sunday National Cinema

National Newspaper Business to Business

Local Magazine Syndicated TV Network Radio

Local Newspaper Spot Radio

Spot TV Spanish Language Cable TV

Digital Outdoor

National Magazine Spanish Language Network

Network TV Cable TV

Spend Channel

BEER MEDIA SPEND - Q3'16 - Q2 '17 (000)

TOTAL BEV AL MEDIA SPEND - Q3'16 - Q2 '17 (000)

Q3'16 - Q2 '17 Media Spend (M)

$ % Chg. Vs YA

$1,530,588 -6%

471,476 15%

444,619 8%

273,950 6%

90,587 4%

68,676 5%

49,617 -18%

48,244 N/A

47,321 -15%

14,628 -35%

6,082 -27%

4,396 -25%

3,018 48%

2,718 2%

2,389 -30%

2,210 -61%

361 658%

257 2%

37 2%

Total Beer Media Spend


50%

13%

9%

7%

6%

5% 3%

3% 3%

Cable TV

National Magazine

Outdoor

Digital

Network TV


Spot Radio


Spot TV

Network Radio


Local Magazine

Local Newspaper

FSI Coupon

Syndicated TV

Regional Cinema

National Cinema


SPIRITS MEDIA SPEND - Q3'16 - Q2 '17 (000)


FMBs & CIDERS MEDIA SPEND - Q3'16 - Q2 '17 (000)

44%

24%

5%

8%

8%

4%

Cable TV

National Magazine

Digital

Network TV

Outdoor



Spot Radio

Spot TV

Local Newspaper

Local Magazine

Network Radio

National Newspaper


National Sunday Supplement

National Cinema


Syndicated TV

FSI Coupon


$ % Chg. Vs YA

$401,288 +12

153,511 -2%

81,226 -4%

45,800 N/A

37,134 27%

34,626 17%

16,257 29%

8,341 73%

7,436 123%

5,568 57%

4,394 40%

2,597 -24%

1,736 155%

1,495 -47%

647 -24%

321 -74%

174 -85%

22 -82%

3 N/A

0 -100%

Total Spirits Media Spend

Total FMB & Ciders Spend


$ % Chg. Vs YA

$151,965 -16%

76,218 0%

19,599 -28%

13,270 26%

11,220 N/A

8,703 -73%

8,202 -35%

4,687 22%

4,227 34%

3,996 15%

1,016 -40%

508 15%

183 -63%

107 29%

27 -58%

0 N/A

0 -100%

0 -100%

0 -100%


WINE MEDIA SPEND - Q3'16 - Q2 '17 (000)



$ % Chg Vs YA

$129,478 +13%

65,077 5%

25,009 -25%

21,584 N/A

7,545 20%

2,674 -16%

1,794 109%

1,507 21%

1,437 24%

759 39%

647 -22%

595 0%

485 19%

158 477%

107 -57%

89 N/A

8 -54%

0 -100%

0 -100%

50%

19%

17%

6% 2%

National Magazine

Cable TV

Digital

Outdoor

Spot TV

Network TV

National Newspaper

Local Newspaper

Local Magazine

Spot Radio




National Sunday Supplement

Network Radio

FSI Coupon

Syndicated TV


Total Wine Spend


Coverage: Display & Video on Desktop; Display on Mobile & Tablet Web Source: Nielsen Ad Intel, powered by Pathmatics and Nielsen

DIGITAL MEDIA SPEND BY CATEGORY

DIGITAL MEDIA SPEND BY AD TYPE

36%

61%

60%

67%

64%

39%

40%

33%

Wine

Spirits

FMBs, Ciders, Other

Beer

Display Video

Q3’16 – Q2’17 BEV-AL DIGITAL MEDIA SPEND

$48.24M

$11.22M

$45.80M

$21.58M

Spend $(000) Beer FMBs, Ciders, Other Spirits Wine

38%

9% 36%

17%


Live+DVR/Time-shifted TV includes Live usage plus any playback viewing within the measurement period. DVR/Time-shifted TV is playback primarily on a DVR but includes playback from video on demand, DVD recorders, server based DVR’s and services like Start Over.

TV-connected devices (DVD, Game Console, Multimedia Device) would include content being viewed on the TV screen through these devices. This would include when these devices are in use for any purpose, not just for accessing media content. For example, Game Console would also include when the game console is being used to play video games.

Multimedia Devices is a combination of usage of the Internet Connected Devices viewing source and Audio-Video viewing sources. It would include viewing on an Apple TV, Roku, Google Chromecast, Smartphone, Computer/Laptop, etc. connected to the TV.

Reach for television and TV-connected devices includes those viewing at least one minute within the measurement period.

Data used in this report is inclusive of multicultural audiences. Hispanic consumer audiences are comprised of both English and Spanish speaking representative populations.

AM/FM RADIO METHODOLOGY

Listening to programming from AM/FM radio stations or network programming.

Audience estimates for 48 large markets are based on a panel of people who carry a portable device called a Personal People Meter (PPM) that passively detects exposure to content that contains inaudible codes embedded within the program content. Audience estimates from the balance of markets and countries in the U.S. are based on surveys of people who record their listening in a written diary for a week.

The estimates in this report are based on RADAR and the National Regional Database. RADAR reports national network radio ratings covering the U.S. using both PPM and Diary measurement and it is based on a rolling one-year average of nearly 400,000 respondents aged 12+ per year. The Q2 2017 report is based on the September RADAR studies.

Monthly Radio Estimates: Nielsen’s Measurement Science group used statistical modeling techniques to estimate the total cume audience to radio in a four week period, as compared to the total cume audience to radio in an average week. The methodology utilized PPM panel data, and essentially measured how many people who were not exposed to radio in a single week might typically be exposed to radio over a consecutive four week period. A radio cume growth factor was then determined and applied to radio listening on a national basis.

TELEVISION METHODOLOGY


Listening to HD radio broadcasts, Internet streams of AM/FM radio stations and Satellite Radio is included in the Persons Using Radio estimates in this report where the tuning meets our reporting and crediting requirements of at least 5 minutes of usage. Reach for AM/FM Radio includes those listening for at least 5 minutes within the measurement period.

Data used in this report is inclusive of multicultural audiences. Hispanic consumer audiences are comprised of both English and Spanish speaking representative populations.

COMPUTER METHODOLOGY

Nielsen Netview and VideoCensus data is reflective of the hybrid methodology which combines a census level accounting of page views and video streams where Nielsen measurement tags have been deployed in order to project audience and behavior to the full universe of all Internet users. For VideoCensus, the portion of the total video streams calibrated by census data, previously allocated to Home/Work computers, are allocated to other devices and locations outside of home and work. Nielsen’s Online Panel is recruited in Spanish and English.

Internet on a Computer metrics are derived from Nielsen Netview. Video on a Computer metrics are derived from Nielsen VideoCensus. As some reported brands transition to Digital Content Ratings, they are no longer reported in VideoCensus as of Q2 2017. Accordingly, the methodology and computation of these metrics has been adjusted. Fusion data from Nielsen Media Impact (derived from panel and census data) was used to create a percent change from Q1 2017 to Q2 2017 for Video on a Computer. The percent change was then applied to the Q1 2017 VideoCensus data to calculate Q2 2017 metrics.

MOBILE METHODOLOGY

Nielsen’s Electronic Mobile Measurement (EMM) is an observational, user-centric approach that uses passive metering technology on smartphones and tablets to track device and application usage on an opt-in convenience panel, recruited online in English and recently in Spanish as well. There may be limited representation of non-English language audiences as recruitment is ramped up. The smartphone sample was around 12,500 and the tablet sample was around 3,250 during Q2 2017. This method provides a holistic view of all activity on the device as the behavior is being tracked without interruption.

A number of steps are taken after the data collection process to ensure the reported data is representative of the mobile population. For smartphones, weighting controls are applied across five characteristics (gender, age, income, race, and ethnicity) while independent enumeration studies are carried out on a continuous basis to provide the most current estimates of the mobile population (aka Universe Estimation).

Tablet data is unweighted and projections are applied using estimates from the National Panel that is the industry standard for TV ratings.

App/Web refers to consuming mobile media content through a web browser or via a mobile app. It does not include other types of activity such as making/receiving phone calls, sending SMS/MMS messages etc, which has been excluded for this report.


Video is a subset of App/Web and refers to those individuals who visit a website or use a mobile app specifically designed to watch video content.

Nielsen implemented a crediting enhancement to improve the reporting of mobile usage on iOS devices in March 2016 and Android devices in August 2016. A legacy crediting rule that capped usage at 30 minutes was removed, so now if a panelist uses an app or visits a website for more than 30 minutes at a time the entire duration is now credited towards the app or website. There are no minimum qualifiers; crediting begins when the site or app is loaded in the foreground of the device.

SOURCING

EXHIBIT 1 & TABLES 1, 2, 3, 4 – AVERAGE TIME SPENT PER ADULT 21+ PER DAY, WEEKLY TIME SPENT AMONG US POPULATION, USERS BY MEDIUM, MONTHLY TIME SPENT AMONG USERS

Source: Live+DVR/Time-shifted TV, DVR/Time-shifted TV, DVD, Game Consoles, Multimedia Devices 03/27/2017 - 06/25/2017 via Nielsen NPOWER/National Panel, Radio 06/16/16-06/21/17 via RADAR 134 and Radio Nationwide Spring 2017, Computer 04/01/2017 - 06/30/2017 via Nielsen Netview and Nielsen VideoCensus, Smartphone 04/01/2017 - 06/30/2017 via Nielsen Electronic Mobile Measurement, Tablet 04/01/2017 - 06/30/2017 via Nielsen Electronic Mobile Measurement – unweighted, projections based on estimates from the NPOWER/National Panel.

Exhibit 1 and Table 1 are based on the total U.S. population whether or not they have the technology.

Tables 2-4 are based on users of each medium.

EXHIBIT 2 – MOBILE DEVICE PENETRATION AMONG MOBILE SUBSCRIBERS 21+

Source: Mobile 04/01/2017 - 06/30/2017 via Nielsen Mobile Insights

Note: IFR represents data that is insufficient for reporting due to small sample sizes. n/a represents data unavailability.


ABOUT NIELSEN Nielsen Holdings plc (NYSE: NLSN) is a global performance management company that provides a comprehensive understanding of what consumers watch and buy. Nielsen’s Watch segment provides media and advertising clients with Nielsen Total Audience measurement services for all devices on which content — video, audio and text — is consumed. The Buy segment offers consumer packaged goods manufacturers and retailers the industry’s only global view of retail performance measurement. By integrating information from its Watch and Buy segments and other data sources, Nielsen also provides its clients with analytics that help improve performance. Nielsen, an S&P 500 company, has operations in over 100 countries, covering more than 90% of the world’s population. For more information, visit www.nielsen.com.

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