Beverage Marketing Corporation · -11- Beverage Marketing Corporation • BMC Capabilities Overview...

BMC Capabilities Overview

Beverage Marketing Corporation

-2- Beverage Marketing Corporation • BMC Capabilities Overview

Contents

•  Who We Are

•  BMC Strategic Associates (Consulting)

•  BMC Research (Publications/Reports)

•  BMC Financial Advisors (Financial Services)

•  BMC DrinkIntell (Leading Beverage Proprietary Database)

•  The Beverage Forum



Unique Beverage Industry Expertise for Providing “Added-Value” to Selected Clients

Cutting Edge Insights: New Age Emergence, Multiple Beverage Competition, Specialty Beer Opportunity, Bottled Water Dominance, Hyper-Category

Competition, Micro-Marketing Age

Beverage Marketing Corporation utilizes an integrated model for providing information, analysis and advice to beverage industry clients

Who We Are


In its over 40 years since inception, BMC has evolved from a publishing business into a leading provider of strategic advisory services to the beverage industry

BMC’s Evolution to a Comprehensive Managing Consulting Firm

Today

Focus

Information Services

•  Founded with focus on one-stop, beverage-specific directory

•  Beverage category publications − State − National

•  Competitive Intelligence

1990

•  Global Market Insights

•  Strategic Business Assessments

1995

•  Financial/Business Advisory

•  Comprehensive Business Model

Consulting/ Information

Services

Consulting

•  Extensive experience in advising leading global beverage and consumer goods corporations

•  Enhanced international capabilities (Latin America, Europe)

BMC Strategic Associates

1972

Who We Are


Beverage Marketing Corporation is a leading provider of strategic insights to the global beverage industry founded in 1972

•  Insights: Is actionable information, from analysis and other sources, that facilities optimal decision making.

•  Our Mission: Help clients maximize profitability through superior market insights, innovative solutions and actionable recommendation.

•  Our Focus: Service beverage companies and related industries globally with a diversified staff and resources to best meet client needs.

Beverage Marketing Corporation Background

In 2010, BMC began providing insights into the Food industry; through a Snack publication

Who We Are


Our Resources:

1.  Professional staff with a distinguished record of success within their corporate and professional careers along with diversified nationality and professional experiences

2.  40 years of proprietary data to facilitate the analysis and development of insights

3.  Over 800 successfully completed assignments to draw upon as appropriate

4.  Unparallel access to industry experts and participants

5.  BMC and affiliates maintains offices in New York City, Ohio and Bath UK; the company is currently exploring opening an office in Miami for our Latin American practice

Beverage Marketing Corporation Background (cont’d)

Who We Are


BMC adds value by leveraging its extensive beverage industry expertise, proprietary market information, access to industry experts and efficient project model

BMC’s Added Value

Focus

What

•  Entire beverage market and supply chain •  Concentrated market activity/focus •  In-depth knowledge/experience

How

•  Deep client relationships •  Contacts at all levels •  Historical knowledge base

In-Depth Market Access/ Monitoring

•  Constantly aware of market shifts − Trends − Competitive activity − Market segmentation − Supply chain

•  Ongoing contacts and interviews − Wholesaler/bottler interviews monthly − Material supplier contacts − Retail contacts − Extensive in-market visits − Industry media relationships

Experience •  Workable solutions − Conceptual and practical experience

•  Knowledge base − Reservoir of past projects and experience − Experienced beverage industry staff at all

levels within the industry

Project Efficiencies

•  No learning at client’s expense − Fast starts and relevant activities

•  Ability to identify and address issues quickly •  Reservoir of industry information

Who We Are


BMC has several offices and affiliates staffed with 40 professionals and is currently exploring opening an office in Miami for the Latin American Region

BMC Locations

New York

Capabilities

•  U.S. and Canadian Consulting Group and HQ •  Information Service Group •  BMC Financial Services

Geography

•  Handle all U.S. businesses •  Oversea International projects •  Client management for global enterprises

Ohio •  Responsible for production of publications •  Back office operations for the firm •  Conduct customized consumer and B-to-B

surveys

•  Publications and back office for entire enterprise

•  Consumer and trade surveys for U.S. only

Mexico City •  Consulting for entire Latin America area with focus on Mexico

•  Primarily Mexican clients •  Secondarily, Latin American Clients

Bath UK •  Under BMC supervision and leadership, conduct on the ground work in Europe

•  In-depth regional contacts

•  Handle in-market interviews relative to European projects

Who We Are


Contents

•  Who We Are








BMC’s consulting group, BMC Strategic Associates (BMCSA), has completed management consulting assignments across several major areas for some of the best-managed companies in the world

BMCSA’s Consulting Platforms

Strategy Marketing/Brand Building Supply Chain Strategies

•  Business Expansion/Growth Strategies

•  Product Portfolio

•  Value-Based Management

•  Corporate Strategic Assessment and Development

•  Annual Strategic Performance Reviews

•  Competitive Assessment – Opportunities/Threats

•  Market Assessment

•  Marketing investment optimization

•  Pricing/Revenue Management

•  Brand Health and Equity

•  Brand and Product/Extension Development

•  Consumer Positioning

•  Market Entry Approach

•  Brand repositioning

•  Distribution Strategies

•  Sales Strategies

•  Operational Effectiveness

•  Route-to-Market Options

•  Retail Channel Forces

•  Vending strategy

•  Food Service analysis / options

Unique Experience and Knowledge Base Applied Against Clients’ Strategic and Tactical Issues for Market Success

BMC Strategic Associates (Consulting)


BMCSA is the consultant of choice within the beverage industry for many companies, including large successful corporations, entrepreneurs and private equity firms

BMCSA’s Competitive Advantage – Non Exhaustive

•  Four decades advising companies

•  Continuous tracking of the global beverage industry

•  Constant pursuit of the next frontier and/or addressing challenging situations for clients

•  Credibility before the investment community

•  First hand contact with senior management of industry participants: retailers, distributors, logistics service providers, beverage brand owners, bottlers, advertising agencies, co-packers, etc.

•  Senior staff with proven track record within the beverage industry and/or advisory services

•  Consistent and continuous involvement of senior staff all along a client’s assignment

− Not just showing up for the big client meeting or presentation

•  Solid client service at all seniority levels

•  Ability to deploy and maintain a world class client service team, according to client’s needs



Asahi

Anheuser-Busch InBev

Bacardi

Bayer AG

Beringer Winery

Bols/Wessanen

Brown Forman

Cadbury Schweppes (DPS)

California Milk Processors Board

Campbell Soup Co.

Cerveceria India

Coca-Cola Company

Coca-Cola Enterprises

Coca-Cola United

Constellation Brands

Cott Corporation

Country Pure Foods

Dairy Management Inc.

Diageo

E&J Gallo Winery

Everfresh Beverages

F. Korbel & Sons

Ferolito Vultaggio & Sons

Heineken USA

H. P. Hood

International Dairy Foods Association

Kendall-Jackson Winery

Kraft Foods

Labatt

Mars Electronics

McKesson

SABMiller Brewing Company

MillerCoors

Minute Maid

Molson Coors

Nestle Beverages

Nestle Waters North America

Nestle USA

Otsuka Pharmaceuticals

Pepsi Bottling Group

Pepsi-Cola Americas Bev.

Pernod Ricard

Pokka Beverages

Red Bull

SmithKline Beecham

Sun-Rype Products

Suntory USA

Unilever

Veryfine Products

Vitality Beverage Group

Partial Client List



Contents

•  Who We Are








Information Services

Company Database

North America (BMC)

•  6,700+ companies

•  15,000+ brands

•  26,000+ people

International (Access)

•  190 countries

•  10,900 companies

Publications (40+)

•  U.S.

•  Global

Quarterly Market Updates •  CSDs •  Fruit Beverages •  Bottled Water •  RTD Tea & Coffee •  Milk •  Energy Drinks •  Sports Drinks •  Beer, Wine & Spirits •  State Beer Tracking Svc. •  State Wine Tracking Svc.

Data, Insights, Research & Industry Access to 400+ Customers/Clients

Hard Copy, CD-ROM, Internet Formats

2012 Focus Reports

•  Impact of the Economy on LRBs

•  Superpremium Juice

•  Coconut Water

•  Kombucha

•  Premium CSDs

•  Relaxation/Rejuvenation Beverages

BMC Research (Publications/Reports)

BMC’s information/research group, BMC Information Services (BMCIS), publishes over 40 annual beverage market reports providing clients access to data, projections and insights necessary to make decisions in a competitive beverage marketplace

• BMCIS is also home to the industry’s first ever all-inclusive, all-channel and predictive model databases – BMC DrinkIntell™ and BMC’s LRB All-Channel Database


Online access to Beverage Marketing’s over 35 in-depth market reports

Features/Benefits:

•  Work on-line or download for later use

•  Unlimited access for multiple users

•  Searchable

•  Easy to use, Word and PDF formats

•  Cut and paste data, text and exhibits

Beverage Marketing’s Internet data delivery system, BMCDataDirect®

BMC Research (Publications/Reports)


Contents

•  Who We Are








BMC Financial Advisors

History

•  Founded in 1999

•  Leverage 40-year relationship within the beverage industry

•  Over 50 beverage transactions completed

Services

•  M&A advisory

•  Valuations

•  Due diligence reviews

•  Joint venture/licensing

•  Expert opinion/testimony

•  Debt and equity funding

Near-exclusive focus on Beverage or Beverage-Related Companies

BMC Financial Advisors (Financial Services)

BMC’s financial group, BMC Financial Advisors (BMCFA), provide a wide range of financial services to the beverage industry, both domestically and globally

• BMCFA focuses on privately held, middle market transactions ranging in value from $2 million to $250 million


Abita Springs Water Co.

American Beverage Corp. *

Burt’s Beverages

Cadbury Schweppes (DPS)

Calistoga Beverages

CIT Equipment Financing

Citicorp Venture Group

DS Waters

Empresas Fonalledas *

FIJI Water

First Capital Corporation

Fitzgerald Bros. Beverages

Giant Eagle

Heineken USA

High Falls Brewing

HP Hood LLC

Kona Spring Water

Longboard Vineyards

Mountain Valley Spring Co.

Nestle Waters NA

Niagara Bottling

Otsuka Pharmaceuticals

Pegasus Capital Advisors *

Petrossian Vodka

Phoenix Beverages, Inc.

Rosenthal Automotive

Snow Valley Water Co.

SOBE Beverages

Southampton Bottling

Sun Orchard, Inc. *

Suntory USA

Susquehanna Investments

TA Associates

TA Business Development

Three Springs Water Co.

TSG Consumer Partners

Tyler Mountain Water *

Vaqueria Tres Monjitas *

Windmill Distributing

Partial Client List



Examples Acquisitions, Divestitures & Advisory

Sale of

Mad River Traders, Inc.

To

The Coca-Cola Company

Sale of certain assets

of

California Beverage Company

To

Triarc, Inc.

Sale of

HBL, Inc.

To

United Auto Group

Sale of

Sparkling Springs

Mineral Water Company

To

Nestlé Waters

Sale of common stock in

Honest Tea Corporation

To

Delaware Valley Distributing Co.

Sale of

Pacific Beverage

Company

To

H.P. Hood & Sons

Sale of

Crystal Soda Water Company

To

Pepsi Bottling Group

Sale of

California Beverage Company

To

Golden Brands, Inc.




Expert Testimony

on behalf of

Mountain Valley Spring Company

Due Diligence of

Big Red Soda

Sale of certain assets

of

Tyler Mountain Water Co.

To

American Beverage

Corporation

Sale of

Abita Springs Water Co.

To

DS Waters

Due Diligence of

Tianjin Harvest Industry (China)

Valuations of

Windmill Distributing

Company, L.P.

Valuations of

High Falls Brands

Expert Testimony on behalf of

Niagara Bottling,

LLC



Valuation of

Embotelladora de San

Luis Potosi

for

Pepsi International

Valuation & Fairness Opinion for

Embotelladora de Pacifico

on behalf of

CABCORP S.A.

Valuation & Sale of

Embotelladora de

La Reyna

To

CABCORP S.A.

Valuation of

Embotelladora de San

Pedro Sula

For

Pepsi International

Sale of

Embotelladora de Centroamericana, S.A.

To

Private Investors

Sale of

Sparkling, S.A.

To

Culligan International

Sale of

PepsiCo, Inc. All Sport Brand

To

The Monarch Company, Inc.

Sale of Burt’s

Beverages, Inc.

To

Northeast Beverage Co.




Contents

•  Who We Are








BMC DrinkIntell™ will use a sophisticated four step process to forecast category, sub-category and select company/brand data by volume and wholesale revenues

BMC DrinkIntell™ Forecasting Methodology

1.  Select best fit from 10 statistical models

2.  Develop preliminary quarterly forecast from model

3.  Select interviews by category with industry knowledgeables for market intelligence

4.  BMC reconciliation of forecasts to field intelligence

BMC DrinkIntell ™ (Leading Beverage Proprietary Database)

Forecast Periods

•  Next Quarter

•  Year-End

•  1 Year

•  2 Years


BMC DrinkIntell™ Database

•  Multiple category/segments – history and forecasts

•  Individual category/segment detail −  Category/Segment −  Companies −  Brands −  Flavors −  Packaging −  Regions −  Etc.

•  By company

•  By brand

•  By advertising expenditures: Beverage Category/Segment and brand consumer demographics

•  CPI and PPI by beverage category

•  U.S. Demographic Data   Population, age, income, education, etc

•  U.S. Macro-economic data   GDP, DPI, unemployment, inflation, etc.

•  Financial Data and Analysis   Quarterly earnings and government filings   Beverage Analysts Reports (TBD)   Beverage Analysts Surveys (TBD)



Example: Carbonated Soft Drink Module Attributes 1980 – 2011

Category/ Subcategory Companies (7) Brands (125) Flavors Packaging Regions Advertising

Attributes: •  Total Category •  Regular colas •  Regular flavors •  Diet colas •  Diet flavors

•  Coca-Cola •  PepsiCo •  DPSG •  Cott •  National •  Big Red •  Etc.

•  Coke •  Pepsi •  Dr Pepper •  Mt. Dew •  Sprite •  Etc.

•  Cola •  Lemon-lime •  Heavy Citrus •  Orange •  Grape •  Root Beer •  Mixers

•  Type •  Size

•  NE •  SE •  SW •  Etc.

•  Company (3) •  Brand (71) •  Media type

Frequency: •  Annual •  Quarterly •  Monthly (TBD)

•  Annual •  Quarterly (TBD)

•  Annual •  Quarterly (TBD)

•  Annual •  Annual •  Annual •  Annual •  Quarterly (TBD)

Units: •  Volume •  Wholesale

Dollars

•  Volume •  Wholesale

Dollars

•  Volume •  Volume •  Volume •  Volume •  Dollar spend

Forecasts •  Year-End •  1-Year •  2-Years

•  Year-End (TBD) •  1-Year (TBD) •  2-Years(TBD)

•  Year-End (TBD) •  1-Year (TBD) •  2-Years (TBD)

BMC DrinkIntell™, BMC’s U.S. beverage database and predictive model, includes multiple cuts of data for 16 categories updated regularly



BMC DrinkIntell™, BMC’s U.S. beverage database and predictive model, includes over 16 categories with complete “All Channel” data in volume and both wholesale and retail dollars

BMC DrinkIntell™

Beverage Categories Attributes

•  Carbonated Soft Drinks

•  Fruit Beverages

•  Coffee •  Milk

•  Bottled Water

•  Companies (100+) and brands (500+)

•  Ad spending by companies (100+) and brands (300+)

•  Packaging by category

•  Flavors by category •  Regionality by category •  Category, sub-category and

select company/brand wholesale dollars

•  Beer •  Wine •  Spirits

•  Coconut Water

Forecasts

•  By category •  By subcategory •  Select companies (TBD)

•  Select brands (TBD) •  Year End Forecast

•  1 Year Forecast •  2 Years Forecast

•  Value Added Water

•  Energy Drinks

•  Sports Drinks •  Tea

•  Soy Beverages

•  Milk Additives •  Creamers •  Yogurt Drinks

•  Etc.

Reporting Periods & Unit Measures

•  Category/subcategory   Annual   Quarterly   Monthly (TBD)

•  Companies and brands   Annual   Quarterly (TBD)

•  Advertising   Annual   Quarterly

•  Flavors/Packaging/Regions   Annual

•  Reporting Units   Volume   Wholesale dollars   Retail dollars



BMC’s All Channel Database

20 Retail Channels 20 LRB Categories/ 55 Sub-Categories 100+ Companies and Brands

Take Home:

•  Grocery

•  Ind. Small Grocers

•  Mass (w/o Wal-Mart)

•  Wal-Mart

•  Dollar

•  Club

•  Heath

•  Drug

•  Military

•  On-line

•  Non-traditional

•  Carbonated Soft Drinks

•  Bottled Water

•  Fruit Beverages

•  Tea (Dry)

•  Tea (RTD)

•  Milk

•  Milk Additives (Powders, Shakes, Syrups)

•  Coffee (Dry)

•  Coffee (RTD)

•  Non-dairy creamers (Liquid/Dry)

•  Leading companies

  Branded companies

  Private label companies

•  Leading brands

  Capturing 80+% volume share of category inclusive of P-L

  Capturing 80+% share of sub-categories

Food Service

•  Limited (QSR)

•  Full Service

•  Education

•  B&I

•  All Other Food Service

Immediate:

•  Food Service

•  Vending

•  Bars

•  Convenience

•  Soy beverages

•  Value-added water

•  Yogurt drinks

•  Energy drinks

•  Sports drinks

•  Hot cocoa mix

•  Coffee Syrup

•  Coffee Pods

•  Vegetable Juice

•  Milk Alternatives

BMC’s All Channel Database (“ACDB”) includes 20 retail channels, over 20 LRB categories and captures 100% of volume and dollars across all retailer channels (measured + unmeasured) (see Appendix for the complete presentation)

• ACDB provides ease of use and permits roll-ups or drill-downs by brand, sub-category, category, channel or total company quarterly, semi-annually or annually



LRB 2011 Volume

(Millions of Gallons)

* Measured channel coverage includes Food, Drug, Mass, Walmart, Military, ½ Dollar and ½ Club

LRB 2011 Retail Revenues (Millions of Dollars)

BMC’s Added Value

Total 43.0 Billion gallons

Total $249.2 Billion

26.2 Billion gallons

16.8 Billion gallons $140.1

Billion $109.1 Billion

Source: BMC Strategic Associates

Both BMC DrinkIntell™ and BMC’s All-Channel Databases captures by channel 39% of LRB volume and 56% LRB retail revenues not captured by “measured” channels*



BMC DrinkIntell™ is user-friendly and gives its users multiple options to build reports; each option allows a search to be narrowed down by start/end period, period type (quarterly, bi-annually, annually), metric (volume or dollars) and volume unit • Within any option, reports are generated in MS Excel for easy use/formatting by user • BMC DrinkIntell™ also gives its users access to advertising spend, consumer demographics, CPI and PPI and beverage analyst reports

BMC DrinkIntell™ Homepage



BMC DrinkIntell™ Search Option By Comparing Categories/Segments – History and Forecast



BMC DrinkIntell™ Search Option By Comparing Categories/Segments – History and Forecast

Sample Report



Contents

•  Who We Are








The Annual Beverage Forum

•  Unrivaled roster of experienced industry experts address timely, industry relevant topics

•  Hundreds of beverage professionals from around the world in attendance

•  Company of the Year and Lifetime Achievement Awards

•  Interactive breakout sessions that deliver essential industry information and thought-provoking analysis

−  Alcohol and non-alcohol category trends

The Beverage Forum

Beverage Marketing Corporation co-hosts The Beverage Forum in New York City annually, gathering global industry leaders and experts to discuss the current and future status of the global beverage industry • BMC will celebrate it’s 20th Beverage Forum in 2013 • BMC will host The Beverage Forum in Germany, Asia and Latin America in the near future


The Beverage Forum

Partial Attendee List by Company

A C Nielsen A Lassonde Inc

Adirondack Beverages Inc Alcoa Inc

Anheuser-Busch Companies Inc. Asahi Breweries Ltd.

Ball Corporation

Barton Beers Ltd Boston Beer Company Brown-Forman Beverage Company

Brown-Forman Bev Worldwide Cadbury Beverages International

Campbell Soup Company Cervecena Cuauhtemoc Moctezuma

Cliffstar Corporation

Coca-Cola Company Coca-Cola Enterprises

Constellation Brands Crown Imports, LLC

Dr Pepper/Seven Up, Inc.

Ferolito Vultaggio & Sons General Mills

Heineken USA International Dairy Foods Association Kraft Foods

Miller Brewing Company Molson USA, LLC

National Beverage Corp.

Nestle USA Nestle Waters North America

Ocean Spray Cranberries Inc.

Pepsi Beverages & Foods Pepsi Bottling Group Inc.,

Pepsi -Cola Company Pernod Ricard USA

Perrier Group of America

Red Bull North America Inc Seagram Beverage Company

Snapple Beverage Group Southern Wine & Spirits

Veryfine Products Inc.

Zumbiel Packaging

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