Dallas/Ft Worth

Anheuser-Busch, Inc.Retail Business Solutions

May 2006

The Beer Consumer

2

Beer58.6%

Wine41.4%

Share of Spending inDallas/Ft Worth - FOOD

Beer is The Largest Alcohol Category in Supermarkets

Beer Is The Largest Alcohol Beverage

Source: IRI Total US Food, 52 Weeks Ending 5/21/2006

3

$217

$188

$125

$121

$111

$103

$94

$86

$83

$66

+1.5

+1.0

+10.1

-1.1

-2.4

-0.8

+0.9

-0.3

+28.7

-1.5

CARBONATED BEVERAGES

MILK

BEER

SALTY SNACKS

FRESH BREAD & ROLLS

NATURAL CHEESE

FZ DINNERS/ENTREES

COLD CEREAL

WINE

LUNCHEON MEATS

Category Dollar Sales

Source: IRI Supermarket Data; 52 Weeks Ending Dec 25, 2005

% Change

#1

#10

#2

#3

#4

#5

#6

#7

#8

#9

Rank

Beer Is An Important Category

Dallas/Ft Worth - FOODTop 10 Edible Grocery Categories ($ Million)

Beer is the 3rd Largest Category in Supermarkets

4

Alcohol BeveragesShare Of Stomach And Associated Occasions

FAB5%

Liquor25%

Wine23%

Beer47%

Occasions Where Beer is Considered Highly Appropriate

Backyard grill or BBQWatching sports on TV at home

Fishing or campingBeach or outdoor pool party

Large house partyHanging out with friends

Guys’ night outDrinking with men and women

Occasions Where Liquor is Considered Highly Appropriate

Wedding or other formal partyDrinking with men and women

Large house partyFeel like getting a little rowdy

Occasions Where FABs Are Considered Highly Appropriate

Girls’ night outBeach or outdoor pool party

Drinking with men and womenBackyard grill or BBQ

Occasions Where Wine is Considered Highly Appropriate

Holiday family mealHaving couples over for dinner

Having meaningful conversationRelax or unwind after work

Drinking with men and women

Source: A-B Alcohol Beverage Tracking Research, September 2005

Alcohol Beverage Share of Stomach

(Average volume of consumption per alcohol

beverage drinker)

Source: IRI Consumer Network Panel, Total US All Outlets, 52 Weeks ending 6/12/05

18.1%Beer Only

18.6%Beer & Wine

4.2%Wine & Liquor

13.4%Beer & Liquor

0.8%Liquor Only

2.3%Wine Only

42.7%BWL Overlap

Beer, Wine and LiquorVolume Overlap of Alcohol Buyers

• 92.8% Of Beer, Wine And Liquor Volume Comes From Consumers Who Buy Beer• 18.1% Of Total Alcohol Volume Comes From Exclusive Beer Drinkers

Percent of BWL Volume

Liquor 61.1% of BWL Volume

Comes from Liquor Buyers

Wine 67.8% of BWL

Volume Comes from Wine Buyers

Beer 92.8% of BWL

Volume Comes from Beer Buyers

Beer, Wine and LiquorBuyer Overlap of Alcohol Buyers

• 11.5% Of U.S. Households Purchase Beer, Wine And Liquor• 12.8% Of Households Are Exclusive Beer Consumers, While Only 8% For Wine And 4% Liquor

Source: IRI Consumer Network Panel, Total US All Outlets, 52 Weeks ending 6/12/05

12.8%Beer Only

9.3%Beer & Wine

4.0%Wine & Liquor

5.1%Beer & Liquor

3.7%Liquor Only

8.4%Wine Only

11.5%BWL Overlap

Percent of HH (Buying Alcohol*) Penetration

Liquor Total Penetration

24.4%

Beer Total Penetration

38.8%

Wine Total Penetration

33.3%

7

Beer Buyers Make More Repeat Trips!

# of Trips Per Year (REPEAT Buyers)

13.3 13.4

20.5

0

5

10

15

20

25

Beer Wine Liquor

Source: IRI Consumer Network Panel, Total U.S. Grocery, 52 Weeks Ending 4/2/06

Repeat BuyersNote: “Repeat Buyer” buys 2 or more times in a given time period

8

7.0

5.5

2.8

0

2

4

6

8

BEER WINE LIQUOR

Source: IRI Total U.S. Grocery, 2005 Account Traffic Builder (Syndicated) 52 weeks ending December 25, 2005NOTE: Calculation = # of Trips x Average Market BasketAll Other Category Dollars = (# of Trips x Average Market Basket) – (# of Trips x Dollars per Purchase Occasion)

Beer Buyers Make More Trips and Spend More Annually Per Buyer!

Source: IRI Consumer Network Panel, Total U.S. Grocery, 52 Weeks Ending 12/25/05 All Buyers

Source: IRI Consumer Network Panel, Grocery, 52 Weeks Ending 12/25/05

Total Annual Market Basket

With and Without the Category

# of Trips Per Year(All buyers)

$56.20

$60.14$59.13

54

56

58

60

62

BEER WINE LIQUOR

Average in Market Basket(Including Alcohol)

Dallas/Ft Worth - FOOD

BEER WINE LIQUOR

$393$332

$168

$314 $271

$106

$-

$100

$200

$300

$400

9

Consumers Drink More Beer

Spending by Consumer Per Month

$40.26

$10.70$17.31

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

Beer Wine Liquor

Number of Servings Per Month

12.27.3

33.3

0.0

10.0

20.0

30.0

40.0

Beer Wine Liquor

• Number of Servings Is Much Greater for Beer

2.7 X Wine

4.6 X Liquor

• Avg. Revenue Per Consumer Is Much Greater for Beer

2.3 X Wine

3.8 X Liquor

Calculation: Servings / # Consumers = Number of Daily Servings; Servings x Dollar per Serving = RevenueNOTE: Beer, wine and liquor volumes are shown converted into an approximation of servings, based on 12 oz. for beer; 5 oz. for wine, and 1.5 oz. for liquor. In practice, serving sizes and alcohol concentration are highly variable -- especially for mixed liquor drinks.Source: 2005 Adams Advanced Handbook (2004 Gallons and Dollars); MRI 2005 (Average Number of Servings)

Consumers Have More Servings and Spend More on Beer Than Wine or Liquor