ALCOHOLIC BEVERAGE MONTHLY DASHBOARD MARCH 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 $1997.00 $2,158.50 $1,955.00 $1,478.00

Corn, No. 2 yellow. Cent. Ill. bu-BP,U $3.53 $3.55 $3.39 $3.42

Rice, Long Grain Milled, No. 2 AR-U,W $25.75 $25.50 $20.25 $22.75

Raw sugar FOB, $/metric ton-K $247.3 $258.30 $299.50 $263.20

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

$5.50 $5.58 $4.55 $5.22

TOP PERFORMING ALCOHOLIC BEVERAGE STOCKS BY SUBSECTOR

62.1% 41.6% 47.2%

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

Page 2

PUBLIC COMPANY STOCK PERFORMANCE – TWELVE MONTHS ENDING MARCH 31, 2018

EXCHANGE LISTED COMMODITY TRENDS – MONTHLY AVERAGE

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

21.1%

30.1%

11.8%

20.0%

$3.55 $3.13

$1,713.00 $2,246.00

$25.75 $25.75 $20.25

$305.90 $247.30

$5.58 $4.55

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

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

Mar

-18

S&P 500 Craft Brewers

Large Brewers Wineries & Distillers

26.7%

18.5%

14.3% 11.8%

-2.9% -3.9%

-8.9% -10.1%

-18.4% -25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

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

6.0x

2.2x 1.9x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

Wineries & Distillers Large Brewers Craft Brewers

19.1x

15.5x

13.6x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

Wineries & Distillers Craft Brewers Large Brewers

Market Data (Given in $Millions)

Price 1 Yr Est.

Price Performance Equity Firm Growth EV / LTM EBITDA

Company ($ mm) Ticker 03/31/18 LTM Value Value Rate Sales EBITDA Margin

Craft Brewers

Big Rock Brewery Inc. TSX:BR $3.78 -19.3% $26 $31 NA 0.8x NM 3.8%

The Boston Beer Company, Inc. NYSE:SAM 189.05 30.7% 2,176 2,111 3.3% 2.4x 12.5x 19.6%

Brick Brewing Co. Limited TSX:BRB 3.53 62.1% 124 131 6.9% 3.2x 18.4x 17.6%

BJ's Restaurants, Inc. NASDAQGS:BJRI 44.90 11.1% 921 1,060 4.5% 1.0x 9.4x 10.9%

Craft Brew Alliance, Inc. NASDAQGS:BREW 18.60 39.3% 359 392 2.1% 1.9x 23.4x 8.1%

Average 24.8% 4.2% 1.9x 15.9x 12.0%

Median 30.7% 3.9% 1.9x 15.5x 10.9%

Large Brewers

Anheuser-Busch InBev SA/NV ENXTBR:ABI $109.99 0.0% $212,690 $329,011 2.5% 5.8x 15.3x 38.0%

Asahi Group Holdings, Ltd. TSE:2502 53.36 41.4% 24,445 35,852 NA 1.9x 13.9x 13.9%

Heineken N.V. ENXTAM:HEIA 107.55 26.0% 61,326 78,907 NA 3.0x 14.0x 21.5%

Kirin Holdings Company, Limited TSE:2503 26.67 41.6% 24,339 29,928 9.1% 1.8x 13.2x 13.7%

Molson Coors Brewing Company NYSE:TAP 75.33 -21.3% 16,256 27,360 1.8% 2.5x 10.4x 23.9%

Sapporo Holdings Limited TSE:2501 29.19 8.1% 2,274 4,474 NA 0.9x 11.3x 8.1%

Average 16.0% 4.5% 2.7x 13.0x 19.9%

Median 17.1% 2.5% 2.2x 13.6x 17.7%

Wineries & Distillers

Brown-Forman Corporation NYSE:BF.B $54.40 47.2% $25,476 $27,286 9.0% 8.5x 23.1x 36.8%

Constellation Brands, Inc. NYSE:STZ 227.92 40.6% 44,419 54,532 7.4% 7.2x 19.1x 37.7%

Diageo plc LSE:DGE 33.86 18.4% 83,056 98,318 10.8% 6.0x 18.1x 33.1%

Pernod Ricard SA ENXTPA:RI 166.63 40.5% 43,994 53,322 NA 4.9x 17.0x 28.9%

Rémy Cointreau SA ENXTPA:RCO 142.66 45.4% 7,123 7,656 NA 5.8x 25.1x 22.9%

Average 38.4% 9.1% 6.5x 20.5x 31.9%

Median 40.6% 9.0% 6.0x 19.1x 33.1%

HIGHLIGHTED 2018 ALCOHOLIC BEVERAGE M&A TRANSACTIONS

Target: Tsingtao Brewery Limited Buyer: Fosun Capital Transaction Value: $1,081.5 TV / Rev: 0.3x TV / EBITDA: 2.6x

Fosun Capital acquired 20% stake in Tsingtao Brewery from Asahi Group Holdings for $1.08 billion. Asahi is withdrawing from China and will refocus its efforts on other geographic markets

Tsingtao Brewery is China’s second largest brewer and has successfully penetrated international markets

Fosun’s business model and global reach will help grow Tsingtao’s brand and tap into Chinese demand for more premium beers

Target: Fenglian Wine Holdings Buyer: Legend Holdings Transaction Value: $211.0 TV / Rev: 1.2x TV / EBITDA: NA

Legend Holdings completed the acquisition of Fenglian Wine Holdings in April 2018

Legend holdings is a large conglomerate with investments in information technology, financial service and agriculture and food

Fenglian Wine Holdings will be folded into Legend Holdings liquor subsidiary, Hebei Hengshui Laobaigan Liquor

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

15

5 4 4

4 6 5

11 14

13 14

11 4 4 7

4

7 4

6

10

16

22

23

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

April 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

03/30/2018 Anheuser-Busch - M&A Anadolu Efes Biracilik ve

Malt Sanayii Anonim Sirketi

(IBSE:AEFES)

Brewery Anheuser-Busch InBev SA/NV, Russia and Ukraine Business comprises production

and distribution of beer. The asset is located in Russia.

03/30/2018 California & Nebraska

Operations of Green Flash

Brewing Co.

- M&A Muirlands Capital LLC Brewery California & Nebraska Operations of Green Flash Brewing Co. comprises brewing

operations and are located in the United States.

03/29/2018 Sula Vineyards Pvt. Ltd. $39.3 M&A Undisclosed Winery Sula Vineyards Pvt. Ltd. produces and exports white, red, rose, and sparkling wines

in India and internationally.

03/28/2018 Liverpool Organic Brewery

Ltd

- M&A Circus Holdings Limited Brewery As of March 28, 2018, All Assets of Liverpool Organic Brewery Ltd were acquired

by Circus Holdings Limited.

03/26/2018 Winery in Portugal $4.6 M&A Undisclosed Winery Winery in Portugal produces wine products. The asset is located in Portugal.

03/23/2018 Fenglian Wine Holdings

Limited

$211.0 M&A Hebei Hengshui Laobaigan

Liquor Co., Ltd.

(SHSE:600559)

Winery Fenglian Wine Holdings Limited produces wine. The company was founded in 2012

and is based in China. As of March 23, 2018, Fenglian Wine Holdings Limited

operates as a subsidiary of Hebei Hengshui Laobaigan Liquor Co., Ltd.

03/23/2018 Hardywood Park Craft

Brewery, LLC

$1.3 M&A Undisclosed Brewery Hardywood Park Craft Brewery, LLC operates as a brewery. The company was

founded in 2011 and is based in Richmond, Virginia.

03/20/2018 Finest Made Ales - M&A Council Brewing Company,

LLC

Brewery Finest Made Ales offers craft beer brewery services. The company was founded in

2016 and is based in Santee, California. As of March 20, 2018, Finest Made Ales

operates as a subsidiary of Council Brewing Company, LLC.

03/19/2018 Tsingtao Brewery Company

Limited (SEHK:168)

$1,081.5 M&A Fidelidade - Companhia de

Seguros, S.A.; Star

Insurance Company;

Tsingtao Brewery Group

Brewery Tsingtao Brewery Company Limited, together with its subsidiaries, engages in the

production, distribution, wholesale, and retail sale of beer products primarily in

the People's Republic of China.

03/19/2018 Wetherall Coonawarra

Vineyards

- M&A Treasury Wine Estates

Limited (ASX:TWE)

Winery As of March 19, 2018, Wetherall Coonawarra Vineyards were acquired by Treasury

Wine Estates Limited. Wetherall Coonawarra Vineyards comprises vineyards that

produce wine. The assets are located in Australia.

03/15/2018 Saigon Beer - Alcohol -

Beverage Corporation

(HOSE:SAB)

$143.6 M&A Dragon Capital Group

Limited; Vietnam Enterprise

Investments Limited

(LSE:VEIL); Hanoi

Brewery Saigon Beer - Alcohol - Beverage Corporation, together with its subsidiaries,

produces and sells beer, alcohol, beverages, and related materials and packaging

products in Vietnam.

03/14/2018 Broken Shed Distilleries,

Inc.

$0.4 M&A Undisclosed Distillery Broken Shed Distilleries, Inc. manufactures Vodka. TBroken Shed Distilleries, Inc.

was incorporated in 2016 and is based in Southport, Connecticut with additional

offices in Rhode Island, California, and New Zealand.