“The alcohol beverage laws vary by state. Please be guided accordingly.”“Strictly Confidential – Not to be shared outside of A-B Wholesaler Network.”

WHOLESALEREXCELLENCEPROGRAM2021

2

TABLEOFCON-

TENTS

1 PEOPLE1.1 - Learning & Development1.2 - Better World Initiative1.3 - Rewards

2 FIELD SALES MANAGEMENT2.1 - In-Market Activities2.2 - Selling Tools

3 POC MANAGEMENT3.1 Voice of the Retailer3.2 Segmentation 3.3 Non-Buy Process3.4 Total Independent Distribution

4 LOGISTICS & REVENUE MANAGEMENT4.1 Mix Excellence4.2 Price Promotions4.3 Sales and Operations Planning4.4 Forecasting Accuracy & Bias

5 TRADE MARKETING5.1 Target Setting & Cascading 5.2 Planogram Accuracy5.3 Execution Validation5.4 POC of Success Training 5.5 Social Media 5.6 eCommerce

3

THE 2021AOE PROGRAM WILL...

The Ambassadors of Excellence (AOE)Program is a key enabler of our sharedsuccess. AOE helps to drive excellence and focus on national plans and strategies for Anheuser-Busch brands across the entire wholesaler system, maximizing our execution and sales in over 500,000 retail accounts.

AOE builds on our strengths ofplanning, performance tracking,communication and execution.The program promotes best in class business processes, route to market strategy, and trade execution; all reflected in exemplary results.

AOE is an annual, voluntary program. Each year, A-B will introduce new tools and processes to the program and adapt existing modules. A-B believes AOE should identify and improve upon the best and most relevant processes to help wholesalers achieve excellence in their daily operations and results. Unless otherwise noted, all references in this document to wholesalers are to wholesalers that have chosen to participate in AOE. All references to wholesaler personnel are to personnel of participating wholesalers with responsibility for A-B brands. All best practices relate solely to A-B brands.

FOCUS WHOLESALERS TO ACHIEVE JOINTLY DEFINED RESULTS

STIMULATE CONTINUOUS IMPROVEMENT THROUGH EXCELLENCE IN ROUTINE EXECUTION

EVALUATE THE PERFORMANCE OF KEY WHOLESALER BUSINESS PROCESSES

ENCOURAGE WHOLESALERSTO STRIVE TO BE THE BEST

RECOGNIZE AND REWARD EXCELLENCE

4

ACHIEVEMENT & RECOGNITION

LEVEL ACHIEVEMENT RECOGNITION/BENEFITS*

AMBASSADOR

Clydesdale “Big Jake” Trophy: trophyaccompanied by Clydesdale hitch visitto wholesaler’s market (1st time)Ambassador JacketAttendance at Special Events (**one per EAM)Elite status at national A-B meetings for direct employees of the winning Main House location***Upgraded suite at the 2021 Wholesaler Excellence Meeting (EAM only)

To achieve, the MainHouse must score GoldProficiency 3X within thelast 5 years

To maintain theirAmbassador status,the Main House mustmaintain an averagescore of ≥ 900 (Process+ Execution + Results) forthe current and previoustwo years or be GoldProficiency 3X withinthe last 5 years.

Qualifier: Process Score between 85% and 100%****

National Program - A-B will recognize the National Champion and Top Performersat the annual Wholesaler Excellence Meeting.

NATIONALCHAMPION

AOE National Champion Rings for entire Wholesaler team

Elite status and upgraded suite at the 2021 Wholesaler Excellence Meeting (EAM only)

A-B Meeting special recognition

One National Champion

Qualifier: Process Score between 85% and 100%****

Tiebreakers will be decided by comparing performance relative to Total ABI WJBP Target [Total ABI Actual Trend - Negotiated Trend].

TOPPERFORMER

Elite status and upgraded suite at the 2021 Wholesaler Excellence Meeting (EAM only)A-B Meeting special recognition

One Top performerper Region and threenational “wild card”winners

Qualifier: Process Score between 85% and 100%****

Tiebreakers will be decided by comparing performance relative to Total ABI WJBP Target [Total ABI Actual Trend – Negotiated Trend].

5

*Achievement level recognition/benefits are subject to change. If changes occur, they will be communicated to the system.

Tie breakers are determined by the A-B Sales management team and will be published in advance of announcing winners.

**Maximum of one awarded trip to Special Event(s) (e.g., a wholesaler will be awarded one trip) per Equity Agreement. This trip is designed for AB-InBev Senior Management to strengthen relationships with winning Equity Agreement Managers. Therefore, transfer of this prize is only available to another active member of wholesaler ownership group. Any request for an exception to this policy needs to be taken forward to Region Vice President for them to get approval of A-B Senior Management.

***Attendance at any AOE sanctioned recognition event is exclusively for direct members of winning wholesaler. Affiliated wholesalers (“sister operations”) will not be authorized for entrance into private AOE recognition areas.

****Note that A-B reserves the right to adjust the 85% Process Qualifier when incremental or partial points are automatically awarded.

*****Note that Minimum Marketing Spend Reimbursement rewards refer only to Base Brands of Minimum WJBP Spend (CPC).

******A-B provides 50% signmaking co-op for eligible equipment purchases; this is capped at $3,000 for Latex printers.

Please note that AOE wholesalers in Michigan and New York will be required to fund all or some portion of the Top Performers trip due to state laws.

ACHIEVEMENT & RECOGNITION (CONT.)

LEVEL ACHIEVEMENT RECOGNITION/BENEFITS*

SIGNMAKINGCO-OP

PROFICIENCY

MINIMUM MARKETING

SPENDINCENTIVE

Wholesaler eligible for Signmaking Co-Op in 2022******

Plaque Award for all four levelsOther recognition up for consideration for Ultra Gold level

Ultra Gold – 30% Required Minimum WJBP Spend (CPC) Reimbursement*****

2021 AOE Score of 900 or above

Ultra Gold – 1,000 ptsGold – 900 to 999 ptsSilver – 800 to 899 ptsBronze – 750 to 799 ptsQualifier: Process Score between 85% and 100%****

Ultra Gold – 1,000 ptsGold – 900 to 999 ptsSilver – 800 to 899 ptsBronze – 750 to 799 pts

Gold – 25% Required Minimum WJBP Spend (CPC) Reimbursement*****Silver – 15% Required CPC Spend Reimbursement***** Bronze – 5% Required Minimum WJBP Spend (CPC) Reimbursement*****

Qualifier: Process Score between 85% and 100%****

National Program - A-B will recognize the National Champion and Top Performersat the annual Wholesaler Excellence Meeting.

6

THE AOE PROGRAM IS DESIGNED TO FOCUS ON AOE PROCESS, WJBP EXECUTION, AND WJBP RESULTS, THAT DELIVER EXCELLENCE AT RETAIL.

WJBP ResultsWJBP Results are made up of volume key performance indicators (KPI). KPIs are cascaded down

and represent the routine measures in your WJBP Plan. Wholesalers will have 6 Results KPIs.

WJBP ExecutionWJBP Execution is made up of channel indicators across National, Local and Innovation

groups. KPIs are selected during the WJBP meetings for each wholesalers on a trimester basis.Wholesalers will have 4 Execution KPIs.

AOE ProcessAOE Process is made up of key business initiatives. These include People, Field Sales Management,

Logistics & Revenue Management, POC Management and Trade Marketing. Each business process, or Pillar, reflects the key elements of AOE.

PROGRAM STRUCTURE

PROCESS

200 POINTS

EXECUTION

250 POINTS

RESULTS

550 POINTS

1,000 POINTS

+ +

Each Pillar Contains • Chapters – Key business process section • Objectives – Defines business purpose of each chapter • Qualifying Areas – Comprised of check points and their corresponding scores • Concepts – Explanation necessary to fully understand how or what you need to do into order to meet the standard

77

t

SCORING & EVALUATION PROCESS

AOE PROCESS POINT ALLOCATION

PEOPLE 20% 40 PTS

25% 50 PTS

POCMANAGEMENT 15% 30 PTS

AOE PROCESS TOTAL

20%

20%

40 PTS

40 PTS

200 PTS

Each pillar of the program will be made up of chapters which

contain qualifying areas, check points and indicators. Each

check point and indicator will have a point value assigned to it. Wholesalers must be able to

answer the entire question at the Main House level in order

to receive the points, meaning each branch of a multi-house

operation must achieve the check point and indicator to

receive points.

Qualifying Areas and KPIswill determine the scoring

of the program.

Scoring of Evaluations are as follows:.

• 1st Evaluation…baseline scoring (must be completed by all scoring wholesalers)• 2nd Evaluation…will determine 100% of AOE Process score

FIELD SALESMANAGEMENT

LOGISTICS & REVENUE MANAGEMENT

TRADE MARKETING

*AOE Program caps at 1,000 points: max points on AOE Process score = 200; WJBP Execution score = 250 points; WJBP Results score = 550 points.

8

MAR2021

BASELINE SCORINGThis is a mandatory scoring for theWholesaler in order to define gapsto close and develop appropriateaction plans. The A-B CommercialDirector will review and approve thesubmitted score. We recommendthat this scoring be completed inconjunction with the A-BCommercial Director.

2021NOV 100% EVALUATION

The A-B Commercial Director willreview and approve the submittedscore. Non-submitted Main Houselocations will receive a “zero” score.

2022DEC-JAN PROCESS AUDITS

A-B conducts local and virtual AOE Audit visits to review AOE Process scoring. Wholesaler should prepare support documentation for Audits for each standard in advance of audit.

2022JAN

2021 AOE KEY DATES

2021

WINNERSANNOUNCED ATSAMCOMFinal “Results” AOE scores to bedetermined by the final December2021 scorecards and ProcessAudit results. Winners will then berecognized at SAMCOMby leadership.

9

THE AOE PROGRAM IS A VOLUNTARY ANHEUSER-BUSCH FUNDEDPROGRAM AND WILL BE OPEN TO ALL A-B EQUITY WHOLESALERS THAT MEET THE FOLLOWING CONDITIONS:

Wholesaler Equity Agreement (WEA) Assessment needs to be completed by the A-B Commercial Director and acknowledged by the EAM.

Wholesalers must be 100% compliant on all WEA Exhibit 9 standardsin order to compete for AOE rewards and recognition.

Wholesaler can participate if action plans are in place to address WEAgaps and if plans are approved by their RVP and Commercial Director. If not in compliance with the WEA and there is no action plan or timelineto get back into compliance, then the Wholesaler will be deemed ineligible for 2021 AOE program rewards and recognition.

Any wholesaler questions over the tabulation of WJBP Execution and WJBP Results should be brought forth via their A-B Commercial Director and submitted through the AB Marketing Challenge Portal in advance of the published deadlines for each month’s scorecards.

Any wholesaler that refuses an AOE Process Audit Visit for any reason is automaticallyineligible for rewards and recognition.

Anheuser Busch can validate scores from any of the Process evaluations at any timeduring the Program year. The AOE Team has the authority to adjust scores according tothe Wholesaler Excellence Program. The decisions made by the AOE Team are final forthe Program.

In order to qualify, the difference between the Process score submitted and the certifiedProcess score must be less than 15 percent (less than 30 points out of 200).

Wholesalers that have greater than 10 points deducted during audit process will bepenalized 2x for each deduction.

Wholesalers will compete as equity agreements. Branch locations will not be completingan AOE Process self-evaluation. The one overall AOE Process self-evaluation will countas the score for the entire equity agreement. For WJBP Execution and WJBP Results,wholesaler satellite branches will roll up for scoring under the Main House scorecard forthe equity agreement.

PROGRAM ELIGIBILITY

10

PROGRAM MANAGEMENT

THE AOE PROGRAM LEADER SHOULD:

THE WHOLESALER EAM SHOULD:

Appoint a person or team responsible for the AOE Program, your local AOE Champion.Together with your AOE Champion, select AOE Pillar Owners and delegate to them clear

roles and responsibilities. Optionally assigning AOE Check Point Owners is also suggested.

Be the wholesaler’s central point of contact for leading the AOE program

Lead, direct and organize the local AOE Team, consisting of AOE Pillar Owners

Follow the AOE training as designated by Anheuser-Busch

Communicate continuously about the program within the organization Build training plans for all wholesaler employees using materials provided by A-B

Complete AOE self-evaluations on time

Be present during AOE Audit visits

Organize and coordinate local recognition, where applicable

Create Action Plans based on AOE self-evaluations and update them on a monthlybasis; present progress during monthly WPPM to your A-B Commercial Director

THE AOE PROGRAM SHOULD BE EFFECTIVELY COMMUNICATED AND MANAGED, ENSURING THAT THE PROGRAM IS UNDERSTOOD BY ALL EMPLOYEES.

Each wholesaler’s Equity Agreement Manager is the owner of this program and should appoint anAOE Program Leader (AOE Champion) responsible for its implementation and routine management.Each wholesaler’s AOE Champion is required to identify an AOE Team consisting of AOE PillarOwners. We also suggest that AOE Check Point Owners be assigned, as deemed appropriate.

THE AOE PROGRAM LEADER OR TEAM SHOULD CURRENTLY BE IN AMANAGEMENT POSITION AT THE WHOLESALER AND KNOWLEDGABLEABOUT ALL ASPECTS OF THE ORGANIZATION.

11

WEEKLYWIN

TOGETHERBRIEFS

A BEERWITH

MY BUDUPDATES

WHOLESALER EXCELLENCE

MEETINGSAMCOM

WJBP SCORING UPDATES

DEDICATED AOE WEBSITE VIA AB

MARKETINGCOMPETITIVE

EDGE

COMMUNICATION

Communication plan around the AOE Program to include:

TRAININGTraining modules will be made available for AOE on BrewU.

RESOURCESTo assist your AOE program management, a dedicated section of AB Marketing

has been developed for the program including:

PROGRAM DISCLAIMERWholesaler understands Anheuser-Busch reserves the right to modify orcancel this program at any time upon reasonable notice to wholesaler.

The alcohol beverage laws vary by state. Please be guided accordingly.All AOE content is strictly confidential – Not to be shared outside of A-B

Wholesaler Network.

PROCESS STANDARDS

RESULTS UPDATES

(ON RELEVANT STANDARDS)

COMMUNICATION /CLARIFICATION

LETTERS AS NEEDED

REGIONOFFICE AS

NEEDED

DOWNLOADABLE2021

AOE BOOK

DOWNLOADABLEBEST PRACTICES

APPENDIX

REWARDS &RECOGNITION

DETAILS

COMMUNICATION,TRAINING, &ADDITIONALRESOURCES

PROGRESSDASHBOARD &

CHALLENGEPORTAL

SCORING &EVALUATION

12

PEO-PLETHE PEOPLEPILLAR OF AOEWILL FOCUS ONTHE FOLLOWING:1.1 - Learning & Development 1.2 - Better World Initiative 1.3 - Rewards

INTRODUCTIONThe People Pillar ensures that we have the bestpeople performing at a high level supported by attractive incentive compensation and the right leadership.

This chapter contains guidelines for BrewU training, Pay for Performance (PFP) plans, and Better World initiatives, designed to help the wholesaler manage their people in a consistent way to drive higher engagement and results, while also serving local communities.

13

1.1 LEARNING & DEVELOPMENT

OBJECTIVEA well-trained sales organization has a comprehensive Learning & Development Programincluding new in position, core curriculum and ongoing training. This provides the bestopportunity to establish an individual development plan for every employee to addresstraining needs. The most comprehensive and effective Learning & Development Program isavailable through BrewU. While other training systems may provide supplemental training,having a sales force fully aligned with A-B specific training can only be accessed via BrewU,including: M360, Product Knowledge, SEC, AOE, POC Planning, A-B Selling Skills, etc.

QUALIFYING AREAS

CHECK POINTS

THE WHOLESALER SHOULD:

1. HAVE GREATER THAN OR EQUAL TO 90% OF ALL SALES REPS, TEAM LEADERS AND SALES EXECUTION COORDINATORS ON TRACK OR CERTIFIED THROUGH BREWU BY OCTOBER 31, 2021.

2. ENSURE DESIGNATED PERSONNEL COMPLETE TWO (2) CAPABILITY BADGES CORRESPONDING TO JOB ROLE BY OCTOBER 31ST, 2021.

A. GREATER THAN OR EQUAL TO 80% WITH MINIMUM 2 BADGES - 10 POINTS

B. GREATER THAN OR EQUAL TO 70% WITH MINIMUM 2 BADGES - 5 POINTS

SATISFACTORY

YES NO

SCORE

MAX.#

5

10

14

1.1 LEARNING & DEVELOPMENT

CONCEPTS1.1.1 Sales Rep, Team Leader and Sales Execution Coordinator Certification establishes theknowledge, skills and abilities that someone with direct sales responsibilities needs to be BestIn Class. It involves all aspects of the Sales Personnel position and requires training, testingand skill verification for core certification.

Core certification is broken out into three phases: 0-3 months; 4-12 months; and 13-18months corresponding to that employee’s time in role. Personnel are expected to havecompleted all certification requirements from a prior phase before moving on to the next, butthey can be “on track”, or in progress, on their current phase at time of scoring. For instance,a sales rep in role for 6 months on October 31st will be expected to have 0-3 month corecertification completed, but can be “on track” in the 4-12 month phase.

Final scores will be calculated as of October 31st, 2021 in the following method:

A few clarification points: • If the certification requirement is from a prior year, i.e. 2020, but has not been

completed, the employee will be considered “not certified.” • If an employee changes job role, i.e. from Sales Rep to Team Lead, their certification

status resets to “not certified” and they will be required to complete certification for that new role.

The wholesaler is expected to provide BrewU Certification documentation validatingthat Sales personnel are certified.

1.1.2 BrewU will evolve Continuing Education into short, competency/capability type badgesthat allow for flexibility in how Wholesalers leverage learning content for specific roles.Badge requirements only apply to those in their roles previous to January 1st, 2021. Just like continuing education, badge requirements must be completed every year.

Badge requirements are linked to job role and will include:

Please visit BrewU for more information about badge requirements.

Some roles may have more than two associated badges, but only (2) are required for AOE credit. Final scoring will be captured as of October 31st, 2021.

NUMBER OF CERTIFIED SALES REPS + TEAM LEADS + SECS

TOTAL NUMBER OF SALES REPS + TEAM LEADS + SECS

Safety Badge (ie. Safe Driving, Lifting, etc)Compliance Badge (ie. OSHA, etc)Leadership (Communication, Coaching, etc)Selling SkillsBeer & Brand KnowledgeSuccessor Manager

15

1.2 BETTER WORLD INITIATIVE

OBJECTIVEActivating a Better World marketing plan rounds out what is expected of an excellentwholesaler. Beer-branded and corporate-branded social responsibility programs show that wholesalers care about and are actively involved in their community. Specifically, anexcellent wholesaler takes initiative in promoting the responsible enjoyment of alcoholproducts, demonstrates commitment to the environment and makes a difference in localcommunities through volunteerism or other charitable efforts.

QUALIFYING AREAS

CHECK POINTS

THE WHOLESALER SHOULD EXECUTE THE FOLLOWING PROGRAMS AT A LOCAL LEVEL IN MARKET AND WITH EMPLOYEES:

1. RESPONSIBLE DRINKING:EXECUTE A PLAN TO ADDRESS RESPONSIBLE DRINKING WITH STAKEHOLDERS, EMPLOYEES, AND CONSUMERS.

2. ENVIRONMENTAL SUSTAINABILITY:PARTICIPATE IN ANHEUSER-BUSCH WORLDENVIRONMENT DAY ACTIVATION OR A LOCALVOLUNTEER EVENT TO AMPLIFY OUR COMMITMENTTO SUSTAINABILITY WITH STAKEHOLDERS,EMPLOYEES, AND CONSUMERS.

SATISFACTORY

YES NO

SCORE

MAX.#

5

3

3. COMMUNITY ENGAGEMENT:PARTICIPATE IN AT LEAST ONE LOCAL VOLUNTEEREVENT AND/OR CHARITABLE PROGRAM.

2

16

1.2.1 RESPONSIBLE DRINKING: Every experience with beer should be a positive one. Throughout the year, we will work together toaddress responsible drinking with stakeholders, employees, and consumers by promoting a varietyof responsible drinking behaviors.

Your 2021 Responsible Drinking plan must include ALL of the following activations: 1. Promoting hydrating between beers [e.g., bar-top water dispensers at on premise

accounts, hydration stations at events, beer + water cross-merchandise in off -premise] 2. An underage drinking prevention program at retail [Budweiser We I.D.] and parent/

educator/community outreach [e.g., Family Talk About Drinking, A-B Community Speakers], AND

3. Activating Global Beer Responsible Day by achieving touchpoint listed in GBRD Activation

Your 2021 Responsible Drinking plan must also include ONE of the below items: • Leveraging our NABLAB product portfolio to promote moderation • Incorporating a comprehensive safe ride program [e.g., Lyft] into at least 3 major events

1.2.2 ENVIRONMENTAL SUSTAINABILITYTogether, we can create a more sustainable future. To amplify our commitment to sustainabilitywith stakeholders, employees, and consumers, you must complete ONE of the following:

• Execute a plan to achieve touchpoints listed in World Environment Day Activation Guide (to be provided on ABMarketing in late Spring). Activation must include at least one external communications activity using resources provided in World Environment Day communications packet.

• Engage at least 20 percent of wholesaler employees in a local volunteer activity tied to our environmental sustainability commitments with a local community partner. Example projects include: volunteering to clean up a local body of water, tree planting, removal of invasive species, etc. in partnership with local Keep America Beautiful a#liate, The River Network, The Nature Conservancy, or a reputable local environmental organization.

1.2.3 COMMUNITY ENGAGEMENTEngage at least 20 percent of wholesaler employees in a local volunteer activity throughoutthe year in an effort to support your community. Monetary donations alone do not fulfillcheckpoint requirement.

Community engagement volunteerism examples include Habitat for Humanity projects, programsat the American Red Cross (e.g., Blood Drives, Sound The Alarm), support of a local food bankand/or United Way, or educational/mentoring programs.

Participating in an Anheuser-Busch-led emergency drinking water delivery will also fulfillthis requirement.

1.2 BETTER WORLD INITIATIVE

17

1.3 REWARDS

OBJECTIVEThe purpose of variable compensation is to reward sales teams for their efforts maximizingon market opportunities aligned to KPI goals, share growth and revenue growth.

QUALIFYING AREAS

CHECK POINTS

THE WHOLESALER SHOULD:

1. ALL SALES REPS AND TEAM LEADS SHOULD HAVE A PERCENTAGE OF THEIR WHOLESALER-FUNDED, A-B BRAND COMPENSATION “AT-RISK,” OR INCREMENTAL TO BASE SALARY: - Sales Reps ≥ 25% - Team Leads ≥ 25%

2. ENSURE PFP PLANS INCLUDES “UPSIDE POTENTIAL”TO ALLOW SALES REPS TO EARN MORE THAN 100% OF BUDGETED PFP DOLLARS

SATISFACTORY

YES NO

SCORE

MAX.#

5

10

18

CONCEPTS For all Concepts, commissions are viewed as base salary and not “at-risk” pay with the only exception being that 10% of commissions can be counted towards the standard for wholesalers with a 100% Commission structure. Sales Recognition Incentive (SRI) dollars will not be counted towards at-risk compensation.

1.3.1 Team Lead and Sales Rep base A-B brand compensation is salary and/or commissions; “at risk” compensation is Pay for Performance (PFP) towards A-B brands. Team Leads’ and Sales Reps’ “at risk” compensation should provide motivation and reward for achieving performance results.

1.3 REWARDS

DISCLAIMERAll figures mentioned in this section reference compensation for A-B brands only.

A-B will not ask about information relating to wholesalers’ non-A-B brands.

SALARY Base pay guaranteed to wholesaler employee regardless of performance of A-B brands(this includes “commission” pay).

Incremental dollars to potentially earn during a given time period that is directly correlated to KPI execution of A-B brands. Excludes SRI dollars.

PAY FORPERFORMANCE

(PFP)

TOTALWHOLESALER

FUNDED COMPENSATION

Entire amount of money paid out by the Wholesaler during a given time period for A-B brands.

*All PFP calculations are based on A-B brands**Commission is not included as “At Risk” pay***PFP to be measured monthly

DEFINITION

19

Team Leader and Sales Rep “at risk” compensation rewards achievement of volume goals,which drive market share growth and revenue.

• Targets should be cascaded from a Sales Manager to a Team Lead and then to a Sales Rep. For each node in this hierarchy, targets should be directly under that individual’s span of control and a sum of that individual’s direct reports plus any account they called on directly.

• Ensure volume target payout scale aligns with Sales Process Playbook recommendations to provide proper motivation of sales team.

1.3.2 “Upside Potential” references the % of pay component of the PFP strategy.The rationale is that high performing Sales Reps have the ability to earn greater than 100%of their budgeted PFP dollars. This doesn’t necessarily imply that total PFP budget(s) will beexceeded as most Reps should not achieve 100% of their budgeted PFP dollars. Hence,their “unearned” dollars would pay for the “upside” achievers up to the point that the totalPFP budget is exhausted.

1.3 REWARDS

CALCULATION EXAMPLE (FEB-NOV):

CONCEPTS (CONT.)

WHOLESALER TYPE 100% COMMISSIONNOT 100% COMMISSION

$40,000$30,000

PFP $10,000$20,000

COMMISSION EXCEPTION (10%) $4,000N/A

TOTAL WHOLESALER-FUNDEDCOMPENSATION $50,000$50,000

WHOLESALER-FUNDED “AT RISK” COMP 28%40%

* All PFP calculations are based on A-B Brands only** PFP to be measured monthly*** Commission is not included “At Risk” pay

BASE SALARY

20

FIELDSALESMAN-AGE-MENTWILL FOCUS ON:2.1 - In-Market Activities2.2 - Selling Tools

INTRODUCTIONThe aim of the Field Sales Management (FSM) Pillar is to increase Sales Team productivity and optimize the Wholesaler’s Route to Market, supported by the right technology. Field Sales excellence requires an organization to execute beyond the basic requirements, ensuring these standard processes and activities are aligned to achieve WJBP KPIs and overall performance results.

21

2.1 IN-MARKET ACTIVITIES

OBJECTIVEIn-market days allow the Wholesaler to evaluate and develop their frontline sales teams throughobservation of daily processes, execution and relationship building. Furthermore, In-market dayswill further enhance the knowledge of the entire wholesaler selling organization while at the sametime strengthen retailer relationships.

QUALIFYING AREAS

CHECK POINTS SATISFACTORY

YES NO

SCORE

MAX.#

1. THE SALES MANAGERS, TEAM LEADERS, AND SECS SHOULD EXECUTE MINIMUM DAYS IN MARKET PER MONTH, FOCUSING ON ACTIVITIES LISTED IN THE CONCEPTS SECTION:

A. SALES MANAGERS SHOULD EXECUTE, AT MINIMUM, 8 IN-MARKET DAYS PER MONTH.

B. TEAM LEADERS SHOULD EXECUTE, AT MINIMUM, 16 IN-MARKET DAYS PER MONTH.

C. THE SEC SHOULD EXECUTE AT MINIMUM 3 IN-MARKET DAYS EVERY MONTH.

15

15

5

22

2.1 IN-MARKET ACTIVITIES

CONCEPTS2.1.1 IN-MARKET RECOMMENDED ACTIVITIES

Ride-With Process These should be conducted with different Sales Reps on a rotating schedule to better

understand selling strengths and gaps across the entire Sales Team. It is crucial to provide immediate feedback for each visit, review their overall day’s performance and develop plans to enhance their performance. Ride-withs allow the Team Leader and Sales Manager to evaluate and develop Sales Representatives through:

- Tracking WJBP KPI execution - Effective execution of the Structured Sales Process - Correctly utilizing A-B Selling Skills

Coach the Coach Coach the Coach Ride-withs should be conducted with different Team Leaders on a

rotating schedule to better understand coaching strengths and gaps across the entire Sales Management Team.

Team-Sells Incorporate a Team Sell planning structure to develop objectives, target accounts, and

track execution in the right accounts. Focus accounts for Team Sell activity should include: - Tracking WJBP KPI execution - Effective execution of the Structured Sales Process - Correctly utilizing A-B Selling Skills

Other In-Market Activities: 4 days per month. “Inspecting what you Expect” is a vital role of the Sales Manager, ensuring that the

company’s and KPI targets are being executed in the trade. In order to do this, Sales Managers shall spend four (4) days per month in-market focused on:

- All accounts that score in the lower 25% of Activate results (on-going process to evaluate the accounts that fall into this category)

- Top 10% of accounts by volume for each Sales Rep The wholesaler should track and post results of execution of Team Sell objectives.

SECs should spend time shadowing these activities to identify market opportunities, evaluate program effectiveness and retail execution, execute resets and verify data accuracy. Information gathered during these retail visits will enable the SEC to play a more active role in both the achievement of targets and development of the materials for monthly general sales, monthly WPPM, weekly channel/segment, and daily team meetings.

Call tracking can be utilized by Team Leaders to document In-Market activities. Call tracking reports (call frequency, call detail, call summary, no call) can be utilized to monitor Sales Reps/Team Leader activities. Ensures sales call activities are being completed and coaching opportunities are identified, documented and followed up.

We believe that providing flexibility in allowing for different in-market activities will ensure that wholesalers are completing the in-market activities that best fit their sales process. For 2021 tracking of this standard, we will accept responses from the following sources: VIP / Encompass / GSC Surveys (for Ride-withs, Team Sells, wholesaler-specific surveys, or general call tracking) or traditional Mobility Manager surveys.

23

2.2 SELLING TOOLS

CONCEPTS2.1.1 BEES is a best in class e-Commerce experience for Retailers to browse products, see promotions, place orders, schedule deliveries, and view invoices – all in one place.

a) To become BEES “enabled,” Wholesalers must complete all pre-work requirements to go live. If there are any questions about this process, please reach out to your Tech Sales Manager or Commercial Director.

b) Wholesalers receive extra points when at least 40% of their account base signs up for Bees. Retailer sign-ups will be measured using BEES account registrations. See instructions below.

Retailer Registration Instructions • Have your Retailers download “BEES US” from App

or Google Play Store. • They can pull their Account Number, Recent Invoice ID,

and Postal Code from a recent invoice during the account creation process.

OBJECTIVEAs the selling landscape evolves, we need to ensure that A-B and our Wholesaler partnersevolve with it. A-B has made several technology investments to improve Wholesalers’ valueproposition and selling capabilities. Wholesalers should be working towards incorporatingthese solutions into their Route to Market strategy.

QUALIFYING AREAS

CHECK POINTS SATISFACTORY

YES NO

SCORE

MAX.#

1. FOR ON PREMISE ACCOUNTS

a) Wholesaler is enabled and/or using BEES to receive orders.

b) Wholesaler has 40% of retailers signed up on the BEES platform.

5

5

2. FOR OFF PREMISE ACCOUNTS

a) Sales Reps demonstrate at least 1 “non-ordering & inventory” activity for 1 in every 5 (20%) visits to each account.

5

24

2.2.2 As the Anheuser-Busch Wholesaler Network’s Route to Market evolves to betterreflect new ordering expectations (e.g., B2B, Telesales, etc.), Sales Reps should spend time with POC’s managing their business relationships, selling in new product, and promotingrate of sale of sold-in products to help complement their Ordering & Inventory activities.“Non-ordering & inventory activity” is defined as any account servicing tasks that are notordering. Examples include, but are not limited to, selling-in Lola recommendations,accessing the latest digital content management (DCM) materials for brand materials andtrade programs, tracking shelf changes through planogram tools, completing CRM activities/ creating work orders to support sell-in, etc.. These activities will be tracked and reportedby Anheuser-Busch through M360; however, we are willing to accept evidence showingutilization of incremental selling tools that do not fall in the M360 suite of tools, as put intopractice by wholesalers.

2.2 SELLING TOOLSCONCEPTS (CONT.)

25

POCMAN-AGE-MENTWILL FOCUS ON:3.1 - Voice of the Retailer3.2 - Segmentation3.3 - Non-Buy Process3.4 - Total Independent Distribution

INTRODUCTIONRetail partners or points of connection (POCs) are critical to both A-B and wholesalers’ success. Every POC has distinct needs, so it’s important for us to delineate their structures, know their key decision makers, study their consumer demographics & shopping patterns, and solve for their concerns.

26

3.1 VOICE OF THE RETAILER

OBJECTIVEVoice of the Retailer (VOR) surveys provide insight into retailer perception of the wholesaler’s service. It is vital the customer satisfaction is measured to enable wholesalers to identify gaps and ensure consistent best in class service levels.

CONCEPTS3.1.1 In order to properly capture retailer feedback, it is paramount to have a statistically representative group of retailers from your market to contact. On a regular cadence, A-B will provide a retailer contact collection survey via an A-B approved survey platform to capture updated and accurate retailer phone numbers and email addresses. Surveys will be communicated via Weekly Win Together announcements and regional communication. In order to receive credit for this checkpoint, wholesalers should complete 25% of the surveys assigned to their wholesaler locations or provide the equivalent updated contact info directly to the Voice of the Retailer team at AB-RetailerVoice@anheuser-busch.com.

Please note that we will be tracking whether the contact information provided is accuratein two ways:

1. Invalid email addresses or phone numbers will be removed from the sample and not count towards the 25% requirement.

2. Additionally, if >40% of the wholesaler’s VOR surveys cannot be delivered to the right contact, the wholesaler will not receive credit for the 25% requirement. “Delivery” implies that the survey did not bounce (if sent by email), was not sent to a wrong number, was not sent to an invalid number, and was not sent to a number not in service.

Wholesalers can check their monthly AOE Dashboard to confirm they are in compliancewith the above 2 rules.

QUALIFYING AREAS

CHECK POINTS

THE WHOLESALER SHOULD:

1. COMPLETE A MINIMUM OF 25% OF THE RETAILER CONTACT COLLECTION SURVEYS ASSIGNED TO THEIR WHOLESALER LOCATION(S).

SATISFACTORY

YES NO

SCORE

MAX.#

5

2. CLOSE 90% OF HOT ALERTS WITH EXPLANATION OF THE RESOLUTION IN VOICE OF THE RETAILER (VOR) PLATFORM.

10

27

3.1 VOICE OF THE RETAILER

3.1.2 Voice of the Retailer is a benchmark of wholesaler service excellence. Through theCustomer Gauge platform, it provides A-B and wholesalers the following information:

• Retail customer loyalty for each A-B distributor with survey driver analysis • Retailer comments addressing reasons behind specific ratings and suggestions for

improvements. • Close the Loop Workflow when wholesalers receive low ratings from a specific retailer so

problems and issues can be addressed in a timely manner (see more below)

All wholesalers are automatically enrolled. The sample of retailers is a cross-section ofrandomly selected accounts, including both chain and independent (exclusions are in placefor certain types of accounts: telesales, some major retailers, no delivery, etc.).

Main categories of evaluation: • Net Promoter Score • Overall service • Sales support • Delivery activities

An illustrative example:

Wholesaler XYZ 3,000 accounts x 25% requirement 750 required contact info (either through survey or direct list)

STEP 1

SCENARIO A SCENARIO B 1,000 contacts provided 1,000 contacts provided 100 invalid contacts 300 invalid contacts 900 clean contacts provided 700 clean contacts provided Yes >=750? No > =750?

PASS STEP 1 FAIL STEP 1, NO AOE POINTS

Proceed to Step 2 Must supply 50 more contacts to proceed to STEP 2

STEP 2

SCENARIO A SCENARIO B 500 surveys sent 500 surveys sent 100 surveys not delivered 250 surveys not delivered 20% surveys not delivered 50% surveys not delivered Yes <=40%? No <=40%?

PASS STEP 2, RECEIVE AOE POINTS FAIL STEP 2, NO AOE POINTS

28

3.1 VOICE OF THE RETAILER

Close the Loop WorkflowVoice of the Retailer is a 3-prong system of active listening, analysis, and action.By following up on survey responses, or “closing the loop,” we take action, demonstratingtransparency and accountability for our customers. “Closing the loop,” does not meanreverting a negative response into a positive one. Instead, it’s a best practice process incustomer experience management.

We recommend you monitor all your survey responses and follow-up with customersregardless of whether they were detractors, passives, or promoters, as many providevaluable feedback in the survey.

You can access the Close The Loop Workflow in the Customer Gauge platform,accessible by AB Marketing. For AOE credit, we will be monitoring your Close the Loopworkflow for “Hot Alerts,” or your detractor responses. We expect open cases to move from“Open” to “In Progress”, and finally “Closed” with clear explanations of the issue andresolution documented in the Close the Loop workflow within the platform. It is a bestpractice to close the loop within 48 hours of detractor responses, but for AOE tracking we will be mandating a max of 14 days to close the loop.

At time of submission, “90%” can cover cases in both the “In Progress” and “Closed”phases, recognizing that not all cases will be closed at deadline.

If you have any questions about this process, please reach out to your Tech Sales Manageror Commercial Director to learn more.

Image Source: https://customergauge.com/blog/close-the-loop

29

3.2 SEGMENTATION

OBJECTIVEThe maintenance of retailer segmentation is critical to having clear visibility into the market and opportunities. By keeping accurate records of locations, segmentation attributes, and other retailer features, a wholesaler team can better define plans for market execution.

CONCEPTS3.2.1 Wholesalers should have a documented process in place to review all active licenses in the territory and verify that all accounts are documented in the RAS. Data sources for this review can be the local liquor control board or local industry publications. The process to maintain this information should include a formal review of the data source on a quarterly basis and assign ownership for this step. LOLA uses STR, BIR, IRI, and third party data to make projections on industry behavior in each account, which wholesalers are expected to validate based on market realities.

QUALIFYING AREAS

CHECK POINTS

THE WHOLESALER SHOULD:

1. ON A QUARTERLY BASIS, VERIFY LOLA SEGMENTATION FLAGS AND REVIEW ACCOUNT INFORMATION IN VIP: OWNERSHIP, CONTACT INFORMATION, AND LOGISTICAL INFORMATION (STREET ADDRESS, GEOCODING, ETC.).

ON A QUARTERLY BASIS, VERIFY SEGMENTATION FLAGS FOR ANY NEW ACCOUNTS IN VIP. ALSO, VERIFY ALL POCS, INCLUDING NON-BUYS, ARE DOCUMENTED IN RAS / RPF SYSTEM, WITH LOGISTICAL INFORMATION (STREET ADDRESS, GEOCODING, ETC.).

SATISFACTORY

YES NO

SCORE

MAX.#

5

30

3.3 NON-BUY PROCESS

OBJECTIVEGiven the dynamic nature of our retailer base, one element of POC Management isunderstanding and routinely reviewing retailers within the Wholesaler’s territory who are not currently purchasing and defining plans to close these opportunities.

CONCEPTS3.3.1 Non-buying accounts should be assigned to a Sales Rep with a plan in place to convertthem to a buying account. These plans may include but are not limited to: Non Buy FocusedSales Representatives, KPIs for existing Sales Reps, Non Buy Blitz Days, and/or Warming ofLeads by Pro-Sell reps.

Wholesalers should review their non-buy process with their Commercial Director at least twotimes per year for credit. This standard will be self-reported in the baseline and final scoringperiods, and validated during audits.

QUALIFYING AREAS

CHECK POINTS

THE WHOLESALER SHOULD:

1. HAVE A NON-BUYING PROCESS AROUND THEIR TOTALINDEPENDENT DISTRIBUTION.

SATISFACTORY

YES NO

SCORE

MAX.#

5

31

3.4 TOTAL INDEPENDENT DISTRIBUTION

OBJECTIVEIn conjunction with their process to review all licensed retailers, wholesalers shouldunderstand their retailer-level simple distributions.

CONCEPTS3.4.1 Wholesalers should utilize both their internal tools and A-B provided reporting to reviewtheir buying trends and performance. This should be incorporated into internal managementroutines as well as A-B routines such as WPPMs.

Simple distribution is defined as the number of Sold Accounts / Open Accounts.

Wholesalers can score points by either maintaining a threshold of >=85% average monthlysimple distribution in independent accounts. The evaluation period will be April – October2021 to determine the monthly average (April – Oct 2021 avg).

If Wholesalers cannot meet that threshold, they can score points by increasing their averagemonthly simple distribution in independent accounts from 2020 to 2021. Again, the evaluationperiod will be April – October (April – Oct 2020 Average vs. April – Oct 2021 Average).

QUALIFYING AREAS

CHECK POINTS

THE WHOLESALER SHOULD:

1. A. MAINTAIN AN AVERAGE MONTHLY INDEPENDENT SIMPLE DISTRIBUTION OF >=85% OR B. INCREASE THEIR AVERAGE MONTHLY INDEPENDENT

SIMPLE DISTRIBUTION FROM 2020 TO 2021.

SATISFACTORY

YES NO

SCORE

MAX.#

5

SIMPLE DISTRIBUTIONSOLD STORES/OPEN STORES

2 / 3 = 66.67%

MULTI POINTSOF DIST.# OF PODS/SOLD STORES

6 / 2 = 3.0

AVERAGE DIST.# OF PODS/OPEN STORES

6 / 3 = 2.0

SIMPLE X MPD = AVD

DISTRIBUTION CALCULATIONS

32

WILL FOCUS ON:4.1 Mix Excellence4.2 Price Promotions4.3 Sales and Operations Planning4.4 Forecasting Accuracy & Bias

INTRODUCTIONRevenue Management is a critical contributorto profit improvement. It is also highlysensitive in that pricing and mix decisions can create can create enormous value for one’s business. It requires a disciplined approach to daily and annual routines, compliance with laws and tracking of Key Performance Indicators (KPIs).

Excellence in Logistics requires a focus on the delivery and forecast processes, as well as tracking and measuring of performance. When faced with supply constraints, accurate forecasting becomes ever more imperative to our commercial success. The focus of this chapter is to ensure the right methodology and tools are in place to increase profitability, protect volume and share, and ensure operational efficiency while delivery high quality service to retail customers.

LOGIS-TICS & REVENUE MANAGE-MENT

33

4.1 MIX EXCELLENCE

OBJECTIVEA successful Revenue Management strategy includes both identifying opportunities for price improvement, as well as shifting brand and price mix in a favorable and sustainable way. Focusing on mix improvement opportunities, setting targets to address gaps, and tracking improvement on a routine basis are critical components for having a holistic Revenue approach.

CONCEPTS4.1.1 A wholesaler monthly process should be in place to measure A-B brand mix impact to A-B Brands Net Revenue performance. Wholesalers should use the A-B Developed Mix Tool on a monthly basis to review performance and review outputs with A-B Commercial Director.

QUALIFYING AREAS

CHECK POINTS

THE WHOLESALER SHOULD:

1. HAVE A MONTHLY PROCESS TO TRACK AND MEASURE THE IMPACT OF MIX AS A CONTRIBUTION TO NET REVENUE PERFORMANCE VS. PREVIOUS YEAR CALCULATED AT THE BRAND LEVEL.

SATISFACTORY

YES NO

SCORE

MAX.#

5

34

4.2 PRICE PROMOTIONS

OBJECTIVEAs a key component of our Revenue Strategy, price promotions are an important factor used to achieve profitability and volume. As a result, creating a successful promotion plan is essential and requires detailed preparation. Through proactively maintaining a promotion calendar, it is possible to support key promotion windows and communicate our strategic priorities to retailers, well in advance.

QUALIFYING AREAS

CHECK POINTS

THE WHOLESALER SHOULD:

1. MAINTAIN A 3 MONTH OUTLOOK PROMOTION CALENDAR BASED ON WHOLESALER PRICING AND SHARE WITH A-B COMMERCIAL DIRECTOR PRIOR TO START EACH QUARTER

SATISFACTORY

YES NO

SCORE

MAX.#

5

CONCEPTS4.2.1 Wholesaler-developed promotion calendar will be made available for the upcoming 3- month timeframe 45 – 60 days prior to each quarter. Share this calendar with your A-B Commercial Director leading up to each quarter and announce promotions in VIPR BudNet 30 – 45 days prior to start quarter.

35

4.3 SALES & OPERATIONS PLANNING

OBJECTIVESales & Operations Planning (S&OP) is essential for promoting collaboration between thesales and operations area of the business. An effective S&OP process is key to ensuring thatyou are meeting the demands of the customers and successfully plan for holidays,promotions, launches, and other key selling periods.

QUALIFYING AREAS

CHECK POINTS

THE WHOLESALER SHOULD:

1. DEMONSTRATE AN INTERNAL S&OP ROUTINE WITH A DESIGNATED OWNER FOR CONNECTING COMMERCIAL PLANS WITH FORECASTING AND OPERATIONS TEAMS.

2. HAVE REPRESENTATION AT THEIR REGIONAL SALES & OPERATIONS PLANNING ROUTINES.

SATISFACTORY

YES NO

SCORE

MAX.#

10

5

CONCEPTS4.3.1 An effective local S&OP process will not only help create consistency within your local wholesaler, but will lead to better brewery production scheduling and transportation planning to keep you in stock with the product you need. The key to an effective S&OP process is to keep up the routine and have the right people attend the meeting to ensure proper communication.

It is key that the wholesaler designates an S&OP owner to manage the internal processes referenced below. This can be anyone with operational expertise that the wholesaler deems fit to manage the routine.

Depending on a wholesaler’s size, team structure, and market complexity, the Sales & Operations Planning will adjust to support the success of that operation. Some key features to consider:

• Is there a meeting on a consistent schedule to help drive continuous improvement? • Is there a meeting agenda to help ensure all key market activity is reviewed? • Is there an attendance log to help ensure that all key players are active participants in

the S&OP process? • Is there an action log to help generate improvements in forecast accuracy and

stock outs?

The wholesaler should be able to demonstrate proof of a consistent process throughout the year.

4.3.2 Representation at Regional Routine meetings will be self-reported during baseline andfinal scoring. Attendance will be validated through Zoom meeting records for accuracy.

36

4.4 FORECASTING ACCURACY & BIAS

OBJECTIVEAccurate forecasting of product on an on-going basis is critical for both the Wholesaler andAnheuser-Busch. Accurate forecasts at the wholesaler ensures the wholesaler has adequatesupply for high volume packages during key selling periods as well as manageable suppliesof slower-moving products minimizes risks for out of stocks at retail or code date issues inthe warehouse or at retail. Accuracy for the Brewer allows brewing operations to brew andproduce the right brands and packages at the proper times, thus reducing out of stocks inthe warehouse.

QUALIFYING AREAS

CHECK POINTS

THE WHOLESALER SHOULD:

1. HAVE A WEIGHTED FORECAST ACCURACY IN THE TOP QUARTILE (25%) FOR THEIR CLUSTER AND HAVE AN AVERAGE MONTHLY BIAS OF LESS THAN <=6% FOR TOTAL VOLUME.

2. HAVE A WEIGHTED FORECAST ACCURACY IN THE TOP HALF (50%) OF THEIR CLUSTER, OR DISPLAY A YEAR OVER YEAR IMPROVEMENT WITH AN AVERAGE MONTHLY BIAS OF <=8% FOR TOTAL VOLUME.

SATISFACTORY

YES NO

SCORE

MAX.#

10

5

CONCEPTS4.4.1 & 4.4.2 Forecast Bias measures how accurately wholesalers forecast their volume intotal. This is measured by the absolute variance between actual STR total and the 4 weekout forecasted STR totals for that specific time period. Displayed as a formula:

37

Accurate forecasting Best Practices utilize methodologies such as:

• Trend analysis based on previous year sales by SKU • Adjustments made on price promotion schedules • Previous/upcoming Ad and placement activity with chains • S&OP routines to align sales strategy with forecast and operations Forecasting training establishes the knowledge and skills that someone with this responsibility needs to have to forecast effectively. The online forecasting training can be found in BrewU. Once you log in to BrewU, search “sales forecasting”, and a link to this training will show in the search results. Identify which of your key personnel would most benefit from this training, and ensure that a plan is in place to allow these employees to participate.

Forecast Accuracy measures a weighted average of how close total forecasts volume wasto total sales for a given week. This is measured as a weighted average of the absolute variance between actual STR total and the 4 week out forecasted STR totals for all productssold. Displayed as a formula:

An example of how it is calculated is below:

An example of how it is calculated is below:

Forecast Accuracy = Total Sales

I Forecast wk4,i - Salesi I - 1

Bias = Sales

I FCST wk4 - Sales I

8.0% = 5124410 - 1

BIASMONTH

TOTAL

FCST WEEK 4 SALES

5,124

BIAS

410

1,1001,3921,2041,428

1,0001,2501,3001,500

MARCHAPRILMAYJUNE

1001429672

FORECAST ACCURACYWEEK

TOTAL

FCST WEEK 4 SALES

5,312

BIAS

742

1,4001,2501,0601,602

1,0001,2501,3001,500

WEEK 1WEEK 2WEEK 3WEEK 4

4000

240102

86.0% = 5312742 - 1

Where i is an individual item forecast and sales and Total Sales is the total units sold for a given week

4.3 SALES & OPERATIONS PLANNINGCONCEPTS (CONT.)

38

TRADE MAR-KET-INGWILL FOCUS ON:5.1 Target Setting & Cascading 5.2 Planogram Accuracy5.3 Execution Validation5.4 POC of Success Training5.5 Social Media 5.6 eCommerce

INTRODUCTIONThe main objective of Trade Marketing is to increase market share and profitability and reinforce brand health by connecting with our consumers and creating bonds with our customers. The focus of this chapter is to ensure the right methodology and tools are in place to increase sales to the consumer and grow share, supported by technology and with disciplined execution.

Trade Marketing activities are actions that we plan and then execute at the POC to increase sales to the consumer and grow share. The main steps to increase sales through Trade Marketing are through:

• Disciplined daily routines, effective target setting, efficient business process controls, and tracking of Key Performance Indicators (KPIs)

• Execution of all chain account product availability

• Effective shelf management practices

• Supporting promotional activity within store display activation and virtually via social media

• Meeting our consumers where they shop, including growing channels like eCommerce

39

5.1 TARGET SETTING AND CASCADING

OBJECTIVEThe Target planning process results in annual targets for all Execution and Results KPI’s, which are then cascaded throughout the wholesaler sales organization. This ensures that the aligned objectives are directly linked to the daily operations. These annual KPI targets should be broken into monthly targets and cascaded down to the Sales Rep and Team Lead level.

QUALIFYING AREAS

CHECK POINTS

THE WHOLESALER SHOULD:

1. CASCADE ANNUAL/TRIMESTER TARGETS THROUGHOUT THE SALES ORGANIZATION BY THE 5TH BUSINESS DAY OF EACH MONTH TO SALES MANAGER(S), TEAM LEADS, AND SALES REPS, AS INDIVIDUAL MONTHLY TARGETS. RESULT UPDATES SHOULD BE CASCADED WEEKLY.

SATISFACTORY

YES NO

SCORE

MAX.#

5

CONCEPTS5.1.1 Target cascading is a top-down process to quantify targets for every tier with thesales organization related to every wholesaler KPI. Ensure monthly target setting processutilizes models and methodologies to cascade targets appropriately from the Companytargets throughout every level of the sales organization. For 2021 tracking of this standard,we will accept evidence from VIP / Encompass, traditional Mobility Manager, or anotherindependent process the Wholesaler chooses to follow.

40

5.2 PLANOGRAM ACCURACY

OBJECTIVEShelf management is essential to commercial success both in chain and independent accounts.

CONCEPTS5.2.1A A-B Key Account Managers obtain mandates and authorizations at the decision pointlevel. Wholesalers should have distribution of all retailer-mandated draught and packages inall chain account locations within their territory.

The following retailers will be scored for AOE: Kroger, Speedway, CVS, HEB, Walgreens, Food Lion, Safeway Albertsons, Meijer, Publix, Rite Aid, Southeastern Grocers, Stater Bros, Circle K, Wal-Mart, Caseys, Ingles, RaceTrac, Kum & Go, Lowes, Rhodes, JD Streett, Fareway, Raleys, FoodMaxx, Lucky, Maverick, SaveMart, TBCO, Jacksons, and Stinker. The retailer mandated packages will be those new to the authorizations and mandates following a reset; this list will be updated weekly or monthly. Distribution of the packages is expected within 30 days of the individual POC level reset, and will be achieved with an STR within 30 days of the reset occurring.

For AOE scoring, Wholesalers should have all retailer mandated packages at the aforementioned scoring chains by July 1st. Scoring will be calculated utilizing the following formula:

QUALIFYING AREAS

CHECK POINTS

WHOLESALER SHOULD HAVE DISTRIBUTION OF PACKAGES INDICATED IN THE PLANOGRAM OR OTHER MANDATE SOURCE.

1. A. WHOLESALER MUST SCORE >= 95%, MEANING AT LEAST 95% OF ITEMS ON THE PLANOGRAM OR SOURCE OF RECORD ARE ON THE SHELF OR IN DISTRIBUTION. OR

B. WHOLESALER USED DIGITAL IMAGE RECOGNITION (DIR) TOOLS TO CAPTURE 90% OF IN SCOPE PLANOGRAMS FOR ALL CHAIN, B, U, AND INDY ACCOUNTS.

SATISFACTORY

YES NO

SCORE

MAX.#

10

Distribution is defined as STRs at the aforementioned chains. Wholesaler must achieve 95%or greater to score. In the event that a wholesaler does not have any of the focus retailers intheir market, the points will be redistributed.

THE NUMBER OF PACKAGES IN DISTRIBUTION ON JULY 1ST

THE NUMBER OF MANDATED PACKAGES FROM MARCH 1ST - JUNE 30TH

41

5.2.1B We also know that on-going planogram maintenance demands 40-50% ofWholesalers’ Space Teams’ time. In response, we’ve launched a free Digital ImageRecognition (DIR) service to automate the planogram maintenance process. If Wholesalersdo not meet their 95% chain accuracy targets, we are allowing Wholesalers to demonstratestrong use of DIR technology (capturing >= 90% of in scope planograms across chain, B, U,and Indy accounts) instead. Please note that capturing implies taking pictures of sets,submitting through the tool, and flowing through to SPP/PMT.

Tracking will take place in A-B’s DIR tool and be measured as of October 31st, 2021. TheWholesaler is not mandated to use A-B’s free tool, if they pay for an alternative service.Wholesalers using alternatives will have to present evidence of sufficient usage to theirCommercial Director for credit.

5.2 PLANOGRAM ACCURACYCONCEPTS (CONT.)

42

5.3 EXECUTION VALIDATION

OBJECTIVEAchievement in Trade Missions demonstrates excellent execution of A-B’s commercial priorities. Surveys must be utilized to provide information for the Sales Team to evaluate how Trade Missions are performing and be able to act accordingly.

CONCEPTS5.3.1 Trade Mission Surveys should be taken in all B / U accounts, as well as high andmedium industry accounts (weekly in Large Format accounts & monthly in all other eligibleaccounts). The objective of these targeted surveys is to execute all priorities in order toachieve the desired Look of the Leader across all our strategic priorities. All surveys must betaken with A-B Approved Survey platform to receive AOE credit.All standard scoring will be based on the most recent A-B survey reporting.If the wholesaler has no Trade Missions, Wholesaler’s Activate surveys can be used instead.The same accounts requirements and cadence apply.

QUALIFYING AREAS

CHECK POINTS

THE WHOLESALER SHOULD:

1. COMPLETE TRADE MISSION SURVEYS IN ALL B / U ACCOUNTS, AS WELL ASHIGH AND MEDIUM INDUSTRY ACCOUNTS: A.) SURVEYING >=95% OF REQUIRED SURVEYS

– 10 POINTS B.) SURVEYING >=90% OF REQUIRED SURVEYS

- 5 POINTS C.) SURVEYING >=85% OF REQUIRED SURVEYS

– 3 POINTS

SATISFACTORY

YES NO

SCORE

MAX.#

10

43

5.4 POC OF SUCCESS TRAINING

OBJECTIVEBy properly understanding all zones of activation and roles they play in shopper communication, (field) Sales teams will be able to activate all POCM so they have maximum effect in the Retail environment. The objective of the course is to provide an in-depth immersion into the principles of the POC of Success model and its impact on the (effective) Shopper Journey.

CONCEPTS5.4.1 POC of Success is a trade & shopper marketing model which introduces the most up-to-date principles of market activation and shopper understanding. It is crafted using the most sophisticated neuro-science technology, thus providing thorough understanding of the in-store path to purchase, shopper behavior and purchase intent.

This course will be available on BrewU and must be completed by 90% of sales team and sign shop personnel by October 31st for credit.

QUALIFYING AREAS

CHECK POINTS

THE WHOLESALER SHOULD:

1. ENSURE GREATER THAN OR EQUAL TO 90% OF THE SALES TEAM AND SIGN SHOPS HAVE COMPLETED POC OF SUCCESS TRAINING.

SATISFACTORY

YES NO

SCORE

MAX.#

5

44

5.5 SOCIAL MEDIA

OBJECTIVESocial channels have expanded the scope of On Trade, so it’s important to think strategically about how social media can support our execution tactics. Social will become even more integral to trade strategy with the rise of eCommerce alternatives.

CONCEPTS5.5.1 To receive AOE credit, wholesalers must present and/or provide their social media plan to their Commercial Director during the final scoring period. Wholesalers using the Social Lab’s full service can work with their account coordinators to prepare this plan.

A template for guidance will be available on AB Marketing, but below are some examples. We are looking for reference to Ads, Channels used, Engagements and Impressions made. We are also looking for references to how the Wholesaler has used Social to drive A-B’s 2021 Commercial Priorities.

QUALIFYING AREAS

CHECK POINTS

THE WHOLESALER SHOULD:

1. SUBMIT AN ANNUAL SOCIAL MEDIA EXECUTION PLAN INCLUDING REVIEW OF CONTENT, CHANNELS, AD-BUYS, AND THEIR STRATEGY FOR ADS RELATING TO ECOMMERCE, SPECIFICALLY DRIVING CONSUMERS TOWARDS OPPORTUNITIES TO BUY ONLINE.

SATISFACTORY

YES NO

SCORE

MAX.#

5

45

5.5 SOCIAL MEDIACONCEPTS (CONT.)

46

5.5 SOCIAL MEDIACONCEPTS (CONT.)

47

CONCEPTS5.6.1 The Designated eCommerce Owner will be the wholesaler’s point person for learning more about eCommerce, how it impacts the beer business and implications for their distributorship.

Who should the Designated eCommerce Owner be?

Depending on the wholesaler, the right individual may vary. For wholesalers with a small eCommerce presence, it may make sense to combine a social media / eCommerce focus. For wholesalers with a larger eCommerce presence, someone with account, supply chain and business reporting capabilities may make the most sense.

The Designated eCommerce Owner will:

• Be invited to the annual eCommerce Learning Summit (to be held via Zoom)

• Be invited to a monthly eCommerce call including: Performance updates, Guest Speakers (ie: goPuff, Instacart, Amazon etc.,), Best Practices, Pilot Program Results, Q&A and more

• Be subscribed to AB eCommerce educational communications: Weekly AB eCommerce News Update, General eCommerce Industry newsletter

• Have access to AB eCommerce team members for questions

• Receive specific relevant communications in their distributorship:

• Wholesalers who deliver to eCommerce pureplay accounts (ie: Amazon or GoPuff ) • Wholealers with Instacard retailers in their territory • Information specific to local eCommerce retailers • Learn from other wholesalers’ experience with eCommerce including roles/structure,

pilot programs, etc.

5.6 ECOMMERCE

OBJECTIVEWith the rapid growth of eCommerce, more retailers are looking for support and feedback on selling beer online. Our wholesalers need to be ready to handle the demands of this growing channel.

QUALIFYING AREAS

CHECK POINTS

THE WHOLESALER SHOULD:

SATISFACTORY

YES NO

SCORE

MAX.#

51. APPOINT A DESIGNATED ECOMMERCE OWNER.

48

WJBP

RESULTS KPIs

EXECUTION KPIs

TotalABI

Off PremiseAbove Core AVD

Innovation Distribution

OR

OR

OR

Net Revenue Trend(C4 market pilot)

Off PremiseRVP Choice Commercial

Priority AVD

Core+

High End 2.0

Seltzers

Market Partition #4(Mainstream)

Market Partition #5(Beyond Beer minus Seltzers)

On Premise Above Core AVD

Total Activate Execution

Targeted Distribution

150

50

100

80

100

70

50

50

100

50

550

250