ALCOHOLIC BEVERAGE MONTHLY DASHBOARDJANUARY 2019

STRATEGIC & CAPITAL ADVISORY FOR CONSUMER COMPANIES

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Cody Peak Advisors is an independentstrategic and capital advisory firm thatfocuses exclusively on the consumersector, with a strong focus on the food& beverage sector. Our seniorprofessionals have completed over 80transactions with an aggregated valuein excess of $11 billion.

Acquired byAcquired byAcquired by

Acquired byAcquired byAcquired byAcquired by

Acquired byAcquired byAcquired by Acquired by

Acquired by

Robert J. ParzickManaging Director310.616.0782bparzick@codypeakadv.com

Jacques A. PerroneManaging Director310.616.0781jperrone@codypeakadv.com

RELEVANT TRANSACTION EXPERTISE

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Andrew ChungVice President310.616.0783achung@codypeakadv.com

Anna DuongAssociate310.616.0784aduong@codypeakadv.com

$6.25

Commodity Current Price 1 Month 1 Year 2 Year 52 Week Range

Aluminum, LME, $ per metric ton $1,880.00 $1,868.50 $2,229.00 $1,807.00

Corn, No. 2 yellow. Cent. Ill. bu-BP,U $3.51 $3.46 $3.42 $3.43

Rice, Long Grain Milled, No. 2 AR-U,W $24.00 $24.50 $25.00 $21.00

Raw sugar FOB, $/metric ton-K $255.70 $250.40 $266.00 $294.40

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

$5.92 $6.23 $5.37 $4.63

$1,868.50 $2,265.50

$3.66

$245.90 $266.00

TOP PERFORMING ALCOHOLIC BEVERAGE STOCKS BY SUBSECTOR

32.0% -4.4% 6.0%

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

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PUBLIC COMPANY STOCK PERFORMANCE – TWELVE MONTHS ENDING JANUARY 31, 2019

EXCHANGE LISTED COMMODITY TRENDS – MONTHLY AVERAGE

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

-1.4%

-11.8%

-4.2%

23.3%

$24.00 $25.75

$3.08

$4.55

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Jan

-18

Feb

-18

Mar

-18

Ap

r-1

8

May

-18

Jun

-18

Jul-

18

Au

g-1

8

Sep

-18

Oct

-18

No

v-1

8

De

c-1

8

Jan

-19

S&P 500 Craft Brewers

Large Brewers Wineries & Distillers

14.7%

-1.5%-5.5%

-10.5% -10.8% -11.7%

-19.4%

-38.1%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

EV / REVENUE

RELATIVE SUBSECTOR VALUATION MULTIPLES

EV / EBITDA

RELATIVE SUBSECTOR VALUATION MULTIPLES

Source: Public company documentsNA – Not available NMF – Not meaningful figure

EBITDA – Earnings before interest, taxes, depreciation & amortizationEnterprise Value – Market value of equity + interest-bearing debt - cash

Page 4

RELATIVE TRAILING 12-MONTH VALUATION MULTIPLES FOR ALCOHOLIC BEVERAGE COMPANIES

TRAILING 12-MONTH VALUATION MULTIPLES FOR PUBLIC ALCOHOLIC BEVERAGE COMPANIES

5.8x

1.9x1.5x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

9.0x

10.0x

Wineries & Distillers Large Brewers Craft Brewers

19.3x

15.6x

11.2x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

18.0x

20.0x

Wineries & Distillers Craft Brewers Large Brewers

Alcoholic Beverage Manufacturers

Market Data (Given in $Millions)

Price 1 Yr Est.

Price Performance Equity Firm Growth EV / LTM EBITDA

Company ($ mm) Ticker 01/31/19 LTM Value Value Rate Sales EBITDA Margin

Craft Brewers

Big Rock Brewery Inc. TSX:BR $4.53 -14.4% $32 $37 NA 1.0x 12.8x 7.7%

The Boston Beer Company, Inc. NYSE:SAM 249.16 31.2% 2,832 2,763 15.7% 2.8x 17.8x 15.9%

Brick Brewing Co. Limited TSX:BRB 2.50 -21.4% 89 97 -1.6% 2.6x 17.6x 14.9%

BJ's Restaurants, Inc. NASDAQGS:BJRI 49.83 32.0% 1,061 1,130 8.0% 1.0x 8.8x 11.7%

Craft Brew Alliance, Inc. NASDAQGS:BREW 16.46 -14.9% 319 318 0.6% 1.5x 15.6x 9.8%

Average 2.5% 5.7% 1.8x 14.5x 12.0%

Median -14.4% 4.3% 1.5x 15.6x 11.7%

Large Brewers

Anheuser-Busch InBev SA/NV ENXTBR:ABI $76.30 -32.7% $149,299 $264,567 -3.7% 4.8x 12.1x 39.8%

Asahi Group Holdings, Ltd. TSE:2502 41.76 -16.9% 19,126 28,381 5.1% 1.5x 10.0x 15.1%

Heineken N.V. ENXTAM:HEIA 89.78 -20.3% 51,245 67,663 3.7% 2.6x 12.4x 21.2%

Kirin Holdings Company, Limited TSE:2503 23.80 -4.4% 20,892 25,992 6.7% 1.6x 11.3x 14.3%

Molson Coors Brewing Company NYSE:TAP 66.61 -20.7% 14,385 24,433 -0.5% 2.3x 10.7x 21.3%

Sapporo Holdings Limited TSE:2501 22.79 -24.1% 1,775 4,130 -1.9% 0.9x 11.1x 8.0%

Average -19.9% 1.6% 2.3x 11.3x 19.9%

Median -20.5% 1.6% 1.9x 11.2x 18.1%

Wineries & Distillers

Brown-Forman Corporation NYSE:BF.B $47.25 -14.8% $22,499 $24,852 3.3% 7.6x 22.5x 33.6%

Constellation Brands, Inc. NYSE:STZ 173.66 -20.9% 32,898 46,601 6.4% 5.8x 15.7x 36.7%

Diageo plc LSE:DGE 38.12 6.0% 92,004 108,222 2.3% 6.8x 19.3x 35.0%

Pernod Ricard SA ENXTPA:RI 166.09 4.1% 43,873 52,350 -1.2% 5.0x 17.2x 28.8%

Rémy Cointreau SA ENXTPA:RCO 116.27 -11.8% 5,788 6,169 -2.6% 4.8x 19.9x 24.0%

Average -7.5% 1.6% 6.0x 18.9x 31.6%

Median -11.8% 2.3% 5.8x 19.3x 33.6%

HIGHLIGHTED ALCOHOLIC BEVERAGE M&A TRANSACTIONS

Target: Schooner BrewingBuyer: San Juan Seltzer

Transaction Value: NATV / Rev: NATV / EBITDA: NA

▪ Schooner Brewing is located in Seattle and offers a variety of beersfrom IPAs to Lagers

▪ San Juan Seltzer produces spiked sparkling water▪ The two companies have worked together in a licensing

relationship since 2018▪ This merger will enable the two brands to create and expand new

beer offerings and expand distribution in the Pacific Northwest

Target: Pilot House DistillingBuyer: Buoy Beer

Transaction Value: NATV / Rev: NATV / EBITDA: NA

▪ Pilot House Distilling is a small craft distillery located in Astoria, OR▪ Due to increasing pressures in the highly competitive craft beer

market, Buoy Beer has strategically sought growth in adjacentmarkets. The acquisition aligns with Buoy’s strategic plan andfurther strengthens its regional presence in Oregon

▪ Buoy Beer will work with Pilot house to create new recipes andlaunch products, such as, cocktails in a can

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 – YTD 2019*U.S. & Canada targets

Page 5

Chart Source: Capital IQ & Cody Peak research*U.S. & Canada targets

Note : Median from 2004 – YTD 2019*U.S. & Canada targets

MERGERS & ACQUISITIONS OVERVIEW

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

2126 26

10 13

26 2922

2

54 4

4

6 5

1114

1314

14

2

44 7

4

74

6

10

16

22

24

3

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD 2019

Wineries Distilleries Breweries

2.8x2.7x

2.2x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

Breweries Distilleries Wineries

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 gathersits data from sources it considers reliable; however, it does not guarantee the accuracy of completeness of the information provided within this publication. The opinionspresented herein reflect the current judgment of the authors and are subject to change. Cody Peak Advisors, LLC makes no warranties, expressed or implied, regarding theaccuracy 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 inthe securities of the companies discussed herein.

February 2019Copyright© 2019 Cody Peak Advisors, LLC., all rights reserved.

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SELECT ALCOHOLIC BEVERAGE TRANSACTIONS

Sources: Capital IQ / Cody Peak M&A database

Closed

Date Target/Issuer

Total

Transaction

Value ($mm)

Transaction

Type Buyers Subsector Target Business Description

01/31/2019 Most of Assets of Mahana

Estates, Ltd.

Undisclosed M&A Booster Financial Services

Limited

Winery Most of Assets of Mahana Estates, Ltd. comprises a winery and a bottling plant,

a restaurant, and an events venue in New Zealand. The asset is located in New

Zealand.

01/25/2019 Persha Privatna Brovarnya,

TOV

Undisclosed M&A The European Bank for

Reconstruction and

Development

Brewery Persha Privatna Brovarnya, TOV produces beer. The company is based in Lviv,

Ukraine.

01/24/2019 Renwood Winery Facility

in Amador County

Undisclosed M&A Rombauer Vineyards, Inc. Winery Renwood Winery Facility in Amador County comprises wine producing facility.

The asset is located in the United States.

01/22/2019 Pilot House Distilling LLC Undisclosed M&A Buoy Beer Company Distillery Pilot House Distilling LLC manufactures wines and spirits, such as rum, vodka,

wheat whisky, and more. The company was incorporated in 2012 and is based

in Astoria, Oregon.

01/21/2019 Flat 12 Bierwerks, LLC Undisclosed M&A Books & Brews LLC Brewery Flat 12 Bierwerks, LLC produces and sells beer. The company was founded in

2009 and is based in Indianapolis, Indiana with an additional location in

Jeffersonville, Indiana.

01/18/2019 Schooner Brewing Undisclosed M&A San Juan Seltzer, Inc. Brewery Schooner Brewing brews, produces, and markets beer. The company is

headquartered in Seattle, Washington.

01/18/2019 Les Rhums de Ced' Undisclosed M&A Ets Dugas SAS Distillery Les Rhums de Ced' produces rum. The company was incorporated in 2016 and

is based in Saint-Hilaire-de-Chaléons, France.

01/16/2019 BRAND Napa Valley LLC Undisclosed M&A Jim Bean & Christine

O'Sullivan

Winery BRAND Napa Valley LLC produces wine. The company is based in Saint Helena,

California.

01/10/2019 Bull Durham Beer

Company

Undisclosed M&A R&D Brewing Co. Brewery Bull Durham Beer Company produces beer. The company was incorporated in

2014 and is based in Durham, North Carolina.

01/10/2019 SCEA Du Domaine De La

Deveze

Undisclosed M&A Undisclosed Winery SCEA Du Domaine De La Deveze engages in wine production. The company was

founded in 1992 and is headquartered in Clermont-l'Hérault, France.

01/10/2019 Pookchurch Vineyard LLP Undisclosed M&A Bolney Wine Estate

Limited

Winery Pookchurch Vineyard LLP operates a commercial vineyard. The company was

incorporated in 2015 and is headquartered in Worthing, United Kingdom.

01/08/2019 Robert Giraud SAS Undisclosed M&A Les Grands Chais De

France SA

Winery Robert Giraud SAS produces and sells wine. The company was incorporated in

1961 and is based in Saint-André-de-Cubzac, France.

01/02/2019 19 Spirits Brand Undisclosed M&A Sazerac Company, Inc. Distillery 19 Spirits Brand comprises spirit manufacturing brands. The asset is located in

the United States.