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TRANSCRIPT
LATIN AMERICA BEER MARKET
Pinpointing major challenges and opportunities in
Latin America and identifying key areas of growth
May 2012
2
Out of 10 litres of beverages consumed in
LatAmhellip
5 lts are non-commercial
beverages
5 lts are commercial
beverages
3
Out of 10 lts of commercial beverages
consumed in LatAmhellip
Soft Drinks lead the
industry with more than 4 lts
Alcoholic Bevs represent 16
lts with Beer accounting for
14 lts
Dairy Hot Drinks etc 44 lts
Dairy Drinks Hot Drinks amp HODBulk water
4
Out of 10 beers consumed in LatAmhellip
4 are purchased away from
home and 8 are consumed in
refillable formats
4 are part of Ambevrsquos portfolio and
2 are sold by Heineken amp
SABMiller together
8 are Mainstream brands
5
Out of 10 beers consumed in LatAmhellip
315 million hectolitres
70 billion Euros
16 of global consumption
6
LatAm is diverse
7
Brazil and Mexico gather more than
50 of LatAm populationhellip
LatAm is diverse
Population 2011 by country
Mexico 21
Brazil 43
Others 36 hellip and almost 65 of
beer consumption
19 36 36 45 50 51 52 54 75 126
281 302 364 374
471
710
1657
2282
-600
-100
400
900
1400
1900
0
50
100
150
200
250
300
350
400
450
500
GDP 2011 (PPP) Beer per cap Total Alc per cap
8
LatAm is diverse
Beer vsTotal Alcohol
9
3072
4240
5426
6919
12615
5023
16019
12520
4875
8372
16078
9958
11390
13480
10038
17382
14514
11892
-6000
-1000
4000
9000
14000
19000
0
100
200
300
400
500
600 GDP per capita (PPP) Beer per cap Total Alc per cap
LatAm is diverse
Beer vsTotal Alcohol
LatAm GDP per capita
(PPP)
11770
10
LatAm is diverse
Beer vsTotal Alcohol
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
11
LatAm is diverse
Beer vsTotal Alcohol
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
Consumption above
average
12
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
Consumption below
average
lowest levels of
alcohol
consumption
LatAm is diverse
Beer vsTotal Alcohol
13
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
Consumption gap due
to local alc bevs
Informal alc bevs
VINO
(JESSICA)
FOTO FOTO
FOT
O
FOTO
Local alcoholic drinks and a
number of local factors boost
alcohol consumption
LatAm is diverse
Beer vsTotal Alcohol
14
1
2
3
4
5
Average price USD 31
25 Euros
Partially driven by the
appreciation of the
Braziliean Real
LatAm is diverse
Price per litre
23
38
15
Common factors among LatAm Countries
16
Common factors among LatAm
Markets are growing above world average
5yrs CAGR 2006-2011 ()
26
42
64
25 37
85
37
40
Global Average
LatAm Average
MEXICO CENTRAL
AMERICA
PERU
CHILE
BRAZIL
ARGENTINA
200
220
240
260
280
300
320
340
360
CAGR lsquo99-rsquo03
1
CAGR rsquo03-rsquo11
5
CAGR rsquo11-rsquo15
4
Venezuela
market falls
15
Mexico amp
Brazil steady
growth
MampA activities
Mexico amp Brazil
drive the
category growth
Beer
consumption
fueled by Brazil
Common factors among LatAm
Markets are expected to continue growing
18
Common factors among LatAm
Lager beer is the norm 99 of the market
Skol is the
leading beer
in Brazil and
worldrsquos fourth
best selling
beer brand
Brahma is
consumed in
more than 15
countries In
2011 many
product
innovations
were driven by
this brand
Corona is the
leading beer
in Mexico and
worldrsquos fifth best
selling beer
brand
90 sold in
Mexico and the
US
Antarctica
Pilsen beer is
the 3rd best
selling beer
in Brazil
Itrsquos the largest
best known
beer in
Venezuela
Polar produces
beers and raw
malt
19
Common factors among LatAm
Competing against Soft Drinks
40
24
5 yrs CAGR ()
Beer
CSDs
20
Ambev ndash 30
AB-InBev ndash 50 (Modelo+CND+Regional)
SAB Miller
12
22
2006 2011
54
SAB Miller
11
Common factors among LatAm
Growing Investments and Consolidation
Heineken (+CCU
+Florida)
16
21
2012 Consolidation
Polar Regional
Cerv Centroamericana
Cerv Dominicana
Warsteiner
Schincariol
Paraense
Petropolis
2010
Ajegroup
2010 beer
presentation hellip
22
2012 Consolidation
Polar Cerv Centroamericana
Paraense
Petropolis
2010
Ajegroup
Is there room for
more consolidation
23
2016 LatAm
Incremental Volume 2006 - 2011 - 2016
Beer Oth Alc CSDs
CAGR 06-16
4
CAGR 06-16
2
CAGR 06-16
3
+ 116 Million Hlts
+ 13 Million Hlts
+ 168 Million Hlts
24
2012 Consolidation
Danone Group
Dr Pepper
Snapple Group
Postobon
2010
Ajegroup
Soft drinks companies
Jumex Is there room for
more consolidation
25
USA China Brazil
Spain Germany Italy
Sources of future VOLUME growth
Population +18yrs By 2020 the LatAm young adults
population will reach 207 millions
Annual growth of legal drinking age
population in LatAm +17
26
Sources of future VOLUME growth
Brazil - Regional Consumption 4
67 LPC
rsquo11-rsquo15
CAGR
5
46 LPC
rsquo11-rsquo15
CAGR
23
4
72 LPC
rsquo11-rsquo15
CAGR
54
3
63 LPC
rsquo11-rsquo15
CAGR
12
6
34 LPC
rsquo11-rsquo15
CAGR
4
4
61 LPC
rsquo11-rsquo15
CAGR
7
27
Sources of future VOLUME growth
Brazilrsquos Northeast Region
30 of the population
23 of beer consumption
Regional consumption 46 LPC
Brewery locations
Ambev Heineken Schincariol
+ 6 millions Hl by 2015F
Regional segmentation approach
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
2
Out of 10 litres of beverages consumed in
LatAmhellip
5 lts are non-commercial
beverages
5 lts are commercial
beverages
3
Out of 10 lts of commercial beverages
consumed in LatAmhellip
Soft Drinks lead the
industry with more than 4 lts
Alcoholic Bevs represent 16
lts with Beer accounting for
14 lts
Dairy Hot Drinks etc 44 lts
Dairy Drinks Hot Drinks amp HODBulk water
4
Out of 10 beers consumed in LatAmhellip
4 are purchased away from
home and 8 are consumed in
refillable formats
4 are part of Ambevrsquos portfolio and
2 are sold by Heineken amp
SABMiller together
8 are Mainstream brands
5
Out of 10 beers consumed in LatAmhellip
315 million hectolitres
70 billion Euros
16 of global consumption
6
LatAm is diverse
7
Brazil and Mexico gather more than
50 of LatAm populationhellip
LatAm is diverse
Population 2011 by country
Mexico 21
Brazil 43
Others 36 hellip and almost 65 of
beer consumption
19 36 36 45 50 51 52 54 75 126
281 302 364 374
471
710
1657
2282
-600
-100
400
900
1400
1900
0
50
100
150
200
250
300
350
400
450
500
GDP 2011 (PPP) Beer per cap Total Alc per cap
8
LatAm is diverse
Beer vsTotal Alcohol
9
3072
4240
5426
6919
12615
5023
16019
12520
4875
8372
16078
9958
11390
13480
10038
17382
14514
11892
-6000
-1000
4000
9000
14000
19000
0
100
200
300
400
500
600 GDP per capita (PPP) Beer per cap Total Alc per cap
LatAm is diverse
Beer vsTotal Alcohol
LatAm GDP per capita
(PPP)
11770
10
LatAm is diverse
Beer vsTotal Alcohol
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
11
LatAm is diverse
Beer vsTotal Alcohol
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
Consumption above
average
12
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
Consumption below
average
lowest levels of
alcohol
consumption
LatAm is diverse
Beer vsTotal Alcohol
13
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
Consumption gap due
to local alc bevs
Informal alc bevs
VINO
(JESSICA)
FOTO FOTO
FOT
O
FOTO
Local alcoholic drinks and a
number of local factors boost
alcohol consumption
LatAm is diverse
Beer vsTotal Alcohol
14
1
2
3
4
5
Average price USD 31
25 Euros
Partially driven by the
appreciation of the
Braziliean Real
LatAm is diverse
Price per litre
23
38
15
Common factors among LatAm Countries
16
Common factors among LatAm
Markets are growing above world average
5yrs CAGR 2006-2011 ()
26
42
64
25 37
85
37
40
Global Average
LatAm Average
MEXICO CENTRAL
AMERICA
PERU
CHILE
BRAZIL
ARGENTINA
200
220
240
260
280
300
320
340
360
CAGR lsquo99-rsquo03
1
CAGR rsquo03-rsquo11
5
CAGR rsquo11-rsquo15
4
Venezuela
market falls
15
Mexico amp
Brazil steady
growth
MampA activities
Mexico amp Brazil
drive the
category growth
Beer
consumption
fueled by Brazil
Common factors among LatAm
Markets are expected to continue growing
18
Common factors among LatAm
Lager beer is the norm 99 of the market
Skol is the
leading beer
in Brazil and
worldrsquos fourth
best selling
beer brand
Brahma is
consumed in
more than 15
countries In
2011 many
product
innovations
were driven by
this brand
Corona is the
leading beer
in Mexico and
worldrsquos fifth best
selling beer
brand
90 sold in
Mexico and the
US
Antarctica
Pilsen beer is
the 3rd best
selling beer
in Brazil
Itrsquos the largest
best known
beer in
Venezuela
Polar produces
beers and raw
malt
19
Common factors among LatAm
Competing against Soft Drinks
40
24
5 yrs CAGR ()
Beer
CSDs
20
Ambev ndash 30
AB-InBev ndash 50 (Modelo+CND+Regional)
SAB Miller
12
22
2006 2011
54
SAB Miller
11
Common factors among LatAm
Growing Investments and Consolidation
Heineken (+CCU
+Florida)
16
21
2012 Consolidation
Polar Regional
Cerv Centroamericana
Cerv Dominicana
Warsteiner
Schincariol
Paraense
Petropolis
2010
Ajegroup
2010 beer
presentation hellip
22
2012 Consolidation
Polar Cerv Centroamericana
Paraense
Petropolis
2010
Ajegroup
Is there room for
more consolidation
23
2016 LatAm
Incremental Volume 2006 - 2011 - 2016
Beer Oth Alc CSDs
CAGR 06-16
4
CAGR 06-16
2
CAGR 06-16
3
+ 116 Million Hlts
+ 13 Million Hlts
+ 168 Million Hlts
24
2012 Consolidation
Danone Group
Dr Pepper
Snapple Group
Postobon
2010
Ajegroup
Soft drinks companies
Jumex Is there room for
more consolidation
25
USA China Brazil
Spain Germany Italy
Sources of future VOLUME growth
Population +18yrs By 2020 the LatAm young adults
population will reach 207 millions
Annual growth of legal drinking age
population in LatAm +17
26
Sources of future VOLUME growth
Brazil - Regional Consumption 4
67 LPC
rsquo11-rsquo15
CAGR
5
46 LPC
rsquo11-rsquo15
CAGR
23
4
72 LPC
rsquo11-rsquo15
CAGR
54
3
63 LPC
rsquo11-rsquo15
CAGR
12
6
34 LPC
rsquo11-rsquo15
CAGR
4
4
61 LPC
rsquo11-rsquo15
CAGR
7
27
Sources of future VOLUME growth
Brazilrsquos Northeast Region
30 of the population
23 of beer consumption
Regional consumption 46 LPC
Brewery locations
Ambev Heineken Schincariol
+ 6 millions Hl by 2015F
Regional segmentation approach
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
3
Out of 10 lts of commercial beverages
consumed in LatAmhellip
Soft Drinks lead the
industry with more than 4 lts
Alcoholic Bevs represent 16
lts with Beer accounting for
14 lts
Dairy Hot Drinks etc 44 lts
Dairy Drinks Hot Drinks amp HODBulk water
4
Out of 10 beers consumed in LatAmhellip
4 are purchased away from
home and 8 are consumed in
refillable formats
4 are part of Ambevrsquos portfolio and
2 are sold by Heineken amp
SABMiller together
8 are Mainstream brands
5
Out of 10 beers consumed in LatAmhellip
315 million hectolitres
70 billion Euros
16 of global consumption
6
LatAm is diverse
7
Brazil and Mexico gather more than
50 of LatAm populationhellip
LatAm is diverse
Population 2011 by country
Mexico 21
Brazil 43
Others 36 hellip and almost 65 of
beer consumption
19 36 36 45 50 51 52 54 75 126
281 302 364 374
471
710
1657
2282
-600
-100
400
900
1400
1900
0
50
100
150
200
250
300
350
400
450
500
GDP 2011 (PPP) Beer per cap Total Alc per cap
8
LatAm is diverse
Beer vsTotal Alcohol
9
3072
4240
5426
6919
12615
5023
16019
12520
4875
8372
16078
9958
11390
13480
10038
17382
14514
11892
-6000
-1000
4000
9000
14000
19000
0
100
200
300
400
500
600 GDP per capita (PPP) Beer per cap Total Alc per cap
LatAm is diverse
Beer vsTotal Alcohol
LatAm GDP per capita
(PPP)
11770
10
LatAm is diverse
Beer vsTotal Alcohol
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
11
LatAm is diverse
Beer vsTotal Alcohol
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
Consumption above
average
12
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
Consumption below
average
lowest levels of
alcohol
consumption
LatAm is diverse
Beer vsTotal Alcohol
13
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
Consumption gap due
to local alc bevs
Informal alc bevs
VINO
(JESSICA)
FOTO FOTO
FOT
O
FOTO
Local alcoholic drinks and a
number of local factors boost
alcohol consumption
LatAm is diverse
Beer vsTotal Alcohol
14
1
2
3
4
5
Average price USD 31
25 Euros
Partially driven by the
appreciation of the
Braziliean Real
LatAm is diverse
Price per litre
23
38
15
Common factors among LatAm Countries
16
Common factors among LatAm
Markets are growing above world average
5yrs CAGR 2006-2011 ()
26
42
64
25 37
85
37
40
Global Average
LatAm Average
MEXICO CENTRAL
AMERICA
PERU
CHILE
BRAZIL
ARGENTINA
200
220
240
260
280
300
320
340
360
CAGR lsquo99-rsquo03
1
CAGR rsquo03-rsquo11
5
CAGR rsquo11-rsquo15
4
Venezuela
market falls
15
Mexico amp
Brazil steady
growth
MampA activities
Mexico amp Brazil
drive the
category growth
Beer
consumption
fueled by Brazil
Common factors among LatAm
Markets are expected to continue growing
18
Common factors among LatAm
Lager beer is the norm 99 of the market
Skol is the
leading beer
in Brazil and
worldrsquos fourth
best selling
beer brand
Brahma is
consumed in
more than 15
countries In
2011 many
product
innovations
were driven by
this brand
Corona is the
leading beer
in Mexico and
worldrsquos fifth best
selling beer
brand
90 sold in
Mexico and the
US
Antarctica
Pilsen beer is
the 3rd best
selling beer
in Brazil
Itrsquos the largest
best known
beer in
Venezuela
Polar produces
beers and raw
malt
19
Common factors among LatAm
Competing against Soft Drinks
40
24
5 yrs CAGR ()
Beer
CSDs
20
Ambev ndash 30
AB-InBev ndash 50 (Modelo+CND+Regional)
SAB Miller
12
22
2006 2011
54
SAB Miller
11
Common factors among LatAm
Growing Investments and Consolidation
Heineken (+CCU
+Florida)
16
21
2012 Consolidation
Polar Regional
Cerv Centroamericana
Cerv Dominicana
Warsteiner
Schincariol
Paraense
Petropolis
2010
Ajegroup
2010 beer
presentation hellip
22
2012 Consolidation
Polar Cerv Centroamericana
Paraense
Petropolis
2010
Ajegroup
Is there room for
more consolidation
23
2016 LatAm
Incremental Volume 2006 - 2011 - 2016
Beer Oth Alc CSDs
CAGR 06-16
4
CAGR 06-16
2
CAGR 06-16
3
+ 116 Million Hlts
+ 13 Million Hlts
+ 168 Million Hlts
24
2012 Consolidation
Danone Group
Dr Pepper
Snapple Group
Postobon
2010
Ajegroup
Soft drinks companies
Jumex Is there room for
more consolidation
25
USA China Brazil
Spain Germany Italy
Sources of future VOLUME growth
Population +18yrs By 2020 the LatAm young adults
population will reach 207 millions
Annual growth of legal drinking age
population in LatAm +17
26
Sources of future VOLUME growth
Brazil - Regional Consumption 4
67 LPC
rsquo11-rsquo15
CAGR
5
46 LPC
rsquo11-rsquo15
CAGR
23
4
72 LPC
rsquo11-rsquo15
CAGR
54
3
63 LPC
rsquo11-rsquo15
CAGR
12
6
34 LPC
rsquo11-rsquo15
CAGR
4
4
61 LPC
rsquo11-rsquo15
CAGR
7
27
Sources of future VOLUME growth
Brazilrsquos Northeast Region
30 of the population
23 of beer consumption
Regional consumption 46 LPC
Brewery locations
Ambev Heineken Schincariol
+ 6 millions Hl by 2015F
Regional segmentation approach
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
4
Out of 10 beers consumed in LatAmhellip
4 are purchased away from
home and 8 are consumed in
refillable formats
4 are part of Ambevrsquos portfolio and
2 are sold by Heineken amp
SABMiller together
8 are Mainstream brands
5
Out of 10 beers consumed in LatAmhellip
315 million hectolitres
70 billion Euros
16 of global consumption
6
LatAm is diverse
7
Brazil and Mexico gather more than
50 of LatAm populationhellip
LatAm is diverse
Population 2011 by country
Mexico 21
Brazil 43
Others 36 hellip and almost 65 of
beer consumption
19 36 36 45 50 51 52 54 75 126
281 302 364 374
471
710
1657
2282
-600
-100
400
900
1400
1900
0
50
100
150
200
250
300
350
400
450
500
GDP 2011 (PPP) Beer per cap Total Alc per cap
8
LatAm is diverse
Beer vsTotal Alcohol
9
3072
4240
5426
6919
12615
5023
16019
12520
4875
8372
16078
9958
11390
13480
10038
17382
14514
11892
-6000
-1000
4000
9000
14000
19000
0
100
200
300
400
500
600 GDP per capita (PPP) Beer per cap Total Alc per cap
LatAm is diverse
Beer vsTotal Alcohol
LatAm GDP per capita
(PPP)
11770
10
LatAm is diverse
Beer vsTotal Alcohol
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
11
LatAm is diverse
Beer vsTotal Alcohol
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
Consumption above
average
12
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
Consumption below
average
lowest levels of
alcohol
consumption
LatAm is diverse
Beer vsTotal Alcohol
13
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
Consumption gap due
to local alc bevs
Informal alc bevs
VINO
(JESSICA)
FOTO FOTO
FOT
O
FOTO
Local alcoholic drinks and a
number of local factors boost
alcohol consumption
LatAm is diverse
Beer vsTotal Alcohol
14
1
2
3
4
5
Average price USD 31
25 Euros
Partially driven by the
appreciation of the
Braziliean Real
LatAm is diverse
Price per litre
23
38
15
Common factors among LatAm Countries
16
Common factors among LatAm
Markets are growing above world average
5yrs CAGR 2006-2011 ()
26
42
64
25 37
85
37
40
Global Average
LatAm Average
MEXICO CENTRAL
AMERICA
PERU
CHILE
BRAZIL
ARGENTINA
200
220
240
260
280
300
320
340
360
CAGR lsquo99-rsquo03
1
CAGR rsquo03-rsquo11
5
CAGR rsquo11-rsquo15
4
Venezuela
market falls
15
Mexico amp
Brazil steady
growth
MampA activities
Mexico amp Brazil
drive the
category growth
Beer
consumption
fueled by Brazil
Common factors among LatAm
Markets are expected to continue growing
18
Common factors among LatAm
Lager beer is the norm 99 of the market
Skol is the
leading beer
in Brazil and
worldrsquos fourth
best selling
beer brand
Brahma is
consumed in
more than 15
countries In
2011 many
product
innovations
were driven by
this brand
Corona is the
leading beer
in Mexico and
worldrsquos fifth best
selling beer
brand
90 sold in
Mexico and the
US
Antarctica
Pilsen beer is
the 3rd best
selling beer
in Brazil
Itrsquos the largest
best known
beer in
Venezuela
Polar produces
beers and raw
malt
19
Common factors among LatAm
Competing against Soft Drinks
40
24
5 yrs CAGR ()
Beer
CSDs
20
Ambev ndash 30
AB-InBev ndash 50 (Modelo+CND+Regional)
SAB Miller
12
22
2006 2011
54
SAB Miller
11
Common factors among LatAm
Growing Investments and Consolidation
Heineken (+CCU
+Florida)
16
21
2012 Consolidation
Polar Regional
Cerv Centroamericana
Cerv Dominicana
Warsteiner
Schincariol
Paraense
Petropolis
2010
Ajegroup
2010 beer
presentation hellip
22
2012 Consolidation
Polar Cerv Centroamericana
Paraense
Petropolis
2010
Ajegroup
Is there room for
more consolidation
23
2016 LatAm
Incremental Volume 2006 - 2011 - 2016
Beer Oth Alc CSDs
CAGR 06-16
4
CAGR 06-16
2
CAGR 06-16
3
+ 116 Million Hlts
+ 13 Million Hlts
+ 168 Million Hlts
24
2012 Consolidation
Danone Group
Dr Pepper
Snapple Group
Postobon
2010
Ajegroup
Soft drinks companies
Jumex Is there room for
more consolidation
25
USA China Brazil
Spain Germany Italy
Sources of future VOLUME growth
Population +18yrs By 2020 the LatAm young adults
population will reach 207 millions
Annual growth of legal drinking age
population in LatAm +17
26
Sources of future VOLUME growth
Brazil - Regional Consumption 4
67 LPC
rsquo11-rsquo15
CAGR
5
46 LPC
rsquo11-rsquo15
CAGR
23
4
72 LPC
rsquo11-rsquo15
CAGR
54
3
63 LPC
rsquo11-rsquo15
CAGR
12
6
34 LPC
rsquo11-rsquo15
CAGR
4
4
61 LPC
rsquo11-rsquo15
CAGR
7
27
Sources of future VOLUME growth
Brazilrsquos Northeast Region
30 of the population
23 of beer consumption
Regional consumption 46 LPC
Brewery locations
Ambev Heineken Schincariol
+ 6 millions Hl by 2015F
Regional segmentation approach
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
5
Out of 10 beers consumed in LatAmhellip
315 million hectolitres
70 billion Euros
16 of global consumption
6
LatAm is diverse
7
Brazil and Mexico gather more than
50 of LatAm populationhellip
LatAm is diverse
Population 2011 by country
Mexico 21
Brazil 43
Others 36 hellip and almost 65 of
beer consumption
19 36 36 45 50 51 52 54 75 126
281 302 364 374
471
710
1657
2282
-600
-100
400
900
1400
1900
0
50
100
150
200
250
300
350
400
450
500
GDP 2011 (PPP) Beer per cap Total Alc per cap
8
LatAm is diverse
Beer vsTotal Alcohol
9
3072
4240
5426
6919
12615
5023
16019
12520
4875
8372
16078
9958
11390
13480
10038
17382
14514
11892
-6000
-1000
4000
9000
14000
19000
0
100
200
300
400
500
600 GDP per capita (PPP) Beer per cap Total Alc per cap
LatAm is diverse
Beer vsTotal Alcohol
LatAm GDP per capita
(PPP)
11770
10
LatAm is diverse
Beer vsTotal Alcohol
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
11
LatAm is diverse
Beer vsTotal Alcohol
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
Consumption above
average
12
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
Consumption below
average
lowest levels of
alcohol
consumption
LatAm is diverse
Beer vsTotal Alcohol
13
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
Consumption gap due
to local alc bevs
Informal alc bevs
VINO
(JESSICA)
FOTO FOTO
FOT
O
FOTO
Local alcoholic drinks and a
number of local factors boost
alcohol consumption
LatAm is diverse
Beer vsTotal Alcohol
14
1
2
3
4
5
Average price USD 31
25 Euros
Partially driven by the
appreciation of the
Braziliean Real
LatAm is diverse
Price per litre
23
38
15
Common factors among LatAm Countries
16
Common factors among LatAm
Markets are growing above world average
5yrs CAGR 2006-2011 ()
26
42
64
25 37
85
37
40
Global Average
LatAm Average
MEXICO CENTRAL
AMERICA
PERU
CHILE
BRAZIL
ARGENTINA
200
220
240
260
280
300
320
340
360
CAGR lsquo99-rsquo03
1
CAGR rsquo03-rsquo11
5
CAGR rsquo11-rsquo15
4
Venezuela
market falls
15
Mexico amp
Brazil steady
growth
MampA activities
Mexico amp Brazil
drive the
category growth
Beer
consumption
fueled by Brazil
Common factors among LatAm
Markets are expected to continue growing
18
Common factors among LatAm
Lager beer is the norm 99 of the market
Skol is the
leading beer
in Brazil and
worldrsquos fourth
best selling
beer brand
Brahma is
consumed in
more than 15
countries In
2011 many
product
innovations
were driven by
this brand
Corona is the
leading beer
in Mexico and
worldrsquos fifth best
selling beer
brand
90 sold in
Mexico and the
US
Antarctica
Pilsen beer is
the 3rd best
selling beer
in Brazil
Itrsquos the largest
best known
beer in
Venezuela
Polar produces
beers and raw
malt
19
Common factors among LatAm
Competing against Soft Drinks
40
24
5 yrs CAGR ()
Beer
CSDs
20
Ambev ndash 30
AB-InBev ndash 50 (Modelo+CND+Regional)
SAB Miller
12
22
2006 2011
54
SAB Miller
11
Common factors among LatAm
Growing Investments and Consolidation
Heineken (+CCU
+Florida)
16
21
2012 Consolidation
Polar Regional
Cerv Centroamericana
Cerv Dominicana
Warsteiner
Schincariol
Paraense
Petropolis
2010
Ajegroup
2010 beer
presentation hellip
22
2012 Consolidation
Polar Cerv Centroamericana
Paraense
Petropolis
2010
Ajegroup
Is there room for
more consolidation
23
2016 LatAm
Incremental Volume 2006 - 2011 - 2016
Beer Oth Alc CSDs
CAGR 06-16
4
CAGR 06-16
2
CAGR 06-16
3
+ 116 Million Hlts
+ 13 Million Hlts
+ 168 Million Hlts
24
2012 Consolidation
Danone Group
Dr Pepper
Snapple Group
Postobon
2010
Ajegroup
Soft drinks companies
Jumex Is there room for
more consolidation
25
USA China Brazil
Spain Germany Italy
Sources of future VOLUME growth
Population +18yrs By 2020 the LatAm young adults
population will reach 207 millions
Annual growth of legal drinking age
population in LatAm +17
26
Sources of future VOLUME growth
Brazil - Regional Consumption 4
67 LPC
rsquo11-rsquo15
CAGR
5
46 LPC
rsquo11-rsquo15
CAGR
23
4
72 LPC
rsquo11-rsquo15
CAGR
54
3
63 LPC
rsquo11-rsquo15
CAGR
12
6
34 LPC
rsquo11-rsquo15
CAGR
4
4
61 LPC
rsquo11-rsquo15
CAGR
7
27
Sources of future VOLUME growth
Brazilrsquos Northeast Region
30 of the population
23 of beer consumption
Regional consumption 46 LPC
Brewery locations
Ambev Heineken Schincariol
+ 6 millions Hl by 2015F
Regional segmentation approach
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
6
LatAm is diverse
7
Brazil and Mexico gather more than
50 of LatAm populationhellip
LatAm is diverse
Population 2011 by country
Mexico 21
Brazil 43
Others 36 hellip and almost 65 of
beer consumption
19 36 36 45 50 51 52 54 75 126
281 302 364 374
471
710
1657
2282
-600
-100
400
900
1400
1900
0
50
100
150
200
250
300
350
400
450
500
GDP 2011 (PPP) Beer per cap Total Alc per cap
8
LatAm is diverse
Beer vsTotal Alcohol
9
3072
4240
5426
6919
12615
5023
16019
12520
4875
8372
16078
9958
11390
13480
10038
17382
14514
11892
-6000
-1000
4000
9000
14000
19000
0
100
200
300
400
500
600 GDP per capita (PPP) Beer per cap Total Alc per cap
LatAm is diverse
Beer vsTotal Alcohol
LatAm GDP per capita
(PPP)
11770
10
LatAm is diverse
Beer vsTotal Alcohol
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
11
LatAm is diverse
Beer vsTotal Alcohol
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
Consumption above
average
12
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
Consumption below
average
lowest levels of
alcohol
consumption
LatAm is diverse
Beer vsTotal Alcohol
13
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
Consumption gap due
to local alc bevs
Informal alc bevs
VINO
(JESSICA)
FOTO FOTO
FOT
O
FOTO
Local alcoholic drinks and a
number of local factors boost
alcohol consumption
LatAm is diverse
Beer vsTotal Alcohol
14
1
2
3
4
5
Average price USD 31
25 Euros
Partially driven by the
appreciation of the
Braziliean Real
LatAm is diverse
Price per litre
23
38
15
Common factors among LatAm Countries
16
Common factors among LatAm
Markets are growing above world average
5yrs CAGR 2006-2011 ()
26
42
64
25 37
85
37
40
Global Average
LatAm Average
MEXICO CENTRAL
AMERICA
PERU
CHILE
BRAZIL
ARGENTINA
200
220
240
260
280
300
320
340
360
CAGR lsquo99-rsquo03
1
CAGR rsquo03-rsquo11
5
CAGR rsquo11-rsquo15
4
Venezuela
market falls
15
Mexico amp
Brazil steady
growth
MampA activities
Mexico amp Brazil
drive the
category growth
Beer
consumption
fueled by Brazil
Common factors among LatAm
Markets are expected to continue growing
18
Common factors among LatAm
Lager beer is the norm 99 of the market
Skol is the
leading beer
in Brazil and
worldrsquos fourth
best selling
beer brand
Brahma is
consumed in
more than 15
countries In
2011 many
product
innovations
were driven by
this brand
Corona is the
leading beer
in Mexico and
worldrsquos fifth best
selling beer
brand
90 sold in
Mexico and the
US
Antarctica
Pilsen beer is
the 3rd best
selling beer
in Brazil
Itrsquos the largest
best known
beer in
Venezuela
Polar produces
beers and raw
malt
19
Common factors among LatAm
Competing against Soft Drinks
40
24
5 yrs CAGR ()
Beer
CSDs
20
Ambev ndash 30
AB-InBev ndash 50 (Modelo+CND+Regional)
SAB Miller
12
22
2006 2011
54
SAB Miller
11
Common factors among LatAm
Growing Investments and Consolidation
Heineken (+CCU
+Florida)
16
21
2012 Consolidation
Polar Regional
Cerv Centroamericana
Cerv Dominicana
Warsteiner
Schincariol
Paraense
Petropolis
2010
Ajegroup
2010 beer
presentation hellip
22
2012 Consolidation
Polar Cerv Centroamericana
Paraense
Petropolis
2010
Ajegroup
Is there room for
more consolidation
23
2016 LatAm
Incremental Volume 2006 - 2011 - 2016
Beer Oth Alc CSDs
CAGR 06-16
4
CAGR 06-16
2
CAGR 06-16
3
+ 116 Million Hlts
+ 13 Million Hlts
+ 168 Million Hlts
24
2012 Consolidation
Danone Group
Dr Pepper
Snapple Group
Postobon
2010
Ajegroup
Soft drinks companies
Jumex Is there room for
more consolidation
25
USA China Brazil
Spain Germany Italy
Sources of future VOLUME growth
Population +18yrs By 2020 the LatAm young adults
population will reach 207 millions
Annual growth of legal drinking age
population in LatAm +17
26
Sources of future VOLUME growth
Brazil - Regional Consumption 4
67 LPC
rsquo11-rsquo15
CAGR
5
46 LPC
rsquo11-rsquo15
CAGR
23
4
72 LPC
rsquo11-rsquo15
CAGR
54
3
63 LPC
rsquo11-rsquo15
CAGR
12
6
34 LPC
rsquo11-rsquo15
CAGR
4
4
61 LPC
rsquo11-rsquo15
CAGR
7
27
Sources of future VOLUME growth
Brazilrsquos Northeast Region
30 of the population
23 of beer consumption
Regional consumption 46 LPC
Brewery locations
Ambev Heineken Schincariol
+ 6 millions Hl by 2015F
Regional segmentation approach
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
7
Brazil and Mexico gather more than
50 of LatAm populationhellip
LatAm is diverse
Population 2011 by country
Mexico 21
Brazil 43
Others 36 hellip and almost 65 of
beer consumption
19 36 36 45 50 51 52 54 75 126
281 302 364 374
471
710
1657
2282
-600
-100
400
900
1400
1900
0
50
100
150
200
250
300
350
400
450
500
GDP 2011 (PPP) Beer per cap Total Alc per cap
8
LatAm is diverse
Beer vsTotal Alcohol
9
3072
4240
5426
6919
12615
5023
16019
12520
4875
8372
16078
9958
11390
13480
10038
17382
14514
11892
-6000
-1000
4000
9000
14000
19000
0
100
200
300
400
500
600 GDP per capita (PPP) Beer per cap Total Alc per cap
LatAm is diverse
Beer vsTotal Alcohol
LatAm GDP per capita
(PPP)
11770
10
LatAm is diverse
Beer vsTotal Alcohol
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
11
LatAm is diverse
Beer vsTotal Alcohol
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
Consumption above
average
12
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
Consumption below
average
lowest levels of
alcohol
consumption
LatAm is diverse
Beer vsTotal Alcohol
13
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
Consumption gap due
to local alc bevs
Informal alc bevs
VINO
(JESSICA)
FOTO FOTO
FOT
O
FOTO
Local alcoholic drinks and a
number of local factors boost
alcohol consumption
LatAm is diverse
Beer vsTotal Alcohol
14
1
2
3
4
5
Average price USD 31
25 Euros
Partially driven by the
appreciation of the
Braziliean Real
LatAm is diverse
Price per litre
23
38
15
Common factors among LatAm Countries
16
Common factors among LatAm
Markets are growing above world average
5yrs CAGR 2006-2011 ()
26
42
64
25 37
85
37
40
Global Average
LatAm Average
MEXICO CENTRAL
AMERICA
PERU
CHILE
BRAZIL
ARGENTINA
200
220
240
260
280
300
320
340
360
CAGR lsquo99-rsquo03
1
CAGR rsquo03-rsquo11
5
CAGR rsquo11-rsquo15
4
Venezuela
market falls
15
Mexico amp
Brazil steady
growth
MampA activities
Mexico amp Brazil
drive the
category growth
Beer
consumption
fueled by Brazil
Common factors among LatAm
Markets are expected to continue growing
18
Common factors among LatAm
Lager beer is the norm 99 of the market
Skol is the
leading beer
in Brazil and
worldrsquos fourth
best selling
beer brand
Brahma is
consumed in
more than 15
countries In
2011 many
product
innovations
were driven by
this brand
Corona is the
leading beer
in Mexico and
worldrsquos fifth best
selling beer
brand
90 sold in
Mexico and the
US
Antarctica
Pilsen beer is
the 3rd best
selling beer
in Brazil
Itrsquos the largest
best known
beer in
Venezuela
Polar produces
beers and raw
malt
19
Common factors among LatAm
Competing against Soft Drinks
40
24
5 yrs CAGR ()
Beer
CSDs
20
Ambev ndash 30
AB-InBev ndash 50 (Modelo+CND+Regional)
SAB Miller
12
22
2006 2011
54
SAB Miller
11
Common factors among LatAm
Growing Investments and Consolidation
Heineken (+CCU
+Florida)
16
21
2012 Consolidation
Polar Regional
Cerv Centroamericana
Cerv Dominicana
Warsteiner
Schincariol
Paraense
Petropolis
2010
Ajegroup
2010 beer
presentation hellip
22
2012 Consolidation
Polar Cerv Centroamericana
Paraense
Petropolis
2010
Ajegroup
Is there room for
more consolidation
23
2016 LatAm
Incremental Volume 2006 - 2011 - 2016
Beer Oth Alc CSDs
CAGR 06-16
4
CAGR 06-16
2
CAGR 06-16
3
+ 116 Million Hlts
+ 13 Million Hlts
+ 168 Million Hlts
24
2012 Consolidation
Danone Group
Dr Pepper
Snapple Group
Postobon
2010
Ajegroup
Soft drinks companies
Jumex Is there room for
more consolidation
25
USA China Brazil
Spain Germany Italy
Sources of future VOLUME growth
Population +18yrs By 2020 the LatAm young adults
population will reach 207 millions
Annual growth of legal drinking age
population in LatAm +17
26
Sources of future VOLUME growth
Brazil - Regional Consumption 4
67 LPC
rsquo11-rsquo15
CAGR
5
46 LPC
rsquo11-rsquo15
CAGR
23
4
72 LPC
rsquo11-rsquo15
CAGR
54
3
63 LPC
rsquo11-rsquo15
CAGR
12
6
34 LPC
rsquo11-rsquo15
CAGR
4
4
61 LPC
rsquo11-rsquo15
CAGR
7
27
Sources of future VOLUME growth
Brazilrsquos Northeast Region
30 of the population
23 of beer consumption
Regional consumption 46 LPC
Brewery locations
Ambev Heineken Schincariol
+ 6 millions Hl by 2015F
Regional segmentation approach
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
19 36 36 45 50 51 52 54 75 126
281 302 364 374
471
710
1657
2282
-600
-100
400
900
1400
1900
0
50
100
150
200
250
300
350
400
450
500
GDP 2011 (PPP) Beer per cap Total Alc per cap
8
LatAm is diverse
Beer vsTotal Alcohol
9
3072
4240
5426
6919
12615
5023
16019
12520
4875
8372
16078
9958
11390
13480
10038
17382
14514
11892
-6000
-1000
4000
9000
14000
19000
0
100
200
300
400
500
600 GDP per capita (PPP) Beer per cap Total Alc per cap
LatAm is diverse
Beer vsTotal Alcohol
LatAm GDP per capita
(PPP)
11770
10
LatAm is diverse
Beer vsTotal Alcohol
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
11
LatAm is diverse
Beer vsTotal Alcohol
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
Consumption above
average
12
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
Consumption below
average
lowest levels of
alcohol
consumption
LatAm is diverse
Beer vsTotal Alcohol
13
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
Consumption gap due
to local alc bevs
Informal alc bevs
VINO
(JESSICA)
FOTO FOTO
FOT
O
FOTO
Local alcoholic drinks and a
number of local factors boost
alcohol consumption
LatAm is diverse
Beer vsTotal Alcohol
14
1
2
3
4
5
Average price USD 31
25 Euros
Partially driven by the
appreciation of the
Braziliean Real
LatAm is diverse
Price per litre
23
38
15
Common factors among LatAm Countries
16
Common factors among LatAm
Markets are growing above world average
5yrs CAGR 2006-2011 ()
26
42
64
25 37
85
37
40
Global Average
LatAm Average
MEXICO CENTRAL
AMERICA
PERU
CHILE
BRAZIL
ARGENTINA
200
220
240
260
280
300
320
340
360
CAGR lsquo99-rsquo03
1
CAGR rsquo03-rsquo11
5
CAGR rsquo11-rsquo15
4
Venezuela
market falls
15
Mexico amp
Brazil steady
growth
MampA activities
Mexico amp Brazil
drive the
category growth
Beer
consumption
fueled by Brazil
Common factors among LatAm
Markets are expected to continue growing
18
Common factors among LatAm
Lager beer is the norm 99 of the market
Skol is the
leading beer
in Brazil and
worldrsquos fourth
best selling
beer brand
Brahma is
consumed in
more than 15
countries In
2011 many
product
innovations
were driven by
this brand
Corona is the
leading beer
in Mexico and
worldrsquos fifth best
selling beer
brand
90 sold in
Mexico and the
US
Antarctica
Pilsen beer is
the 3rd best
selling beer
in Brazil
Itrsquos the largest
best known
beer in
Venezuela
Polar produces
beers and raw
malt
19
Common factors among LatAm
Competing against Soft Drinks
40
24
5 yrs CAGR ()
Beer
CSDs
20
Ambev ndash 30
AB-InBev ndash 50 (Modelo+CND+Regional)
SAB Miller
12
22
2006 2011
54
SAB Miller
11
Common factors among LatAm
Growing Investments and Consolidation
Heineken (+CCU
+Florida)
16
21
2012 Consolidation
Polar Regional
Cerv Centroamericana
Cerv Dominicana
Warsteiner
Schincariol
Paraense
Petropolis
2010
Ajegroup
2010 beer
presentation hellip
22
2012 Consolidation
Polar Cerv Centroamericana
Paraense
Petropolis
2010
Ajegroup
Is there room for
more consolidation
23
2016 LatAm
Incremental Volume 2006 - 2011 - 2016
Beer Oth Alc CSDs
CAGR 06-16
4
CAGR 06-16
2
CAGR 06-16
3
+ 116 Million Hlts
+ 13 Million Hlts
+ 168 Million Hlts
24
2012 Consolidation
Danone Group
Dr Pepper
Snapple Group
Postobon
2010
Ajegroup
Soft drinks companies
Jumex Is there room for
more consolidation
25
USA China Brazil
Spain Germany Italy
Sources of future VOLUME growth
Population +18yrs By 2020 the LatAm young adults
population will reach 207 millions
Annual growth of legal drinking age
population in LatAm +17
26
Sources of future VOLUME growth
Brazil - Regional Consumption 4
67 LPC
rsquo11-rsquo15
CAGR
5
46 LPC
rsquo11-rsquo15
CAGR
23
4
72 LPC
rsquo11-rsquo15
CAGR
54
3
63 LPC
rsquo11-rsquo15
CAGR
12
6
34 LPC
rsquo11-rsquo15
CAGR
4
4
61 LPC
rsquo11-rsquo15
CAGR
7
27
Sources of future VOLUME growth
Brazilrsquos Northeast Region
30 of the population
23 of beer consumption
Regional consumption 46 LPC
Brewery locations
Ambev Heineken Schincariol
+ 6 millions Hl by 2015F
Regional segmentation approach
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
9
3072
4240
5426
6919
12615
5023
16019
12520
4875
8372
16078
9958
11390
13480
10038
17382
14514
11892
-6000
-1000
4000
9000
14000
19000
0
100
200
300
400
500
600 GDP per capita (PPP) Beer per cap Total Alc per cap
LatAm is diverse
Beer vsTotal Alcohol
LatAm GDP per capita
(PPP)
11770
10
LatAm is diverse
Beer vsTotal Alcohol
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
11
LatAm is diverse
Beer vsTotal Alcohol
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
Consumption above
average
12
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
Consumption below
average
lowest levels of
alcohol
consumption
LatAm is diverse
Beer vsTotal Alcohol
13
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
Consumption gap due
to local alc bevs
Informal alc bevs
VINO
(JESSICA)
FOTO FOTO
FOT
O
FOTO
Local alcoholic drinks and a
number of local factors boost
alcohol consumption
LatAm is diverse
Beer vsTotal Alcohol
14
1
2
3
4
5
Average price USD 31
25 Euros
Partially driven by the
appreciation of the
Braziliean Real
LatAm is diverse
Price per litre
23
38
15
Common factors among LatAm Countries
16
Common factors among LatAm
Markets are growing above world average
5yrs CAGR 2006-2011 ()
26
42
64
25 37
85
37
40
Global Average
LatAm Average
MEXICO CENTRAL
AMERICA
PERU
CHILE
BRAZIL
ARGENTINA
200
220
240
260
280
300
320
340
360
CAGR lsquo99-rsquo03
1
CAGR rsquo03-rsquo11
5
CAGR rsquo11-rsquo15
4
Venezuela
market falls
15
Mexico amp
Brazil steady
growth
MampA activities
Mexico amp Brazil
drive the
category growth
Beer
consumption
fueled by Brazil
Common factors among LatAm
Markets are expected to continue growing
18
Common factors among LatAm
Lager beer is the norm 99 of the market
Skol is the
leading beer
in Brazil and
worldrsquos fourth
best selling
beer brand
Brahma is
consumed in
more than 15
countries In
2011 many
product
innovations
were driven by
this brand
Corona is the
leading beer
in Mexico and
worldrsquos fifth best
selling beer
brand
90 sold in
Mexico and the
US
Antarctica
Pilsen beer is
the 3rd best
selling beer
in Brazil
Itrsquos the largest
best known
beer in
Venezuela
Polar produces
beers and raw
malt
19
Common factors among LatAm
Competing against Soft Drinks
40
24
5 yrs CAGR ()
Beer
CSDs
20
Ambev ndash 30
AB-InBev ndash 50 (Modelo+CND+Regional)
SAB Miller
12
22
2006 2011
54
SAB Miller
11
Common factors among LatAm
Growing Investments and Consolidation
Heineken (+CCU
+Florida)
16
21
2012 Consolidation
Polar Regional
Cerv Centroamericana
Cerv Dominicana
Warsteiner
Schincariol
Paraense
Petropolis
2010
Ajegroup
2010 beer
presentation hellip
22
2012 Consolidation
Polar Cerv Centroamericana
Paraense
Petropolis
2010
Ajegroup
Is there room for
more consolidation
23
2016 LatAm
Incremental Volume 2006 - 2011 - 2016
Beer Oth Alc CSDs
CAGR 06-16
4
CAGR 06-16
2
CAGR 06-16
3
+ 116 Million Hlts
+ 13 Million Hlts
+ 168 Million Hlts
24
2012 Consolidation
Danone Group
Dr Pepper
Snapple Group
Postobon
2010
Ajegroup
Soft drinks companies
Jumex Is there room for
more consolidation
25
USA China Brazil
Spain Germany Italy
Sources of future VOLUME growth
Population +18yrs By 2020 the LatAm young adults
population will reach 207 millions
Annual growth of legal drinking age
population in LatAm +17
26
Sources of future VOLUME growth
Brazil - Regional Consumption 4
67 LPC
rsquo11-rsquo15
CAGR
5
46 LPC
rsquo11-rsquo15
CAGR
23
4
72 LPC
rsquo11-rsquo15
CAGR
54
3
63 LPC
rsquo11-rsquo15
CAGR
12
6
34 LPC
rsquo11-rsquo15
CAGR
4
4
61 LPC
rsquo11-rsquo15
CAGR
7
27
Sources of future VOLUME growth
Brazilrsquos Northeast Region
30 of the population
23 of beer consumption
Regional consumption 46 LPC
Brewery locations
Ambev Heineken Schincariol
+ 6 millions Hl by 2015F
Regional segmentation approach
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
10
LatAm is diverse
Beer vsTotal Alcohol
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
11
LatAm is diverse
Beer vsTotal Alcohol
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
Consumption above
average
12
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
Consumption below
average
lowest levels of
alcohol
consumption
LatAm is diverse
Beer vsTotal Alcohol
13
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
Consumption gap due
to local alc bevs
Informal alc bevs
VINO
(JESSICA)
FOTO FOTO
FOT
O
FOTO
Local alcoholic drinks and a
number of local factors boost
alcohol consumption
LatAm is diverse
Beer vsTotal Alcohol
14
1
2
3
4
5
Average price USD 31
25 Euros
Partially driven by the
appreciation of the
Braziliean Real
LatAm is diverse
Price per litre
23
38
15
Common factors among LatAm Countries
16
Common factors among LatAm
Markets are growing above world average
5yrs CAGR 2006-2011 ()
26
42
64
25 37
85
37
40
Global Average
LatAm Average
MEXICO CENTRAL
AMERICA
PERU
CHILE
BRAZIL
ARGENTINA
200
220
240
260
280
300
320
340
360
CAGR lsquo99-rsquo03
1
CAGR rsquo03-rsquo11
5
CAGR rsquo11-rsquo15
4
Venezuela
market falls
15
Mexico amp
Brazil steady
growth
MampA activities
Mexico amp Brazil
drive the
category growth
Beer
consumption
fueled by Brazil
Common factors among LatAm
Markets are expected to continue growing
18
Common factors among LatAm
Lager beer is the norm 99 of the market
Skol is the
leading beer
in Brazil and
worldrsquos fourth
best selling
beer brand
Brahma is
consumed in
more than 15
countries In
2011 many
product
innovations
were driven by
this brand
Corona is the
leading beer
in Mexico and
worldrsquos fifth best
selling beer
brand
90 sold in
Mexico and the
US
Antarctica
Pilsen beer is
the 3rd best
selling beer
in Brazil
Itrsquos the largest
best known
beer in
Venezuela
Polar produces
beers and raw
malt
19
Common factors among LatAm
Competing against Soft Drinks
40
24
5 yrs CAGR ()
Beer
CSDs
20
Ambev ndash 30
AB-InBev ndash 50 (Modelo+CND+Regional)
SAB Miller
12
22
2006 2011
54
SAB Miller
11
Common factors among LatAm
Growing Investments and Consolidation
Heineken (+CCU
+Florida)
16
21
2012 Consolidation
Polar Regional
Cerv Centroamericana
Cerv Dominicana
Warsteiner
Schincariol
Paraense
Petropolis
2010
Ajegroup
2010 beer
presentation hellip
22
2012 Consolidation
Polar Cerv Centroamericana
Paraense
Petropolis
2010
Ajegroup
Is there room for
more consolidation
23
2016 LatAm
Incremental Volume 2006 - 2011 - 2016
Beer Oth Alc CSDs
CAGR 06-16
4
CAGR 06-16
2
CAGR 06-16
3
+ 116 Million Hlts
+ 13 Million Hlts
+ 168 Million Hlts
24
2012 Consolidation
Danone Group
Dr Pepper
Snapple Group
Postobon
2010
Ajegroup
Soft drinks companies
Jumex Is there room for
more consolidation
25
USA China Brazil
Spain Germany Italy
Sources of future VOLUME growth
Population +18yrs By 2020 the LatAm young adults
population will reach 207 millions
Annual growth of legal drinking age
population in LatAm +17
26
Sources of future VOLUME growth
Brazil - Regional Consumption 4
67 LPC
rsquo11-rsquo15
CAGR
5
46 LPC
rsquo11-rsquo15
CAGR
23
4
72 LPC
rsquo11-rsquo15
CAGR
54
3
63 LPC
rsquo11-rsquo15
CAGR
12
6
34 LPC
rsquo11-rsquo15
CAGR
4
4
61 LPC
rsquo11-rsquo15
CAGR
7
27
Sources of future VOLUME growth
Brazilrsquos Northeast Region
30 of the population
23 of beer consumption
Regional consumption 46 LPC
Brewery locations
Ambev Heineken Schincariol
+ 6 millions Hl by 2015F
Regional segmentation approach
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
11
LatAm is diverse
Beer vsTotal Alcohol
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
Consumption above
average
12
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
Consumption below
average
lowest levels of
alcohol
consumption
LatAm is diverse
Beer vsTotal Alcohol
13
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
Consumption gap due
to local alc bevs
Informal alc bevs
VINO
(JESSICA)
FOTO FOTO
FOT
O
FOTO
Local alcoholic drinks and a
number of local factors boost
alcohol consumption
LatAm is diverse
Beer vsTotal Alcohol
14
1
2
3
4
5
Average price USD 31
25 Euros
Partially driven by the
appreciation of the
Braziliean Real
LatAm is diverse
Price per litre
23
38
15
Common factors among LatAm Countries
16
Common factors among LatAm
Markets are growing above world average
5yrs CAGR 2006-2011 ()
26
42
64
25 37
85
37
40
Global Average
LatAm Average
MEXICO CENTRAL
AMERICA
PERU
CHILE
BRAZIL
ARGENTINA
200
220
240
260
280
300
320
340
360
CAGR lsquo99-rsquo03
1
CAGR rsquo03-rsquo11
5
CAGR rsquo11-rsquo15
4
Venezuela
market falls
15
Mexico amp
Brazil steady
growth
MampA activities
Mexico amp Brazil
drive the
category growth
Beer
consumption
fueled by Brazil
Common factors among LatAm
Markets are expected to continue growing
18
Common factors among LatAm
Lager beer is the norm 99 of the market
Skol is the
leading beer
in Brazil and
worldrsquos fourth
best selling
beer brand
Brahma is
consumed in
more than 15
countries In
2011 many
product
innovations
were driven by
this brand
Corona is the
leading beer
in Mexico and
worldrsquos fifth best
selling beer
brand
90 sold in
Mexico and the
US
Antarctica
Pilsen beer is
the 3rd best
selling beer
in Brazil
Itrsquos the largest
best known
beer in
Venezuela
Polar produces
beers and raw
malt
19
Common factors among LatAm
Competing against Soft Drinks
40
24
5 yrs CAGR ()
Beer
CSDs
20
Ambev ndash 30
AB-InBev ndash 50 (Modelo+CND+Regional)
SAB Miller
12
22
2006 2011
54
SAB Miller
11
Common factors among LatAm
Growing Investments and Consolidation
Heineken (+CCU
+Florida)
16
21
2012 Consolidation
Polar Regional
Cerv Centroamericana
Cerv Dominicana
Warsteiner
Schincariol
Paraense
Petropolis
2010
Ajegroup
2010 beer
presentation hellip
22
2012 Consolidation
Polar Cerv Centroamericana
Paraense
Petropolis
2010
Ajegroup
Is there room for
more consolidation
23
2016 LatAm
Incremental Volume 2006 - 2011 - 2016
Beer Oth Alc CSDs
CAGR 06-16
4
CAGR 06-16
2
CAGR 06-16
3
+ 116 Million Hlts
+ 13 Million Hlts
+ 168 Million Hlts
24
2012 Consolidation
Danone Group
Dr Pepper
Snapple Group
Postobon
2010
Ajegroup
Soft drinks companies
Jumex Is there room for
more consolidation
25
USA China Brazil
Spain Germany Italy
Sources of future VOLUME growth
Population +18yrs By 2020 the LatAm young adults
population will reach 207 millions
Annual growth of legal drinking age
population in LatAm +17
26
Sources of future VOLUME growth
Brazil - Regional Consumption 4
67 LPC
rsquo11-rsquo15
CAGR
5
46 LPC
rsquo11-rsquo15
CAGR
23
4
72 LPC
rsquo11-rsquo15
CAGR
54
3
63 LPC
rsquo11-rsquo15
CAGR
12
6
34 LPC
rsquo11-rsquo15
CAGR
4
4
61 LPC
rsquo11-rsquo15
CAGR
7
27
Sources of future VOLUME growth
Brazilrsquos Northeast Region
30 of the population
23 of beer consumption
Regional consumption 46 LPC
Brewery locations
Ambev Heineken Schincariol
+ 6 millions Hl by 2015F
Regional segmentation approach
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
12
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
51 LPC
41 LPC
Consumption below
average
lowest levels of
alcohol
consumption
LatAm is diverse
Beer vsTotal Alcohol
13
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
Consumption gap due
to local alc bevs
Informal alc bevs
VINO
(JESSICA)
FOTO FOTO
FOT
O
FOTO
Local alcoholic drinks and a
number of local factors boost
alcohol consumption
LatAm is diverse
Beer vsTotal Alcohol
14
1
2
3
4
5
Average price USD 31
25 Euros
Partially driven by the
appreciation of the
Braziliean Real
LatAm is diverse
Price per litre
23
38
15
Common factors among LatAm Countries
16
Common factors among LatAm
Markets are growing above world average
5yrs CAGR 2006-2011 ()
26
42
64
25 37
85
37
40
Global Average
LatAm Average
MEXICO CENTRAL
AMERICA
PERU
CHILE
BRAZIL
ARGENTINA
200
220
240
260
280
300
320
340
360
CAGR lsquo99-rsquo03
1
CAGR rsquo03-rsquo11
5
CAGR rsquo11-rsquo15
4
Venezuela
market falls
15
Mexico amp
Brazil steady
growth
MampA activities
Mexico amp Brazil
drive the
category growth
Beer
consumption
fueled by Brazil
Common factors among LatAm
Markets are expected to continue growing
18
Common factors among LatAm
Lager beer is the norm 99 of the market
Skol is the
leading beer
in Brazil and
worldrsquos fourth
best selling
beer brand
Brahma is
consumed in
more than 15
countries In
2011 many
product
innovations
were driven by
this brand
Corona is the
leading beer
in Mexico and
worldrsquos fifth best
selling beer
brand
90 sold in
Mexico and the
US
Antarctica
Pilsen beer is
the 3rd best
selling beer
in Brazil
Itrsquos the largest
best known
beer in
Venezuela
Polar produces
beers and raw
malt
19
Common factors among LatAm
Competing against Soft Drinks
40
24
5 yrs CAGR ()
Beer
CSDs
20
Ambev ndash 30
AB-InBev ndash 50 (Modelo+CND+Regional)
SAB Miller
12
22
2006 2011
54
SAB Miller
11
Common factors among LatAm
Growing Investments and Consolidation
Heineken (+CCU
+Florida)
16
21
2012 Consolidation
Polar Regional
Cerv Centroamericana
Cerv Dominicana
Warsteiner
Schincariol
Paraense
Petropolis
2010
Ajegroup
2010 beer
presentation hellip
22
2012 Consolidation
Polar Cerv Centroamericana
Paraense
Petropolis
2010
Ajegroup
Is there room for
more consolidation
23
2016 LatAm
Incremental Volume 2006 - 2011 - 2016
Beer Oth Alc CSDs
CAGR 06-16
4
CAGR 06-16
2
CAGR 06-16
3
+ 116 Million Hlts
+ 13 Million Hlts
+ 168 Million Hlts
24
2012 Consolidation
Danone Group
Dr Pepper
Snapple Group
Postobon
2010
Ajegroup
Soft drinks companies
Jumex Is there room for
more consolidation
25
USA China Brazil
Spain Germany Italy
Sources of future VOLUME growth
Population +18yrs By 2020 the LatAm young adults
population will reach 207 millions
Annual growth of legal drinking age
population in LatAm +17
26
Sources of future VOLUME growth
Brazil - Regional Consumption 4
67 LPC
rsquo11-rsquo15
CAGR
5
46 LPC
rsquo11-rsquo15
CAGR
23
4
72 LPC
rsquo11-rsquo15
CAGR
54
3
63 LPC
rsquo11-rsquo15
CAGR
12
6
34 LPC
rsquo11-rsquo15
CAGR
4
4
61 LPC
rsquo11-rsquo15
CAGR
7
27
Sources of future VOLUME growth
Brazilrsquos Northeast Region
30 of the population
23 of beer consumption
Regional consumption 46 LPC
Brewery locations
Ambev Heineken Schincariol
+ 6 millions Hl by 2015F
Regional segmentation approach
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
13
0
10
20
30
40
50
60
70
80
90
100
Beer per cap Total Alc per cap
Consumption gap due
to local alc bevs
Informal alc bevs
VINO
(JESSICA)
FOTO FOTO
FOT
O
FOTO
Local alcoholic drinks and a
number of local factors boost
alcohol consumption
LatAm is diverse
Beer vsTotal Alcohol
14
1
2
3
4
5
Average price USD 31
25 Euros
Partially driven by the
appreciation of the
Braziliean Real
LatAm is diverse
Price per litre
23
38
15
Common factors among LatAm Countries
16
Common factors among LatAm
Markets are growing above world average
5yrs CAGR 2006-2011 ()
26
42
64
25 37
85
37
40
Global Average
LatAm Average
MEXICO CENTRAL
AMERICA
PERU
CHILE
BRAZIL
ARGENTINA
200
220
240
260
280
300
320
340
360
CAGR lsquo99-rsquo03
1
CAGR rsquo03-rsquo11
5
CAGR rsquo11-rsquo15
4
Venezuela
market falls
15
Mexico amp
Brazil steady
growth
MampA activities
Mexico amp Brazil
drive the
category growth
Beer
consumption
fueled by Brazil
Common factors among LatAm
Markets are expected to continue growing
18
Common factors among LatAm
Lager beer is the norm 99 of the market
Skol is the
leading beer
in Brazil and
worldrsquos fourth
best selling
beer brand
Brahma is
consumed in
more than 15
countries In
2011 many
product
innovations
were driven by
this brand
Corona is the
leading beer
in Mexico and
worldrsquos fifth best
selling beer
brand
90 sold in
Mexico and the
US
Antarctica
Pilsen beer is
the 3rd best
selling beer
in Brazil
Itrsquos the largest
best known
beer in
Venezuela
Polar produces
beers and raw
malt
19
Common factors among LatAm
Competing against Soft Drinks
40
24
5 yrs CAGR ()
Beer
CSDs
20
Ambev ndash 30
AB-InBev ndash 50 (Modelo+CND+Regional)
SAB Miller
12
22
2006 2011
54
SAB Miller
11
Common factors among LatAm
Growing Investments and Consolidation
Heineken (+CCU
+Florida)
16
21
2012 Consolidation
Polar Regional
Cerv Centroamericana
Cerv Dominicana
Warsteiner
Schincariol
Paraense
Petropolis
2010
Ajegroup
2010 beer
presentation hellip
22
2012 Consolidation
Polar Cerv Centroamericana
Paraense
Petropolis
2010
Ajegroup
Is there room for
more consolidation
23
2016 LatAm
Incremental Volume 2006 - 2011 - 2016
Beer Oth Alc CSDs
CAGR 06-16
4
CAGR 06-16
2
CAGR 06-16
3
+ 116 Million Hlts
+ 13 Million Hlts
+ 168 Million Hlts
24
2012 Consolidation
Danone Group
Dr Pepper
Snapple Group
Postobon
2010
Ajegroup
Soft drinks companies
Jumex Is there room for
more consolidation
25
USA China Brazil
Spain Germany Italy
Sources of future VOLUME growth
Population +18yrs By 2020 the LatAm young adults
population will reach 207 millions
Annual growth of legal drinking age
population in LatAm +17
26
Sources of future VOLUME growth
Brazil - Regional Consumption 4
67 LPC
rsquo11-rsquo15
CAGR
5
46 LPC
rsquo11-rsquo15
CAGR
23
4
72 LPC
rsquo11-rsquo15
CAGR
54
3
63 LPC
rsquo11-rsquo15
CAGR
12
6
34 LPC
rsquo11-rsquo15
CAGR
4
4
61 LPC
rsquo11-rsquo15
CAGR
7
27
Sources of future VOLUME growth
Brazilrsquos Northeast Region
30 of the population
23 of beer consumption
Regional consumption 46 LPC
Brewery locations
Ambev Heineken Schincariol
+ 6 millions Hl by 2015F
Regional segmentation approach
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
14
1
2
3
4
5
Average price USD 31
25 Euros
Partially driven by the
appreciation of the
Braziliean Real
LatAm is diverse
Price per litre
23
38
15
Common factors among LatAm Countries
16
Common factors among LatAm
Markets are growing above world average
5yrs CAGR 2006-2011 ()
26
42
64
25 37
85
37
40
Global Average
LatAm Average
MEXICO CENTRAL
AMERICA
PERU
CHILE
BRAZIL
ARGENTINA
200
220
240
260
280
300
320
340
360
CAGR lsquo99-rsquo03
1
CAGR rsquo03-rsquo11
5
CAGR rsquo11-rsquo15
4
Venezuela
market falls
15
Mexico amp
Brazil steady
growth
MampA activities
Mexico amp Brazil
drive the
category growth
Beer
consumption
fueled by Brazil
Common factors among LatAm
Markets are expected to continue growing
18
Common factors among LatAm
Lager beer is the norm 99 of the market
Skol is the
leading beer
in Brazil and
worldrsquos fourth
best selling
beer brand
Brahma is
consumed in
more than 15
countries In
2011 many
product
innovations
were driven by
this brand
Corona is the
leading beer
in Mexico and
worldrsquos fifth best
selling beer
brand
90 sold in
Mexico and the
US
Antarctica
Pilsen beer is
the 3rd best
selling beer
in Brazil
Itrsquos the largest
best known
beer in
Venezuela
Polar produces
beers and raw
malt
19
Common factors among LatAm
Competing against Soft Drinks
40
24
5 yrs CAGR ()
Beer
CSDs
20
Ambev ndash 30
AB-InBev ndash 50 (Modelo+CND+Regional)
SAB Miller
12
22
2006 2011
54
SAB Miller
11
Common factors among LatAm
Growing Investments and Consolidation
Heineken (+CCU
+Florida)
16
21
2012 Consolidation
Polar Regional
Cerv Centroamericana
Cerv Dominicana
Warsteiner
Schincariol
Paraense
Petropolis
2010
Ajegroup
2010 beer
presentation hellip
22
2012 Consolidation
Polar Cerv Centroamericana
Paraense
Petropolis
2010
Ajegroup
Is there room for
more consolidation
23
2016 LatAm
Incremental Volume 2006 - 2011 - 2016
Beer Oth Alc CSDs
CAGR 06-16
4
CAGR 06-16
2
CAGR 06-16
3
+ 116 Million Hlts
+ 13 Million Hlts
+ 168 Million Hlts
24
2012 Consolidation
Danone Group
Dr Pepper
Snapple Group
Postobon
2010
Ajegroup
Soft drinks companies
Jumex Is there room for
more consolidation
25
USA China Brazil
Spain Germany Italy
Sources of future VOLUME growth
Population +18yrs By 2020 the LatAm young adults
population will reach 207 millions
Annual growth of legal drinking age
population in LatAm +17
26
Sources of future VOLUME growth
Brazil - Regional Consumption 4
67 LPC
rsquo11-rsquo15
CAGR
5
46 LPC
rsquo11-rsquo15
CAGR
23
4
72 LPC
rsquo11-rsquo15
CAGR
54
3
63 LPC
rsquo11-rsquo15
CAGR
12
6
34 LPC
rsquo11-rsquo15
CAGR
4
4
61 LPC
rsquo11-rsquo15
CAGR
7
27
Sources of future VOLUME growth
Brazilrsquos Northeast Region
30 of the population
23 of beer consumption
Regional consumption 46 LPC
Brewery locations
Ambev Heineken Schincariol
+ 6 millions Hl by 2015F
Regional segmentation approach
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
15
Common factors among LatAm Countries
16
Common factors among LatAm
Markets are growing above world average
5yrs CAGR 2006-2011 ()
26
42
64
25 37
85
37
40
Global Average
LatAm Average
MEXICO CENTRAL
AMERICA
PERU
CHILE
BRAZIL
ARGENTINA
200
220
240
260
280
300
320
340
360
CAGR lsquo99-rsquo03
1
CAGR rsquo03-rsquo11
5
CAGR rsquo11-rsquo15
4
Venezuela
market falls
15
Mexico amp
Brazil steady
growth
MampA activities
Mexico amp Brazil
drive the
category growth
Beer
consumption
fueled by Brazil
Common factors among LatAm
Markets are expected to continue growing
18
Common factors among LatAm
Lager beer is the norm 99 of the market
Skol is the
leading beer
in Brazil and
worldrsquos fourth
best selling
beer brand
Brahma is
consumed in
more than 15
countries In
2011 many
product
innovations
were driven by
this brand
Corona is the
leading beer
in Mexico and
worldrsquos fifth best
selling beer
brand
90 sold in
Mexico and the
US
Antarctica
Pilsen beer is
the 3rd best
selling beer
in Brazil
Itrsquos the largest
best known
beer in
Venezuela
Polar produces
beers and raw
malt
19
Common factors among LatAm
Competing against Soft Drinks
40
24
5 yrs CAGR ()
Beer
CSDs
20
Ambev ndash 30
AB-InBev ndash 50 (Modelo+CND+Regional)
SAB Miller
12
22
2006 2011
54
SAB Miller
11
Common factors among LatAm
Growing Investments and Consolidation
Heineken (+CCU
+Florida)
16
21
2012 Consolidation
Polar Regional
Cerv Centroamericana
Cerv Dominicana
Warsteiner
Schincariol
Paraense
Petropolis
2010
Ajegroup
2010 beer
presentation hellip
22
2012 Consolidation
Polar Cerv Centroamericana
Paraense
Petropolis
2010
Ajegroup
Is there room for
more consolidation
23
2016 LatAm
Incremental Volume 2006 - 2011 - 2016
Beer Oth Alc CSDs
CAGR 06-16
4
CAGR 06-16
2
CAGR 06-16
3
+ 116 Million Hlts
+ 13 Million Hlts
+ 168 Million Hlts
24
2012 Consolidation
Danone Group
Dr Pepper
Snapple Group
Postobon
2010
Ajegroup
Soft drinks companies
Jumex Is there room for
more consolidation
25
USA China Brazil
Spain Germany Italy
Sources of future VOLUME growth
Population +18yrs By 2020 the LatAm young adults
population will reach 207 millions
Annual growth of legal drinking age
population in LatAm +17
26
Sources of future VOLUME growth
Brazil - Regional Consumption 4
67 LPC
rsquo11-rsquo15
CAGR
5
46 LPC
rsquo11-rsquo15
CAGR
23
4
72 LPC
rsquo11-rsquo15
CAGR
54
3
63 LPC
rsquo11-rsquo15
CAGR
12
6
34 LPC
rsquo11-rsquo15
CAGR
4
4
61 LPC
rsquo11-rsquo15
CAGR
7
27
Sources of future VOLUME growth
Brazilrsquos Northeast Region
30 of the population
23 of beer consumption
Regional consumption 46 LPC
Brewery locations
Ambev Heineken Schincariol
+ 6 millions Hl by 2015F
Regional segmentation approach
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
16
Common factors among LatAm
Markets are growing above world average
5yrs CAGR 2006-2011 ()
26
42
64
25 37
85
37
40
Global Average
LatAm Average
MEXICO CENTRAL
AMERICA
PERU
CHILE
BRAZIL
ARGENTINA
200
220
240
260
280
300
320
340
360
CAGR lsquo99-rsquo03
1
CAGR rsquo03-rsquo11
5
CAGR rsquo11-rsquo15
4
Venezuela
market falls
15
Mexico amp
Brazil steady
growth
MampA activities
Mexico amp Brazil
drive the
category growth
Beer
consumption
fueled by Brazil
Common factors among LatAm
Markets are expected to continue growing
18
Common factors among LatAm
Lager beer is the norm 99 of the market
Skol is the
leading beer
in Brazil and
worldrsquos fourth
best selling
beer brand
Brahma is
consumed in
more than 15
countries In
2011 many
product
innovations
were driven by
this brand
Corona is the
leading beer
in Mexico and
worldrsquos fifth best
selling beer
brand
90 sold in
Mexico and the
US
Antarctica
Pilsen beer is
the 3rd best
selling beer
in Brazil
Itrsquos the largest
best known
beer in
Venezuela
Polar produces
beers and raw
malt
19
Common factors among LatAm
Competing against Soft Drinks
40
24
5 yrs CAGR ()
Beer
CSDs
20
Ambev ndash 30
AB-InBev ndash 50 (Modelo+CND+Regional)
SAB Miller
12
22
2006 2011
54
SAB Miller
11
Common factors among LatAm
Growing Investments and Consolidation
Heineken (+CCU
+Florida)
16
21
2012 Consolidation
Polar Regional
Cerv Centroamericana
Cerv Dominicana
Warsteiner
Schincariol
Paraense
Petropolis
2010
Ajegroup
2010 beer
presentation hellip
22
2012 Consolidation
Polar Cerv Centroamericana
Paraense
Petropolis
2010
Ajegroup
Is there room for
more consolidation
23
2016 LatAm
Incremental Volume 2006 - 2011 - 2016
Beer Oth Alc CSDs
CAGR 06-16
4
CAGR 06-16
2
CAGR 06-16
3
+ 116 Million Hlts
+ 13 Million Hlts
+ 168 Million Hlts
24
2012 Consolidation
Danone Group
Dr Pepper
Snapple Group
Postobon
2010
Ajegroup
Soft drinks companies
Jumex Is there room for
more consolidation
25
USA China Brazil
Spain Germany Italy
Sources of future VOLUME growth
Population +18yrs By 2020 the LatAm young adults
population will reach 207 millions
Annual growth of legal drinking age
population in LatAm +17
26
Sources of future VOLUME growth
Brazil - Regional Consumption 4
67 LPC
rsquo11-rsquo15
CAGR
5
46 LPC
rsquo11-rsquo15
CAGR
23
4
72 LPC
rsquo11-rsquo15
CAGR
54
3
63 LPC
rsquo11-rsquo15
CAGR
12
6
34 LPC
rsquo11-rsquo15
CAGR
4
4
61 LPC
rsquo11-rsquo15
CAGR
7
27
Sources of future VOLUME growth
Brazilrsquos Northeast Region
30 of the population
23 of beer consumption
Regional consumption 46 LPC
Brewery locations
Ambev Heineken Schincariol
+ 6 millions Hl by 2015F
Regional segmentation approach
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
200
220
240
260
280
300
320
340
360
CAGR lsquo99-rsquo03
1
CAGR rsquo03-rsquo11
5
CAGR rsquo11-rsquo15
4
Venezuela
market falls
15
Mexico amp
Brazil steady
growth
MampA activities
Mexico amp Brazil
drive the
category growth
Beer
consumption
fueled by Brazil
Common factors among LatAm
Markets are expected to continue growing
18
Common factors among LatAm
Lager beer is the norm 99 of the market
Skol is the
leading beer
in Brazil and
worldrsquos fourth
best selling
beer brand
Brahma is
consumed in
more than 15
countries In
2011 many
product
innovations
were driven by
this brand
Corona is the
leading beer
in Mexico and
worldrsquos fifth best
selling beer
brand
90 sold in
Mexico and the
US
Antarctica
Pilsen beer is
the 3rd best
selling beer
in Brazil
Itrsquos the largest
best known
beer in
Venezuela
Polar produces
beers and raw
malt
19
Common factors among LatAm
Competing against Soft Drinks
40
24
5 yrs CAGR ()
Beer
CSDs
20
Ambev ndash 30
AB-InBev ndash 50 (Modelo+CND+Regional)
SAB Miller
12
22
2006 2011
54
SAB Miller
11
Common factors among LatAm
Growing Investments and Consolidation
Heineken (+CCU
+Florida)
16
21
2012 Consolidation
Polar Regional
Cerv Centroamericana
Cerv Dominicana
Warsteiner
Schincariol
Paraense
Petropolis
2010
Ajegroup
2010 beer
presentation hellip
22
2012 Consolidation
Polar Cerv Centroamericana
Paraense
Petropolis
2010
Ajegroup
Is there room for
more consolidation
23
2016 LatAm
Incremental Volume 2006 - 2011 - 2016
Beer Oth Alc CSDs
CAGR 06-16
4
CAGR 06-16
2
CAGR 06-16
3
+ 116 Million Hlts
+ 13 Million Hlts
+ 168 Million Hlts
24
2012 Consolidation
Danone Group
Dr Pepper
Snapple Group
Postobon
2010
Ajegroup
Soft drinks companies
Jumex Is there room for
more consolidation
25
USA China Brazil
Spain Germany Italy
Sources of future VOLUME growth
Population +18yrs By 2020 the LatAm young adults
population will reach 207 millions
Annual growth of legal drinking age
population in LatAm +17
26
Sources of future VOLUME growth
Brazil - Regional Consumption 4
67 LPC
rsquo11-rsquo15
CAGR
5
46 LPC
rsquo11-rsquo15
CAGR
23
4
72 LPC
rsquo11-rsquo15
CAGR
54
3
63 LPC
rsquo11-rsquo15
CAGR
12
6
34 LPC
rsquo11-rsquo15
CAGR
4
4
61 LPC
rsquo11-rsquo15
CAGR
7
27
Sources of future VOLUME growth
Brazilrsquos Northeast Region
30 of the population
23 of beer consumption
Regional consumption 46 LPC
Brewery locations
Ambev Heineken Schincariol
+ 6 millions Hl by 2015F
Regional segmentation approach
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
18
Common factors among LatAm
Lager beer is the norm 99 of the market
Skol is the
leading beer
in Brazil and
worldrsquos fourth
best selling
beer brand
Brahma is
consumed in
more than 15
countries In
2011 many
product
innovations
were driven by
this brand
Corona is the
leading beer
in Mexico and
worldrsquos fifth best
selling beer
brand
90 sold in
Mexico and the
US
Antarctica
Pilsen beer is
the 3rd best
selling beer
in Brazil
Itrsquos the largest
best known
beer in
Venezuela
Polar produces
beers and raw
malt
19
Common factors among LatAm
Competing against Soft Drinks
40
24
5 yrs CAGR ()
Beer
CSDs
20
Ambev ndash 30
AB-InBev ndash 50 (Modelo+CND+Regional)
SAB Miller
12
22
2006 2011
54
SAB Miller
11
Common factors among LatAm
Growing Investments and Consolidation
Heineken (+CCU
+Florida)
16
21
2012 Consolidation
Polar Regional
Cerv Centroamericana
Cerv Dominicana
Warsteiner
Schincariol
Paraense
Petropolis
2010
Ajegroup
2010 beer
presentation hellip
22
2012 Consolidation
Polar Cerv Centroamericana
Paraense
Petropolis
2010
Ajegroup
Is there room for
more consolidation
23
2016 LatAm
Incremental Volume 2006 - 2011 - 2016
Beer Oth Alc CSDs
CAGR 06-16
4
CAGR 06-16
2
CAGR 06-16
3
+ 116 Million Hlts
+ 13 Million Hlts
+ 168 Million Hlts
24
2012 Consolidation
Danone Group
Dr Pepper
Snapple Group
Postobon
2010
Ajegroup
Soft drinks companies
Jumex Is there room for
more consolidation
25
USA China Brazil
Spain Germany Italy
Sources of future VOLUME growth
Population +18yrs By 2020 the LatAm young adults
population will reach 207 millions
Annual growth of legal drinking age
population in LatAm +17
26
Sources of future VOLUME growth
Brazil - Regional Consumption 4
67 LPC
rsquo11-rsquo15
CAGR
5
46 LPC
rsquo11-rsquo15
CAGR
23
4
72 LPC
rsquo11-rsquo15
CAGR
54
3
63 LPC
rsquo11-rsquo15
CAGR
12
6
34 LPC
rsquo11-rsquo15
CAGR
4
4
61 LPC
rsquo11-rsquo15
CAGR
7
27
Sources of future VOLUME growth
Brazilrsquos Northeast Region
30 of the population
23 of beer consumption
Regional consumption 46 LPC
Brewery locations
Ambev Heineken Schincariol
+ 6 millions Hl by 2015F
Regional segmentation approach
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
19
Common factors among LatAm
Competing against Soft Drinks
40
24
5 yrs CAGR ()
Beer
CSDs
20
Ambev ndash 30
AB-InBev ndash 50 (Modelo+CND+Regional)
SAB Miller
12
22
2006 2011
54
SAB Miller
11
Common factors among LatAm
Growing Investments and Consolidation
Heineken (+CCU
+Florida)
16
21
2012 Consolidation
Polar Regional
Cerv Centroamericana
Cerv Dominicana
Warsteiner
Schincariol
Paraense
Petropolis
2010
Ajegroup
2010 beer
presentation hellip
22
2012 Consolidation
Polar Cerv Centroamericana
Paraense
Petropolis
2010
Ajegroup
Is there room for
more consolidation
23
2016 LatAm
Incremental Volume 2006 - 2011 - 2016
Beer Oth Alc CSDs
CAGR 06-16
4
CAGR 06-16
2
CAGR 06-16
3
+ 116 Million Hlts
+ 13 Million Hlts
+ 168 Million Hlts
24
2012 Consolidation
Danone Group
Dr Pepper
Snapple Group
Postobon
2010
Ajegroup
Soft drinks companies
Jumex Is there room for
more consolidation
25
USA China Brazil
Spain Germany Italy
Sources of future VOLUME growth
Population +18yrs By 2020 the LatAm young adults
population will reach 207 millions
Annual growth of legal drinking age
population in LatAm +17
26
Sources of future VOLUME growth
Brazil - Regional Consumption 4
67 LPC
rsquo11-rsquo15
CAGR
5
46 LPC
rsquo11-rsquo15
CAGR
23
4
72 LPC
rsquo11-rsquo15
CAGR
54
3
63 LPC
rsquo11-rsquo15
CAGR
12
6
34 LPC
rsquo11-rsquo15
CAGR
4
4
61 LPC
rsquo11-rsquo15
CAGR
7
27
Sources of future VOLUME growth
Brazilrsquos Northeast Region
30 of the population
23 of beer consumption
Regional consumption 46 LPC
Brewery locations
Ambev Heineken Schincariol
+ 6 millions Hl by 2015F
Regional segmentation approach
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
20
Ambev ndash 30
AB-InBev ndash 50 (Modelo+CND+Regional)
SAB Miller
12
22
2006 2011
54
SAB Miller
11
Common factors among LatAm
Growing Investments and Consolidation
Heineken (+CCU
+Florida)
16
21
2012 Consolidation
Polar Regional
Cerv Centroamericana
Cerv Dominicana
Warsteiner
Schincariol
Paraense
Petropolis
2010
Ajegroup
2010 beer
presentation hellip
22
2012 Consolidation
Polar Cerv Centroamericana
Paraense
Petropolis
2010
Ajegroup
Is there room for
more consolidation
23
2016 LatAm
Incremental Volume 2006 - 2011 - 2016
Beer Oth Alc CSDs
CAGR 06-16
4
CAGR 06-16
2
CAGR 06-16
3
+ 116 Million Hlts
+ 13 Million Hlts
+ 168 Million Hlts
24
2012 Consolidation
Danone Group
Dr Pepper
Snapple Group
Postobon
2010
Ajegroup
Soft drinks companies
Jumex Is there room for
more consolidation
25
USA China Brazil
Spain Germany Italy
Sources of future VOLUME growth
Population +18yrs By 2020 the LatAm young adults
population will reach 207 millions
Annual growth of legal drinking age
population in LatAm +17
26
Sources of future VOLUME growth
Brazil - Regional Consumption 4
67 LPC
rsquo11-rsquo15
CAGR
5
46 LPC
rsquo11-rsquo15
CAGR
23
4
72 LPC
rsquo11-rsquo15
CAGR
54
3
63 LPC
rsquo11-rsquo15
CAGR
12
6
34 LPC
rsquo11-rsquo15
CAGR
4
4
61 LPC
rsquo11-rsquo15
CAGR
7
27
Sources of future VOLUME growth
Brazilrsquos Northeast Region
30 of the population
23 of beer consumption
Regional consumption 46 LPC
Brewery locations
Ambev Heineken Schincariol
+ 6 millions Hl by 2015F
Regional segmentation approach
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
21
2012 Consolidation
Polar Regional
Cerv Centroamericana
Cerv Dominicana
Warsteiner
Schincariol
Paraense
Petropolis
2010
Ajegroup
2010 beer
presentation hellip
22
2012 Consolidation
Polar Cerv Centroamericana
Paraense
Petropolis
2010
Ajegroup
Is there room for
more consolidation
23
2016 LatAm
Incremental Volume 2006 - 2011 - 2016
Beer Oth Alc CSDs
CAGR 06-16
4
CAGR 06-16
2
CAGR 06-16
3
+ 116 Million Hlts
+ 13 Million Hlts
+ 168 Million Hlts
24
2012 Consolidation
Danone Group
Dr Pepper
Snapple Group
Postobon
2010
Ajegroup
Soft drinks companies
Jumex Is there room for
more consolidation
25
USA China Brazil
Spain Germany Italy
Sources of future VOLUME growth
Population +18yrs By 2020 the LatAm young adults
population will reach 207 millions
Annual growth of legal drinking age
population in LatAm +17
26
Sources of future VOLUME growth
Brazil - Regional Consumption 4
67 LPC
rsquo11-rsquo15
CAGR
5
46 LPC
rsquo11-rsquo15
CAGR
23
4
72 LPC
rsquo11-rsquo15
CAGR
54
3
63 LPC
rsquo11-rsquo15
CAGR
12
6
34 LPC
rsquo11-rsquo15
CAGR
4
4
61 LPC
rsquo11-rsquo15
CAGR
7
27
Sources of future VOLUME growth
Brazilrsquos Northeast Region
30 of the population
23 of beer consumption
Regional consumption 46 LPC
Brewery locations
Ambev Heineken Schincariol
+ 6 millions Hl by 2015F
Regional segmentation approach
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
22
2012 Consolidation
Polar Cerv Centroamericana
Paraense
Petropolis
2010
Ajegroup
Is there room for
more consolidation
23
2016 LatAm
Incremental Volume 2006 - 2011 - 2016
Beer Oth Alc CSDs
CAGR 06-16
4
CAGR 06-16
2
CAGR 06-16
3
+ 116 Million Hlts
+ 13 Million Hlts
+ 168 Million Hlts
24
2012 Consolidation
Danone Group
Dr Pepper
Snapple Group
Postobon
2010
Ajegroup
Soft drinks companies
Jumex Is there room for
more consolidation
25
USA China Brazil
Spain Germany Italy
Sources of future VOLUME growth
Population +18yrs By 2020 the LatAm young adults
population will reach 207 millions
Annual growth of legal drinking age
population in LatAm +17
26
Sources of future VOLUME growth
Brazil - Regional Consumption 4
67 LPC
rsquo11-rsquo15
CAGR
5
46 LPC
rsquo11-rsquo15
CAGR
23
4
72 LPC
rsquo11-rsquo15
CAGR
54
3
63 LPC
rsquo11-rsquo15
CAGR
12
6
34 LPC
rsquo11-rsquo15
CAGR
4
4
61 LPC
rsquo11-rsquo15
CAGR
7
27
Sources of future VOLUME growth
Brazilrsquos Northeast Region
30 of the population
23 of beer consumption
Regional consumption 46 LPC
Brewery locations
Ambev Heineken Schincariol
+ 6 millions Hl by 2015F
Regional segmentation approach
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
23
2016 LatAm
Incremental Volume 2006 - 2011 - 2016
Beer Oth Alc CSDs
CAGR 06-16
4
CAGR 06-16
2
CAGR 06-16
3
+ 116 Million Hlts
+ 13 Million Hlts
+ 168 Million Hlts
24
2012 Consolidation
Danone Group
Dr Pepper
Snapple Group
Postobon
2010
Ajegroup
Soft drinks companies
Jumex Is there room for
more consolidation
25
USA China Brazil
Spain Germany Italy
Sources of future VOLUME growth
Population +18yrs By 2020 the LatAm young adults
population will reach 207 millions
Annual growth of legal drinking age
population in LatAm +17
26
Sources of future VOLUME growth
Brazil - Regional Consumption 4
67 LPC
rsquo11-rsquo15
CAGR
5
46 LPC
rsquo11-rsquo15
CAGR
23
4
72 LPC
rsquo11-rsquo15
CAGR
54
3
63 LPC
rsquo11-rsquo15
CAGR
12
6
34 LPC
rsquo11-rsquo15
CAGR
4
4
61 LPC
rsquo11-rsquo15
CAGR
7
27
Sources of future VOLUME growth
Brazilrsquos Northeast Region
30 of the population
23 of beer consumption
Regional consumption 46 LPC
Brewery locations
Ambev Heineken Schincariol
+ 6 millions Hl by 2015F
Regional segmentation approach
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
24
2012 Consolidation
Danone Group
Dr Pepper
Snapple Group
Postobon
2010
Ajegroup
Soft drinks companies
Jumex Is there room for
more consolidation
25
USA China Brazil
Spain Germany Italy
Sources of future VOLUME growth
Population +18yrs By 2020 the LatAm young adults
population will reach 207 millions
Annual growth of legal drinking age
population in LatAm +17
26
Sources of future VOLUME growth
Brazil - Regional Consumption 4
67 LPC
rsquo11-rsquo15
CAGR
5
46 LPC
rsquo11-rsquo15
CAGR
23
4
72 LPC
rsquo11-rsquo15
CAGR
54
3
63 LPC
rsquo11-rsquo15
CAGR
12
6
34 LPC
rsquo11-rsquo15
CAGR
4
4
61 LPC
rsquo11-rsquo15
CAGR
7
27
Sources of future VOLUME growth
Brazilrsquos Northeast Region
30 of the population
23 of beer consumption
Regional consumption 46 LPC
Brewery locations
Ambev Heineken Schincariol
+ 6 millions Hl by 2015F
Regional segmentation approach
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
25
USA China Brazil
Spain Germany Italy
Sources of future VOLUME growth
Population +18yrs By 2020 the LatAm young adults
population will reach 207 millions
Annual growth of legal drinking age
population in LatAm +17
26
Sources of future VOLUME growth
Brazil - Regional Consumption 4
67 LPC
rsquo11-rsquo15
CAGR
5
46 LPC
rsquo11-rsquo15
CAGR
23
4
72 LPC
rsquo11-rsquo15
CAGR
54
3
63 LPC
rsquo11-rsquo15
CAGR
12
6
34 LPC
rsquo11-rsquo15
CAGR
4
4
61 LPC
rsquo11-rsquo15
CAGR
7
27
Sources of future VOLUME growth
Brazilrsquos Northeast Region
30 of the population
23 of beer consumption
Regional consumption 46 LPC
Brewery locations
Ambev Heineken Schincariol
+ 6 millions Hl by 2015F
Regional segmentation approach
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
26
Sources of future VOLUME growth
Brazil - Regional Consumption 4
67 LPC
rsquo11-rsquo15
CAGR
5
46 LPC
rsquo11-rsquo15
CAGR
23
4
72 LPC
rsquo11-rsquo15
CAGR
54
3
63 LPC
rsquo11-rsquo15
CAGR
12
6
34 LPC
rsquo11-rsquo15
CAGR
4
4
61 LPC
rsquo11-rsquo15
CAGR
7
27
Sources of future VOLUME growth
Brazilrsquos Northeast Region
30 of the population
23 of beer consumption
Regional consumption 46 LPC
Brewery locations
Ambev Heineken Schincariol
+ 6 millions Hl by 2015F
Regional segmentation approach
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
27
Sources of future VOLUME growth
Brazilrsquos Northeast Region
30 of the population
23 of beer consumption
Regional consumption 46 LPC
Brewery locations
Ambev Heineken Schincariol
+ 6 millions Hl by 2015F
Regional segmentation approach
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
28
$ 4405 millions
$ 6177 millions
$ 1005 millions
$ 1494 millions
$ 394 millions
$ 1347 million dollars
+10 production
capacity
in 2012
+18 investments in
2011 vs 2010
Sources of future VOLUME growth
Ambev continued to invest in capacity to fulfill
the marketrsquos expected growth
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
29
Latin America
China North America
West Europe
Superpremium
Premium
Mainstream
Discount
Sources of future VALUE growth
Premium amp Super Premium segments
Substantial interest in the high end
segment
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
Case Examples
Stella Artois shakes up the Argentinian market
15 USD
244 USD
145 USD
16 USD
244 USD
CCU
(Heineken)
SAB
CCU
(Heineken)
0
40
80
2004 2005 2006 2007 2008 2009 2010 2011
Heineken
Stella Artois
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
25
Case Examples
Mexico Heineken entrance to a brand-saturated market
12
2
12
13
12
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
Case Examples
Budweiser takes over Sao Paulohellip and Rio
085 USD
090 USD
102 USD
107 USD
115 USD
Premium 36
2005
Premium 58
2011
15
5
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
33
Industry challenges 2012
Brazil will drive LatAm beer
consumption the north east region is
still the major volume source in the
region
Volume and Value drivers
bull Population
bull Development of Premium
Segments
Room for more consolidationhellip
hardly any MampA in the Soft Drinks
industry
Positive outlook across most of the
markets CAGR 2011-16 +4
Annual growth of legal
drinking age pop in
LatAm +17
LATIN AMERICA BEER MARKET
May 2012
LATIN AMERICA BEER MARKET
May 2012