SCOTT WILSONDirector of Public AffairsMolson Coors

Annual Brewing Conference 2011

SCOTT WILSONDirector of Communications and Public Affairs

MOLSON COORS (UK & Ireland)

‘It’s Time for Beer!’

Them and Us…

It’s time to unite for a BEER REVOLUTIONCELEBRATION INNOVATION RESPECT

Source: ONS / BBPA Stats Handbook 2009, next update due Q3 2010

The British love affair with beer is in serious jeopardySocial & economic change over 40 years have seen beer’s share of drinks reduce by almost 40%

% Alcohol consumed by type

39.0%

70.9%

31.8%

10.0%

0%10%20%30%40%50%60%70%80%90%

100%

1970 1980 1990 2000 2008

% of a

lcoho

l con

sumed

Beer Cider Wine Spirits Coolers/FABs

• 2005 to 2010 decline (-18%)

• 10 years of Reverence withered on the hop vine

• 2008 to 2015 duty +50%

UK On & Off Trade Beer Pricing

Source: ONS 2009, next update due Q1 2011

Appreciation = Value. The retail price of beer in the off-trade is at the same level now as it was in the mid 1990s…… By 2018, 70% of trade will be take home

- Price per Pint (pence)

245

66

9995104

66

69

020406080

100120140160180200220240260

83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09

On Trade Off Trade

43% of the drinks consumed by cask ale drinkers in a pub are

not cask ale

Pub cask drinkers take their cask habits home with them on only 8% of the time (8% is not a misprint!)

HARD FACTS

It’s time to unite for a BEER REVOLUTIONCELEBRATION INNOVATION RESPECT

Oh, for a cup of coffee…

In Spain and the Americas, beer is truly celebrated for its choice

and unisex appeal…

Source: cerveceros de espana

Contrasting with the UK experience, the Spanish brewers have seen beer production grow by about 30% in the past decade….

• Since 2008, UK beer duty has increased by 26%. • The current rate of inflation could lead to a 7.1% increase in duty 35% in three years. • We are responsible for almost 1 million jobs and, with reduced duty, capable of generating thousands more, especially in towns and villages where alternative local employment is scarce. • Ask your MPs to show their support for local beer and pubs by signing EDM 1475

• The Pride in Beer film is a great example of Celebration

Spanish brewing is stimulated by a tax regime which is ten times less crippling that the duty on beer in Britain

CELEBRATION INNOVATION RESPECT

It’s time to unite for a BEER REVOLUTION

In 2001 18% of ale consumers were men under the age of 35

By 2008 that number had dropped to less than 10%

HARD FACTS Why does craft beer need innovation?

Are the widget and Caffrey’s the last examples of great beer innovation in the UK?

At least every 2 decades, you can rely on the music world to produce a startling innovation….

Where are beer’s iconic, game-changing innovations?

GRAMOPHONE

1880

HI FIDELITY

1927

45 RPM ‘SINGLES’

1949THE SONY WALKMAN

1980

CASSETTES

1962CDs popularised

1982

THE I-POD

2000

Should we be surprised that Britain’s drinkers are neither surprised nor delighted by modern day beer packaging?

Attracting women into the beer category is not an overnight proposition

A category which claims to own sociability, yet appeals to only half of the population, needs to rethink….

Male dominated

Too gassy

Too many calories

Too bitter

Britain’s craft brewers have the opportunity to pioneer the Beer Revolution!

Louis Pasteur

CELEBRATION INNOVATION RESPECT

It’s time to unite for a BEER REVOLUTION

If we are to improve Britain’s relationship with drink, we need a clear responsibility framework that builds a culture of respect for alcohol

PRICE EDUCATION MARKETING

All of us have a key role to play in positioning beer as the drink of moderation.

One of life’s simple pleasures….

It’s time for a beer REVOLUTION

CELEBRATION INNOVATION RESPECT

SPARECELEBRATION INNOVATION RESPECT

Cask resurgent• 3000 more pubs stock cask vs 1 year ago • 15% of pub volume• 8.6m cask ale drinkers

Track record in craft• Worthington’s White Shield – Britain’s newest micro brewery• Blue Moon – now 2m US barrels• Tenth and Blake - Colorado Native, Batch 19• Creemore Springs and Granville Island – Canadian craft • Sharp’s Brewery– good for the category

A global family brewer committed to building the craft beer category