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Reweries Breweries Leon Chung Jorge Cruz Darren Devine Cameron McLeod.

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1 reweries Breweries Leon Chung Jorge Cruz Darren Devine Cameron McLeod

2 reweries Breweries “All right, brain. You don't like me and I don't like you, but let's just do this and I can get back to killing you with beer” (Simpson, 1999).

3 reweries Outline IntroductionIntroduction –Industry Analysis:  History of the international and North American beer industry.  The Global Industry.  The North American Market. Valuation:Valuation: –Bud –Coors –Molson

4 reweries Industry Overview: History Ancient History:Ancient History: –Historians speculate that prehistoric nomads may have made beer from grain & water before learning to make bread. –4300 BC, Babylonian clay tablets detail recipes for beer. –Beer around the world: There is evidence that beer was elaborated by the Babylonian, Assyrian, Egyptian (for medical purposes), Hebrew, Chinese, and Inca cultures. –Romans brewed "cerevisia" (Ceres the goddess of agriculture & vis meaning strength in Latin). –55 BC Roman legions introduce beer to Northern Europe. –23 BC Chinese brewed beer called "kiu“

5 reweries Industry Overview: History Ancient History:Ancient History: – AD the first half of the Middle Ages, brewing begins to be practiced in Europe, shifting from family tradition to centralized production in monasteries and convents (hospitality for traveling pilgrims). –1200 AD beer making is firmly established as a commercial enterprise in Germany, Austria, and England. –1420 German brewers develop the lager method of brewing. –1489 Germany's first brewing guild, Brauerei Beck, was established.

6 reweries Industry Overview: History Renascence History:Renascence History: –1553 Beck's Brewery founded & still brewing today. –1587 the first beer brewed in New World at Sir Walter Raleigh's colony in Virginia. –1602 Dr. Alexander Nowell discovers that ale can be stored longer in cork sealed, glass bottles. –1612 the first commercial brewery opened in New Amsterdam (NYC, Manhattan). –1674 Harvard College has its own brew-house. –1680 William Penn (founder of Pennsylvania) operated a commercial brewery. –1786 Molson brewery is founded in what is today Canada.

7 reweries Industry Overview: History Modern History:Modern History: –In the mid-19th Century (1850's) German immigrant brewers introduced cold maturation lagers to the US (Anheuser-Busch, Miller, Coors, Stroh, Schlitz, and Pabst roots begin here). –The modern era of brewing in the US began in the late 1800's with commercial refrigeration (1860), automatic bottling, pasteurization (1876), and railroad distribution. –1870's Adolphus Busch pioneers the use of double- walled railcars, a network of icehouses to make Budweiser the first national brand.

8 reweries Industry Overview: History Modern History:Modern History: –1876 Pasteur unraveled the secrets of yeast in the fermentation process, and he also developed pasteurization to stabilize beers 22 years before the process was applied to milk. –1880 there were approximately 2,300 breweries in the US. –1890s Pabst was the first US brewer to sell over 1 million barrels in a year. –1914 commercial competition drove the number of operating breweries down to 1,400.

9 reweries Industry Overview: History Modern History:Modern History: –1919 House of Representatives Bill No. 6810, establishing the apparatus for the enforcement of prohibition. The bill was passed October 10, vetoed by President Wilson on October 27. The veto was subsequently overridden by Congressional vote. –1920 Prohibition Starts for beer, even though some regions started as early as 1846, e.g. Maine. Prohibition focused more on whiskey and other distilled products. –1920s Near beers brewed during prohibition: Pablo by Pabst, Famo by Schlitz, Vivo by Miller, Lux-O by Stroh and Bevo by Anheuser-Busch. –1933 Prohibition ends for beer (April 7). –1935 only 160 breweries survive Prohibition. Source:

10 reweries Industry Overview: History Modern History:Modern History: –1935 the beer can is introduced (American Can Co. & Kreuger Brewing). –1966 Budweiser is the first brand to sell 10 million barrels in a year. –1976 New Albion is the first in the rebirth of brewpubs and microbreweries in the US first opening in California. –First half of the 1900's beer was associated with men, blue- collar workers, college students, and mainstream sports enthusiasts. –Late 1900's beer had a different image and cultural function, with growth in popularity among a more diverse share of the population. Source:

11 reweries The Brew Process 1. 1.Malted barley is cracked in the Roll Mill turning into grist and then stored in the grist case The grist drops into the mash lauter tun and mixes with hot water provided by the hot liquor tank producing a sugary liquid called wort The wort travels to the brew kettle where it's heated to a rolling boil. Hops are added to provide bitterness, flavor, and aroma The hopped wort passes through the heat exchanger cooling to the right temperature for fermentation The now chilled, hopped wort meets up with the yeast in the fermenter to begin the fermentation process. Once completed, the liquid referred to as wort is now called beer The beer enters a filter designed to help remove yeast and haze producing compounds. PASTEURISATION: This is a process of heating and rapid cooling which prolongs shelf-life and destroys any bacteria or other organisms in the beer The finished beer exits the filter and enters the serving tank ready to be dispensed.

12 reweries Industry Overview: General Characteristics –Beer is a Mature Product. –It is the largest seller in the alcohol drinks sector. –Sales are related to:  Weather (summer months)  Holidays: Christmas and the 4 th of July in the US  The first and fourth quarters historically are the slowest with the rest of the year typically demonstrating stronger sales –Consumer base: heavily male dominated. Source: The Brewers’ Handbook (http://www.beer-brewing.com/)

13 reweries Industry Overview

14 reweries Global Beer Market: General Characteristics Beer is one of the smallest global consumer goods.Beer is one of the smallest global consumer goods. Although globalization is a general trend in many industries, the brewing industry has long been lagging behind and has remained very fragmented.Although globalization is a general trend in many industries, the brewing industry has long been lagging behind and has remained very fragmented. Globalization in the beer industry has proceeded at a much slower pace than in many similar industries (e.g. tobacco).Globalization in the beer industry has proceeded at a much slower pace than in many similar industries (e.g. tobacco).

15 reweries Global Beer Market: Recent Trends Consolidation led by major international brewers.Consolidation led by major international brewers. –During recent years brewers like Heineken and Interbrew have started internationalizing their activities. Volume growth in developing marketsVolume growth in developing markets –China: Second largest market (by sales) and growing. Largest market in total volume. –Eastern Europe and Russia Big gets bigger:Big gets bigger: –According to various studies aggregate volume of the world’s top 10 brewers has grown at more than four times the pace of total industry volume since the mid-1990s. Source: Ludwig Theuvsen and Oliver Ebneth (2004). International Food and Agribusiness Management Association (IFAMA).

16 reweries Development of the Top 10 Brewers and the World Market (in millions of hl*) hl = hectoliter, measure used in the brewing industry equivalent to 100 liters. Source: International Food and Agribusiness Management Association (IFAMA).

17 reweries Top 10 Global Brewers (2003) (57% Market Share)* * Volume of the world beer market in 2003: billion hl. Source: International Food and Agribusiness Management Association (IFAMA).

18 reweries Above Average Growth of the 5 largest brewing companies over the last 5 years Source: International Food and Agribusiness Management Association (IFAMA).

19 reweries Global Beer Consumption

20 reweries Global Beer Market Reasons for global expansion:Reasons for global expansion: –Growth potential –Expansion in view of saturated home markets. Source: Ludwig Theuvsen and Oliver Ebneth (2004). International Food and Agribusiness Management Association (IFAMA). Global market share of top 20 brewers is increasingGlobal market share of top 20 brewers is increasing – % – % Industry remains fragmentedIndustry remains fragmented –5 largest account for approximately 30% of total volume –Compare this to the cigarette industry – 5 largest, 60% share Home Market Dependence.Home Market Dependence.

21 reweries Global Beer Market According to Theuvsen and Ebneth (2004)According to Theuvsen and Ebneth (2004) “consolidation in the brewing sector is far from ending and the internationalization process has just begun to pick up speed” Source: Ludwig Theuvsen and Oliver Ebneth (2004). International Food and Agribusiness Management Association (IFAMA).

22 reweries Global Beer Market Internationalization Process:Internationalization Process: –According to Kutschker et al. (1997) the process can be classified into three categories:  international evolution  international episodes  international epochs –According to Theuvsen and Ebneth (2004) in the brewing industry we could identify an international epoch over the last five years, which is characterized by  a broad scope  high speed  long duration of change –They also predict that “during the following years, consolidation and integration will be the overall pattern”.

23 reweries Global Beer Market Source: International evolution, international episodes, and international epochs--implications for managing internationalization. Michael Kutschker, Iris Baurle, Stefan Schmid. Management International Review. Wiesbaden: 1997.Vol.37, Iss. 2; pg. 101, 24 pgs

24 reweries The Internationalization Matrix Source: Ludwig Theuvsen and Oliver Ebneth (2004). International Food and Agribusiness Management Association (IFAMA).

25 reweries The North American Market: General Characteristics 3 basic levels of brewing according to annual production:3 basic levels of brewing according to annual production: –High-volume (shipments of over 15 million barrels):  They account for around 80% of total production.  All of them are owned by the 3 largest brewing companies in the US (Anheuser- Busch Inc., Miller Brewing Co., and Adolph Coors Co.) –Regional (15,000 – 15M barrels):  They account for 15% of total production  Usually focused on local distribution  Many micro-breweries have grown into this category in the last 5 years.  Examples: Stroh Brewery Co., Pabst Brewing Co., Genessee Brewing Co. –Small Breweries (less than 15,000 barrels):  They account for 5% or less of total production.  Microbreweries and brewpubs (also restaurant-breweries or “craft brewers”).  They started in the late 1970s Source: Goldammer (2000) - The Brewers Handbook

26 reweries The North American Market: Market Segments Domestic, imported and specialty beers:Domestic, imported and specialty beers: –Domestic Beers  Sub-premium  Premium  Malt liquor segments  Super premium*  Light*  Ice*  Dry* * They are the result of high price competition during the 1970s and 1980s. They are priced high and their purpose is to reclaim some of the revenue lost during the “price wars”.

27 reweries The North American Market: Market Segments –Imports: They’re growing steadily (around 5-8% since 1990s). Reasons for growth:  Expanding economy  Consumer interest in ‘higher-quality’ (higher-priced) beer.  Growth of the Hispanic community in the US.  Most importantly, corporate partnerships/ownerships of foreign breweries that allow foreign brands to access the local distribution networks.  Since 1995 the No. 1 import is Corona Extra from Cerveceria Modelo. Source: Goldammer (2000) - The Brewers Handbook

28 reweries The North American Market: Market Segments –Specialty Beers:  Fastest growing segment (10-15% since 1990).  They are perceived as higher quality by consumers.  Subcategories include: o large breweries o regional breweries o contract brewing companies o microbreweries o brewpubs Source: Goldammer (2000) - The Brewers Handbook

29 reweries The North American Market: Industry Structure Flat consumption trends: only some international markets and the micro-brewing segment show growing opportunities.Flat consumption trends: only some international markets and the micro-brewing segment show growing opportunities. –The Western and the Southern regions have accounted for most of the growth (around 1.4% in 2002). Highly Concentrated: The industry includes more than 300 breweries but is dominated by three producers who command a nearly 80 percent market share:Highly Concentrated: The industry includes more than 300 breweries but is dominated by three producers who command a nearly 80 percent market share: –Anheuser-Busch (45%) –Miller Brewing (23%) –Adolph Coors (10%) The market leaders have expanded their respective market shares at the expense of other national brewers like Strohs Brewery.The market leaders have expanded their respective market shares at the expense of other national brewers like Strohs Brewery. The industry as a whole has stable and relatively predictable CFs.The industry as a whole has stable and relatively predictable CFs. Source: Department of Employment and Economic Development of Minnesota (2004) Goldammer (2000) - The Brewers Handbook

30 reweries The North American Market: Industry Structure Source: Poitras (2003) – US Breweries: Anheuser-Busch

31 reweries The North American Market: Industry Structure Market Leadership:Market Leadership: –For any consumer product company and for brewers in specific, ML is very important as it gives benefits over their rivals (i.e. production, distribution and advertising economies of scale). Distribution:Distribution: –Expensive to ship: beer has low value relative to weight. –Therefore, several breweries are needed for successful distribution. –This sometimes explains why large breweries take over small ones. –The importance of good distribution networks. The importance of branding and pricing:The importance of branding and pricing: –Price elasticity of demand. –Premium Pricing Sources: Department of Employment and Economic Development of Minnesota (2004) Poitras (2003) – US Breweries: Anheuser-Busch

32 reweries The North American Market: Industry Structure The industry’s niche markets are very fragmented, but some are growing:The industry’s niche markets are very fragmented, but some are growing: –From 1990 – 1995 smaller brewers increased their MS from 7.1 to 8%. –The number of U.S. brewing establishments has nearly doubled since 1990 (from ) but nearly all of the establishment growth occurred in firms employing fewer than 20 employees. –Virtually all new entrants to the beer industry are niche players that pursue specialized, often regional but sometime national tastes. Source: Department of Employment and Economic Development of Minnesota (2004)

33 reweries The North American Market: Industry Structure The fastest growing market segment in the US is the smaller microbrews which are often brewed by regional brewers.The fastest growing market segment in the US is the smaller microbrews which are often brewed by regional brewers. –Characteristics of the microbrews market segment:  High barriers to entry (i.e. legal, manufacturing and distribution costs)  Small consumer market with less consumer price differentiation (i.e. low price elasticity) than for major brands.  Due to the high costs of entry microbrews rely on regional brewers to produce their products under contract (e.g. Minnesota Brewing, Samuel Adams) Source: Department of Employment and Economic Development of Minnesota (2004)

34 reweries The North American Market: Demographics –Beer consumption is overwhelmingly male-dominated; men account for more than 80% of the volume consumed. –The largest group of male consumers are white and they favor domestic light beer. –African American drinkers make up about 10% of the beer market overall, and they are the biggest consumers of malt liquors, followed by ice beer. –Women beer drinkers are more attracted to specialty micro- brewed beers than they are to the big brands, due to their greater variety. –Craft-beer is more appealing to white beer drinkers than to African Americans. Source: Goldammer (2000) - The Brewers Handbook

35 reweries The North American Market: Market Trends Consolidation (e.g. mergers and acquisitions) due to:Consolidation (e.g. mergers and acquisitions) due to: –Flat consumption trends –Regulatory burdens –High Taxation The market is mature with flat consumption trends due to:The market is mature with flat consumption trends due to: –Increased alcohol awareness. –Slow population growth. –Aging population (young [male] adults are the largest beer consumers). Source: Department of Employment and Economic Development of Minnesota (2004)

36 reweries The North American Market: Market Trends As competitors fight to maintain market shares, competitive pricing could result in decreases in industry-wide pricing levels and ultimately decreased operating margins.As competitors fight to maintain market shares, competitive pricing could result in decreases in industry-wide pricing levels and ultimately decreased operating margins. Price competition combined with increasing vertical integration (i.e. Anheuser-Busch) and the inherent production economies of the market leaders makes it very difficult for an inefficient major brewer to compete on a national scale.Price competition combined with increasing vertical integration (i.e. Anheuser-Busch) and the inherent production economies of the market leaders makes it very difficult for an inefficient major brewer to compete on a national scale. Source: Standard & Poors Industry Surveys as quoted by the Department of Employment and Economic Development of Minnesota (2004)

37 reweries The North American Market: Market Trends Changes in tastesChanges in tastes –Shift to “light beer” (started by Miller in 1972 – Miller Light). –Affected companies:  Schiltz  Pabst  Stroh –Light beer segment grew from 0% to 23% of US beer consumption since –A-B has deterred Miller’s leadership in this segment. In 2001 Bud Light became the top selling beer overall. Source: Standard & Poors Industry Surveys as quoted by the Department of Employment and Economic Development of Minnesota (2004)

38 reweries The North American Market: Market Trends Distribution:Distribution: –Increasing number of independent (multi-brand) wholesalers. –More wholesalers going out of their home-states. –However, the total number of wholesalers is decreasing.  Due to consolidation.  The number of wholesalers has declined from more than 5,000 nationwide in 1970 to fewer than 2,500 today. Retailing:Retailing: –Traditional stores (mom-and-pop operations) account for a significant amount of sales but national retail chains are accounting for more sales. –While independently owned taverns, restaurants, and night clubs account for a sizeable share of beer sales, national restaurant/hotel chains are growing in importance. –Consequences:  More competitive pricing  Distribution networks have become more important. Source: Goldammer (2000) - The Brewers Handbook

39 reweries The North American Market: Market Trends Internationalization through:Internationalization through:  Exports (i.e. Miller)  Joint Ventures.  Equity Purchases of foreign brewers and distributors (i.e. Anheuser-Busch and Grupo Modelo). Ethical InvestmentEthical Investment Source: Standard & Poors Industry Surveys as quoted by the Department of Employment and Economic Development of Minnesota (2004)

40 reweries The North American Market: Regulations Regulations focus on:Regulations focus on: –Distribution –Labeling –Advertising –Credit –Container characteristics –Alcoholic content –Tax rates –Litter assessments. Source: Goldammer (2000) - The Brewers Handbook

41 reweries The North American Market: Regulations Subject to regulation at the 3 levels: Federal:Federal: –Formerly issued by the Bureau of Alcohol, Tobacco, and Firearms (BATF), which was established by the Federal Alcohol Administration (FAA) Act. –On November 25, 2002, the Homeland Security Act of 2002 split the agency into two different agencies.  The Department of Justice  The Alcohol and Tobacco Tax and Trade Bureau (TTB) (kept within the United States Department of the Treasury). Source: Goldammer (2000) - The Brewers Handbook

42 reweries The North American Market: Regulations Federal:Federal:  TTB responsibilities: o Enforce the compliance of provisions for the formulation and labeling of alcoholic beverages, as required by the Internal Revenue Code and the FAA Act o Taxes, distribution and advertising. o International trade regulations o Lab testing (approval of brewing formulas and equipment) Source: Goldammer (2000) - The Brewers Handbook

43 reweries The North American Market: Regulations State:State: –After Prohibition, state governments were given considerable authority over the production, importation, distribution, sale, and consumption of beer within their borders. –Regulations vary across states (i.e. Minnesota requires that the beer label show the alcohol content, while Michigan does not permit the label to show alcohol content). –Other regulations include:  Max – Min alcohol content  Max – Min size of containers  Credit sales  Advertising  Production, distribution and retailing  Taxes Source: Goldammer (2000) - The Brewers Handbook

44 reweries The North American Market: Regulations Local:Local: –Many states permit local jurisdictions to regulate and separately tax beer sales, and even to prohibit the sale of beer within their jurisdiction.  Georgia, Illinois, Louisiana, Maryland, New York, and Ohio have cities or counties that impose local beer taxes. –Jurisdictions in which the sale of alcoholic beverages is prohibited are called “dry”.  about 4.3% of the U.S. population live in dry counties Source: Goldammer (2000) - The Brewers Handbook

45 reweries The North American Market: Regulations Other consequences of Prohibition:Other consequences of Prohibition: –‘Three-tier’ system: the industry is required to be divided into  Brewers and Importers  Wholesalers o Exclusive (often partially owned by the brewery). o Independent or multi-brand: Unlike wine and spirits wholesalers, which are generally multi-state operators, beer wholesalers tend to operate within the boundaries of a single state  Retailers Source: Goldammer (2000) - The Brewers Handbook

46 reweries The North American Market : Regulations Taxes:Taxes: –44% tax of beer retail price in US (2001). –taxes equal 31.7% of final sales of all products (GNP) in the U.S. (approx. 20% at the federal level and 12% at the state-local level) BrewersBrewers –Beer Excise Tax Source: Dawson, Havis (2002). Stir. Beverage World; Dec 15, 2002; 121, 1721; ABI/INFORM Global pg. 38

47 reweries The North American Market Threats of new entrants:Threats of new entrants: –Barriers to entry:  Capital Intensive  Distribution networks  Regulations –Economies of scale in marketing, production and distribution.

48 reweries The North American Market Rivalry (price competition has been decreasing):Rivalry (price competition has been decreasing): –Increasing competition from imported beers (however, national brewers own part of these breweries). –2,200 wholesalers. –560,000 retail establishments. –Growing popularity of micro-breweries and other craft-beers. –Alternative: expansion to super-premium beers and other segments with lower demand elasticity.

49 reweries The North American Market Substitutes (Growing):Substitutes (Growing): –Growth in:  Premixed drinks.  Alternative malt beverage.  Alternative non-alcoholic drinks (from juices to mineral water). –However, beer remains the largest drink sector.

50 reweries The North American Market Buyer’s Bargaining Power:Buyer’s Bargaining Power: –It changes from segment to segment, but in general:  Low switching costs  Price competition  Increasing health conscience. –However, for craft-beers, which are perceived as having higher quality, these characteristics may not always hold.

51 reweries The North American Market Suppliers’ Bargaining Power (Low):Suppliers’ Bargaining Power (Low): –Most supplies come from competitive industries which are more fragmented than the beer industry:  Farmers  Labor (the case of unionized labor) –The more consolidated supplier is that one supplying bottles/cans.

52 reweries The North American Market Key elements for improving operating margins for national breweries:Key elements for improving operating margins for national breweries: –Expanded market share. –Low cost structure. –Price increases and premium pricing (low demand elasticity). –Improved production efficiencies (packaging and automation). –International expansion to countries with increasing consumption trends. –Connection between branding and pricing. –Distribution Networks (wholesalers’ loyalty). Sources: Department of Employment and Economic Development of Minnesota (2004) Poitras (2003) – US Breweries: Anheuser-Busch

53 reweries VALUATIONS Molson – Leon Chung Coors - Cameron McLeod Bud - Darren Devine

54 reweries Molson

55 Company Overview Founded in 1786 by John MolsonFounded in 1786 by John Molson 3,800 employees3,800 employees 5 breweries located in Vancouver, Edmonton, Toronto, Montreal and St. John’s5 breweries located in Vancouver, Edmonton, Toronto, Montreal and St. John’s Oldest beer brand in N. AmericaOldest beer brand in N. America Operations in Canada, Brazil, and the United StatesOperations in Canada, Brazil, and the United States

56 reweries Company Overview Canada’s largest brewerCanada’s largest brewer In 2001, Molson repurchased 100% of Molson brands in the US and has 50.1% interest in Molson USAIn 2001, Molson repurchased 100% of Molson brands in the US and has 50.1% interest in Molson USA Pursuing the fast growing Brazilian marketPursuing the fast growing Brazilian market Global gross sales of $3.5 billionGlobal gross sales of $3.5 billion

57 reweries Senior Management Daniel J. O'Neill* President and Chief Executive OfficerDaniel J. O'Neill* President and Chief Executive Officer Brian Burden* Executive Vice President and Chief Financial OfficerBrian Burden* Executive Vice President and Chief Financial Officer Kevin T. Boyce* President and Chief Operating Officer, North AmericaKevin T. Boyce* President and Chief Operating Officer, North America Robert Coallier* President and Chief Executive Officer, Cervejarias Kaiser and Executive Vice President, Molson Inc.Robert Coallier* President and Chief Executive Officer, Cervejarias Kaiser and Executive Vice President, Molson Inc. Raynald H. Doin* Senior Vice-President Strategy and Integration, Human ResourcesRaynald H. Doin* Senior Vice-President Strategy and Integration, Human Resources Marie Giguère* Senior Vice President, Chief Legal Officer and SecretaryMarie Giguère* Senior Vice President, Chief Legal Officer and Secretary Peter L. Amirault* Senior Vice-President Business Development and InnovationPeter L. Amirault* Senior Vice-President Business Development and Innovation

58 reweries Portfolio of Brands Core Brands Canadian, Canadian Light, Carling Black Label, Exlight, Export, Golden, Marca Bavaria, Kaiser, Molson Dry, and Rickard’sCanadian, Canadian Light, Carling Black Label, Exlight, Export, Golden, Marca Bavaria, Kaiser, Molson Dry, and Rickard’s Molson’s Partners Coors Light, Corona, Heineken, and MGDCoors Light, Corona, Heineken, and MGD

59 reweries Challenges in 2003 Faced same challenges in US as Coors didFaced same challenges in US as Coors did In Canada, Alberta and Ontario faced strong discount activity and Molson had a hard time respondingIn Canada, Alberta and Ontario faced strong discount activity and Molson had a hard time responding In Brazil, market share decreased by over 2% due to increased competitionIn Brazil, market share decreased by over 2% due to increased competition

60 reweries Plans for the Future Five Key Objectives Grow operating profitGrow operating profit Grow market shareGrow market share Grow volumeGrow volume Organizational renewalOrganizational renewal Improve qualityImprove quality

61 reweries 1) Grow Operating Profit

62 reweries 1) Grow Operating Profit Revenue growthRevenue growth – through both pricing and product mix improvement– through both pricing and product mix improvement Cost savingsCost savings –Project 125  Capacity utilization savings are expected to reach $41 million through improved brewery assets usage and equipment modernization.  Best-in-class practices and materials sourcing aim at procurement savings of $35 million.  Costs savings of $40 million for distribution are anticipated  through capital investment, productivity and supply chain integration.  Savings in organizational costs of $9 million are planned.

63 reweries 2) Grow Market Share Segmentation of Canadian Beer Market

64 reweries 2) Grow Market Share Canada Total market share in Canada decreased by 0.6% from 44.4% to 43.8% - however, customers’ preference for core owned brands (increase in share by 0.9%) lead to a rebalancing in Molson’s brand portfolio in favour of owned brandsTotal market share in Canada decreased by 0.6% from 44.4% to 43.8% - however, customers’ preference for core owned brands (increase in share by 0.9%) lead to a rebalancing in Molson’s brand portfolio in favour of owned brands Strengthen the CANADIAN brand in the premium segmentStrengthen the CANADIAN brand in the premium segment Redesigned packaging including a customized die-cut label for bottlesRedesigned packaging including a customized die-cut label for bottles New look for cansNew look for cans Refreshed outer caseRefreshed outer case

65 reweries 2) Grow Market Share Brazil Market share decreased from 14.6% to 12.4% in BrazilMarket share decreased from 14.6% to 12.4% in Brazil The flagship brand, KAISER PILSEN, was reformulated the liquid and launched a new advertising campaignThe flagship brand, KAISER PILSEN, was reformulated the liquid and launched a new advertising campaign

66 reweries 2) Grow Market Share United States Market erosion of GOLDEN and MOLSON ICEMarket erosion of GOLDEN and MOLSON ICE Molson used print, radio and outdoor advertising to win the young adult consumerMolson used print, radio and outdoor advertising to win the young adult consumer Use of Molson Twin LabelsUse of Molson Twin Labels

67 reweries 3) Volume by Geographic Sector

68 reweries 3) Volume by Hectolitres

69 reweries 3) Grow volume Canada Volume grew by 0.7% but was slower than industry which moved up 2.0%Volume grew by 0.7% but was slower than industry which moved up 2.0% Product innovations and new packaging are and will be biggest drivers of volumeProduct innovations and new packaging are and will be biggest drivers of volume New products such as COLD SHOTS, CANADIAN LIGHT, and MOLSON ULTRA should increase volume in fiscal 2005New products such as COLD SHOTS, CANADIAN LIGHT, and MOLSON ULTRA should increase volume in fiscal 2005

70 reweries 3) Grow volume Brazil Brazilian operations experienced volume drop of 17.5% over fiscal year while industry only declined by 3.4%Brazilian operations experienced volume drop of 17.5% over fiscal year while industry only declined by 3.4% Have hired key sales leadership with beer sales experienceHave hired key sales leadership with beer sales experience Created Kaiser-managed sales teams to work with Coca-Cola distributorsCreated Kaiser-managed sales teams to work with Coca-Cola distributors These and other measures lessened and even reversed the negative trend in some geographic areasThese and other measures lessened and even reversed the negative trend in some geographic areas

71 reweries 3) Grow volume United States Molson USA grew by 1.4%Molson USA grew by 1.4% Aligned itself with Coors distributors which accounted for 85% of Molson USA’s distributorsAligned itself with Coors distributors which accounted for 85% of Molson USA’s distributors Improved results and leveraged Coors market infrastructureImproved results and leveraged Coors market infrastructure Continue to build on strength of CANADIAN trademark and use innovative packagingContinue to build on strength of CANADIAN trademark and use innovative packaging

72 reweries 4) Organizational Renewal Organizational Design New structure of an integrated but decentralized sales force connected to local marketsNew structure of an integrated but decentralized sales force connected to local markets Brazil: hiring of more than 1,200 experienced sales people in six regional sales centresBrazil: hiring of more than 1,200 experienced sales people in six regional sales centres Leadership Development and Succession Planning Production Leadership ProgramProduction Leadership Program New program for development of talent in strategic marketing functionNew program for development of talent in strategic marketing function Optimal Work Environment philosophyOptimal Work Environment philosophy Optimal Work Environment

73 reweries 5) Improve quality Renaissance in Brewing initiativeRenaissance in Brewing initiative QualityQuality –Incoming raw materials –Conversion in the brewery –Consumer and customer satisfaction SafetySafety –Frequency of down time declined by 16% –Severity of accidents resulting in down time declined by 11%

74 reweries Events in the News Molson and Coors Announce Merger of Equals to Create World's Fifth Largest BrewerMolson and Coors Announce Merger of Equals to Create World's Fifth Largest Brewer Molson and Coors Announce Agreement to Pay Special Dividend to Molson Shareholders Molson to Build New $35 Million Brewery in New BrunswickMolson and Coors Announce Agreement to Pay Special Dividend to Molson Shareholders Molson to Build New $35 Million Brewery in New Brunswick

75 reweries Molson and Coors Announce Merger Pentland agrees to forego participation in special dividendPentland agrees to forego participation in special dividend Molson Coors Brewing Company will be fifth largest in worldMolson Coors Brewing Company will be fifth largest in world Combined total of 60 million hectolitresCombined total of 60 million hectolitres Management structure and board compositionManagement structure and board composition –Chairman: Eric H. Molson (Molson) –CEO: Leo Kiely III (Coors) –Vice Chairman: Daniel J. O’Neill (Molson) –CFO: Timothy V. Wolf (Coors)

76 reweries Special Dividend to Molson Shareholders Announced on Nov. 5 thAnnounced on Nov. 5 th As part of Molson and Coors mergerAs part of Molson and Coors merger Pentland will forego special dividendPentland will forego special dividend –As a result, dividend will be $3.26 rather than $3.00 Pentland is owned by Chairman Eric Molson and Director Stephen MolsonPentland is owned by Chairman Eric Molson and Director Stephen Molson

77 reweries New Brewery Cost of $35 millionCost of $35 million Located in Moncton, New BrunswickLocated in Moncton, New Brunswick Completed by January 2007Completed by January 2007 Capacity of 6 million 12 packs annuallyCapacity of 6 million 12 packs annually Implementation of distribution systemImplementation of distribution system $3.5 million forgivable loan$3.5 million forgivable loan

78 reweries Income Statement

79 reweries Income Statement Analysis P/E 17.99P/E Price to Sales 1.22Price to Sales 1.22 Price to Book 3.50Price to Book 3.50 Dividend Per Share 0.56Dividend Per Share 0.56 Book Value Per Share 9.57Book Value Per Share 9.57 Revenue Per Share 27.34Revenue Per Share 27.34

80 reweries Balance Sheet

81 reweries Balance Sheet Analysis Quick Ratio 0.25Quick Ratio 0.25 Current Ratio 0.42Current Ratio 0.42 Debt to Equity 0.65Debt to Equity 0.65 Return on Equity (ROE) 25.1%Return on Equity (ROE) 25.1% Return on Assets (ROA) 6.03%Return on Assets (ROA) 6.03% Return on Invested Capital (ROIC) 10.7%Return on Invested Capital (ROIC) 10.7%

82 reweries Cash Flows Statement

83 reweries Cash Flow Analysis Operating Activities 216.4Operating Activities Investing Activities (73.1)Investing Activities (73.1) Financing Activities (125.8)Financing Activities (125.8) Net 21.2Net 21.2 Operating Activities is greater than other expendituresOperating Activities is greater than other expenditures Investing Activities, Molson has been investing in newer equipmentInvesting Activities, Molson has been investing in newer equipment Financing Activities, repayment of long term debt was greater than refinancingFinancing Activities, repayment of long term debt was greater than refinancing

84 reweries Stock Price Summary Traded the TSXTraded the TSX –Symbol: MOL.A P –Price: –52 week high: $36.80 –52 week low: $28.50 –Market Capitalization of approximately $4121 million

85 reweries Stock Price Performance: One Year Chart (TSX)

86 reweries Stock Price Performance: Five Year Chart (NYSE)

87 reweries Recommendation Hold

88 reweries

89 reweries Company Overview Adolph Coors company was founded in 1873Adolph Coors company was founded in 1873 World’s 9 th largest brewer with $4 billion in annual salesWorld’s 9 th largest brewer with $4 billion in annual sales Principal subsidiary is the Coors Brewing Company, which is the 3 rd largest brewer in the U.S.Principal subsidiary is the Coors Brewing Company, which is the 3 rd largest brewer in the U.S. Also owns Coors Brewers Limited in the U.K., which is the U.K.’s 2 nd largest brewerAlso owns Coors Brewers Limited in the U.K., which is the U.K.’s 2 nd largest brewer Primary product in the U.S. is Coors light and in the U.K. their flagship is Carling. They rank #3 and #1 respectively in sales per marketPrimary product in the U.S. is Coors light and in the U.K. their flagship is Carling. They rank #3 and #1 respectively in sales per market Traded on the NYSE, ticker symbol (RKY)Traded on the NYSE, ticker symbol (RKY)

90 reweries Company Overview Con’t Corporate headquarters and primary brewery are located in Golden, ColoradoCorporate headquarters and primary brewery are located in Golden, Colorado The Coors Golden brewery is the world's largest on a single site. Coors owns a second brewery in Memphis, Tenn., and a packaging facility in Virginia's Shenandoah Valley, near the town of Elkton, Va.The Coors Golden brewery is the world's largest on a single site. Coors owns a second brewery in Memphis, Tenn., and a packaging facility in Virginia's Shenandoah Valley, near the town of Elkton, Va. Coors products are available in over 30 international marketsCoors products are available in over 30 international markets

91 reweries Portfolio of Brands Coors has a wide array of brands including:Coors has a wide array of brands including: –Coors Light, Coors Original, Aspen Edge, Killian’s, Blue Moon, Keystone Ice, Keystone Premium, Coors NA, Extra Gold, Zima XXX Hard Lemon Lime, Zima XXX Hard Black Cherry, Zima XXX Hard Orang

92 reweries Flagship Brands Carling is the #1 selling beer in the U.K. and Coors Brewing Limited is ranked #2 for total market share with 21% Coors Light is the #3 selling beer in the U.S. and Coors Brewing Company is ranked #3 in total market share with 11%

93 reweries Brewing Bits Coors uses an all-natural brewing process and the finest ingredients: ideal brewing water, hops, cereal grains (rice and refined corn starches), and barley. Coors has developed special strains of barley it malts itself to ensure product quality. Nothing artificial is in Coors beers.Coors uses an all-natural brewing process and the finest ingredients: ideal brewing water, hops, cereal grains (rice and refined corn starches), and barley. Coors has developed special strains of barley it malts itself to ensure product quality. Nothing artificial is in Coors beers. On average, Coors takes 55 days to brew, age, finish and package its lagers—about twice as long as its major competitors. The result is a naturally aged, stable and smooth product.On average, Coors takes 55 days to brew, age, finish and package its lagers—about twice as long as its major competitors. The result is a naturally aged, stable and smooth product.

94 reweries Challenges in 2003 Continued weakness in the US economy during 2003 and, specifically, high unemployment levels among the key 21- to 24-year-old male consumer population,Continued weakness in the US economy during 2003 and, specifically, high unemployment levels among the key 21- to 24-year-old male consumer population, Unfavorable weather, particularly in the Northeast, for a significant part of the peak summer selling season,Unfavorable weather, particularly in the Northeast, for a significant part of the peak summer selling season, The popularity of low-carbohydrate diets that softened demand for beer,The popularity of low-carbohydrate diets that softened demand for beer, The rise in popularity of distilled spirits and other alternative beverages, particularly among 21- to 29-year olds, andThe rise in popularity of distilled spirits and other alternative beverages, particularly among 21- to 29-year olds, and A grocery store strike in California that likely impacted sales in the largest beer state.A grocery store strike in California that likely impacted sales in the largest beer state.

95 reweries Plans For The Future They are striving to capture an increasing share of each new generation of legal-drinking-age beer drinkers in order to gain their brand loyalty for the long-termThey are striving to capture an increasing share of each new generation of legal-drinking-age beer drinkers in order to gain their brand loyalty for the long-term They intend to seek publicity through both new products and brands, or product developments with existing brands, such as Coors Light and CarlingThey intend to seek publicity through both new products and brands, or product developments with existing brands, such as Coors Light and Carling Strengthen their access to retail by creating a solid distribution network with wholesalers and retailersStrengthen their access to retail by creating a solid distribution network with wholesalers and retailers Lower the cost structure in order to grow profits and afford the investments needed to grow and succeedLower the cost structure in order to grow profits and afford the investments needed to grow and succeed

96 reweries Sales Volume Has risen dramatically with the acquisition of Coors Brewers LimitedHas risen dramatically with the acquisition of Coors Brewers Limited

97 reweries New Global Strategy

98 reweries Financial Review Have become globalized and diversified. In 2003, CBL performance in the U.K. and Coors Light in Canada showed the advantages of becoming more than a one- brand, one-market company.Have become globalized and diversified. In 2003, CBL performance in the U.K. and Coors Light in Canada showed the advantages of becoming more than a one- brand, one-market company. Continued cost reduction and productivity despite difficulties. Improved upon costs and productivity, in spite of challenges, particularly in the U.S. market.Continued cost reduction and productivity despite difficulties. Improved upon costs and productivity, in spite of challenges, particularly in the U.S. market. Reducing debt ahead of schedule. In just two years, they reduced debt by nearly a third through an emphasis on cash generation and disciplined capital management.Reducing debt ahead of schedule. In just two years, they reduced debt by nearly a third through an emphasis on cash generation and disciplined capital management.

99 reweries Sales by Volume & Dollars

100 reweries After Tax Income Figures are in millions of dollarsFigures are in millions of dollars Coors has seen steady growth in incomeCoors has seen steady growth in income Large increase in 02 is due to the acquisition of Coors Brewing Limited (U.K.)Large increase in 02 is due to the acquisition of Coors Brewing Limited (U.K.)

101 reweries Financial In Brief Adolph Coors Company is ranked among the 500 largest publicly traded corporations in the U.S., based on annual sales. The company is the world's 9 th largest brewer.Adolph Coors Company is ranked among the 500 largest publicly traded corporations in the U.S., based on annual sales. The company is the world's 9 th largest brewer. In 2003, Coors sales volume was 32.7 million barrels (1 U.S. barrel equals 31 gallons).In 2003, Coors sales volume was 32.7 million barrels (1 U.S. barrel equals 31 gallons). Net sales for 2003 totaled $4.0 billion net income was $174.7 million, up 8.0 percent from 2002.Net sales for 2003 totaled $4.0 billion net income was $174.7 million, up 8.0 percent from 2002.

102 reweries Merger With Molson Coors is planning on merging with Molson in December, 2004Coors is planning on merging with Molson in December, 2004 It will become the 5 th largest brewing company in the worldIt will become the 5 th largest brewing company in the world Goals are to increase penetration into new marketsGoals are to increase penetration into new markets Allows the company’s to compete with the “superpower’s” of the brewing industryAllows the company’s to compete with the “superpower’s” of the brewing industry

103 reweries Propels MolsonCoors into ‘Top5’ Volume (M hl) 17 Foster’s 21 Molson 39 Coors 42Grupo Modelo 60 Molson Coors 54Carlsberg (1) 109 Heineken 116 SABMiller 152 A-B 215 InterbrewAmBev 25 FEMSA 50 Scottish & Newcastle 23 Kirin 36 Asahi 33 Tsingtao

104 reweries

105 Income Statement Analysis Increased sales due to U.K. and Canadian successIncreased sales due to U.K. and Canadian success High interest expense due to the $1.6 billion investment in CBLHigh interest expense due to the $1.6 billion investment in CBL Steady increase in net income even with a highly competitive U.S. marketSteady increase in net income even with a highly competitive U.S. market P/E:14.8P/E:14.8 Price to Cash Flow Ratio: 5.25Price to Cash Flow Ratio: 5.25 Price To Sales: 0.64Price To Sales: 0.64 Price To Book: 1.93Price To Book: 1.93 Dividend Per Share:0.82Dividend Per Share:0.82 Book Value Per Share: 34.62Book Value Per Share: Revenue Per Share: 108.0Revenue Per Share: 108.0

106 reweries

107

108 Balance Sheet Analysis Only has $0.53 cash on hand per shareOnly has $0.53 cash on hand per share Quick Ratio: 0.67Quick Ratio: 0.67 Current Ratio: 0.95Current Ratio: 0.95 LT Debt to Equity: 91.5LT Debt to Equity: 91.5 Total Debt to Equity: 98.7Total Debt to Equity: 98.7 Return on Equity (ROE) Per Share: 18.0Return on Equity (ROE) Per Share: 18.0 Return on Assets (ROA): 5.57Return on Assets (ROA): 5.57 Return on Invested Capital (ROIC): 9.07Return on Invested Capital (ROIC): 9.07

109 reweries

110 Cash Flow Analysis Dividend Yield: 1.17Dividend Yield: 1.17 Dividend Yield - 5 Yr. Avg: 1.25Dividend Yield - 5 Yr. Avg: 1.25 Dividend Per Share: 0.82Dividend Per Share: 0.82 Dividend Payout Ratio:17.0Dividend Payout Ratio: Year Annual Growth: Year Annual Growth: 20.8 Revenue - 5 Year Growth: 15.7Revenue - 5 Year Growth: 15.7 Dividends Per Share - 5 Year Growth: 6.44Dividends Per Share - 5 Year Growth: 6.44 EPS - 5 Year Growth: 21.3EPS - 5 Year Growth: 21.3

111 reweries Stock Price Summary Traded on the NYSETraded on the NYSE –Symbol: RKY –Price: $71.88 –52 week high: $80.11 –52 week low: $53.73 –Market Capitalization of approximately $2.6 billion

112 reweries Stock Price Performance: One Year Chart (NYSE)

113 reweries Stock Price Performance: Five Year Chart (NYSE)

114 reweries Recommendation Hold

115 reweries

116 Overview Established in 1864Established in 1864 Largest Brewer in the worldLargest Brewer in the world Budweiser is #1 brand of beer in the worldBudweiser is #1 brand of beer in the world Beer Production, Entertainment, Packaging, Real Estate Development & TransportationBeer Production, Entertainment, Packaging, Real Estate Development & Transportation Almost 50% domestic market shareAlmost 50% domestic market share

117 reweries Operations 12 US Breweries12 US Breweries 2 International Breweries (China/ UK)2 International Breweries (China/ UK) Produced 111 Million Barrels of BeerProduced 111 Million Barrels of Beer 6 th consecutive year with double digit growth in earnings per share6 th consecutive year with double digit growth in earnings per share $16 Billion in Sales$16 Billion in Sales

118 reweries Competitive Advantage Three divisions: Brewers, Wholesalers & RetailersThree divisions: Brewers, Wholesalers & Retailers 2/3rds of volume delivered by wholesalers who only carry Anheuser-Busch (A-B)2/3rds of volume delivered by wholesalers who only carry Anheuser-Busch (A-B) Loyalty of wholesalers is compensated by large profit marginsLoyalty of wholesalers is compensated by large profit margins Leverage 49.8% market share into 75% of markets operating profit through Procurement, Manufacturing efficiency and MarketingLeverage 49.8% market share into 75% of markets operating profit through Procurement, Manufacturing efficiency and Marketing

119 reweries Products Budweiser & Bud LightBudweiser & Bud Light Michelob and Michelob UltraMichelob and Michelob Ultra Busch and Busch LightBusch and Busch Light Hurricane and Malt liquorsHurricane and Malt liquors Bacardi Silver & Mike’s Hard LemonadeBacardi Silver & Mike’s Hard Lemonade O’doul’s & non-alcoholic beveragesO’doul’s & non-alcoholic beverages

120 reweries Subsidiaries & Satellites A-B Packaging : Recycling, Printing/ Packaging, Aluminum ProductionA-B Packaging : Recycling, Printing/ Packaging, Aluminum Production Busch Entertainment : Sea World, Busch GardensBusch Entertainment : Sea World, Busch Gardens 50% Share in Grupo Modelo : Corona (93-98)50% Share in Grupo Modelo : Corona (93-98) 27% Share in Tsingtao : China’s largest brewer27% Share in Tsingtao : China’s largest brewer 20% Share in Cervecerias : Chile’s largest brewer20% Share in Cervecerias : Chile’s largest brewer Distribution partnerships : Labatt & Kirin (Japan)Distribution partnerships : Labatt & Kirin (Japan)

121 reweries Executives August A Busch III Chairman of the Board (29 Years)August A Busch III Chairman of the Board (29 Years) Patrick T. Stokes President & CEO (20 Years)Patrick T. Stokes President & CEO (20 Years) W. Randolph Baker CFO & Vice President (8 Years)W. Randolph Baker CFO & Vice President (8 Years) John E Jacob Director of Global Communications (14 Years)John E Jacob Director of Global Communications (14 Years) Carlos F Gonzales Director “Grupo Modello”(8 Years)Carlos F Gonzales Director “Grupo Modello”(8 Years) James J Forese Director (26 Years) Americas Most Powerful PeopleJames J Forese Director (26 Years) Americas Most Powerful People Charles F Knight Director (21 Years) Americas Most Powerful PeopleCharles F Knight Director (21 Years) Americas Most Powerful People

122 reweries Financials-2003 Annual Report SymbolBUDSymbolBUD Price (Nov 12-04)$51.06Price (Nov 12-04)$51.06 Outstanding Shares$837 MillionOutstanding Shares$837 Million P/E20.59P/E20.59 EPS2.48EPS2.48 Dividends Paid$685.4 MillionDividends Paid$685.4 Million ROE 70%ROE 70%

123 reweries Financials Cont.

124 reweries

125 Balance Sheet Analysis Invested $200 Million in Bonds & Loans with Tsingtao Brewery in ChinaInvested $200 Million in Bonds & Loans with Tsingtao Brewery in China Net Increase to Debt $682.2 Million with US Dollar Notes and Commercial PaperNet Increase to Debt $682.2 Million with US Dollar Notes and Commercial Paper Current Ratio.88Current Ratio.88 11% Decrease in Shareholders Equity11% Decrease in Shareholders Equity

126 reweries Debt Analysis

127 reweries

128 Income Statement Analysis 9% Increase in Revenues9% Increase in Revenues 7% Increase in COGS7% Increase in COGS 18% Increase in Operating Income18% Increase in Operating Income 22% Increase in Net Income22% Increase in Net Income

129 reweries Income Statement Cont Advertising and promotional activities are a key component of A-B’s StrategyAdvertising and promotional activities are a key component of A-B’s Strategy Advertising Costs were $806.7 MillionAdvertising Costs were $806.7 Million Promotional Costs were $511.8 MillionPromotional Costs were $511.8 Million A-B is able to gain a competitive advantage through their advertisingA-B is able to gain a competitive advantage through their advertising

130 reweries

131 Cash Flow Statement Analysis 1.82 Billion in Free Cash Flow1.82 Billion in Free Cash Flow Acquired almost $2 Billion in Treasury StockAcquired almost $2 Billion in Treasury Stock Paid $652 Million in DebtPaid $652 Million in Debt However, increased Debt by $1.4 BillionHowever, increased Debt by $1.4 Billion Issued $685.4 Million in DividendsIssued $685.4 Million in Dividends Continue to acquire businesses and invest in packaging and related operationsContinue to acquire businesses and invest in packaging and related operations Future Cash may be directed towards ChinaFuture Cash may be directed towards China

132 reweries Cash Flow Statement Cont Reached 5 year agreement with UnionReached 5 year agreement with Union Pension Increases of 14%Pension Increases of 14% $7.5 Million signing bonus$7.5 Million signing bonus 100 Million executive stock options yet to be exercised100 Million executive stock options yet to be exercised Price equal to price on option issue datePrice equal to price on option issue date Employee Stock Ownership Plan (ESOP) deferred 45.4 million shares for purchaseEmployee Stock Ownership Plan (ESOP) deferred 45.4 million shares for purchase

133 reweries Impact of Stock Options on N.I.

134 reweries Derivatives Derivatives used to mitigate the company’s exposure to volatility in commodity prices, interest rates and foreign currency.Derivatives used to mitigate the company’s exposure to volatility in commodity prices, interest rates and foreign currency. Hedges only with derivatives that have high correlation with the underlying transaction pricingHedges only with derivatives that have high correlation with the underlying transaction pricing Company policy is not to speculate in the derivatives marketCompany policy is not to speculate in the derivatives market

135 reweries Employee Pension Plans Defined contribution plansDefined contribution plans Pension plans cover substantially all regular employeesPension plans cover substantially all regular employees Based on negotiated labour contractsBased on negotiated labour contracts

136 reweries Financial Statement Analysis Cont. VALUATION MEASURES- Nov 12 Market Cap 40.34B Enterprise Value (12-Nov-04) 48.14B Trailing P/E Forward P/E PEG Ratio (5 yr expected) 1.85 Price/Sales2.71 Price/Book14.49 Enterprise Value/Revenue 3.26 Enterprise Value/EBITDA 11.3 Profitability- Nov Profit Margin (ttm): Operating Margin (ttm):0.226 Management Effectiveness Return on Assets (ttm): Return on Equity (ttm): Dividend Yield0.02

137 reweries Technical Analysis

138 reweries Dividend Discount Model Good for stable companies w/ growing dividends.Good for stable companies w/ growing dividends. 2001= = = = = = Stock Price = Ex (Div/Share)Stock Price = Ex (Div/Share) (k – g) (k – g) g= 6% Div/ Share=.82 k=.075 Ex Stock Price= $54.67 Actual Price= $51.06

139 reweries

140

141

142 Recommendation Hold

143 Questions??? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?? ? ?


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