OBJECTIVE  Define the key elements to create a successful beer program that will increase sales and profitability, while delivering the brands that are relevant to your costumers.

AGENDA  State of Beer in Oregon Marketplace Current Market Trends  Menu and Promotional Development VIBE Case Study 504 Top On Premise Chains  Fundamentals for Success What you can control

BEER IN OREGON  0regon is TOP 5 in the United States  Number of Breweries  Breweries per capita  Craft Beer Production  Craft Beer Consumption  Draft Beer Consumption per capita  Current Market Trends - IRI Grocery  Craft Beer is the only segment that is growing – up 6.75%  Overall Beer is off -6.5%  Imports and Premiums are down double digits

MENU DEVELOPMENT Stand Alone Beverage Menu #1 influencer of consumers and are read 90% of the time Brand is the most important factor for beer consumers Beer consumers are more visual and prefer to order from menus that feature actual photo shots of each beer Consumers rank how well a beer goes with the food they are having as the 4 th most important order influencer Price is very important to the beer consumer - willing to trade up Consumer wants to see more draft beer, local and regional items PROMOTIONAL PROGRAMS Drink and food menu inserts are the most effective promotional items Happy hour and late night programs are important to offer value - not cheapness Promotional programs must tie in both food and beer to maximize the promotion Great selection of beer is the #2 element to drive customer visits on promotions What is your competition doing with their promotional program? Play to your strengths. The Beer/Drink Menu continues to be the number one influence on consumers drink purchases.

f  Key Elements for a Successful Beer Program  Understanding the Trends and Your Marketplace  Use of Category Management for item selection  National, Regional, Local  Effective Menu and Promotional Programs  Food Pairings, Timing, Drive Business, Play to Strengths  Educated Staff  Product Presentation and Glassware  Clean your beer lines  Train your Staff in Bar Fundamentals  Clean Glass, Fresh Product, Correct Pour, Temperature  Review Beer Program on Quarterly Basis. The Beer/Drink Menu continues to be the number one influence on consumers drink purchases. SUCCESS

THANK YOU!