COVID-19 ON PREMISE IMPACT N i e l s e n C G A - 0 4 . 0 3 . 2 0 - PowerPoint PPT Presentation

Brewers Association Power Hour COVID-19 ON PREMISE IMPACT N i e l s e n C G A - 0 4 . 0 3 . 2 0 2 0

About Nielsen CGA • CGA was established 30 years ago in England • Specialist On Premise consultancy • World-leading On Premise services in UK, France & US • Global strategic partner of Nielsen • After 4 years in the US – We have built a full suite of measurement, consumer & analytics services; many the first of their kind for the US

Matthew Crompton – Client Solutions Director Matt Drummond – Client Solutions Manager Matthew has managed and provided consultancy Matt is a craft beer and beverage management for some of the largest Bev Al manufacturers professional. He has over 15 years experience across Europe. In January 2014, Matthew became working in the complex on-premise market and three tier system. When he’s not drinking beer and part of the joint venture between CGA and Nielsen traveling for work, Matt likes to drink beer and which has helped bring the first ever truly robust on travel for pleasure. premise measurement service to the US.

Agenda COVID-19 Impact Report – Delivery & Takeout Brewpub/Tap Room Channel Strategy BA Craft Beer Knowledge Center Q & A

IMPACT REPORT OVERVIEW COVID-19 On Premise Impact Report issue #2 focuses on the attitudes of consumers to take out/delivery both from a food and an alcohol point of view. To analyze this topic we surveyed 1,200 consumers from four states - NY, California, Illinois and Florida , over the weekend (March 28- 29) and analyzed sales trends from our RestauranTrak dataset (week ending March 21 + March 28). RestauranTrak (powered by CLIP) dataset consists of over 10,000 transaction-level POS feeds from a geographically balanced set of outlets. Predominantly consisting of independently owned concepts and small, often unbranded groups, RestauranTrak can be seen as a robust measure to complement other credible industry sources that are focused mainly on larger chains.

T OTA L US Res t auran Trak Sales Dat a O verall $ Sales Velocit y -73% w/e March 21 -77% w/e March 28 Takeout /Deliver y St at s 11% Pre-CV19 Takeout/Delivery Share +110% Overall Takeout/Delivery Increase Source: RestauranTrak ACV Sales 2 Weeks w/e March 28 + Custom Consumer Research

L O S T VO L U M E D U E T O C O V I D - 1 9 I M PAC T 7,600,000 7,800,000 8,000,000 8,200,000 8,400,000 8,600,000 8,800,000 9,000,000 17.8m 288oz EQ of BA Craft beer sales lost. If all outlets across the US On Premise are closed for March and April 2020 there would be approx. Source: NCGA OPM DATA TO 4 W/E 01/25/20 4 W/E 01/27/2018 4 W/E 02/24/2018 4 W/E 03/24/2018 4 W/E 04/21/2018 4 W/E 05/19/2018 4 W/E 06/16/2018 4 W/E 07/14/2018 4 W/E 08/11/2018 4 W/E 09/08/2018 4 W/E 10/06/2018 4 Weekly CE BA CRAFT VOLUME 4 W/E 11/03/2018 4 W/E 12/01/2018 4 W/E 12/29/2018 4 W/E 01/26/2019 4 W/E 02/23/2019 4 W/E 03/23/2019 4 W/E 04/20/2019 4 W/E 05/18/2019 4 W/E 06/15/2019 4 W/E 07/13/2019 4 W/E 08/10/2019 4 W/E 09/07/2019 4 W/E 10/05/2019 4 W/E 11/02/2019 4 W/E 11/30/2019 4 W/E 12/28/2019 4 W/E 01/25/2020 Predicted: 4 W/E 02/22/20 Predicted: 4 W/E 03/21/20 Predicted: 4 W/E 04/18/20

T OTA L US C on sum er Pulse Sur vey 22% Drinking more than usual 28% Drinking less than usual 50% Drinking the same Drin k in g m ore t h an usual 21% 21 to 34 year olds 30% 35 to 54 year olds 9% 55 plus years old Source: RestauranTrak ACV Sales 2 Weeks w/e March 28 + Custom Consumer Research

NEW YO RK S TAT E Res t auran Trak Sales Dat a -85% Sales Velocity -64% Number of Checks -57% Check Average C on sum er Pulse Sur vey 22% Drinking more than usual 28% Drinking less than usual 50% Drinking the same Source: RestauranTrak ACV Sales 2 Weeks w/e March 28 + Custom Consumer Research * Shelter in place ordered for March 20th

CA LIFO RNIA Res t auranTrak Sales Dat a -80% Sales Velocity -50% Number of Checks -50% Check Average Con sum er Pulse Sur vey 21% Drinking more than usual 26% Drinking less than usual 53% Drinking the same Source: RestauranTrak ACV Sales 2 Weeks w/e March 28 + Custom Consumer Research * Shelter in place ordered for March 19th

ILLINO IS Res t auran Trak Sales Dat a -77% w/e March 21 Sales Velocity -80% w/e March 28 Sales Velocity Con sum er Pulse Sur vey 23% Drinking more than usual 28% Drinking less than usual 49% Drinking the same * Shelter in place ordered for March 21st Source: RestauranTrak ACV Sales + Custom Consumer Research

F LO RIDA Res t auran Trak Sales Dat a -60% w/e March 21 Sales Velocity -76% w/e March 28 Sales Velocity C on sum er Pulse Sur vey 21% Drinking more than usual 26% Drinking less than usual 53% Drinking the same Source: RestauranTrak ACV Sales + Custom Consumer Research * Shelter in place ordered for April 2nd

T OTA L US Takeout & Deliver y 66% Have ordered takeout/delivery over past 2 weeks 15% Have ordered alcohol with takeout/delivery Source: RestauranTrak ACV Sales 2 Weeks w/e March 28 + Custom Consumer Research

T OTA L US Takeout & Deliver y Factor s 61% Expect to pay more for takeout/delivery than retail 58% Ordered alcohol to avoid going to grocery store 24% Have purchased alcohol bundles on offer Source: RestauranTrak ACV Sales 2 Weeks w/e March 28 + Custom Consumer Research

D R I N K S O R D E R E D W I T H TA K E O U T / D E L I V E R Y Over half of those that have ordered alcohol with takeout/delivery have purchase craft beer, showing high demand for the category Alcohol Type Ordered Red Wine 60% Imported Beer 55% Craft Beer 51% White Wine 50% Pre-made cocktails 47% Spirit Mixer 47% Cocktail kit 44% Sparkling wine/Champagne 43% Dom Non-Craft Beer 42% Neat Spirit 37% Source: Custom Consumer Research

W H AT R E A L LY S E T S O U T C R A F T D R I N K E R S W H E N C H O O S I N G W H AT T O D R I N K , I S T H E D R I N K B E I N G U N I Q U E . T H I S I S A L S O A T O P FAC T O R F O R C H O O S I N G A L C O H O L TA K E O U T A N D D E L I V E R Y 34% 31% Of craft drinkers, state uniqueness as a factor influencing drink choice say they ordered takeout/delivery in the past 2 weeks from a venue due to a specific drink offering +11pp Vs Avg brewpub/tap room visitor Source: NCGA Channel Strategy Report July 2019. Base size: (389-679) COVID-19 Impact Report Custom Consumer Research 16

T HE EA RLY EVENING IS T HE M O S T PO PULA R T IM E T O VISIT BREWPUB/ TA PRO OM S, T HIS IS A LSO T HE PEA K T IM E O F DAY FO R TA KEOUT/DELIVERY SERVIC E. Which of the following times of day did you visit brewpubs/tap rooms in the past 3 months? Early Evening is top 53% time of day for The average takeout/delivery brewpub visitor sales $ velocity spends 29% 25% $24.67 23% 14% 8% On drinks per visit 3% to this channel Brunch Lunch Mid-afternoon Early evening Happy hour Late evening Late night (2pm-5pm) (5pm-8pm) (8pm-10pm) (10pm onwards) Source: NCGA Channel Strategy Report July 2019. Base size: (679-680) Nielsencga.com 17 RestauranTrak ACV Sales w/e March 28th

Brewpub and Taproom visitors over index when experimenting with different choices and using social media to find new places to eat or drink. General Attitudes - % agree with statements Index vs. Avg US I believe bars and restaurants could do 82% more to promote sustainability and the -1pp environment 81% Brands are important to me when +2pp choosing drinks 73% +9pp I like to experiment with different drink choices 71% +2pp I believe technology should be used more by bars and restaurants 64% +7pp I use social media to find new places to visit, eat or drink Source: NCGA Channel Strategy Report July 2019. Base size: (679-680) Nielsencga.com 18 RestauranTrak ACV Sales w/e March 28th

ON PREMISE KNOWLEDGE CENTER Nielsencga.com 19

ON PREMISE KNOWLEDGE PORTAL 20

ON PREMISE KNOWLEDGE PORTAL 21

Measurement Data On Premise Measure The first ever, fully projected, US on premise market measurement tool for beer, wine and spirits

Measurement Data Facts Dollar Sales • • Volume Sales • Total BevAl • Segment • Subsegment • Beer Style 23

Consumer Data On Premise User Sur vey An in-depth survey of 30,000 on premise consumers. Census representative by age, gender and location.

Consumer Data Demographics Age • • Gender • Income • Serve Preference • National Accounts 25

Analytic Data Check Level Insights Pool POS data from 10,000+ independent and chain on premise outlets.

Analytic Data Reports Time of day • Day of week • Style velocity • • Subsegment velocity 27

Additional Features

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