Confidential & Proprietary Copyright © 2010 The Nielsen Company Today’s Consumers and Generation Next Myths and Realities Nick Lake The Nielsen Company NABI Board Meeting July 29, 2010

Confidential & Proprietary Copyright © 2010 The Nielsen Company Page 2 The Economy Is a Bit Like This – Can’t Make Up its Mind

Confidential & Proprietary Copyright © 2010 The Nielsen Company Page 3 The News Is Inconsistent – Not All Good and Not All Bad Foreclosures (May) New: -3% vs Apr Total: +11% vs 6 mos ago Building Permits +10% vs YAG DOW Rollercoaster >11K (Apr); 10K (Jun) Retail Sales (May) -1.2% vs Apr +6.9% vs YAG Jobs lost since recession began -7.8 m 9.7% Unemployment 16.6% Underutilized

Confidential & Proprietary Copyright © 2010 The Nielsen Company Page 4 Monthly Job Gains/Losses The Labor Picture Is Improving, But Recovery Will Take Years Source: Seasonally Adjusted U.S. Total Non-Farm Employment, U.S. Government 411,000 temporary workers for Census 2010

Confidential & Proprietary Copyright © 2010 The Nielsen Company Page 5 Momentous Events – Unpredictable or Uncontrollable – Are Impacting the Consumer

Confidential & Proprietary Copyright © 2010 The Nielsen Company Page 6 Source: The Conference Board - Nine census regions, 5,000 US households; 1985 = Confidence Is Better, But Still Weak by Historical Levels

Confidential & Proprietary Copyright © 2010 The Nielsen Company Page 7 Consumers Still Saving, But Moving Toward Some Discretionary Spending Once you have covered your essential living expenses, what do you do with your spare cash? I spend it on… Source: Nielsen Global Online Consumer Confidence and Opinion Survey, 1Q10

Confidential & Proprietary Copyright © 2010 The Nielsen Company Page 8 Overall Dining Is Close to Flat Now, But Well Down vs. Two Years Ago Source: Company Reports – Nation’s Restaurant News

Confidential & Proprietary Copyright © 2010 The Nielsen Company Page 9 It Could Take at Least 4–5+ Years Before Restaurant Sales Return to 2007 Levels Source: Nielsen projections

Confidential & Proprietary Copyright © 2010 The Nielsen Company Page 10 Consumers Are Rephrasing Value “I’ll trade down even if it means sacrificing what I really want.” “I want what I want, but at the best price.”

Confidential & Proprietary Copyright © 2010 The Nielsen Company Page 11 Bev Al Mid Year Report Card – What’s Hot and Not

Confidential & Proprietary Copyright © 2010 The Nielsen Company Page 12 ‘Value vs. Volume’ Gaps Have Shrunk From 2007 Levels Value % Change vs Year AgoVolume % Change vs Year Ago Annual 2007 Lat 52 weeks Lat 26* weeks Lat 13* weeks Annual 2007 Lat 52 weeks Lat 26* weeks Lat 13* weeks Beer+3.2%+0.9%+1.1%+1.0%+0.5%-1.0%-0.8%-0.9% Wine+6.1%+2.7%+4.4%+3.2%+2.9%+1.4%+2.8%+1.9% Spirits+4.4%+0.8%+2.5% +2.2%+1.1%+2.4%+2.7% Source: Nielsen Tl U.S. Food/Drug/Conv/Liquor Plus - through 06/26/2010 Lat 24 and Lat 12 for Beer/FMB’s only

Confidential & Proprietary Copyright © 2010 The Nielsen Company Page 13 Now We See a “Trading Up” Comeback – Or Do We? Source: Nielsen Total U.S. Food/Drug/Conv/Liquor Plus/Dollars

Confidential & Proprietary Copyright © 2010 The Nielsen Company Page 14 Source: Nielsen, Total US Food, 13 weeks rolling ending 5/29/10 Pricing Is a Factor in the Current Wine and Spirits Trading Up $ Volume % Chg vs YA Avg Eq 750ml Price Chg vs YA Wines >$20

Confidential & Proprietary Copyright © 2010 The Nielsen Company Page 15 Source: Nielsen Total U.S. Food, Drug, Liquor (+ Conv for Beer) Taking Price in Wine and Spirits Is Difficult; Beer Is in a Better Place, for some Segments

Confidential & Proprietary Copyright © 2010 The Nielsen Company Page 16 Beer – Price Tiers/Origin Crafts continue to lead the way, while mainstream Premiums decline. Imports are now back to “flat”, and the only segment down on price. Source: Nielsen Total U.S. Food/Drug/Conv/Liquor Plus; thru Lat 52 $ Share Major Sub- Category Value % ChgVolume % Chg Price Trend Lat 52Lat 12 Lat 52Lat %Ttl Beer +0.9%+1.0%-1.0%-0.9% 84.3Domestic Premium Below Premium Above Premium Craft/Microbrew Imported Light

Confidential & Proprietary Copyright © 2010 The Nielsen Company Page 17 Beer – Country of Origin The Import comeback is led by Mexican beer, and reduced Holland losses albeit with reduced prices, coupled with Canada/Belgium gains. Lat 52 $ Share Country of Origin Value % ChgVolume % Chg Price Trend Lat 52Lat 12 Lat 52Lat %Ttl Imported -2.0%+1.0%-1.8%+2.0% 7.6Mexican Holland Canadian Germany Belgium Ireland England Source: Nielsen Total U.S. Food/Drug/Conv/Liquor Plus; thru

Confidential & Proprietary Copyright © 2010 The Nielsen Company Page 18 Beer – Package Size 4 packs, as well as large 30 packs lead growth, with Kegs now bouncing back. Prices are uniformly higher than year ago. Lat 52 $ Share Package Size Value % ChgVolume % Chg Price Trend Lat 52Lat 12 Lat 52Lat %Ttl Beer +0.9%+1.0%-1.0%-0.9% Pack Pack Pack Singles Pack Pack Pack Pack Pack Kegs Source: Nielsen Total U.S. Food/Drug/Conv/Liquor Plus; thru

Confidential & Proprietary Copyright © 2010 The Nielsen Company Page 19 Table Wine – Price Tiers Trading down was a 2008/09 event. Now, price points $9-$15 and >$20 are in the best growth position, but have been accompanied by price decreases. Lat 52 $ Share Price Segment Value % ChgVolume % Chg Price Trend Lat 52Lat 13 Lat 52Lat %Ttl Table Wine +2.6%+2.8%+1.4%+1.9% 8.60-$ $3-$ $6-$ $9-$ $12-$ $15-$ >$ Source: Nielsen Total U.S. Food/Drug/Liquor Plus; thru ; Pricing based upon 750 ml Equivalent

Confidential & Proprietary Copyright © 2010 The Nielsen Company Page 20 Table Wine – Package Growth is led by 750 ml (but with average price attrition), alternative packaging such as 3 l Box and Tetra, and the 187 ml size. Lat 52 $ Share Package Size/ Type Segment Value % ChgVolume % Chg Price Trend Lat 52Lat 13 Lat 52Lat %Ttl Table Wine +2.6%+2.8%+1.4%+1.9% ml l l l Prem Box l ml l Glass Tetra Source: Nielsen Total U.S. Food/Drug/Liquor Plus; thru ; Pricing based upon 750 ml Equivalent

Confidential & Proprietary Copyright © 2010 The Nielsen Company Page 21 Table Wine – Country of Origin Domestic growth is running well ahead of Imports, with all major wine-growing states contributing. Lat 52 $ Share Origin Value % ChgVolume % Chg Price Trend Lat 52Lat 13 Lat 52Lat %Ttl Table Wine +2.6%+2.8%+1.4%+1.9% 71.8 Domestic California Washington Oregon Texas Imported Source: Nielsen Total U.S. Food/Drug/Liquor Plus; thru ; Pricing based upon 750 ml Equivalent

Confidential & Proprietary Copyright © 2010 The Nielsen Company Page 22 Table Wine – Imports Softness still from AU and FR, while clear growth leaders remain AR and NZ, now ranked #5 and #6, but with opposite pricing trends. Lat 52 $ Share Country of Origin Value % ChgVolume % Chg Price Trend Lat 52Lat 13Lat 52Lat %Ttl Imported -1.0%-1.3%-0.6% -0.9% 7.7- Italy Australia France Chile Argentina New Zealand Spain Germany S. Africa Portugal Source: Nielsen Total U.S. Food/Drug/Liquor Plus; thru ; Pricing based upon 750 ml Equivalent

Confidential & Proprietary Copyright © 2010 The Nielsen Company Page 23 Table Wine – Top 10 Varietals Pinot Noir and Riesling lead the way, followed closely by Sauv Blanc, Zinfandel and Cab Sauv. Syrah/Shiraz continues to struggle. Lat 52 $ Share Varietal Value % ChgVolume % Chg Price Trend Lat 52Lat 13Lat 52Lat %Ttl Table Wine +2.6%+2.8%+1.4%+1.9% 21.5Chardonnay Cab Sauv Merlot P. Grigio/Gris P. Noir Sauv Blanc White Zin Syrah/Shiraz Riesling Zinfandel Source: Nielsen Total U.S. Food/Drug/Liquor Plus; thru ; Pricing based upon 750 ml Equivalent

Confidential & Proprietary Copyright © 2010 The Nielsen Company Page 24 Spirits - Sub-category Vodka continues to grow, along with improved Tequila, Cognac and Prep Cktl growth. Average price for some rising (Cognac, Prep Cltl), and others falling (Vodka, Tequila) Lat 52 $ Share Sub-category Value % ChgVolume % Chg Price Trend Lat 52Lat 13Lat 52Lat %Ttl Spirits+0.8%+2.5%+1.1%+2.7% 29.1 Vodka Whiskey Scotch Bourbon Canadian Blended Irish Rum Cordials/Schnapps Tequila Unflav Brandy/Cog Gin Prep/RTD Cocktails Source: Nielsen Total U.S. Food/Drug/Liquor Plus; thru ; Pricing based upon 750 ml Equivalent

Confidential & Proprietary Copyright © 2010 The Nielsen Company Page 25 Spirits – Import vs. Domestic While domestic trends overall are flat, Imported trends have picked up in the last 13 weeks, with help from Imported Vodka growth Lat 52 $ Share Imp vs. Dom by Sub-category Value % ChgVolume % Chg Price Trend Lat 52Lat 13Lat 52Lat %Ttl Selected* Spirits+0.4%+2.1%+0.8%+1.9% 62.5 Imported Vodka Whiskey Cordials Gin Brandy Domestic Vodka Brandy Gin Cordials Whiskey Source: Nielsen Total U.S. Food/Drug/Liquor Plus; thru ; Pricing based upon 750 ml Equivalent *NOTE: Ttl Selected Spirits = Vodka, Whiskey, Cordials, Gin, Brandy and Schnapps segments

Confidential & Proprietary Copyright © 2010 The Nielsen Company Page 26 Spirits - Price Tiers Trading down NOT the descriptive word any longer; premium and especially ultra-premium leading the way but with reduced pricing. Lat 52 $ Share Price Tier Value % ChgVolume % Chg Price Trend Lat 52Lat 13 Lat 52Lat %Ttl Spirits+0.8%+2.5%+1.1%+2.7% 21.6Value Mid Price Premium Ultra Premium Spirit Price Tiers Legend (equiv 750 ml) Source: Nielsen Total U.S. Food/Drug/Liquor Plus; thru ; Pricing based upon 750 ml Equivalent

Confidential & Proprietary Copyright © 2010 The Nielsen Company Page 27 Ultra Premiums Generally Leading the Way, with the Exception of Vodkas and Tequilas TTL US Sales Volume % Chg – Lat 26 weeks vs Year Ago ValueMidPremiumUltra Vodka Scotch Bourbon Canadian Whisky Rum Cordials/Schnapps Unflavored Brandy/Cognac Tequila Gin Top box growth Bottom box growth Source: Nielsen Total U.S. Food/Drug/Liquor Plus; thru ; Pricing based upon 750 ml Equivalent

Confidential & Proprietary Copyright © 2010 The Nielsen Company Page 28 Summary Economic uncertainty still prevails; recovery likely modest – Impact depends upon your products’ geographic development and consumer demographics Consumers have re-phrased “value” – Frantic trading down replaced by “I want what I want, on my terms” Trading up activity in Wine and Spirits at least partially tied to decrease in pricing Imports in general are mixed and those performing well have adjusted pricing to be more competitive within the category