1. The Beer Industry Today
Note to Facilitator:
Prepare for your session by reviewing the PPT deck prior to your session (be sure to read the speaker’s notes and to animate the slides to ensure you are familiar with the design of the presentation)
Save a copy of the Labatt Strategies Job Aid on your desktop so that you can share it with the learners

2. Welcome You represent Labatt against heavy competition
Focus on providing a superior experience while maximizing sales, brand visibility, and on-the-job efficiency
Keys to success are continuous improvement and learning how to do things better
SAY: Welcome to The Beer Industry Today.
ASK: Before we get started, can anyone tell me why it might be a good idea to learn about the beer industry?
Anticipated Responses:
Visibility of the entire industry/competitors
Understanding trends
SAY: As SRs and TMs, you are on the front line, (click to reveal) representing Labatt against heavy competition. It’s important to focus on providing a superior experience (click to reveal) to POC owners while maximizing sales, brand visibility, and on-the-job efficiency. The keys to your success (click to reveal) are continuous improvement and learning how to do things better.
Understanding the industry and our place within it is crucial to this. Through this webinar, you’ll be introduced to the Canadian beer industry and learn where Labatt Canada fits into the broader competitive picture. You will also learn some of the key challenges faced by the company in the marketplace today and Labatt’s strategy for overcoming these challenges.

3. Learning Objectives By the end of this session, you will be able to:
Recognize key drivers of industry growth
Identify current trends in the beer industry
Recognize Labatt’s key challenges and our process for overcoming them
Identify 1-2 ways you can apply your newfound knowledge to your role
DO:
Review objectives (Click to reveal each item)

4. Canadian Beer Industry Today
SAY: The Canadian beer industry was slowly growing at an average rate of 1%. Starting in 2009 and again in 2010, the industry has been facing negative growth.

5. Canadian Beer Industry Today
Key Drivers
Pricing
Economic indicators
Weather
Population & Demographic indicators
Regulation
Innovation
ASK: Can anyone tell me what might have contributed to this?
Anticipated Responses:
Pricing: floor has risen because of social reference pricing
Recession
Job loss
Lack of confidence
SAY: There are many factors that impact the growth of an industry, but the key drivers of the Canadian beer industry are (click to reveal). We also need to consider how the Canadian beer industry has evolved over the years. Let’s take a look at that now.

6. Evolution of the Industry
Price Segments
2010 vs YA
-0.7
-0.4
+0.6
+1.4
SAY: Our market has evolved, and that’s led to changes in the share of price segments. This chart demonstrates the shift in price segments since As you can see, the Core Premium and Value segments lost share to other segments. You can also see that Light is the fastest growing segment.
It is important to note that the change in mix does not mean industry decline.
-1.0

7. Atlantic – Top 10 Brand Share BUDWEISER 13.10% BUD LIGHT 11.32%
KEITHS IPA
9.37%
LABATT BLUE
4.91%
KEITHS LIGHT
2.18%
OLAND EXPORT
2.16%
LABATT LITE
1.28%
WILDCAT
0.83%
SCHOONER
0.77%
STELLA ARTOIS
0.64%
SAY: Let’s take a look at what the industry looks like in each of our regions. First, Atlantic…..

8. Ontario – Top 10 Brand Share BUDWEISER 8.00% LABATT BLUE 5.82%
BUD LIGHT
4.82%
KEITHS IPA
2.60%
LAKEPORT PILSENER
2.14%
BUSCH LAGER
2.02%
STELLA ARTOIS
1.64%
BRAVA CERVEZA
1.59%
BLUE LIGHT
1.37%
LAKEPORT LIGHT
1.12%
SAY: And here is Ontario’s top 10

9. Quebec – Top 10 Brand Share BUDWEISER 18.22% BUD LIGHT 6.23%
LABATT BLUE
5.43%
BLUE DRY
1.74%
STELLA ARTOIS
1.45%
KEITHS IPA
1.24%
BUD LIGHT LIME
1.06%
BUDWEISER 4
0.75%
KEITHS RED AMBER ALE
0.57%
BECKS
0.52%
SAY: Interesting to note the differences in the Quebec marketplace.

10. West – Top 10 Brand Share BUDWEISER 14.76% KOKANEE 9.05% LUCKY 4.65%
BUD LIGHT
3.81%
KEITHS IPA
2.14%
LABATT BLUE
1.38%
LABATT LITE
1.33%
STELLA ARTOIS
1.04%
BUSCH LAGER
0.97%
BUD LIGHT LIME
0.92%
SAY: And here what the West look like.

11. Evolution of the Industry
Packages (Labatt)
2010 vs YA
+2.6
-2.7
SAY: Packaging has also seen some changes. The can segment continues to grow steadily since 2005.
+0.1

12. Evolution of the Industry
Brewers
2010 vs YA
+0.7
+0.6
SAY: Finally, brewers themselves have evolved. Labatt and Molson remain in the lead, but all other brewers, led by Sleeman’s, are growing their share of the market.
ASK: What questions do you have?
-1.3

13. Sales Structure and Market Share (2010)
Labatt Canada Today
Sales Structure and Market Share (2010)
SAY: Now that we’ve seen how the industry has evolved over the last few years, let’s see where Labatt Canada is today. (click to reveal). In Canada we are structured according to four sales regions: Atlantic Canada, Quebec, Ontario and the West.
In 2010, we were leading in two of the 4 regions.(click to reveal). Across the rest of the country, we are a close second behind Molson.
In addition to being familiar with our sales regions, you’ll need to know who makes up our internal sales team, if you don’t already. You can download our organizational chart from the Sales Strategy section of the SEA website.

14. Labatt Canada Today Brands
SAY: Next, we’ll look at our brands – Budweiser moved in second place in 2010, which should not be the case in 2011! The growing brands in the top 10 are Coors Light & Bud Light. We have 5 brands in the top 7.
SAY: There are several things we need to do. Labatt has identified XXX key challenges, and has developed a strategy for overcoming them. In the next section, we’ll look at what these challenges are.
ASK: What questions do you have?

15. Recap Beer Industry highlights:
Molson & Labatt compete for #1 in Canada
Labatt has 5/7 top brands
Leading in 2 of the 4 regions while being in second position in the rest of the country
Facing rising competition from other brewers
SAY: Now you have a better idea of where Labatt Canada fits into the beer industry today. Before we take a closer look at how we plan on enhancing our place in the industry, let’s do a quick recap.
DO: Review summary. (Click to reveal each item)
ASK: What questions do you have?

16. Recap The Canadian beer industry today is:
Experiencing a decline in growth
Driven by a multitude of factors
Experiencing the continued decline of core segment at the expense of light and premium beers
Shifting towards cans
Question to consider – why would Labatt be in decline if industry is changing to premium and light? Isn’t Bud Light one of our fastest growing brands? And do we not lead the premium segment – might need some bullet points on this statement.
SAY: That wraps up our brief look at the beer industry today. Before we take a closer look at Labatt’s place in the industry, let’s do a quick recap.
DO: Review summary. (Click to reveal each item)
ASK: What questions do you have?

17. Focus vs. Non-Focus Brands
Say: what is our brand growth strategy? Can you name any focus or non-focus brands?
Answer: Focus Brands include Stella Artois Family, Keith’s family, Bud Family, Bud Light Megabrand.
Non focus: Blue, and other regional brands like Lakeport, Kokanee, others…
Say: what do you observe regarding our focus vs non-focus brand behaviour?
Our focus brands have been increasing YoY and our non-focus brands have been decreasing YoY
Our focus brand growth has not offset our non-focus brand decline
Overall volume has decreased YoY

18. Non-Focus Strategy MANAGE DECLINE
Ask: What does the trend tell us about our strategic direction?
Answer: the decline of the non-focus are making up for the growth in our focus brands and we need to manage the decline. This will help grow our total volume in the most beneficial way.

19. Market Share and Profitability Evolution
Ask: What do our 2009 and 2010 results say about our performance and our trend between profitability and share?
Answer: share decreased from and NR/hl had a similar trend.

20. Balanced, Consistent Growth
Our Strategy...
Market Share +
Profitability
Say: our strategy to balance share results + profitability are key to our dream of balanced, consistent growth in Canada.
Balanced, Consistent Growth

21. Innovations Sales Strategy
Invest heavily in Focus brands while managing the decline of regional priority brands
Activating our brands in a full 360◦ execution
Balance consistent market share and profit growth
Retail KA + Liquor Boards
On trade Urban Focus
Continue Building our Sales Machine
SAY: Now let’s find out what we’re doing about all of this. Labatt has a multi-faceted sales strategy that includes: (click to reveal)
Maximizing our leading portfolio – taking full advantage of our focus brands like Bud Light Lime and Keith’s White, as well as our imports
(Click to reveal) Activating our brands in a full 360 execution– We need to execute our plans with a 360 strategy in order to ensure consistent messaging.
(Click to reveal) Leading the way on balancing market share results with profit growth. Key focus will be in Retail with LB pricing and On-Trade growth in Urban areas.
(Click to reveal) Executing the strategy flawlessly by building our Sales Machine
(Click to reveal) Innovations are at the base of our sales strategy and key to our success.
Innovations

22. Sales Initiatives Revenue Management
GPI above Inflation
Brand/SKU mix
Price Technology
Trade Spend Control / Tactical
PTC Management
Market Programs & Brand Activation
360◦ Approach
Trade Programs Efficiency
Trade Innovation Retail
Trade Programs – Draught Towers
Sales Machine
Entrenchment of Sales Process/Routine
People - Variable Compensation & Sales Development
Continuous improvements through !Sell releases
Providing leading edge tools to improve efficiency
SAY: Now that you know the plan, here’s how we’re going to execute it: (click to reveal)
We’re going to manage our revenue very carefully by:
Ensuring our GPI is above inflation
Having an effective brand & SKU mix
Taking advantage of price technology
Controlling our trade spend and tactical spending
Manage our pTC
(Click to reveal) Next, we’re going to implement market programs and focus on brand activation by:
Making efficient use of our 360 activation strategy
Being innovative in the retail sector
Introducing trade programs like draught towers
(Click to reveal) Finally, we’re going to engage you – our sales machine – to your fullest potential by:
Ensuring we have proper staff coverage in key regions
Following process and routine to ensure consistency
Providing competitive compensation and helping you develop your sales skills
Providing you with access to tools and information that will make your job easier, such as !Sell, which simplifies complex procedures, which simplifies complex procedures.
ASK: What questions do you have?

23. Beer Industry Has Taken Price Increases Above Inflation
CAGR = 1.74%
CAGR = 1.55%
SAY: What does the trend in the graph above represent?
Answer: Beer industry prices have been taken above inflation since 1992 at a compounded annual growth rate of 1.74% vs 1.55%
SAY: Can you think of how this can impact our organization? Our customers?
ANSWER: Our strategy is to balance market share growth and profitability. Pricing strategy and Revenue management is just one of the levers we can use to do this. Finding the delicate balance will ensure long term growth. 23

24. 360 Execution EXPERIENTIAL TV ON-LINE ON-TRADE PACKAGING OFF-TRADE
SAY: what are the benefits of a 360 execution?
Answer:
Consistent messaging in different channels
Exposure to different Media
Clear messaging in line with our commercial strategy
ON-TRADE
PACKAGING
OFF-TRADE

25. Maximizing Innovation
SAY: We’ve also begun maximizing our trade innovation with the launch of new brands such as Shock Top, brand variants such as Keith’s Tartan Ale and in new packaging sizes such as the 48pk.
In addition to demonstrating Labatt’s commitment to trade innovation, these new and updated products provide you with SKUs you can highlight to generate interest among your customers.
ASK: What kind of results have you experienced with different innovations?
DO: Accept 3-4 responses, then continue.
SAY: Let’s see what else we’ve been doing to increase sales.
New Brand Launches
New pack sizes

26. Maximizing Innovation
TOWERS
POD / COOLIO
Innovation
Pipeline
Portfolio
Draught Table
SAY: Can you name some trade innovations in retail or on premise?
Answer: PODs, Towers, etc. (Click to reveal)
POCs can showcase our brands in store as we equip them with our trade innovations, which will support Labatt’s national ad campaigns in sparking interest and driving consumer traffic.
ASK: What kind of results have you experienced with these innovations?
DO: Accept 3-4 responses, then continue.
SAY: Let’s see what else we’ve been doing to increase sales.
Cold –Bud Family
Bottoms Up
Customized Customer Templates
Live Menu
Keith’s

27. Tech Sales enables our Sales Machine by continuously improving our routines and technologies to drive sustainable results
Entrenchment of Sales Process and Routines
Variable Compensation
Continuous Improvement of !Sell
ASK: Can you name some initiatives that have added value to the Sales Machine in the last 6 months?
ANSWER:
New laptops, Variable Compensation, new fleet, Blackberry, iSell upgrades, etc
How do these tools help the Sales Machine sell more beer?
Take 3-4 Answers, then continue.
Leading edge tools to improve efficiency
YOU
POC

28. Recap Our sales strategy includes: Maximizing our winning portfolio
Explore innovation
Growth driven by Focus brands, while managing regional priorities
Activating brands 360◦
Balanced share/profit growth
Continue building our sales machine
SAY: That wraps up our look at Labatt’s sales strategy. Before we move on, let’s do a quick recap and summarize the strategy to make sure everyone is clear on what the plan is.
DO: Review summary. (Click to reveal each item)
ASK: What questions do you have?

29. What Did You Learn?
SAY: We talked a lot about the beer industry today and Labatt’s position in it, as well as how we’re addressing our key challenges. I’d like to know what you learned that you didn’t already know. Pick one or two things that you found particularly useful.
DO:
Open a whiteboard and instruct learners how to share what they’ve learned.
Accept 1-2 answers per learner

30. Keys to Success Having the right people with the right attitude
Executing hard in the field
Being passionate about what we do
Keeping our skills and knowledge up to date
SAY: In closing, I think it’s worth restating that our success depends on you. (Click to reveal) We need to have the right people with the right attitude – a positive, can-do attitude. (Click to reveal) We also need to execute our sales strategy flawlessly and work hard in the field. This means following Labatt’s standards and processes, which have been put in place to help each of us be consistent and successful. (Click to reveal) We also need to be passionate about what we do; we need to want to succeed.
Finally, (click to reveal) it’s important to keep our skills and knowledge up to date. Staying in touch with your Manager or DSM and continuing to progress through the Sales Excellence Academy are the best ways to do this. For additional information on Labatt’s market program and revenue management, please refer to the Labatt Strategies Job Aid.
DO: Share your desktop, open the Labatt Strategies Job Aid, and have the participants save a copy.

31. Thank You! ASK: What questions do you have? DO: Address all questions
SAY: Thank you all for participating in this webinar. If you have any further questions regarding the Beer Industry or Labatt’s place in it, do not hesitate to reach out to your Manager or DSM.