1 CRAFT BREWERIES

M A R K E T M O N I T O R W I N T E R 2 0 1 4

Craft Breweries

2 CRAFT BREWERIES

Contents INDUSTRY SNAPSHOT 3

PUBLIC VALUATION METRICS 6

CAPITAL MARKETS TRANSACTIONS 8

MIDDLE MARKET OVERVIEW 11

MOSS ADAMS OVERVIEW 12

SELECT MOSS ADAMS CAPITAL TRANSACTIONS 16

3 CRAFT BREWERIES

Craft Beer Industry Snapshot Millennials’ desire for a higher-quality, more flavorful beer… and

their willingness to pay a premium for it, has been the catalyst for consistent double-digit growth over the last ten years

The craft brewing market now accounts for approximately 11% of the $100 billion U.S. retail beer market

Marketing dollars from Big Beer producers pushing their own brands benefit the industry as a whole

Increased consumer awareness and desire for authentic craft beers is gaining momentum within the mainstream public

Dramatic increase in shelf space allocation to craft beers in grocery and liquor stores

10 Largest Craft Breweries (based on 2013 production)

1. Boston Beer Co.

2. Sierra Nevada Brewing Co.

3. New Belgium Brewing Co.

4. Gambrinus

5. Lagunitas Brewing Co.

6. Deschutes Brewing

7. Bell's Brewery

8. Brooklyn Brewery

9. Stone Brewing Co.

10. Matt's Brewing Co. 0

500

1,000

1,500

2,000

2,500

3,000

'90 '93 '96 '99 '02 '05 '08 '11 '14

Number of U.S. Breweries

> 100 craft breweries50 – 100 craft breweries10 – 50 craft breweries< 10 craft breweriesFastest growing

Craft Import Domestic Light 5-Year CAGR

+14% +4% (1%) (1%)

11%

13%

24%

52%

201425%

13% 15%

47%

2024 (proj)

Source: Beer Marketer’s INSIGHTS, Brewers Association, Wall Street research and Moss Adams Capital analysis.

Beer Sales by Category

2%

12%

40%

46%

2004

4 CRAFT BREWERIES

Current Events

Increasing capacity from 2,000 to 4,000 barrels

$12 million expansion

Grand opening of Bell’s Brewery’s new division

Opening a second location in 2015

Chooses Richmond, Virginia for 200,000 sq. ft. east coast expansion

New brewpub, microdistillery and restaurant coming in 2016

Expanding capacity to 90,000 barrels with new brewhouse in 2015

$25 million brewery, restaurant and gardens planned for Berlin

Opening new taproom with plans for a distillery and pilot brewing

Flying Could San Francisco Stout - Anchor Brewing

Delicious IPA - Stone Brewing Co.

Black is the New Wit - New Belgium Brewing Co.

Barrel Roll Pugachev Mocha - Hangar 24

Einzigartig Barrel-Aged Wild Ale - Avery Brewing

Blizzard of Hops - Troegs Brewing

Slow Ride - New Belgium Brewing

Barrel-Aged Torpedo - Sierra Nevada

XVIII Anniversary Ale - Firestone Walker Brewing

Brewery Expansions New Releases

Source: Beer Street Journal.

Upcoming Events

December 4 Brewbound Session San Diego, CA www.brewbound.com/events

February 6-15 San Francisco Beer Week San Francisco, CA www sfbeerweek.org

March 20-21 Extreme Beer Fest Boston, MA www.beeradvocate.com/ebf

April 14-17 Craft Brewers Conference & BrewExpo America Portland, OR www.craftbrewersconference.com

May 11-17 American Craft Beer Week Nationwide www.craftbeer.com

May 30-31 American Craft Beer Fest Boston, MA www.beeradvocate.com/ebf

5 CRAFT BREWERIES

While the S&P 500 index has shown strong growth over the last three years, increasing 63%, it pales in comparison to the performance of the Craft Breweries index, which has increased by approximately 89% over the same period. The Major Breweries index has more or less tracked the S&P, only losing ground to it over the last twelve months.

Not surprisingly, sales growth in the Craft Beer segment is expected to dwarf its counterparts, as well as the broader S&P 500 over the next 12 months. Sales from American breweries, represented by only one public company (Molson Coors), is expected to decline as a result of the growing popularity of craft beers and an improving economic environment that pushes consumers to higher-end beverages.

Note: The Craft Breweries and Major Breweries Indices are composed of the public companies included on page 6. Source: S&P Capital IQ.

Historical Performance: Major vs. Craft Breweries Next 12 Months: Estimated Sales Growth

Craft Breweries Continue to Outshine the Rest of the Market

Craft Breweries88.6%

S&P 50062.9%

Major Breweries40.2%

(20%)

0%

20%

40%

60%

80%

100%

120%

140%

Mar

ket P

erfo

rman

ce

(2.5%)

(0.5%)

1.0%

12.4%

3.2%

(4%)

(2%)

0%

2%

4%

6%

8%

10%

12%

14%

AmericanBreweries

AsianBreweries

EuropeanBreweries

CraftBreweries

S&P 500Index

6 CRAFT BREWERIES

Note: Not meaningful (NM) if EV/Sales is greater than 10x, or EV/EBITDA is greater than 50x. NA if denominator is 0, for percentages and multiples, or if estimates are not available. NTM figures are based on the median estimate of Wall St. analysts.

Selected Public Company Valuations

Source: S&P Capital IQ.

($U.S. in millions, except per share amounts)

11/23/14 TTM Data EV Multiple

Company NameSharePrice

52 WeekHigh - Low

MarketCap

EnterpriseValue Sales EBITDA

EBITDAMargin Sales EBITDA

TTMSales

TTMEBITDA

NTMSales

NTMEBITDA

Major Breweries

Anheuser-Busch InBev SA/NV $115.05 $115.19 - $85.78 $184,875 $235,523 $46,756 $18,010 38.5% 4.8% 9.8% 5.0x 13.1x 4.8x 11.9x

SABMiller plc 54.40 60.47 - 41.55 87,386 101,663 16,967 5,839 34.4% 4.1% 13.7% 6.0x 17.4x 5.8x 15.3x

Heineken NV 76.56 76.89 - 54.75 44,021 58,770 26,180 5,484 20.9% (6.4%) 2.9% 2.2x 10.7x 2.4x 10.4x

Asahi Group Holdings, Ltd. 31.05 31.42 - 21.58 14,699 18,178 15,973 1,829 11.5% (4.7%) (6.1%) 1.1x 9.9x 1.2x 10.6x

Molson Coors Brewing Company 75.61 77.93 - 50.90 14,072 16,831 4,201 825 19.6% (2.5%) 74.5% 4.0x 20.4x 4.1x 11.7x

Carlsberg A/S 90.04 102.29 - 80.17 13,958 20,596 11,453 2,294 20.0% (2.8%) 1.0% 1.8x 9.0x 1.9x 8.9x

Kirin Holdings Company, Limited 12.72 13.56 - 10.97 11,616 20,182 19,920 2,435 12.2% (4.6%) (0.4%) 1.0x 8.3x 1.1x 8.3x

Tsingtao Brewery Company Limited 6.96 8.76 - 6.84 8,940 7,475 4,860 484 9.9% 12.6% 26.6% 1.5x 15.5x 1.4x 12.2x

United Breweries Limited 12.57 13.95 - 9.75 3,323 3,512 706 98 13.9% 12.5% 14.4% 5.0x 35.7x 4.4x 31.2x

Beijing Yanjing Brewery Co., Ltd. 1.14 1.35 - 1.01 3,205 3,214 2,302 286 12.4% 12.2% 23.1% 1.4x 11.2x 1.2x 9.1x

Sapporo Holdings Ltd. 4.54 4.57 - 3.00 1,770 3,846 4,737 390 8.2% (3.9%) (5.3%) 0.8x 9.9x 0.8x 10.4x

Median $18,178 $11,453 $1,829 13.9% (2.5%) 9.8% 1.8x 11.2x 1.9x 10.6x

Average $44,526 $14,005 $3,452 18.3% 1.9% 14.0% 2.7x 14.6x 2.6x 12.7x

Craft Breweries

Boston Beer Co. Inc. $254.36 $277.76 - $202.78 $3,323 $3,266 $891 $178 20.0% 13.7% 15.3% 3.7x 18.4x 3.2x 15.9x

Craft Brew Alliance, Inc. 13.58 18.30 - 10.07 259 270 197 14 7.2% 7.4% (100.0%) 1.4x 19.1x 1.3x NA

Big Rock Brewery Inc. 11.32 17.80 - 10.36 78 73 33 3 9.3% 5.9% 87.0% 2.2x 23.7x 2.1x 12.7x

Median $270 $197 $14 9.3% 7.4% 15.3% 2.2x 19.1x 2.1x 14.3x

Average $1,203 $374 $65 12.1% 9.0% 0.7% 2.4x 20.4x 2.2x 14.3x

NTM Est. Growth

7 CRAFT BREWERIES

2014 has continued right where 2013 left off. If the trend continues throughout the 4th quarter, it will be a record year in terms of the number of deals in the brewery segment.

Over the past year, EBITDA multiples for publicly-traded craft brewery companies have come down from their highs in the mid-twenties, but still remain at a significant premium to the Major Breweries and the S&P 500 index.

Public Company Valuations & Capital Markets Transactions

Deal Volume Public Market Valuations

Craft Breweries19.3x

Major Breweries12.2x

S&P 50011.0x

4.0x

9.0x

14.0x

19.0x

24.0x

29.0x

Mar

ket P

erfo

rman

ce

Source: S&P Capital IQ.

45

3

7

5

3

13

6

1211

12

1415

1314

52

3

3

3

1

1

3

03

2

25

23

0

5

10

15

20

25

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2011 2012 2013 2014

Num

ber

of A

nnou

nced

Tra

nsac

tion

s

Capital Raise M&A

8 CRAFT BREWERIES

M&A Transactions with Valuation Metrics

Source: S&P Capital IQ.

$ in millions Close Transaction Date Target Acquirer/Investor Value Metrics

08/23/13 Oy Hartwall Ab Royal Unibrew A/S $613.3 1.6x Rev; 9.4x EBITDA

05/31/13 Grupo Modelo, S.A.B. de C.V. Anheuser-Busch InBev SA/NV 14,706.6 3.7x Rev; 12.1x EBITDA

02/18/13 Fraser and Neave, Limited Spin-off 4,673.6 2.8x Rev; 17.2x EBITDA

10/08/12 Little World Beverages Limited Anglo-Gaelic Investments Pty Ltd 271.5 5.5x Rev; 19.4x EBITDA

06/15/12 StarBev Holdings S.à r.l. Molson Coors Brewing Company 3,533.6 3.8x Rev; 11.0x EBITDA

12/16/11 Foster's Group Pty. Ltd. SABMiller plc 12,568.2 5.1x Rev; 14.2x EBITDA

10/11/11 Schincariol Participações e Representações SA Kirin Holdings Company, Limited 2,587.9 2.8x Rev

10/01/10 Kona Brewing Co., Inc. Craft Brewers Alliance, Inc. 15.5 0.7x Rev; 13.8x EBITDA

06/07/10 Pabst Brewing Company, Inc. C. Dean Metropoulos & Co. 250.0 0.5x Rev

02/10/10 PT Multi Bintang Indonesia Tbk Asia Pacific Breweries Limited 243.8 2.0x Rev; 5.8x EBITDA

02/10/10 Asia Pacific Breweries (Aurangabad) Ltd. Heineken International B.V. 24.8 1.1x Rev

02/10/10 UB Nizam Breweries Pvt Ltd Heineken International B.V. 12.6 2.1x Rev

10/21/09 Lion Nathan Limited Kirin Holdings Company, Limited 3,731.2 3.6x Rev; 13.0x EBITDA

07/24/09 Oriental Brewery Co., Ltd. Kohlberg Kravis Roberts & Co. L.P. 1,878.9 2.9x Rev; 9.8x EBITDA

11/18/08 Anheuser-Busch Companies, Inc. InBev SA 61,050.2 3.4x Rev; 13.4x EBITDA

10/23/08 Turk Tuborg Brewing & Malting Inc. International Beer Breweries Ltd. 168.0 1.6x Rev

09/11/08 Grants Of Ireland Ltd. DCC Food & Beverage Limited 13.4 0.3x Rev

08/01/08 Pyramid Breweries Inc. Magic Hat Brewing Company 36.0 0.7x Rev; 70.6x EBITDA

07/01/08 Widmer Brothers Brewing Company Redhook Ale Brewery Inc. 57.9 0.8x Rev; 7.7x EBITDA

04/28/08 Heineken UK Limited Heineken NV; Carlsberg A/S 19,107.0 3.2x Rev; 17.3x EBITDA

04/02/08 Refresh UK plc Marston's plc 27.1 0.5x Rev

02/05/08 Royal Grolsch N.V. SABMiller plc 1,368.4 3.2x Rev; 15.8x EBITDA

9 CRAFT BREWERIES

Select 2014 Announced Transactions

Source: S&P Capital IQ.

Capital Raises Mergers & Acquisitions

acquired by Anheuser-Busch

acquired by AB InBev

acquired by TSG Consumer

Management Buyout

acquired by Oasis Beverages &

TSG Consumer

10 CRAFT BREWERIES

Anheuser-Busch acquires 10 Barrel Brewing Co.

Source: S&P Capital IQ.

AB InBev’s Growing Portfolio of Craft-Style Beers

AB InBev owns ~32% of CBA

Bend, Oregon November 5, 2014

Anheuser-Busch announced that it has agreed to purchase 10 Barrel Brewing Company, located in Bend, Oregon.

10 Barrel was Oregon's No. 8 largest brewery in 2013 and expects to sell approximately 40,000 barrels this year. 10 Barrel was one of only four U.S. breweries to win three medals and tied for most medals won at this year’s Great American Beer Festival. In addition to the Bend brewery, the acquisition will include the company’s existing brewpubs in Bend, Oregon and Boise, Idaho and a Portland, Oregon brewpub scheduled to open in early 2015.

Best known for its fine American-style lagers, Anheuser-Busch beers lead numerous beer segments and combined hold a 47% share of the U.S. beer market. Anheuser-Busch is the U.S. arm of Anheuser-Busch InBev and operates 12 breweries, 17 distributorships and 23 agricultural and packaging facilities across the country.

The sale is not expected to impact the day-to-day operations of the brewery and the partners at 10 Barrel believe that the transaction will help retain talent and provide access to hops, malts, equipment, labs and other resources that previously weren’t at their brewers’ disposal. The new partnership will also provide 10 Barrel workers job security and better benefits than anything the company could have offered previously.

The transaction is expected to close by the end of 2014; terms of the agreement were not disclosed.

11 CRAFT BREWERIES

U.S. middle market M&A deal volumes grew +13% sequentially from Q2, and a year ago.

U.S. middle market M&A activity, measured by deal values, in Q3 increased +20% from the prior quarter, and rose approximately +30% from a year earlier.

Disclosed EBITDA multiples of middle market transactions in Q3 2014 slightly rose to levels last seen in mid-2013, and stayed above the 5 year average of 8.4x.

Q3 EBITDA margins of reported transactions fell from levels seen in the last 2 quarters.

Q3 Middle Market M&A Activity, Valuations Rose

U.S. Middle Market M&A 1 U.S. Middle Market M&A Valuations 2

1) Middle market M&A includes transactions with undisclosed values, and disclosed values where EV < $500 million. 2) Middle market M&A median includes transactions with disclosed EBITDA where EV < $500 million; excludes EV/EBITDA <4x or >15x. Note: transactions with disclosed EBITDA represent <5% of all

transactions. Source: S&P Capital IQ.

2,855 2,953 2,927

3,080 2,984

3,682 3,681 3,852

3,539 3,453

3,622

3,986

3,134 3,319

4,092 4,054 3,997 4,095

4,608

$32

$43

$56 $55

$47

$71 $72 $70

$52$56

$52

$66

$44

$50

$65

$71

$55

$70

$84

$0

$20

$40

$60

$80

$100

$120

$140

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

201 0 201 1 201 2 201 3 201 4

Transaction Value ($bn)Num

ber

of T

rans

actio

ns

Nu mber Value

7.8x

8.5x 8.4x8.6x

8.4x8.7x

9.4x

7.6x

7.0x

7.9x

8.9x

7.9x

9.3x9.1x 9.1x

9.3x

7.1x

7.9x

9.1x

9.6%

12.6%

15.6%13.9%

16.6%17.3%

18.5%

13.0%

10.2%

14.2%14.4%

18.2%17.5%

12.9%11.5%11.7%

17.5%

11.3%10.0%

0%

5%

10%

15%

20%

25%

30%

35%

40%

0.0 x

1.0 x

2.0 x

3.0 x

4.0 x

5.0 x

6.0 x

7.0 x

8.0 x

9.0 x

10.0 x

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

201 0 201 1 201 2 201 3 201 4

EBITDA M

argin

EV/T

raili

ng E

BITD

A M

ultip

le

EV/EBITDA EBITDA Margin

12 CRAFT BREWERIES

Moss Adams Capital LLC Full service investment bank and strategic

advisor Dedicated industry specialties Mergers and acquisitions; sell-side and buy-side Recapitalizations and institutional capital raises Key Attributes Middle market experts: independent, thoughtful

client centered advice Direct and constant senior level attention Deep and longstanding relationships with debt

and equity capital providers and corporate investors/buyers

Industry specific knowledge enhanced by proprietary access and insight into Moss Adams clients

Moss Adams LLP Fully integrated accounting, tax and business

advisory firm 100 years old Dominant in Western U.S. 2,000 employees in 22 offices 16,000 nationwide mid market clients Consulting and Tax Services include financial

due diligence, valuation advisory, international tax planning and compliance, transaction structuring and IT consulting and integration

More than 300 Food & Beverage Clients U.S. and International Presence Affiliates in 80+ countries globally

Firm Overview

13 CRAFT BREWERIES

Global M&A Reach Through Local Relationships

Our Alliance with CFxB consists of 150+ M&A Professionals in more than 25 countries

Mazars Africa 40 offices

Mazars Asia 25 offices

Mazars Middle East 15 offices

Mazars Europe 140 offices Mazars M&A 20 offices

Mazars South America 20 offices

Moss Adams Capital 3 offices Moss Adams LLP 22 offices

MNP Corporate Finance 10 offices MNP LLP 70 offices

BKD Corporate Finance 4 offices BKD LLP 33 offices

William Buck CAA 6 offices

Weiser Mazars 6 offices

Mazars Canada 1 office CH Reynolds CF

1 office

14 CRAFT BREWERIES

Business Services

Financial Services

Clean Technology

Consumer Products

Software & IT Services

Food & Beverage

Healthy Living

Technology Equipment & Communications

Transportation & Logistics

Infrastructure & Construction

Industries Services

Majority and Minority Recapitalizations

Sell-Side and Buy-Side M&A

Management Buy Outs

Corporate Divestures

Fairness Opinions

Institutional Placements – Debt and Equity

Healthcare Services and IT

Industrial Manufacturing

M&A and Capital Formation for Mid-Market Companies

Moss Adams Capital

Expertise. Experience. Superior Results.

15 CRAFT BREWERIES

Assisting Companies at Each Stage of Growth

Growth Capital

Institutional Private Equity Venture Capital

Growth Phase

Liquidity / Partnering

Mergers / Partnering for Growth Sale of Company Management Buy-Out (MBO), Leveraged Recap / Buy-Out (LBO) Full or Partial Liquidity

Valu

e Cr

eati

on

Company Lifecycle

Acquisitions

Acquisitions Divestitures Spin-offs Joint Ventures

Private Equity Private Debt PIPEs Advisory

Expansion Capital

Expansion / Liquidity Phase

16 CRAFT BREWERIES

Select Food & Beverage Transactions

Services for the above provided by Moss Adams, and/or its principals.

17 CRAFT BREWERIES

Contact Us Craft Breweries Tyler M. Dale Vice President (949) 221-4030 tyler.dale@mossadams.com Moss Adams Capital LLC 2040 Main St Suite 900 Irvine, California 92614 Rich Anderson Managing Director Burr J. Dalton Director Geoffrey B. Haydon Vice President

999 Third Avenue Suite 2800 Seattle, Washington 98104 Harman K. Wales Managing Director Wiley P. Kitchell Managing Director