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TA: A LSS 3 CHALLENGE _| POUR IT FORWARD Create a brand-centric sustainability strategy for AB InBev India Brewing quality beer starts with the best ingredients. This requires a healthy, natural environment, as well as thriving communities. We are building a company to last, bringing people together for a Better World, now and for the next 100+ years. That's why sustainability isn’t just part of our business, itis our business. SUSTAINABILITY GOALS We've been dedicated to sustainability for years, but now we are going further - with goals that will havea measurable & positive impact on our communities. Through our 2025 Sustainability Goals, we are connecting thousands of farmers to technologies and skills, ensuring quality water access in high-stress communities, partnering with our suppliers to increase recycling content, and adding renewable electricity capacity to regional grids. ABInBev 100+ Circular Let Urs) products in high stress areas have are skilled, connected comes from renewable _will be in packaging that measurably improved and financially sources & 25% reduction _is returnable or made water availability and empowered of carbon emi from majority-recycled quality across our value chain content AB InBev India has many global and local brands in its portfolio. What these brands stand for and who they cater to can be found out with some primary and secondary research. While all our brands have unique propositions, there is tremendous potential & opportunity to leverage sustainaibilty through our brand strategies in India. WATER STEWARDSHIP Our water stewardship goal states that “100% of our communities in high stress areas should have measurably improved water availability and quality by 2025’. Water has been a key focus in India as 5 of our breweries (1 in Rajasthan, 1 in Haryana, 1 in Maharasthva, 2 in Telangana) are located in high water stress areas. The sustainability team has been active in this space with some of the key initiatives being ~ | Water ATMs - Clean drinking water access for communities near our breweries by installing water ATMs that purify groundwater through an extensive process and provide drinking water to nearby communities at the rate of Rs. 3 for 20 liters Groundwater Recharge Structures — Creating community ground water recharge structures like village ponds with groundwater recharge shafts and check-dams with aim of recharging more than twice the amount of groundwater that our breweries consume for making beer Farm Ponds ~ Making farm ponds for farmers so they can harvest irrigation instead of relying solely on groundwater water and use it for t druater 1-4: Water ATMs 5: Groundwater Recharge Structures 6: Farm Ponds GLOBAL WATER STEWARDSHIP INITIATIVE We are inspired by the way Stella Artois has championed sustainability globally. Water has been integral to Stella Artois’ 600-year brewing heritage. The Stella Artois “Buy A Lady A Drink” initiative was launched in 2015 in partnership with Water.org, a leading international nonprofit, to help mitigate the global water crisis. The campaign is now active in ten countries: Argentina, Australia, Brazil, Canada, Chile, Mexico, South Africa, UK., Uruguay & U.S. 4 CHMICE = 5 YEARS y OF CLEAN WATER Pour! T FORWARD fa) Buya Ladya Drink \/ In 2017, Stella Artois and Water.org announced a new four-year commitment to help provide 3.5 million people in the developing world with long-term, sustainable access to clean water by 2020. Stella Artois doesn’t have a big presence in India and neither is the campaign active here. We want to create a similar success story with another initiative and a different brand. A few (directional not exhaustive) questions need to be answered before kicking-off this exercise: Who could be our potential external partners for collaboration? What should be the communication themes? | What is the opportunity for deployment in India? Which existing initiatives can we re-deploy? | What are the organic brands who we can leverage for the initiatives? ‘CHALLENGE TL Sa 3 oe gue sg cS Create a porfolio strategy to launch non-alcoholic beverage in AB InBev India “% NON ALCOHOLIC BEVERAGES - GOAL 2025 An important aspect of AB InBev’s Global Smart Drinking Goals is to ensure that low and no-alcohol beer contributes to at least 20% of our global beer volume by 2025 which will enable us to empower consumers through choice to enjoy beer responsibly. THE INDIAN CONTEXT The world’s leading brewer, Anheuser-Busch InBev (AB InBev) forayed into the Indian market more than a decade ago with the flagship brand Budweiser. Today Budweiser, the leading beer brand in the premium segment, is the fastest growing brand in the category and has an awareness level of more than 90% among beer drinkers. AB INBEV FORAYS INTO NON - ALCOHOLIC MARKET IN INDIA While the beer market is set to continue its upward growth trajectory, 70% of the Indian population still abstains from alcohol. Non-Alcoholic Beverages (NAB) will help us foster inclusivity by catering to this section of the audience, opening up opportunities for them to discover the refreshing and crisp taste of our iconic beers sans the alcohol. NAB will also cater to beer connoisseurs who want more choices to enjoy the taste of beer freely and responsibly on occasions where they want to abstain from alcohol. 66 THE COMPANY WILL LAUNCH THE TWO PRODUCTS BUDWEISER 0.0 & HOEGAARDEN 0.0 IN THE NEXT THREE MONTHS. FOR NOW, THE PRODUCTS WILL BE IMPORTED INTO INDIA. BEN VERHAERT ‘BU President, AB InBev South Asia The No-alcohol Beer market is currently ina nascent stage with very few brands present here. With the introduction of Budweiser 0.0 and Hoegaarden 0.0 in retail channels, this category is poised to grow in the coming few years ‘Our No-alcohol Beers are crafted using the same process as that of our iconic beers. That's because our commitment to brewing great beer never changes, even if we do decide to go alcohol-free. As our Brewmasters say "Taste is the only thing that matters: We're still brewing with our same signature ingredients, and the same deep commitment to getting it just right. During the final stages, the alcohol is removed through a special process to retain the taste that's true to the standards of our beers. The brewing method has been altered slightly to avoid the acidity that would otherwise be induced by the de-alcoholisation process. UG eT a Te 0 .0 PUP ER MOU aha 0% ALCOHOL. 100% BUDWEISER. Taide Maal mae ‘THE INDIAN NON ALCOHOLIC BEVERAGES MARKET The Indian NAB market can be broadly divided into Carbonated and Non-Carbonated soft drinks. The former is primarily dominated by carbonated soft drinks while MBD (Mango Based Drinks) and Juices have a huge share of pie in the Non-Carbonated Soft Drink market THE INDIAN BEVERAGES MARKET CONSTRUCT DISTRIBUTION CHANNEL COVERAGE IN NON - ALCOHOLIC BEVERAGES Non-Alcoholic Beverages essentially has four channels: ® Convenience (Pan Shops, Chemist) = Eating & Drinking Outlets (Bakery, Mithai Stores, Small Restaurants with/without bar) and Grocers = Modern Trade Stores = Emerging Ecommerce Channel - Big Basket, Flipkart, Grofers, Amazon etc. INDIAN CONSUMER CONTEXT ‘The NAB industry has been growing at around 10% CAGR for the last 4 years in India. The reach of the total Non-Alcoholic Beverages industry is around 3.8 Mn stores in India. Carbonated Soft Drinks (CSD) still dominates the Non-Alcoholic Beverage market with a value share of 57% ina $6.4 billion Industry. Although their contribution is steadily declining for the last 5 years. In the year 2013, the CSD contribution was roughly around 65% which is now down to 57%. In the last 2 years the decrease in contribution has been around 3%. The 3 categories that have gained shares are Dairy / Soy Beverages, Juices and Ready To Drink / Energy Drinks. The 3 categories overall now contribute to 15% to the overall NAB market. | Dairy /Soy Beverages | Juices | _RTD/Energy Drinks oan eae ~

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