Martin Suter, Head of eCommerce, Anheuser-Busch InBev Greater China, Presented 'Keynote: What the World Can Learn from eCommerce Innovations in China'.

1. Martin Suter | Head, Digital Commerce | BU-China
martin.suter@ab-inbev.com
Brand Building and Opportunities
in a New Retail World

2. “If the rate of change
on the outside
exceeds the rate of
change on the
inside, the end is
near”
- Jack Welch

3. Miguel Patricio
CMO
October 2017
“Is China unique or is it the first?”

4. Data.
New Retail.
Brand Building.
ABI Journey.
Topics.

5. BY 2025, COMMITTED TO
100% SUSTAINABILITY
Smart
Agriculture
Water
Stewardship
Circular
Packaging
Renewable
Energy
CHINA COMMITMENT
Oldest brewery in China
Founded in 1900
Largest BUD Market in the World
29 Breweries
17,000 employees
1900
7 OF TOP 10
MOST VALUABLE BEER BRANDS
2
3
4
1
5
7
8
10
6
9
5th LARGEST FMCG

6. $0
$5,000
$10,000
$15,000
$20,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Best Global Brands 2018 Rankings
Budweiser
33
15,627 $m

7. 1,149
1,853
2,821
3,829
5,156
7,175
9,386
12,014
14,417
16,579
18,186
2012 2013 2014 2015 2016 2017 2018E 2019E 2020E 2021E 2022E
eCommerce Size of Prize 2022
18 Trillion CNY
~32% Total Retail Sales 2018-2022E
Internet Users
811m → 939m
Online Penetration
73% → 82%
99% 20-29
96% 30-39
Online Spending
CNY 15,855 → 23,618 1%
3%
5%
7%
10%
13%
18%
23%
28%
32%
35%
2012 2013 2014 2015 2016 2017 2018E 2019E 2020E 2021E 2022E
FMCG: eCommerce takes 18% in 2018
Growing to 35% by 2022
Beverage
2018-2022E
2% → 10%
87%
80%
72%
68%
45%
Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 & Rural
Highest Growth Potential in Tier 3-5 Cities
Rapidly Closing Adoption Gap with Tier 1
73% avg.

8. Digitally influenced
E-retail
Total
4.1
0.5
0.2
2012
5.4
1.8
0.2
2017
8.3
3.8
1.7
2022
Online Adoption Follows Three Stages E-retail ramps up dramatically as countries gain digital maturity
900M 2,100M 980M 3,000M
80M 900M
2017 2022
Developed markets Emerging markets
Over 3 billion Consumers
Are Online
Emerging markets will grow by 1 billion
additional consumers by 2022, 10X the growth
of Developed markets.
Digitally influenced purchases in
Emerging Markets will approach $4 trillion
— almost half of all retail spending by 2022
Retail spending
($ trillions)
0.6 0.8 0.3
1.0 1.2
3.1 4.1
5.0
10.5
Kenya Morocco Nigeria South Africa Philippines Indonesia India Brazil Germany France US UK China
Shareoftotalretailspendingin2017(%)
DIGITALLY AWARE DIGITALLY ADVANCING DIGITALLY EVOLVED
11.0
12.7
15.7
20.0
2.4
3.0
4.8 4.9
6.8
12.3
14.3
35.1
38.8
Digitally influenced
E-retail
Countries Pass Through Three Distinct Stages of Digital Development
Sources: Forrester Research, eMarketer; Euromonitor; BCG analysis
Note: “Digitally influenced” refers to retail purchases that consumers make with the help of information that they collect on the Internet whether they buy online or not. Data was not gathered on digitally influenced buying in Germany, France, the US or the UK.
KEY BATTLEFIELD

9. “Known” ABI Drinkers
Lots of Online data.
Search, Social &
eCommerce players.
None has visibility into
offline purchase or
consumption.
No primary consumer
data.
No visibility into
consumption &
purchase habits
3rd-party Data ABI Drinkers
~1%
DATA BLIND SPOTS
Online shoppers + Offline shoppers
Visibility into purchase &
consumption
10X
Online shoppers
Visibility into online purchase habits
CONSUMER DATA ALLOWS US TO BE
BETTER MARKETERS

10. PLACEHOLDER SLIDE
DATA / QR CODES VIDEO
EVERY CONSUMER BRAND
TOUCHPOINT IS AN
OPPORTUNITY TO CREATE
A DIGITAL CONNECTION.

11. SHOPPER STUDY:
ANTICIPATE CONSUMER SHIFTS
38%
28%
Channel Switching
(mostly from Hyper &
Super)
First-Time Category
Shoppers
(On-ramp to Beer)
4.6 4.4
5.2 5.4
9.8 9.9
4.3 4.7
70.3 68.0
4.5 6.3
Y2017 Y2018
eCom (+47%)
Grocery (+3%)
CVS (+17%)
Mini (+8%)
Super (+11%)
Hyper (0%)
YoY Value
Growth
Beer eCom is
44% > Hyper
15% > Super
33% > CVS
And the gap is widening
as channel switching
accelerates
Data source: Nielsen Retail Index and Nielsen Ecommerce database. Y2018Q4 and
Y2017Q4: Oct-Dec 2018 and Oct-Dec 2017; Double 11: Oct & Nov Data source: Nielsen Retail Index and
Nielsen Ecommerce database.
Data source: Kantar Retail Beer Shopper study

12. New Retail
How should we think about New Retail?

13. CR TTCVSHypermarket Supermarket
New Retail is the Digitalization of all retail, Integrating Online and Offline, across all Retail Formats
Offline Online

14. Off Trade OnlineOn Trade
Digital is the New Battlefield
SupermarketHypermarketCR CVS TT

15. Traditional EC
Low
High
SHOPPER MISSIONS
1-2 Day Next Day Same Day One Hour
TRADITIONAL E-RETAIL SUPPORTS
A NUMBER OF LOW-MID
FREQUENCY SHOPPER MISSIONS
New Retail
Routine
Refill
Browse &
Explore
Deal Driven
Stock-Up
Planned
Gathering
Today’s
Needs
For Me,
For Now
Social
Beer Run
Purchase Frequency
Delivery
Times
New Retail
NEW RETAIL SUPPORTS IMPULSE,
CONVENIENCE AND HIGH-
FREQUENCY SHOPPER MISSIONS
eRetail

16. Traditional EC
Low
High
1-2 Day Next Day Same Day One Hour
New Retail
IH
Food
Home
Party
SHOPPING OCCASIONS
TRADITIONAL E-RETAIL SUPPORTS
A NUMBER OF LOW-FREQUENCY,
HIGH INTENSITY SHOPPING
OCCASIONS
Delivery
Times
New Retail
NEW RETAIL SUPPORTS HIGH-
FREQUENCY, IN-HOME OCCASIONS
AND INVITES US TO CREATE NEW
ONES.
eRetail

17. Traditional EC
Low
High
1-2 Day Next Day Same Day One Hour
New RetailPRODUCT ASSORTMENT
TRADITIONAL E-RETAIL REQUIRES
VOLUME, PROMOTIONAL,
CAMPAIGN & LONG-TAIL SKUs
Delivery
Times
New Retail
NEW RETAIL REQUIRES THAT WE
MATCH PACK SIZE TO THE
MISSION & OCCASION (e.g. FOOD
PAIRING, HOME PARTY)
eRetail

18. Traditional EC
Low
High
Low
High
1-2 Day Next Day Same Day One Hour
New RetailRETAIL ECOSYSTEMS
TRADITIONAL E-RETAIL HAS WELL-
DEFINED PARTNERHSIPS,
MECHANISMS & WAYS OF
WORKING
Delivery
Times
New Retail
NEW RETAIL REQUIRES US TO
DEVELOP NEW PLAYBOOKS AS
CONSUMER TRAFFIC & USER
JOURNEYS ARE NEW.
eRetail

21. What happens, when you combine
The World’s Biggest Sporting Event The World’s Most Valuable Beer Brand And the World’s Most Advanced
New Retail Platform

22. BUDWEISER TMALL
SUPER BRAND DAY

23. SBD video placeholder

24. Product New Retail
Uni MarketingSocial Cause

25. FIFA Team Cans Exclusive on TMall Augmented Reality
Product

26. Coverage:
50 Stores in
10 cities
Coverage:
35 Cities
First BUD Super Brand Day Across New Retail
New Retail

27. Cultural
Tension
Provoke Discussion
Limited Edition China
Team Cans on TMall
In-Stadium Billboards shown
to a Global audience
CCTV Commentators
discussed the topic extensively
during the matches
Social discussion, with Key
influencers posting on the topic
Social Cause

28. Segmentation and Media PersonalizationConsumer Acquisition Product & Content Personalization
Brand Conversion
Off-site media
In-site media
with predictive modeling
In-site media & CRM
O A I P L
Football lovers
Budweiser shoppers
eCommerce promotions
In-site media
Online Beer drinkers
Football lovers
Beer drinker
BUD Drinker online
& offline
Uni Marketing
O
A
I
P
L
Offline BUD consumers
Category
Penetration
Off-site media
clicker

29. RESULTS
10X 2016 SBD GMV
62x106 Consumer Reach
>108 Impressions
+100% Conversion rate
NO.1 in FIFA Social Buzz
Only alcohol brand in FAST

30. THANKS!