Marketing Week 2009. - Impact on beer sales and home brew - The importance of advertising - Environmental sustainability - Philanthropy

1. Tim Cooper

2. Positives in an economic downturn Background Impact on beer sales & home brew Australian beer market snapshot Importance of advertising Environmental sustainability Philanthropy

4. Partnership of brothers until incorporation in 1923

6. Originally 20 L bag of wort in a box with yeast sachet

7. Low temperature evaporation plant in 1984 reduced volume of wort to 1.25 L

10. Natural flavouringand colouringfood product in the baking, confectionery and cereal industries

11. Coopers now largest supplier in Australia and NZ

13. Interstate beer focus: from 5% in 1970’s to 45% by 1990

14. Draught beer (kegs) introduced 1983

15. Beer growth from 1995Post-recession premium beer market LNA purchase of SAB Sale of 120 hotels KWP! advertising Incremental gains in quality

17. 147 yr heritage - “Hand-made by the Cooper Family”

18. Brewing Products Division – extract evaporation

19. Product Difference – cloudy, natural ales

20. Interstate Distribution – Premium Beverages

24. Total Customers

25. Annual Home Brew & Retail MaltSales Volume

26. Positives in an economic downturn Background Impact on beer sales & home brew Australian beer market snapshot Importance of advertising Environmental sustainability Philanthropy

27. Australian Beer Market 1987-2009F

30. International Premium Beer Category

31. Lion Nathan Beer Volumes

32. Company share of domestic beer promotional advertising Source: Citi ‘Thirsty Thoughts’ Market Data

33. LNA Beer Pricing vs CPI

34. LNA EBITA1987 -2009f

35. Positives in an economic downturn Background Impact on beer sales & home brew Australian beer market snapshot Importance of advertising Environmental sustainability Philanthropy

36. Promotional focus on mature brands has fallen significantly Low carb brands are attracting biggest gains in promotional focus Source: Citi ‘Thirsty Thoughts’ Market Data

37. Link between promotional activity and short term volume performance Source: Citi ‘Thirsty Thoughts’ Market Data

39. Stella - 49% - 37%

40. Carlsberg - 21% - 21%

41. VB - 35% - 3%

42. Pure Blonde - 5% + 65%

44. Advertising Campaigns

48. Year to Date Export Sales – June 2009 Total Sales $7,271,945

49. Why choose Coopers? Importance of advertising Being relevant to consumer Engaging and aspirational Creating a point of difference Opportunity to belong

52. JV offer, June 2005; Bid, 1st Sept 2005

53. Shareholders subjected to LNA pressure

54. Seven court actions brought by LNA

55. Two EGMs December 2005

56. 93.4% to 6.6% to remove LNA from Constitution

59. Positives in an economic downturn Background Impact on beer sales & home brew Australian beer market snapshot Importance of advertising Environmental sustainability Philanthropy

60. Environmental Improvements Modern brewhouse – recycling of heat & water Vapour condensation Energy savings (~15%) Reduction in solid – NPC Cogeneration Plant (2003) Focus on carbon lifecycle footprint

61. Cogeneration Plant Annual power generation of 24,000 MWh 16,500 MWh exported to grid Long term certainty of pricing and security of supply Full redundancy for power and steam generation With co-generation, energy represents some 7% of the total emissions footprint - industry standard of ~ 20%

62. AIR INLET DIVERTER DAMPER FILTER GENERATOR HRSG STEAM GAS TURBINE DUCT BURNER Cogeneration Plant

64. Water extracted from T2 Aquifer 200m below site

65. Ground water too saline for direct use

66. Reverse osmosis desalination plant

68. Introduction Established in 2006, the Coopers Brewery Foundation is the philanthropic arm of Coopers Brewery, reinforcing the Cooper family traditions of community involvement and social responsibility. It represents a commitment by Coopers Brewery to the welfare of Australians – ‘brewing support for the community’ Thomas Cooper Founder Cardiovascular Research Centre

69. Funds Received

70. Funds Distributed

71. Why choose Coopers? Importance of advertising Being relevant to consumer Engaging and aspirational Creating a point of difference Opportunity to belong

72. Thank you