Ab-Inbev Strategic Priorities:

1) To accelerate top-line growth in a sustainable and consistent way, we have

developed a deep understanding of both consumers needs and the occasions when
they enjoy beer and other alcohol beverages.
2) These insights have enabled us to create frameworks that leverage the key
moments of consumption
3) We then focus our sales, marketing, product development and other brandbuilding activities on capturing a greater share of these consumption moments,
guided by four commercial priorities:
We believe that, by understanding, embracing and enriching consumption moments
and occasions, we will have the opportunity to drive top-line growth at an even
faster pace, enabling us to continue investing in our future, while delivering
increased shareholder value.
a) Growing our global brands involves leveraging the strength of Budweiser,
Stella Artois and Corona to form strong connections with consumers around the
world. To reach that goal, we are increasing our investments in sales and marketing
programs that build on each brands distinct image and consumer positioning.
b) Premiumizing and invigorating beer involves creating more excitement and
aspiration around beer, especially among millennial consumers. The development of
the craft category in the US, and increasingly around the world, is a prime example
of how new vigor and energy can be brought to the consumers experience with
beer
Getting consumers to see beer in new and fresh ways means we must do the same.
To encourage this behavior, we have created a Disruptive Growth team to explore
opportunities beyond the traditional areas of brands, brewing or marketing
campaigns. One area being explored by the team is how technology can enhance
distribution, packaging, and other aspects of the consumers experience. The team
has identified a number of bets which, while initially small, could eventually
become game-changers in the years ahead. For example, digital solutions and craft
e-commerce platforms that allow consumers to order beer for quick delivery are
being piloted in several countries, including Mexico, Brazil and Canada.
c) Elevating the core is focused on raising the perception and relevance of our
core beers, which deliver the majority of our volume and revenue. Compelling,
differentiated messaging and large scale activations that convey the unique
character, quality and emotional appeal of our core brands, are some of the tools
we are using to elevate the core. A great example is the Brewed the Hard Way
campaign for Budweiser in the US. The campaign sent a strong message that
evoked the brands heritage of quality and craftsmanshipand connected with
consumers who respect those values.

d) Developing the near beer segment is just one way in which we

are responding to consumer demand for more choice and excitement. In particular,
we are competing more effectively for share of total alcohol by launching innovative
products that offer malt beverage alternatives to wine and hard liquor. We view this
near beer category as a major global opportunity.

AB InBev Aims for $100 Billion In Revenue By 2020

the Belgian company in December issued a special stock option grant to be awarded to
65 senior managers if they succeed in boosting the combined companies' revenue more
than 50% by 2020. AB InBev's revenue for the 2015 fiscal year was $43.6 billion, while
SABMiller's was $22.1 billion, bringing their combined total to $65.7 billion, excluding
divestitures.
What is clear, people who have studied the company say, is to hit its goal the company
will have to either make another big acquisition or rev up growth considerably.
In November, Mr. Brito said he planned to expand Bud, Corona and Stella Artois across
new markets in Latin America and Africa, which account for 68% of SABMiller's
revenue. Africa is expected to drive beer industry growth with compound annual growth
of 3.7% through 2020, according industry tracker Plato Logic.
Expansion to new geographies and more M&A is integral to AbInbevs strategic vision
-----------------x---------------Beer and the brewing industry are topical because of the possible acquisition by AM InBev of SAB Miller
the worlds two largest breweries by volume. Besides consolidations which experts believe will continue in
coming years, craft/microbreweries are causing a stir as they rake up increasing market share globally.
To add to this industrys competitive challenges, the market itself is changing: fewer people in developed
countries are consuming beer, and developing markets are now the growth areas breweries are fighting
for. Brewers also face process industry challenges, such as changing regulations and evolving
technologies.
Trends in consumption can be heavily influenced by a nations political and legal system, religious beliefs,
health concerns, price of raw materials and economic situation

Business
Priority
Geographical
Diversification
and M&A

Goals

Expand into new

developing
markets
Volume growth

Associated Challenges

Increased prospect of industry

consolidation
Demographic changes
craft/microbreweries are raking
up increasing market share

Brand Building
and improving
consumer
relationships

Product and
Packaging
Innovation
(develop near
beer segment
and craft beer
segment)
Innovation in
distribution

Connect with
younger
generation
Build brand
loyalty among
new consumer
segments
Tap into new
customer
segments
Sustainable and
green packaging

Reach out and

connect to
consumers
directly
operate with
greater flexibility
and an enhanced
focus on
minimizing costs

Grown in a
Sustainable
manner

globally
Mature markets are inclined
towards premium segment
Capturing a greater share of
consumption moments

Increased need for value

packaging
Increased need of new products
and variants among different
consumer segments
Developing the agility necessary
to deliver on scale innovation
Giving wide availability and high
visibility to the companys new
beers
As the retail channel becomes
dominant, it is increasingly
important to work with retailers
to develop shelves of the
future, compelling beer and
food combinations, and
effective point of purchase
displays
Availability is more than just
being everywhere standing out
is a key driver of sales

Reduce
greenhouse gas
emissions
Improve water
management
Reduce energy
usage

Business priority
Geographical
diversification and M&A

IT Solutions
Templatizing the approach towards IT
Integration for the organizations inorganic
initiatives
Standardizing and implementing pre-configured
business processes


Brand building and
improving consumer
relationships

Product and packaging

Innovation
Innovation in distribution

Sustainable growth

Rationalization and Reduction of TCO of

application portfolio after major M&A
Implementing a digital based marketing
solution for customer insights and to measure
customer satisfaction
Analytics solution for data generated in the
blogosphere, social media and other sources to
uncover the real time conversations which can
impact capturing a greater share of
consumption moments
Implementing product innovation solutions in
product lifecycle management
Implementing package enhancement solutions
3 E-commerce Strategies
o Tie up with existing e-tailers
o Courier model
o Own e-commerce platform
Implementing an optimized Supply Chain
Management solution, which addresses route
optimization and warehouse management
Cloud computing can help reduce carbon
footprint
Power of data and analytics
Through data and analytics (IOT maybe?) our
customers gain vital insights from millions of
devices, social media channels, and business
systems. This data empowers them to achieve
greater efficiencies, and become more
sustainable in areas like energy, water,
buildings and transportation.