Navy Forum

June 9, 2015

Anheuser-Busch | Delaware North Companies

WHAT WOULD

THE

WORLD MISS IF

ANHEUSER-

BUSCH DID NOT

EXIST?

WE BRING PEOPLE

TOGETHER

Need a crowd photo, but not quite super big.

We bring people together

through our brands

We bring people together

through music

We bring people

together through

Culture

We bring people together

through Sport

MEXICO ZONE PHOTO — GLOBAL BEER RESPONSIBILITY

LOOK AT THE FTP SITE

We bring people

together

through our Better

World

platforms

We bring people together through

our agricultural outreach

We bring people

together

at home

We bring people

together

At home

We bring people

together through food

We bring people together over a

beer

WHAT WOULD THE

WORLD MISS IF AB

INBEV DID NOT

EXIST?

Evolved Dream

The Best Beer Company

In A Better World

By Bringing People Together

Dream | People | Culture

Dream | People | Culture

Anheuser-Busch | Delaware North Companies

Better World

Alcohol Responsibility

Environment

Community

Our shared dream energizes everyone to work in the same direction: to be the Best Beer Company Bringing People Together For a Better World

• Adults enjoy our beers responsibly

• We protect and preserve the environmentthrough our brewing, marketing and partnerships

• We actively make a difference in the communities where we live and work

Corporate Social Responsibility

Anheuser-Busch and our wholesalers have invested more than $1B to prevent

underage drinking and drunk driving since 1982.

Anheuser-Busch activates our Good Sport designated driver program in each of your major league sports

properties.

Understanding Standard Drinks

http://rethinkingdrinking.niaaa.nih.gov/

• Website formed by the National Institute on Alcohol Abuse and Alcoholism

• A 24oz serving of Corona equals 1.8 ‘standard drinks’

• A 25oz serving of Bud Light equals 1.7 ‘standard drinks’

• A 20oz serving of CRAFT equals 2.3 ‘standard drinks’

Why partner with AB?

Globalization

Explore People Pipeline

Exploit

Cost Connect Win

One Basic Question

“What are the 3 things that keep you

up at night?”

We learned, there are really only 5

things.

Five Pain Point Focus Areas

Investing in the On-Premise

budLAB

on-premise

SHOPPER poll

npd

We invested $20MM to get to know your customers and find solutions for growth.

Brew AppétitSimple Complexities

Marketing Activations for Sophisticated Drinking Experience

Changing the Beer Ritual to Grow Check Size

What is this Story About?

• Shaping the future of on-

premise staff engagement.

• Uncovering insights and new

perspectives on staff.

• Unlocking the influence of

recommendation.

What Will We Do

• Use what we’ve learned to ultimately lead in

the way our industry approaches the on-

premise experience through

RECOMMENDATION

Let’s Get Started…

Key Fact

• 97% of Servers under 40 do not believe they are

employees of the restaurant they work for.

The Landscape of Staff Recommendation

The current situation is good:

• 17% of purchase decisions are driven by staff recommendations

• Split between food and bar.

But the opportunity is great:

• Knowing the driving factors of recommendation

• Increasing consumption and favorable

recommendation

Speaking with Key Stakeholders

A MOVING

TARGET• Bartenders and wait staff are not consumers and

do not respond to traditional consumer messaging

• Industry slow to capitalize on an evolving on-premise

• Consumers moving toward quality experiences

• Food playing more of a role

AN EVOLVING

ON-PREMISE

UNFAMILIAR

TERRITORY

• Staff historically viewed as a commodity

• No precedent internally

We’re Optimistic About the Opportunities

Before Us

• Prove our worth to our partners beyond the transaction

• Incorporate our understanding of customer need states

• Build relationships with proprietors and management

A TRUSTED

PARTNER

REFRAME

OUR VIEW OF

STAFF

• Staff is not there to deliver our message

• They drive profit for everyone and have their own

aspirations we need to help them achieve

A TIME TO

REFRESH

• Reframe our approach to bartenders and wait-staff

• Seek a connection rooted in their unmet needs

Understanding the Intrinsic

Benefit of the Recommender

Universal Triggers of Influence providing an emotional benefit

Brand Influence = Recommendation

• Storytelling

• Scarcity

SOCIAL CURRENCY

• Likeability

• Risk

Mitigation

TRUST

• Social Proof

VALIDATION

• Experience

• Reciprocity

FEEL GOOD FACTOR

• Entertainment

• Community

BELONGING

Understanding the Roles Recommendation Plays

for Consumers

Universal Needs Consumers Are Looking to be Fulfilled

There are Limited Precedents to Earning

Recommendation

• Current Industry Standards for Staff

Engagement Focus on Established

Methodologies:

Broader Opportunity Exists When We Look

Outside Our Industry

Overlaying Intrinsic Benefits Set

the Stage for a Powerful Program

When Recommendations Happen

We See a Wide Range of Occasions and Needs

“The bar was

really busy, so I

was offered a

beer because I

could get it

faster.”

MANAGER:

“The server who

sells 10 bottles of X

gets one bottle for

themselves.”

“Yes, of course.

Happy to give you a

recommendation!

What do you usually

drink?”

“When I was

unsure about what

to order, the waiter

told me what’s most

popular on the

menu.”

“Sounds like

you have a hard

time deciding what

you feel like. The X

is especially good

today.”

“After my first glass

was finished, I was

asked if I’d like

another one.”

“Feel like shifting

gears? Maybe want

a shot to switch

things up?”

“Tom, I have

something special

for you, I know

you’ll love it!”

Two Distinct Recommendations Dominate the Mix

Established players: hard liquor, wine, craft beer

“The more

expensive glass of

wine on the menu is

outstanding. It’s an

experience!”

ACTIVE RECOMMENDATION

“Can I help you

navigate our

menu?”

“It’s chilly out

tonight, would you

like a Hot Toddy?”

SOMMELIER:

“Can I help you

make a decision or

guide you through

the menu?”

“The place only had

two options on the

menu, so the choice

was easy.”

PASSIVE RECOMMENDATION

“When I was

unsure about what

to order, the waiter

told me what’s most

popular on the

menu.”

“When ordering a

vodka soda, the

waiter suggested

premium vodka

over well.”

“Would you like the

Man Size Beer or

the Girl Size Beer?”

“I ordered what the

girl next to me was

having. It looked

delicious.”

ACTIVE RECOMMENDATION PASSIVE RECOMMENDATION

Understanding Active and Passive States is Key to

Unlocking the Challenge

Key Qualities:

• Solicitation

• Expertise

• Counsel

• Knowledge

• Request

Key Qualities:

• Convenience

• Familiarity

• Efficiency

• Safety

• Anticipation

The Opportunity:

To compete with hard liquor and craft beer

primarily by focusing on the enablers of active

recommendation and growing our share of the 17%

via our premium portfolio

The Opportunity:

To use our entire portfolio to elevate the beer

category, breaking out of the established paradigm and

delivering a new kind of recommendation that lives in the

untapped 83%

By driving recommendation

across both active and

passive occasions, we can

drive reach of our brands

and increase frequency of

recommendation, elevating

beer and competing with

other categories, and using

our whole portfolio to do so.

The Br and

T

he ConsumerThe Tr ade

The Industry Believes that this is the

Information Flow in an Account

• Pushes Information to Staff

• Reflects the Route-to-Market Strategy

We provide one-

way flow of

information and

brand messages

No guarantee of

message delivery

to consumer, no

consideration of

context

Staff viewed as

channel

But the Ecosystem Really looks this way.

THE ON-PREMISE TRAIL OF INFLUENCE –

A dynamic ecosyst em

Relaxation &

Bonding

Food &

Savor

Mood

Shif t

Social

Catalyst

THE ON-PREMISE WORLD

The Br and The Rep

The Busboy

The Ow ner

The Chef

Commercial Inf uence

Inf uence pert aining to the commercial priorit ies

of the POC (margins, overheads, prof ts, staf ng,

etc.)

Social Inf uence

Inf uence pert aining to the indiviudal needs of

staf and customers (preferences, t rends, etc.)

The Host

The Bar back

Moment s of on-premise int eract ion: Pre-Shif t Training | Staf Part ies | Tast ings & Samplings | Post -Shif t Unwind

The Bar t ender

The Ser ver

T

he Consumer

The communicat ion in the

on-premise world includes two

dist inct types of inf uence when it

comes to recommendat ion–

commercial and social. Commer-

cial inf uence is directed from the

top down, while social inf uence is

spread across the middle and then

shared with the consumer.

The brand current ly has limit ed

day-to-day contact with the

on-premise world. It communicates

through the rep who is t rained on

selling product , has lit t le educat ion

and is most ly in contact with POC

management .

The players with the highest level

of inf uence on the consumer are

the bartenders and servers. The

factors that cont ribute to their

choice of recommendat ion are

organic, and most ly det ermined

by social inf uence.

The Manager

But by placing the motivations of staff at the center of our model, we can create an

empowering pull through strategy

The Br and

T

he ConsumerThe Tr ade

Needs &

Motivations

Nee

ds &

Motiva

tions

Ne

ed

s &

Mo

tivat i

on

s

Needs

&

Motiv

atio

ns

Needs &

Motivations

Needs &

Motivations

Ne

ed

s &

Mo

tiva

tion

s

Needs &

Motivatio

ns

Open dialog between

staff and us,

addressing their

needs, motivations

and realities of

their jobs

Staff given reason

to recommend to

consumers based

on creating link

between consumer

needs and brand

benefits

Staff treated as end

user and placed at

center of experience,

creating goodwill

and inspiring

reciprocity

A Cast of Characters with Different Motivations and Levels of Influence

THE HOST

THE CHEF

THE

CONSUMER

THE SERVER

THE BARTENDER

THE BUSBOY

AND

BARBACK

Uncovering Staff Needs is Central to Success

We have identified several key areas of opportunity, which serve

as springboards to help us develop breakthrough solutions.

RELATIONSHIP

ADVICE

ACTIVE

PASSIVE

PASSION IS

CONTAGIOUS

MOMENT OF

TRUTH

HELPING

HANDS

PERSONAL

BRAND

THE PLEASURE

PRINCIPLE

THE BOTTOM

LINE

What does this all mean?

Staff today are different– They’re changing the on-premise

Our objective is to drive recommendation by harnessing that power

Based on our research, we have also

identified some universal design principles

to be applied to any staff engagement

program – global, local, small or large scale.

Treat Staff Same as Customers

• Staff live to make their

customers experience as

engaging as possible.

• Brands currently do very

little investing in this

area.

• We can all take

inspiration from how staff

treat their consumers.

• Treat staff the same way!

Make Training Fun and Engaging

• This industry employs outgoing

people who like to have fun

• Willing to work late nights and

double shifts to be rewarded

• The brand training they interact

with is often not conducive to

their personality

• Let’s put the fun back into

engagement!

The Element of Reward

• While staff are passionate about their

jobs, they do expect to be rewarded

when they deliver.

• Staff also like the competition of being

rewarded more than their colleagues.

• Reward can come in many ways:– Outstanding Education

– Access to Experiences

– Product

Keep it Simple; Keep it Fresh

• The educational message must

be clear and easy to understand.

• Must have a theme and be

executable.

• If we expect to engage for the

long term, our message must

constantly evolve.

• We should not expect a change

in behavior from one-off

engagements.

What Does This Mean for Us?

GROUNDBREAKINGRADICALLYDIFFERENT

RECOMMENDATION CREDIBILITY CONSUMPTION SCALE

Introducing…

In the restaurant and hospitality

industry, the time you are ON,

delivering customer serviceSHIFT:From the origin of hackathon – when computer programmers,

designers and project managers collaborate intensively on software

projects. Today…The mainstream use of hack is:

A clever solution to a tricky problem. To hack is to modify or change

HACK:

What’s in a Name?

• It’s About Them, Not Us.

• It’s About The Shift, Not the Career

• It’s About Hacks, Not Brands

What is a Shifthacker?

• Groundbreaking, Holistic Platform.

• Improves the On-Premise by

positively impacting servers and

management.

• Measurable; Driving Sales through

Recommendation.

• Challenges the Status Quo.

• Gets Richer over time, continually

enhancing the experience for staff

and their guests.

Shifthacker Principles

BROAD

EDUCATION

+

PEER ADVICE

+

PRACTICAL TOOLS

+

GAMIFICATION

+

REWARDS

Speaks the the language

of staff and not of big

corporations to address life

on their terms in a believable,

relatable way

Acknowledging that staff

know their job, but we’re

providing the tips, tricks and

hacks to help them up their

game and deliver better

experiences…. Not just

pushing brands

Deliver practical hacks

from us, the world, and

fellow bartenders/servers

for easy to apply, bite-sized

tips and tricks

Meet the broader needs of

the staff; therefore, gaining

affiniity and reciprocity…

With the long-game end-goal

of sales volume

Why will the Trade Embrace Shifthacker?

Owners & Managers

• Drives Profit

• Develops Beer Expertise

• Better Customer Experience

According to a Harvard Business Review study, a single Yelp star can

boost an establishment’s income by 5-9%. In other words, great service

not only makes you look good — it helps the reputation of the place you

work as a whole.

VOICE & SHARE

REWARDSPRACTICAL TOOLS INTERESTING CONTENT

Why will the Trade Embrace Shifthacker?

•Tasting Wheels

•Cheat Sheets

Staff

•Created by

Subject Manner

Experts

• ‘Bottle cap’

point system

•Share your tips to

earn votes

EASY TO USE

•Quick reference

•One-minute videos

FUN

•Games, Quizzes

• Interactive

EMOTIONAL

•Creates Affinity, Respect

and Trust

•Synonymous with Personal

Improvement

•Center of Guest Experiences

RATIONAL

Rational & Emotional Reasons to

Recommend Our Products

Incentive System through

Recommendation

•Elevating Category

•Boosting Our Portfolio

•Food Pairing

•Brand Building

Benefits are Both Immediate

and Long Term

LONG TERM BENEFITS

•Lift in Beer Equity

•Affinity with Staff and Our

Brands

• Increased consumer brand

perceptions

•Penetrate new POCs’ Variety

of Brand Focus

•Powerful leverage for Sales

Organization

• Integration with other

Activations

IMMEDIATE BENEFITS

•Trackable sales lift in

participating locations

• Two Key Factors:

• Incentivized Recommendation

•New news and leverage for the field

• Increased instances of Staff

Recommendation

• Increased focus on food

pairings

THANK YOU

Contact Information

Josh Halpern

Vice President On-Premise

Anheuser-Busch

Office: (314) 765-3046

Cell: (917) 657-7719

josh.halpern@anheuser-busch.com