Download - Beverage Industry Market Update - Cascadia Capital...Furthermore, beverage packaging continues to move towards cans and away from plastic and glass, with ~70-75% of all new beverage

Beverage Industry Market UpdateFal l 2020

Food, Beverage & Agribusiness Leadership

Nicole Nugent FryManaging DirectorFood, Beverage and

Agribusiness

Industry Focus:Branded Beverage,

Beverage Technology & Equipment, Legal Cannabis

Recent Transactions:

Beverage Leadership Team

Food, Beverage and Agribusiness Leadership Team

Industry Team Colleagues

Michael ButlerCo-Founder and CEOFood, Beverage and

Agribusiness

Industry Focus:Food & Agriculture, Agribusiness Inputs

and Production, Equipment

Manufacturing


George SentManaging DirectorFood, Beverage and

Agribusiness

Industry Focus:Branded Food &

Nutrition, Ingredients, Agribusiness Inputs

and Production


Scott PorterSenior Vice PresidentFood, Beverage and

Agribusiness

Industry Focus:Agribusiness Inputs

and Production, Food Processing &

Manufacturing, Ingredients


Bryan JaffeManaging DirectorFood, Beverage and

Agribusiness

Industry Focus:Contract

Manufacturing, Branded Food, Pet


Erik EinwalterManaging DirectorFood, Beverage and

Agribusiness

Industry Focus:Contract

Manufacturing, Branded Food &

Beverage


1

2

Market Overview

Off-Premise Strength Continues but has Led to a National Can Shortage

3

As demand for cans continues to outpace supply, the North American market for aluminum cans anticipates outages for the next 24-36 months, and the supply chain isn’t expected to catch up until 2025 / 2026 (1)

Sources: (1) Credit Suisse research, (2) Brewbound (3) Wall Street Journal, (4) Barclays research.

▪ Since the beginning of the COVID-19 pandemic in March 2020, can usage has risen dramatically due to higher levels of at-home consumption and increased purchasing of larger pack sizes / pantry loading. Furthermore, beverage packaging continues to move towards cans and away from plastic and glass, with ~70-75% of all new beverage product launches in cans compared to just 30-40% five years ago.

ꟷ Retail sales of aluminum drink cans increased 24% by volume in March 2020 and have continued to rise since then (2)

ꟷ Specialty and Slim cans, which are utilized by hard seltzer producers, have seen a dramatic increase in demand as the hard seltzer category continues its explosive growth

▪ The unprecedented demand for cans in 2020 has led to significant industry shortages and supply issues, and the largest can suppliers, Ball and Crown, are adding lines and building new facilities, but those are not expected to come online until at least 2021

ꟷ “The demand is absolutely astounding. I’ve been around 35 years and never seen demand numbers like this, and the only thing holding back our shipments as an industry, is our capacity to meet customer requirements.” – Crown CEO Timothy Donohue

ꟷ Ball reported that the U.S. will have a can shortage of ~10 billion cans this year — about 9% of total 2019 sales — as the supply chain continues to feel the brunt of shifting consumer trends (2)

Long Term Beer Trends from Glass to Aluminum (4) Aluminum Can Year-Over-Year Share Shift (%) (4)

0%

10%

20%

30%

40%

50%

60%

2002 2004 2006 2008 2010 2012 2014 2016 2018

Metal Cans Glass Bottles

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1

Glass Metal Cans

Premium, Functional and Ready-to-Drink Coffee Continues to Drive Growth

4

Shifting consumer preferences towards premium offerings is driving demand for third wave coffee roasters, with super premium offerings, functional benefits and in ready-to-drink formats

Cascadia Capital Advises on the Sale of Cascade CoffeeU.S. Sales of Ready-to-Drink Coffee (4)

$1.6$1.8

$2.1

$2.7

$3.3

2015 2016 2017 2018 2019

Sources: (1) Nielsen: latest 52-weeks ending July 27, 2019, (2) Bloomberg, (3) CSP Daily News, (4) Wall Street Journal.

($ in billions)

▪ Cascade Coffee is a leading contract roaster ofcoffee, with uniquely flexible roasting and packagingcapabilities to serve a diverse base of brands

▪ Cascadia was engaged based on its experience in inthe sector, most notably on the sale of Boyd’s Coffeeto Farmer Brothers

▪ Cascade offered Westward an opportunity to getexposure to an inelastic category with growthtailwinds, while serving some of the best brands inthe space

Cascade Coffee has been acquired by Westward Partners

▪ Led by a demand for convenience, ready-to-drink (RTD) product offerings are driving growth in the coffee category, with more than 150 new RTD coffee products launching in the past year – an increase of 14% year-over-year

ꟷ Consumers are looking for coffee beverages infused with functional ingredients to deliver nutritional benefits, as health and wellness becomes a larger focus and multi-benefit and multi-purpose products become a top priority

▪ Super Coffee recently raised $25 million, valuing the fast-growing beverage brand at more than $200 million – Anheuser-Busch InBev (ZX Ventures) participated in the round and will be distributing the product throughout the U.S., highlighting the investment large beverage strategics are making in “beyond beer” (2)

ꟷ Similarly, Bulletproof Coffee raised $13 million in September 2020 to expand its signature coffee line — featuring beverages infused with grass-fed butter and energy-producing Brain Octane oil, as well as collagen proteins and assorted supplements

▪ Molson Coors signed a 10-year agreement with La Colombe Coffee in October 2020 to distribute its RTD Draft Latte and Brazilian Cold Brew products in convenience and drug stores nationwide, allowing La Colombe to increase its retail footprint by more than 400% within 18 months in convenience stores (3)

Continued Struggles in the On-Premise Impacting Craft Beer and Spirits

5

The effects of the COVID-19 pandemic have directly impacted on-premise sales of craft beer and spirits, as many U.S. states have shuttered bars, pubs and in-restaurant dining, and consumers opt for at-home consumption

Sources: (1) Vinepair, (2) Beer Institute, (3) Fooddive (4) Nielsen.

Off-Premise Beer Volume % Change vs. Prior Year (4)

0.8%

15%

Pre-COVID COVID

22%

Off-premise beer volume would have had to average 22% growth to offset the loss of on-premise sales due to

the pandemic

Notable 2020 Craft Beer & Spirits Transaction Activity

▪ According to the Brewer’s Association, on-premise sales accounted for ~45% of craft beer volume before the pandemic (1)

ꟷ Lengthy closures and lower demand for in-person dining has led to the craft beer category estimated to be down ~15% in 1H 2020 compared to 1H 2019 (1). Post-pandemic, it is estimated that COVID-19 will have contributed to a $22+ billion decrease in retail beer sales (2)

▪ Another obstacle for craft beer producers is the consumer shift towards pantry loading – households are now seeking large-pack and trusted brands, while retailers are consolidating shelves towards large national brands and a handful of local suppliers

▪ Craft spirits have also felt the effects of the shutdown of on-premise sales and tasting rooms, resulting in a loss of 41% of sales ($700 million) due to the pandemic (3)

ꟷ More than 40% of craft distillers reported a 25% decrease in their wholesale business, while 11% of distillers lost their wholesale business completely (3)

▪ Given the abrupt slowdown in both craft beer and craft spirits volumes caused by the pandemic, there was a dramatic slowdown in transaction activity through Q3 2020 as a result

ꟷ Most sellers have been reluctant to transact given depressed earnings and most strategic buyers have been focused on their own portfolios

▪ We started to see an uptick in activity and interest from both sellers and strategic buyers over the last few months and expect activity will improve heading into 2021

Aphria acquires SweetWater Brewingꟷ Canadian cannabis co. Aphria plans to expand its

U.S. presence with SweetWater's craft brewingmanufacturing and distribution expertise, whichaligns well with Aphria’s cannabis lifestyle brands

Diageo acquires Aviation Gin

ꟷ In-line with Diageo’s strategy to acquire highgrowth brands with attractive margins thatsupport premiumization, the acquisition ofAviation Gin adds to its portfolio a super premiumgin with compelling growth prospects

Key Metrics

Date: Aug 2020

EV: $335M

EV / Revenue: 12.0x

EV / EBITDA: NA

Key Metrics

Date: Nov 2020

EV: $300M

EV / Revenue: 4.5x

EV / EBITDA: 12.5x

Current State of the Wine Industry: Short and Long-term Impact of Recent Wildfires

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The recent wildfires in Northern California and Oregon have significantly impacted the 2020 harvest – an estimated 80% of Napa’s Cabernets may be lost to smoke taint, affecting approximately 30 wineries and over 67,000 acres

Sources: (1) US News, (2) New York Times, (3) Grape Crush Report.

“Everything is gone, it’s all gone. Every drop of wine was like

a miracle this year, the viticulture was so hard, it’s almost

like losing a living thing. And it’s violent, to go back on site

to find ashes and gutters full of wine.”

- Jean-Baptiste Rivail, General Manager, Newton Vineyard (2)

The wildfires are likely to be "without question the single

worst disaster the wine-grape growing

community has ever faced.”

- John Aguirre, President, California Association of

Winegrape Growers (3)

Notable 2020 Wine Transactions

▪ It’s been a tough year for the wine industry, already impacted from the global pandemic, a series of wildfires across California and Oregon have resulted in tremendous losses for the 2020 harvest and an uncertain outlook for the future

ꟷ Sonoma County vintners estimate 25-30% of the 2020 harvest will go unpicked due to the fires and pandemic

ꟷ Napa producers estimate up to 70% of the harvest could be reclassified to bulk wine given the presence of smoke taint, and that there will be very limited amounts of 2020 premium Cabernet from elite labels in 2020

ꟷ There is great concern among producers about the future of the industry in California, what re-planting may be required and what the availability and cost of insurance will be

▪ Oregon’s Willamette Valley, famous for its cool-climate Pinot Noirs, has also faced significant fire damage and smoke taint, with the long-term extent of loss still uncertain. “I’ve been here growing wine grapes for over 38 years and have never experienced or seen anything like this as a wine grower.” Jim Bernau, Founder, Willamette Valley Vineyards (1)

▪ Similar to other beverage alcohol categories, there was a dramatic slowdown in transaction activity through the first half of 2020, however transaction activity has picked up in recent months, with many sellers re-thinking the long-term viability of their estates in the current environment and many strategics and investors being opportunistic for attractive assets

Miller Family Wine acquires BNA Wine Group Brandsꟷ Adding BNA’s brand portfolio provides the Miller

Family Wine Company the opportunity to expandits reach into retail chains, as well as a morerobust offering of products for its DTC channels /wine club

Constellation Brands invests in Booker Vineyard

ꟷ The investment is part of Constellation’s focus onexpanding its DTC and premium wine portfolio.Constellation will also help to expand wholesaledistribution for Booker’s My Favorite NeighborCabernet Sauvignon and Harvey & Harriet wines

Key Metrics

Date: Oct 2020

EV: NA

EV / Revenue: NA

EV / EBITDA: NA

Key Metrics

Date: Jul 2020

EV: NA

EV / Revenue: NA

EV / EBITDA: NA

State of the Beverage M&A Market

7Sources: Capital IQ, Pitchbook, Publicly available information.

▪ Non-alcohol, RTD beverages, especially those with functional benefits, have continued to see strong interest from strategic and financial investors, as well as the public markets, given consumer trends towards healthy energy, zero sugar and an increased focus on immunity

ꟷ Large beverage alcohol strategics continue to invest in non-alcohol opportunities -- Molson Coors has recently invested in Zenwtr and entered into a distribution partnership with La Colombe, and Anheuser Busch InBev’s ZX Ventures unit recently invested in Super Coffee

ꟷ Canadian natural plant-based energy brand GURU Organic Energy, which has ~$20M in revenues, went public in October and now has avaluation in excess of $250 million, representative of the strong public market appetite for high growth, emerging beverage brands

▪ Additionally, we have recently seen non-alcohol strategics announce launches in the alcohol category for the first time in the U.S., with Coca-Cola entering the hard seltzer category (in partnership with MolsonCoors), with its popular Topo Chico brand. Talking Rain is also testing a hard seltzer in select markets and Monster Energy has announced plans to enter the space. We believe this trend could be the catalyst for greater M&A and investment activity in the beverage space as many of the large strategics position themselves as total beverage companies

▪ Private and growth equity have remained engaged throughout this period and are actively looking to pursue new acquisitions and investments across the beverage industry. Look to see more activity upstream in contract manufacturing by those who wish to play sectors rather than brands

Trailing Four-Quarters Beverage Transactions by Category(as of 11/09/20)

Beer Total: 12 Spirits Total: 7 Wine Total: 21 Non-Alc Total: 30

6 2 4 34 29

14

2 1 4 2- 2 4

11

Beer Spirits Wine Non-Alc

Q4 '19 Q1 '20 Q2'20 Q3'20

While the onset of the COVID-19 pandemic created a temporary lull in beverage transactions in the first three quarters of 2020, activity has significantly picked up in recent months, particularly in the non-alcohol category, where most brands have continued to perform during the pandemic

Notable Recent Transactions

8

Announced Date

Target InvestorInvestment

Amount

Total Enterprise

ValueRevenue

TEV / Revenue

Strategic Rationale

Nov2020

NA $300.0M $66.6M 4.5x▪ Aphria can grow its U.S. presence with SweetWater's platform of craft brewing

manufacturing and distribution expertise, as well as build brand awareness for its adult-use cannabis brands, Broken Coast, Good Supply, Riff and Solei

Oct 2020

NA NA NA NA▪ Adding BNA’s brand portfolio provides the Miller Family Wine Company the

opportunity to expand its reach into retail chains, as well as a more robust offering of products for its DTC channels / wine club

Oct 2020

Kevin Love, Brett Eldredge

$15.0M NA NA NA▪ Funding will almost exclusively be utilized for marketing and advertising expenses as

well as increasing U.S. distribution – OXIGEN is in 47,000 stores across the United States, and has secured listings in major retailers including CVS and Kroger

Sep 2020

Undisclosed $34.5M $160.0M $20.0M 8.0x▪ The $34.5M financing was completed in anticipation of GURU`s going public

transaction by way of reverse takeover involving Mira X Acquisition Corp (completed in October 2020) to expand GURU’s presence in North America

Sep 2020

NA NA NA NA▪ Molson Coors has begun expanding beyond beer and ZenWTR provides a sustainably

packaged alkaline water brand to add to its growing portfolio of non-alcohol products

Sep 2020

NA NA NA NA▪ Copper & Kings represents a significant growth opportunity and reinforces

Constellation’s continued commitment to premium spirits and whiskey – through both DTC and retail channels

Sep 2020

$13.0M NA NA NA▪ Investment to grow Bulletproof’s omnichannel strategy, focusing on DTC, as well as

to help launch product offerings in both new and existing categories, such as immunity/stress relief, collagen protein powder and clean coffee

Sep 2020

Gaylon Lawrence

NA NA NA NA▪ The deal includes the brand, winery, tasting room, inventory and 26 acres of estate

vineyards – Burgess is known for its Cabernet Sauvignon, but also produces Cabernet Franc, Syrah and Chardonnay

Sep 2020

NA $400.0M $133.3M 3.0x▪ Liquid IV offers a suite of electrolyte drink mixes which can be found in more than

30,000 stores across the U.S. and will fit into Unilever’s purpose-driven brand portfolio

Sep 2020

$9.0M NA NA NA▪ Trade offers an intriguing “two-sided marketplace,” in which it is as valuable a service

to the roasters it works with, as the consumers who shop for coffee – it has tripled its subscriber base to almost 75,000 since January

Aug2020

NA NA NA NA▪ The transaction will provide Waterloo with additional operational resources, brand-

building expertise, and capital to grow its business by accelerating its product and marketing innovation, as well as improving distribution capabilities

(1)

Sources: Capital IQ, Pitchbook, Publicly available information.(1) From public sources, press releases and Cascadia estimates.

Notable Recent Transactions (cont.)

9

Announced Date

Target InvestorInvestment

Amount

Total Enterprise

ValueRevenue

TEV / Revenue

Strategic Rationale

Aug 2020

$50.0M NA $140.0M NA▪ Funding will be used primarily to fuel continued growth online and in retail locations

across the country – Hint is currently available in over 30,000 brick-and-mortar stores in the U.S.

Aug 2020

NA $335.0M $28.0M 12.0x▪ In-line with Diageo’s strategy to acquire high growth brands with attractive margins

that support premiumization, and Aviation Gin will continue to shape and drive the growth of super premium gin in North America

Aug2020

$10.0M NA NA NA▪ The funding brings Flying Ember’s Series B total raised to $35 million. The Company

has quickly become a national leader in the hard kombucha category and will now use the additional investment to extend into new categories such as hard seltzer

Jul 2020

NA NA $3.6M NA▪ Constellation’s acquisition comes at a time when on-premise sales have declined due

to state restrictions on bars and indoor dining, creating an opportunity for alcohol e-commerce and DTC sales

Jul 2020

NA NA NA NA

▪ Constellation acquired a minority stake in premium Paso Robles producer Booker Vineyard. The investment is part of Constellation’s focus on expanding its DTC portfolio. Constellation will help to expand wholesale distribution for My Favorite Neighbor Cabernet Sauvignon and Harvey & Harriet wines

Jun 2020

$25.0M $200.0M $69.0M 2.9x▪ $25M investment will allow Super Coffee to expand its team, and AB InBev’s ZX

Ventures, who participated in the round, also signed a distribution agreement with Super Coffee to distribute its products across the U.S.

Jun 2020

NA NA NA NA▪ Vital Proteins allows Nestle to continue expanding in the nutrition segment,

complementing Nestle’s other vitamin, mineral, supplement and wellness brands, including Atrium Innovations, Garden of Life, Pure Encapsulations and Persona

Jun 2020

NA $250.0M NA NA▪ Ferrari-Carano is best-known for its Sauvignon Blanc and its Chardonnay wines, and

the acquisition includes the 1,200-acre winery in Dry Creek Valley, with its Villa Fiore Tasting Room and three other exclusive tasting areas

Jun 2020

NA NA NA NA▪ The acquisition gives Precept a further foothold in the booming canned wine business

and an entrance into the imported premium canned wine segment, as Pampelonneoffers acclaimed sparkling wine cocktails made from fine French wine

Apr 2020

NA NA NA NA▪ Through the acquisition, WineShipping has created the leader in beverage alcohol e-

commerce fulfillment with millions of square feet of temperature-controlled warehouses across the country

(1)

Sources: Capital IQ, Pitchbook, Publicly available information.(1) From public sources, press releases and Cascadia estimates.

10

Public Comparables

Beer Public Comps

11

($ in millions, except per share data) Price Market Enterprise LTM Revenue Growth LTM Margins P/E EV / Revenue EV / EBITDA

Company 11/9/2020 Cap Value Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple LTM NTM LTM NTM

Beer

Anheuser-Busch InBev $62.74 $123,663 $220,085 $47,741 $17,010 (12.7%) (5.4%) 58.6% 35.6% 53.7x 4.6x 4.5x 12.9x 12.0x

Heineken N.V. 106.66 61,364 82,262 25,720 5,422 (5.9%) 1.1% 38.9% 21.1% 41.5x 3.2x 3.2x 15.2x 14.9x

Constellation Brands 200.75 38,699 50,410 8,126 1,988 (1.0%) 2.9% 52.1% 24.5% 51.2x 6.2x 6.1x 25.4x 16.2x

Asahi Group Holdings 34.96 16,831 34,176 19,040 2,638 (3.9%) 2.6% 36.8% 13.9% 16.6x 1.8x 1.7x 13.0x 11.4x

Carlsberg A/S 145.62 21,377 25,398 9,796 2,271 (4.3%) (0.4%) 49.1% 23.2% 27.3x 2.6x 2.6x 11.2x 11.1x

Kirin Holdings Company 19.84 16,544 23,623 17,650 2,444 (4.3%) 3.2% 43.4% 13.8% 22.0x 1.3x 1.3x 9.7x 10.4x

Molson Coors Brewing Company 41.16 8,936 17,259 9,846 2,338 (6.3%) (2.8%) 39.0% 23.7% 12.1x 1.8x 1.7x 7.4x 7.9x

Tsingtao Brewery Company Limited 8.28 14,142 11,161 4,049 400 (1.2%) 1.3% 40.4% 9.9% 59.2x 2.8x 2.5x 27.9x 18.9x

Royal Unibrew A/S 108.56 5,311 5,650 1,185 283 (1.4%) 5.5% 52.2% 23.9% 38.8x 4.8x 4.5x 20.0x 19.4x

Anadolu Efes Biracilik ve Malt Sanayii Anonim Sirketi 2.62 1,552 3,573 3,124 536 14.2% 27.5% 37.3% 17.2% 14.1x 1.1x 1.0x 6.7x 5.8x

Sapporo Holdings Limited 18.04 1,405 3,428 4,227 276 (4.7%) (1.1%) 33.8% 6.5% 106.6x 0.8x 0.8x 12.4x 12.5x

Compañía Cervecerías Unidas S.A. 6.48 2,395 2,870 2,429 366 2.3% 3.2% 47.9% 15.1% 23.4x 1.2x 1.2x 7.8x 7.3x

HITEJINRO Co., LTD 30.99 2,120 2,561 1,970 306 14.8% 5.3% 43.5% 15.5% 24.7x 1.3x 1.2x 8.4x 7.5x

Mean (1.1%) 3.3% 44.1% 18.8% 37.8x 2.6x 2.5x 13.7x 11.9x

Median (3.9%) 2.6% 43.4% 17.2% 27.3x 1.8x 1.7x 12.4x 11.4x

Craft Beer

The Boston Beer Company, Inc. $949.60 $11,517 $11,433 $1,577 $309 34.3% 21.6% 47.6% 19.6% 79.3x 7.3x 5.0x 37.0x 26.4x

Mean 34.3% 21.6% 47.6% 19.6% 79.3x 7.3x 5.0x 37.0x 26.4x

Median 34.3% 21.6% 47.6% 19.6% 79.3x 7.3x 5.0x 37.0x 26.4x

All Beer

Mean 1.4% 4.6% 44.3% 18.8% 40.8x 2.9x 2.7x 15.3x 13.0x

Median (2.7%) 2.7% 43.4% 18.4% 33.0x 2.2x 2.1x 12.7x 11.7x

Sources: Capital IQ, Pitchbook, Publicly available information.

Wine Public Comps

12



Large / Mid Cap Wine Producers

Constellation Brands, Inc. $200.75 $38,699 $50,410 $8,126 $1,988 (1.0%) 2.9% 52.1% 24.5% 51.2x 6.2x 6.1x 25.4x 16.2x

Treasury Wine Estates Limited 6.56 4,732 5,810 1,950 483 (7.1%) 1.9% 41.4% 24.8% 24.1x 3.0x 3.0x 12.0x 11.2x

Distell Group Holdings 9.58 2,102 2,301 1,355 218 1.2% 42.4% 4.2% 16.1% 20.9x 1.7x 6.9x 10.5x 9.4x

Viña Concha y Toro S.A. 1.66 1,240 1,651 994 194 16.5% 6.8% 39.4% 19.6% 15.8x 1.7x 1.7x 8.5x 8.8x

Delegat Group Limited 10.21 1,009 1,237 207 80 9.4% 6.4% 49.9% 38.6% 27.9x 6.0x 5.8x 15.5x 15.3x

Vranken-Pommery Monopole - Société Anonyme 16.60 147 1,029 298 40 (13.9%) (6.3%) 29.6% 13.6% NM 3.5x 3.3x 25.5x 28.1x

Laurent-Perrier S.A. 87.43 518 854 286 55 (2.9%) 1.7% 48.8% 19.4% 20.9x 3.0x 3.6x 15.4x 19.3x

Mean 0.3% 7.9% 37.9% 22.4% 26.8x 3.6x 4.3x 16.1x 15.5x

Median (1.0%) 2.9% 41.4% 19.6% 22.5x 3.0x 3.6x 15.4x 15.3x

Small Cap Wine Producers

Andrew Peller Limited $8.29 $363 $503 $297 $51 1.1% 3.9% 43.6% 17.3% 19.2x 1.7x 1.8x 9.8x 10.0x

Sociedad Anónima Viña Santa Rita 0.19 198 314 226 31 2.6% 1.1% 41.1% 13.6% 21.3x 1.4x 0.0x 10.2x 0.0x

AdVini S.A. 23.63 91 291 304 20 (4.0%) 1.7% 37.2% 6.5% NM 1.0x 0.9x 14.8x 12.3x

Australian Vintage Ltd 0.32 89 181 194 25 (0.8%) 5.7% 28.5% 12.6% 12.0x 0.9x 0.9x 7.3x 7.4x

Crimson Wine Group, Ltd. 5.02 117 107 65 (0.4) (2.6%) 1.9% 36.5% (0.6%) NM 1.7x 0.0x NM 0.0x

Willamette Valley Vineyards, Inc. 6.27 31 57 26 7 10.8% 8.5% 61.1% 26.1% 11.5x 2.2x 0.0x 8.3x 0.0x

Mean 1.2% 3.8% 41.3% 12.6% 16.0x 1.5x 0.6x 10.1x 5.0x

Median 0.2% 2.9% 39.1% 13.1% 15.6x 1.5x 0.4x 9.8x 3.7x

All Wine

Mean 0.7% 6.0% 39.5% 17.8% 22.5x 2.6x 2.6x 13.6x 10.6x

Median (0.8%) 2.9% 41.1% 17.3% 20.9x 1.7x 1.8x 11.3x 10.0x


Spirits Public Comps

13



Spirits

Diageo plc $38.13 $89,022 $109,442 $15,441 $5,511 (8.7%) (0.8%) 60.3% 35.7% 72.5x 7.1x 7.1x 19.9x 21.2x

Pernod Ricard SA 187.20 49,025 59,331 9,981 3,085 (8.0%) (2.1%) 60.2% 30.9% 36.0x 5.9x 5.9x 19.2x 19.3x

Constellation Brands, Inc. 200.75 38,699 50,410 8,126 1,988 (1.0%) 2.9% 52.1% 24.5% 51.2x 6.2x 6.1x 25.4x 16.2x

Brown-Forman Corporation 76.98 35,800 37,597 3,350 1,193 0.8% 3.1% 62.5% 35.6% 57.3x 11.2x 11.0x 31.5x 31.7x

Davide Campari-Milano S.p.A. 11.31 12,752 14,027 2,083 482 (1.0%) (0.7%) 59.5% 23.1% 54.4x 6.7x 6.2x 29.1x 25.4x

Rémy Cointreau SA 178.88 8,980 9,514 1,211 293 (9.0%) (2.2%) 66.1% 24.2% 68.0x 7.9x 7.9x 32.5x 32.2x

Stock Spirits Group PLC 3.13 621 685 400 86 24.1% 0.0% 47.0% 21.5% 14.5x 1.7x 1.7x 7.9x 8.6x

Mean (0.4%) 0.0% 58.2% 27.9% 50.6x 6.7x 6.6x 23.6x 22.1x

Median (1.0%) (0.7%) 60.2% 24.5% 54.4x 6.7x 6.2x 25.4x 21.2x


Non-Alcoholic Public Comps

14



Non-Alcoholic Beverages

The Coca-Cola Company $52.57 $225,916 $259,360 $33,471 $12,328 (7.0%) (3.6%) 59.9% 36.8% 38.7x 7.7x 7.2x 21.0x 21.6x

Pepsico 138.45 191,332 226,310 68,557 12,583 3.8% 2.6% 55.3% 18.4% 32.9x 3.3x 3.1x 18.0x 15.9x

Keurig Dr. Pepper 27.73 39,023 53,695 11,431 3,602 3.9% 0.0% 56.4% 31.5% 36.9x 4.7x 4.5x 14.9x 13.6x

Monster Beverage 81.35 42,946 41,294 4,420 1,620 7.6% 10.1% 59.8% 36.7% 45.1x 9.3x 8.4x 25.5x 22.8x

National Beverage 80.98 3,776 3,465 1,030 220 4.6% 5.8% 37.9% 21.4% 31.7x 3.4x 3.2x 15.7x 15.1x

Lassonde Industries 121.97 846 1,140 1,407 143 9.4% 6.4% 27.3% 10.1% 17.1x 0.8x 0.8x 8.0x 7.2x

A.G. BARR 6.47 719 688 324 69 (6.9%) (1.9%) 42.1% 21.2% 21.9x 2.1x 2.4x 10.0x 11.9x

New Age Beverages Corporation 2.64 258 285 248 NM NM NM 59.3% NM NM 1.1x 0.9x NM NM

GURU Organic Energy Corp 9.72 281 283 15 NM 0.0% 0.0% 64.7% NM 1.8x 18.3x 12.4x NM NM

Reed's, Inc. 0.87 55 63 36 NM (5.4%) (2.1%) 24.7% NM NM 1.7x 1.5x NM NM

Mean 1.1% 1.9% 48.7% 25.2% 28.3x 5.3x 4.4x 16.2x 15.5x

Median 3.8% 0.0% 55.8% 21.4% 32.3x 3.3x 3.2x 15.7x 15.1x


Cascadia Contact Information

15

Food, Beverage & Agribusiness Leadership

Name Phone Number Email

Michael Butler, CEO & Managing Director (206) 436-2530 [email protected]

Nicole Nugent Fry, Managing Director (310) 993-4761 [email protected]

Erik Einwalter, Managing Director (206) 436-2538 [email protected]

Bryan Jaffe, Managing Director (206) 436-2534 [email protected]

George Sent, Managing Director (612) 336-4121 [email protected]

Scott Porter, Senior Vice President (206) 436-2528 [email protected]