1. Winning with Beer • Oregon Restaurant and Lodging Association • September 19, 2010 • Kurt Krasneski – Craft Brewers Alliance

2. Define the key elements to create a successful beer program that will increase sales and profitability, while delivering the brands that are relevant to your costumers. OBJECTIVE

3. State of Beer in Oregon Marketplace • Current Market Trends • Menu and Promotional Development • VIBE Case Study 504 Top On Premise Chains • Fundamentals for Success • What you can control AGENDA

4. 0regon is TOP 5in the United States • Number of Breweries • Breweries per capita • Craft Beer Production • Craft Beer Consumption • Draft Beer Consumption per capita • Current Market Trends - IRI Grocery • Craft Beer is the only segment that is growing – up 6.75% • Overall Beer is off -6.5% • Imports and Premiums are down double digits BEER IN OREGON

5. MENU DEVELOPMENT • Stand Alone Beverage Menu #1 influencer of consumers and are read 90% of the time • Brand is the most important factor for beer consumers • Beer consumers are more visual and prefer to order from menus that feature actual photo shots of each beer • Consumers rank how well a beer goes with the food they are having as the 4th most important order influencer • Price is very important to the beer consumer - willing to trade up • Consumer wants to see more draft beer, local and regional items PROMOTIONAL PROGRAMS • Drink and food menu inserts are the most effective promotional items • Happy hour and late night programs are important to offer value - not cheapness • Promotional programs must tie in both food and beer to maximize the promotion • Great selection of beer is the #2 element to drive customer visits on promotions • What is your competition doing with their promotional program? • Play to your strengths • . • The Beer/Drink Menu continues to be the number one influence on consumers drink purchases.

6. SUCCESS • Key Elements for a Successful Beer Program • Understanding the Trends and Your Marketplace • Use of Category Management for item selection • National, Regional, Local • Effective Menu and Promotional Programs • Food Pairings, Timing, Drive Business, Play to Strengths • Educated Staff • Product Presentation and Glassware • Clean your beer lines • Train your Staff in Bar Fundamentals • Clean Glass, Fresh Product, Correct Pour, Temperature • Review Beer Program on Quarterly Basis • . • The Beer/Drink Menu continues to be the number one influence on consumers drink purchases. f

7. THANK YOU!