Prsentation PowerPoint

WILLIAM PEELSUCCESS OF A MAINSTREAM POSITIONING

Jean-Nol REYNAUDCEO, Marie Brizard Wine & Spirits

SUCCESS OF A MAINSTREAM POSITIONINGSUMMARY1. France: a key market for Scotch Whisky

2. William Peel: a success storyA leading position in FranceA promising international expansion

3. Mainstreamisation is here to stayMacroeconomics drive realityPromising growth of the middle classMillennials new consuming habitsPublic health and regulationTrade structures reflect mainstreamisation

4. Conclusion

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France#1 MARKET FOR SCOTCH WHISKY

Scotch Whisky imports

FRANCE49.8

USA30.2

SPAIN16.4

GERMANY13.1

JAPAN7.5

in mln litres of pure alcoholJan-Nov 2016, vs. Jan-Nov 2015

Source: HM Revenue & Customs / Scotch Whisky Association+9.7%+3,9%+8.0%

MEXICO15.6

+3.9%

BRAZIL11.1

+5.8%-6.6%+19.7%4

5France#1 MARKET FOR SCOTCH WHISKY

Whiskies

41%Aniseed24%Rums10%Modern Liquors4%Traditional Liquors2%Cocktails & Punchs2%Fruit Liqueurs2%Gins1%Vodkas7%Bitters5%Other2%Spirits Sales in FranceIn volume, MTD P02 2017Source Nielsen

WILLIAM PEELA LEADING POSITION IN FRANCE* Source: Nielsen

in France by volumeSpirits Brand HMSM, Nov 2016 - Fev 2017*

Scotch Whisky in France in 2016by volume and value*

#1#16

MAINSTREAMISATIONA WINNING BUSINESS MODEL

10%

11%

13%

13%

23%

51%

+1,5% volMS: 7,6%+2,4% volMS: 5,2%+8,6% volMS: 1,7%+2,7% volMS: 5,5%+1,1% volMS: 21%+4,1% volMS: 8,7%GROWTH CONTRIBUTION (IN VOLUME)HMSM - 100% SPIRITSPERIOD: YTD P13, as of 25 December 2016

Source: ScanTrack

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WILLIAM PEELA PROMISING INTERNATIONAL EXPANSION* Source: Nielsen P12 2016

in Poland in 2016*#8 Scotch Whisky brand worldwide280% volume growth3 million 9l cases sold in 2016

Objective: #3 imported Scotch Whisky in China (distribution agreement with COFCO)

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WILLIAM PEELA SUCCESS STORY

William Peel presentation video9

MAINSTREAMISATIONA WINNING BUSINESS MODEL

Scotch Whisky in FranceVodka in PolandTequila In Franceflavoured wine in Francemarket share*market share**market share*market share***#124.6%Vodkain France#2market share*15.8%#213%#129.1%#1* Source: Nielsen CAD P02 20171037.2%** Source: Nielsen CAD P12 2016*** Source: Nielsen CAD P13 2016

MAINSTREAMISATION IS HERE TO STAY5 REASONSMacroeconomicsGrowing middle class in developing countriesMillennials new consuming habitsPublic health and regulatory frameworkTrade structure

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MAINSTREAMISATION IS HERE TO STAYMACROECONOMICS DRIVE REALITYMacroeconomic environment drives French mainstream segment growth3,467,900Unemployed people 1,772Median salary per month1.1%2016 GDP GrowthSource: INSEE, Ple Emploi (Jan 2017)

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MAINSTREAMISATION IS HERE TO STAYMACROECONOMICS DRIVE REALITYFrench consumers spend on average236 per year in wine & spirits13 per purchase occasionBuy wine & spirits every3 weeksSource: Nielsen

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MAINSTREAMISATION IS HERE TO STAYA STRONG DEMAND FOR VALUE FOR MONEYsay that low incomelimit their consumption59%90%compare pricesbefore buying a product71%buy brands not to be disappointedSource: Kantar TNS / CetelemObservatoire de la consommation 2017brands should be a guarantee for quality78%Pricing is a key driver for EU consumers

A strong demand for brands and quality

European consumers request value for money14

MAINSTREAMISATION IS HERE TO STAYMACROECONOMICS DRIVE REALITY53% of imported wine priced at less than 1000 yens per bottle($8.8)72% of imported wine priced between 500 and 1500 yens per bottle ($4.4 - $13.2)Japanese consumers favour mainstream imported wineSource: Castel, 2016

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MAINSTREAMISATION IS HERE TO STAYPROMISING GROWTH OF THE MIDDLE CLASSThe Chinese middle class now exceeds that of the United States*

132mpeople in 2016

480mpeople in 2030

Consumer spending accounts for only 37% of Chinese GDP (vs. 70% in the United States, 60% in India)* Economist Intelligence Unit, Nov 2016

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MAINSTREAMISATION IS HERE TO STAYPROMISING GROWTH OF THE MIDDLE CLASSMid-range VSOP Cognac starting to grow () XO is still in terrible shapeConsumers are looking for quality international brands at accessible price pointsCyril Camus, President of Camus Wines & SpiritsSam Fischer, President of Diageo Asia-PacificSpirits sector views on the Chinese market:

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MAINSTREAMISATION IS HERE TO STAYMILLENNIALS NEW CONSUMMING HABITSRecommendI trustTaste or flavorStyle I likeWhat my friends drink7. On promotion8. AffordableKey drivers of brand selection for US Millennials*14. Premium15. Packaging21. Celebrity endorsment22. New brand

* UBS Evidence Lab, Jan 2017

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MAINSTREAMISATION IS HERE TO STAYMILLENNIALS NEW CONSUMMING HABITS* UBS Evidence Lab, Jan 2017Emotional benefits are not the main driver anymoreMore receptive to value-for-moneyLeaders in word-of-mouth recommendationMillennials are changing the rules of brand marketingMillennials shop massively online

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MAINSTREAMISATION IS HERE TO STAYPUBLIC HEALTH AND REGULATORY FRAMEWORKPOLANDLITHUANIABan on spirits advertising+ 2.6%on standard category+ 0.6%total spirits growthThougher regulatory framework+ 11.9%on standard category+ 0.8%total spirits growth

Source: IWSR, retail value, CAGR 2007-2015

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MAINSTREAMISATION IS HERE TO STAYTRADE STRUCTURE REFLECTS THE TRENDis increasing its number of UK stores from 450 to 1,000 by 2022Is investing 1.5bn to build 40-50 stores/year in the UK, over the next 3 years (from 150 stores in Nov 2016) Hard discounters have agressive expansion plans:will develop an e-trading platform in China, starting from H2 2017 (source: Lebensmittel Zeitung)has reached a 23% share in Spain (in 2016)is Polands biggest supermaket chain by sales

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CONCLUSIONMainstreamisation is here to stayIts not a compromise on qualityMainstreamisation = democratisation of quality spirits A strong positioning

A profitable and sustainable business model22

WILLIAM PEELSUCCESS OF A MAINSTREAM POSITIONING