JEREMY RAGONESE // 2020 BEER MARKETING AND TOURISM CONFERENCE ACHIEVING GROWTH IN THE CRAFT INDUSTRY

A BIT ABOUT YOU-IN-TA Located in Salt Lake City, Utah, Uinta’s current state-of-the-art production brewery was opened in 2001 and most recently expanded in 2014, with more than $30M in total invested to-date.

Source: Brewers Association 2019 Growth (Early Scan Data); 2017 US Brewery Data Independent Craft — IRI Multi-Outlet plus Convenience, Total US for YTD ending December 29, 2019 THE BIG SQUEEZE 84% 8% 8% 98% of US breweries % of US Production Thanks Bart!

1993 VS. TODAY

LOOKING FOR GROWTH • Many paths to get there • Some (many) fall short of their goal • Obstacles aplenty • Conditions can change quickly

TWO TYPES OF GROWTH Organic Inorganic Mergers or acquisitions Internal activities; doing more with what you have

BUSINESS OBJECTIVES Growth will help us achieve… • Capacity utilization / overhead absorption, which in turn will improve margins • Increase market share, especially at home, where we’re most profitable • Wholesaler engagement • Support for CapEx / maintenance improvements Profitability will allow us to… • Drive total company performance; execution of sales and operations plans • Build team culture and motivation (retention goals) • Debt service • Providing cash for investment opportunities 2017 – Peak Sales Volume 2018 – Destabilization and Decline 2019 – Year of Retooling and Restabilization 2020 – Year of Growth and Profitability

Market Penetration: focus on current products and current markets with the goal of increasing market share Market Development: use existing products to capture new markets Product Development: create new products that can be sold in existing markets Diversification: create completely new opportunities by developing new products (or new businesses) that will be introduced in new markets A COMMON TOOL…

…APPLIED TO OUR BUSINESS Current Portfolio Pack Types PODs Placements Promo $ Innovation Extensions Hard Seltzer “Other” FMB Specialty Direct-to-Consumer Demographic Focus Non-Craft Drinkers Add Territory Export CBD Beverage Spirits Hard Cider NA Beer Water Acquisition Products: Current Products: New Markets: Current Markets: New Higher Risk / Higher Investment Lower Risk / Lower Investment

LOW- IMPACT MED- IMPACT HIGH- IMPACT SHORT-TERM MEDIUM-TERM LONG-TERM DEGREE OF IMPACT TO ACHIEVING GOAL IMMEDIACY OF IMPACT NINE BOX EXERCISE Current Portfolio Pack Types PODs Placements Promo $ Innovation Extensions Hard Seltzer “Other” FMB Specialty Direct-to-Consumer Demographic Focus Non-Craft Drinkers Add Territory Export CBD Beverage Spirits Hard Cider NA Beer Water Acquisition

What It’s All About: Sales of current portfolio would be supported by additional flexibility in pack type, aligning with current retail trends/consumer preferences. Additional marketing investment would pursue higher brand penetration of Utah and surrounding core markets. Why This Will Work: • Can variety packs are the fastest growing SKUs in UT grocery (we have 1 rotating SKU); bottle velocity continues to decline; also a consistent request from wholesaler partners • Large format opportunities will continue to come up, especially around venues and tourism destinations (we have no consistent answer) • Increased marketing spend gets wholesaler attention, aids in securing placement opportunities with retailers, and has long-term brand-building benefits Range: • Full sales territory Investments Required: • Packaging capability for automated variety packs • Can line flexibility (size and format) • R&D equipment • Marketing investment Degree of Impact Immediacy High Short-Term Attractiveness Strength or Development? Strength Current Portfolio Pack Types PODs Placements Promo $ Products: Current Markets: Current HOMEWORK

AVOIDING ROADBLOCKS Growth comes from a shift in thinking… • Get your team on board • Secure the foundation • Incorporate outsiders • Embrace failure • Trust your crazy ideas • Inject oxygen early and often • “Redefine” success…

Don’t chase success. Decide to make a difference and success will find you. GET INSPIRED [email protected] // TWITTER: @JEREMYRAGONESE // LINKEDIN: JEREMYRAGONESE

ACHIEVING GROWTH INTHE CRAFT INDUSTRY 3 Daughters Brewing St Petersburg, FL

How Many Beers Does it Take to Put 3 Daughters Through College? Company created and named after 3 girls: 16, 15 & 10

By the Numbers • 6 years in business • Produced over 10 MM cans • Capacity up to 60,000 bbls • 19 packaged options • 4,000 – 4,500 retailers • 150,000+ people per year in tasting room Largest independent craft brewery in Florida

Craft Beer in Florida • Rapidly changing industry • Between 350-400 breweries in the state • New products CBD, Seltzers, mixed vodka cocktails • Acquisitions of breweries changing landscape

Growing Sales

19 3 Pillars for Growth • Relationships • Innovation & Expansion • Giving Back

20 We Are In the Business of Making Friends

Distributer Retailer Supplier Consumer

Innovation & Expansion

Brand Update & Refresh

It’s Always About the Liquid Core beers Ciders Seltzers Limited Release Series Small Batch Series

Innovation • Lead in the industry • Lab • Manage inventory turns and deliveries for distributors • Proactive approach to selling • Brewing Arts Program • Hops program

Expansion Organic Growth

27 Fail Faster

Leigh Harting 3 Daughters Brewing [email protected]

Thank You!