Convenience Industry Overview

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Convenience Industry Overview
Prepared by Anheuser-Busch, Inc.
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Although motor fuel generates higher sales, in
store merchandise generates more gross profit
Industry Sales Mix
Gross Profit Dollar Mix
Industry Sales Mix
Gross Profit Dollar Mix
Motor
Fuel
61
Motor
In-store
Fuel
66
34
In-store
39
In-store merchandise continues to make up
two-thirds of the industrys gross profit
dollars, on more than one-third of the industry
sales.
Source 2001 NACS/CSNews Industry Databank
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Beer Ranks 2 in Average Sales Per Store
Dollar Share of In-Store Merchandise
Dollar Share of In-Store Merchandise
Top 10
Categories
89
All Other
Categories
11
For Stores Selling Beer
Source 2001 NACS/CSNews Industry Databank
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Convenience Store Beer Consumer Demographic
Profile
The C-Store Beer Consumer skew towards Male,
Younger, Low to Moderate Educated, Blue Collar,
Ethnic, and Low to Moderate Income Households.
Source Anheuser-Busch, Inc. Eagle Eye, Beer
Poll
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The 21-27 Key Consumer Group Is Growing in U.S.
Population
21-27 Consumer Group Is Growing in Population for
First Time Since the 1980s
Source U.S. Census
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Convenience Channel Beer Category trends outpaced
those of the Total Industry Grocery Channels

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1
3
2
Sources1AC Nielsen, YTD March 30, 2002
2AB Corporate Analysis
3IRI, YTD March 31, 2002
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As Q1 came to a close, Beer Category sales were
trending lower
Beer Category Total U.S.- Convenience
Source AC Nielsen Convenience Track, YTD Ending
March 30, 2002
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Of the top Brewers, only A-B gained share at
C-Stores in Q1
Case Share Pt Chg vs. YA
Brewer Case Share
Source AC Nielsen, YTD December 29, 2001
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Premiums remain the bulk of the business,
representing over half of the Category sales
Source AC Nielsen Convenience Track, YTD
Ending March 30, 2002, Based on Case Sales
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The Flavored Alcohol Beverage segment is growing,
accounting for 3.2 dollar share of the Beer
Category gaining 1.3 points over
the past year

• Anheuser-Busch has a new product competing in the
  Flavored Alcohol Beverage (FAB) segment Bacardi
  Silver
• This product contains the flavor of Bacardi Rum
  which is the 1 spirit brand in U.S. and world
• Rum has a strong appeal to young adults which are
  the core c-store shoppers the largest alcohol
  consuming segment

Source AC Nielsen Convenience Track, YTD Ending
March 30, 2002
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Anheuser-Busch has 17 of the top 20 packages in
the Convenience Channel
Source AC Nielsen Convenience Track, YTD Ending
March 30, 2002