Carlos Lisboa

Head of Marketing

Marketing Operations

Brazilian Beer Market Overview

AmBev’s Marketing Strategy

The Brazilian Beer Market

The 4th largest beer market in the world and growing

Source: LCA

Beer Volume – Brazil (million HL)

85,687,5

2002 2003

89,3

2004

91,7

2005E

64% of population

74% of GDP

75% Beer volume

The Brazilian Beer Market

Volume, as disposable income, is concentrated in southern regions

Source: IBGE, LCA

49%

62%

51%

38%

Male Female

Total Population Beer Consumption

33%

0%

22%

39%

15%

29%

13%

19%

8%13%

under 18 years 18 - 29 years 30 - 39 years 40 - 49 years 50 - 59 years

Total Population Beer Consumption

Beer Consumer Profile

Beer consumption is highly concentrated in young, middle class males

Penetration by Gender Penetration by Age

Penetration by Social Economic Level

Source: LCA,IBGE,Inbev

45%

25%31%

39%

19%

27%

5%9%

Low Income Class Middle Class Upper-Middle Class Upper Class

Total Population Beer Consumption

49%

62%

51%

38%

Male Female

Total Population Beer Consumption

33%

0%

22%

39%

15%

29%

13%

19%

8%13%

under 18 years 18 - 29 years 30 - 39 years 40 - 49 years 50 - 59 years

Total Population Beer Consumption

Beer Consumer Profile

Beer consumption is highly concentrated in young, middle class males

Penetration by Gender Penetration by Age

Penetration by Social Economic Level

Source: LCA,IBGE,Inbev

45%

25%31%

39%

19%

27%

5%9%

Low Income Class Middle Class Upper-Middle Class Upper Class

Total Population Beer Consumption

49%

62%

51%

38%

Male Female

Total Population Beer Consumption

33%

0%

22%

39%

15%

29%

13%

19%

8%13%

under 18 years 18 - 29 years 30 - 39 years 40 - 49 years 50 - 59 years

Total Population Beer Consumption

Beer Consumer Profile

Beer consumption is highly concentrated in young, middle class males

Penetration by Gender Penetration by Age

Penetration by Social Economic Level

Source: LCA,IBGE,Inbev

45%

25%31%

39%

19%

27%

5%9%

Low Income Class Middle Class Upper-Middle Class Upper Class

Total Population Beer Consumption

Beer market is concentrated in AmBev’s stronghold

Source: Nielsen, Ipsos

The Brazilian Beer Market

Volume Contribution by Occasion - 2004

Others

40%

Beer Blast

60%

Volume Contribution by Packaging - 2004

Long Neck

4%

Can

28%Returnable

68%

Grocery Stores

20%

Supermarkets

30%On Premise (Bar)

50%

Volume Contribution by Channel - 2004

62%25%

13%

AmBev is the clear market leader with highopportunity to grow the premium segment

Premium

4,5%

Low Price

13,6%

Core

81,8%

< 85% price index

85% < x < 115% price index

> 115% price index

AmBev Share by Segment

Premium = 93%

Core = 75%

Low Price = 0%

Source: Nielsen

The Brazilian Beer Market

Volume Contribution by Market Segment

Lowprice:

Core:

Premium:

Per Capita Beer Consumption

Vast Room for growth in Brazil despite being the 4th largest beer market in the world

Source: Canadean 2003

Per Capita Beer Consumption (in liters)

162

141

119113

99 97 97

84

63

49

Czech

Republic

Ireland

(Rep)

Germany Austria UK Denmark Belgium Spain Portugal Brazil

AmBev’s Market Strategy

Strengthen core performance

Develop the premium segment

Grow volume and profitability through per capita programs

Market Intelligence

DevelopingDeveloping

MonitoringMonitoring

Exploratory

Usage and Attitudes

Behaviour

Creative Sessions

Consumer

Consumer profile

Market Segmentation

Sales

Sales Data

Behavior at POS

Service/ Sales Diagnosis

Consumer Tracking

Brand Equity

Advertising/ Positioning

Brand

Final Mix Test

Market Simulation

LaunchProduct/ Package/ Price Tests

Communications Tests

Development

Decision making based on facts

Consumer Tracking

Brand Equity

Usage and Attitudes

Exploring Usage and Attitudes

Identify key beverage occasions

Describe each occasion

Identify Key need sates

Quantify occasion volume

Map growth opportunities

Market trends andopportunities

Wake Up

Healthy Good Morning

Light Snack

Flavor With Food

Pit Stop

On the Go

Daily Indulgence

Night Out

Beer Blast

Key occasions

Brand Equity

Brand positioning based on attributes proven to be relevant and diferentiated

32

25

18

14

9

6

3

Attribute 1

Attribute 2

Attribute 3

Attribute 4

Attribute 5

Attribute 6

Attribute 7

Monitoring Brand Equity

AmBev 3

AmBev 3

AmBev 3

AmBev 3

AmBev 3

AmBev 3

Competitor 2

Competitor 2

Competitor 2

Competitor 2

Competitor 2

Competitor 2

AmBev 2

AmBev 2

AmBev 2 AmBev 2

AmBev 2

AmBev 2

Compet itor 3

Competitor 3

Competitor 3

Compet itor 1

Competitor 1

Compet itor 1 Competitor 1Competitor 1

AmBev 1

AmBev 1

AmBev 1

AmBev 1

AmBev 1

AmBev 1

-80

-60

-40

-20

0

20

40

60

80

100

Attribute 1 Attribute 2 Attribute 3 Attribute 4 Attribute 5 Attribute 6

AmBev brands standing out in main category attributes

Consumer Tracking

Awareness

Consideration

Preference

Preference is the most importantbrand image KPI for AmBev brands

PreferencePreference

Consumer Tracking

Robust and detailed information on our consumer for every brand in the Market *

PreferencePreferenceSocial Economic Class

Gender

Age

Region

(*) Data received twice a month

Market Intelligence

DevelopingDeveloping

MonitoringMonitoring

Exploratory

Usage and Attitudes

Behaviour

Creative Sessions

Consumer

Consumer profile

Market Segmentation

Sales

Sales Data

Behavior at POS

Service/ Sales Diagnosis

Consumer Tracking

Brand Equity

Advertising/ Positioning

Brand

Final Mix Test

Market Simulation

LaunchProduct/ Package/ Price Tests

Communications Tests

Development

Decision making based on facts

Consumer Tracking

Brand Equity

Brand Preference

Source: Nielsen, Ipsos, YTD 2005

Growth potential driven by gap between consumer preference and AmBev market share

Market Share Consumer PreferenceAmBev Brands

AmBev

81

Others

19

Petrópolis

5

Molson

9,2

Others

5,2

AmBev

68

Schincariol

12,6

AmBev’s Market Strategy

Strengthen core performance

Develop the premium segment

Grow volume and profitability, through per capita programs

#3 national brand with strong regional presence in north and northeast

More than a beer, a brewery recognized for beer expertise and quality

Strongly associated to Brazilian identity and male friendship

Second largest brand

Core Portfolio Strategy

Youngest, most modern and innovative brand in the Brazilian market

The leading brand in Brazil

Brahma

Antarctica

Skol