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Transportation Proposal

February 22, 2018

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Agenda / Today’s Topics

Team

The Boston Beer Company

Fast Facts / Current State

Goals, Priorities, and Strategic Initiatives

Value

Solution Summary

By The Numbers

Why C.H. Robinson

Recommendations and Next Steps

Questions

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Team

C.H. Robinson

Hannah Hosty

Food & Beverage Strategic Account Manager

Team and presentation lead

Adolfo Castrejon

Food & Beverage Industry Specialist

The Boston Beer Company Profile

Alicia Maciel

Business Analyst

Goals, Priorities & Initiatives

Andrew Kamath

Business Analyst

By the numbers

Max Goodwin

Transportation Specialist

Solution summary and Why C.H. Robinson

The Boston Beer Company

Maria Hernandez

Senior Vice-President of Logistics and Supply Chain

Samuel Hubert

Transportation Director

Janet Smith

Vice-President of Sales & Customer Service

Bo Deitrich

Senior Director, Information Technology

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The Boston Beer Company�Current State & Company Highlights

Mission Statement

“Seek long term profitable growth by offering the highest quality products to the U.S. Beer Drinker”

Largest Craft Brewer in the United States

HQ: Boston, Massachusetts

Company Size: 1,505 Employees

2016 Revenue: 967,000 M

Stock: $177.60

Company Highlights 2016

4.0 million barrels of beer and cider sold

135 different beer, tea and cider styles

Sells to 350 whole sale independent beer distributors → ultimately distribute to retailers & drinkers

Awarded the Bavarian Beer Medal

Competitive Environment

Highly Competitive in the U.S.

AB InBev & MillerCoors

Compete for share of distributor attention, time, and selling efforts

Compete for shelf, cold box, tap space

Brand loyalty and acceptance

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The Boston Beer Company �Individual Goals, Priorities, and Strategic Initiatives

Maria Hernandez

Increase company profit through supply chain &

operating efficiencies

Reduce costs while maintaining quality

Lead company’s global expansion

Executive Sponsor of Freshest Beer Program &

Environmental Sustainability initiatives

Samuel Hubert

Day-to-day efficiency & effectiveness

Timeliness

Quality of transportation to distributors

“Real reporting” – efficient and user friendly

Janet Smith

Increase distributors meeting the

Freshest Beer Program goals

Better transportation service, forecasting,

production planning, cooperation with

distributors

Cut shipping costs to increase selling expenses

Bo Deitrich

Modernize the reporting and data analytics

associated with supply chain, distributor

success, and satisfaction

Determine “Build It” or “Buy It” decision

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The Boston Beer Company�Goals, Priorities, and Strategic Initiatives

Efficient TMS Solution

Freshest Beer Program

Expand & Minimize Costs

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Value �Solution Summary

Pains

    • Lack of seamless and integrated operating efficiencies
    • Customer dissatisfaction
    • Real-time reporting

Gains

    • Global scalability
    • Increase FBP efficiency by 10%
    • Reduce costs

Solutions

    • Navisphere
      • Global TMS
    • Worldwide presence
    • Logistical expertise and consulting services

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Value�By The Numbers

Year 1

Year 2

Year 3

Year 4

Totals

CH RobinsonQuoted Price*

$5,258,223

$5,465,718

$5,812,915

$6,529,039

$23,065,895

Coyote

Quoted Price*

$5,504,030

$5,721,224

$6,084,652

$6,834,253

$24,144,159

Savings

$255,393

$255,506

$271,737

$305,213

$1,078,263

**Prices in NPV

4.47% Total Savings

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Value �Differentiators

Navisphere

Process Management Logistics, Consulting

Managed TMS

Control Towers, Experts

Regional Logistic Process Management

Global Presence

Forecasting

Distributor Relationships, On-Time Deliveryy

Essentials for Freshest Beer Program Goals

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Why C.H. Robinson

Growth & Scalability

Reliability

Navisphere

Flexible

Cost Effective

Service-Oriented

Global Footprint

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Recommendations / Next Steps

30 Days

Introduce

60 Days

Train

90 Days

Implement

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Questions?

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Thank You

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C.H. Robinson Transportation Proposal�Appendix

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C.H. Robinson Gross Margin

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