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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

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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

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Maria Hernandez

Senior Vice-President of Logistics and Supply Chain

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Samuel Hubert

Transportation Director

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Janet Smith

Vice-President of Sales & Customer Service

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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

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Samuel Hubert

Day-to-day efficiency & effectiveness

Timeliness

Quality of transportation to distributors

“Real reporting” – efficient and user friendly

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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

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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

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Year 1

Year 2

Year 3

Year 4

Totals

CH Robinson �Quoted 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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