Waterloo Brewing Investment Highlights
7 Strong, Sustainable Financial Performance
3 consecutive years of strong performance with Revenue and EBITDA growth
Growth Drivers
Macro: Canadian craft beer market is growing while
overall beer market has reached maturity
Consumers now favour premium craft beers that
experiment with flavours and ingredients
Brand growth: Each of Waterloo's brands has grown
due to increased brand awareness and availability in
grocery stores which began in 2015
Cost consolidation: Waterloo sold its Formosa brands
in September 2017 (FY18A); consolidated production in
Kitchener is expected to drive gross margin expansion
from FY19 onward
Pricing: Higher revenue CAGR vs. volume CAGR for
Owned Brands over the past 3 years demonstrates
favourable pricing power
Marketing initiatives:
Volume (HL 000s)
500
Consistent Volume Growth
3 Yr CAGR: 19.1%
397.8
400
338.4
325.2
280.3
150.6
300
109.0
135.0
87.6
200
88
100
229.4
247.2
192.7
190.2
FY 16A
FY17A
Owned Brands
FY 18A
Co-Pack Brands
Q319
...With Accompanying Revenue Expansion
Waterloo: Free sampling at local summer events,
seasonal offerings, packaging redesign.
Laker: Digital media campaign to communicate price
advantages, packaging redesign in July 2018
LandShark: Free sampling at local summer events,
free t-shirt in every case, cross promotion
(sweepstakes to win trip to Hollywood Beach) Winter
Events
Note: Revenue and Volume data exclude the Formosa brands sold by Waterloo in FY18A
17
Net Revenue (C$mm)
$60
$48
3 Yr CAGR: 15.7%
$44.4
$49.1
$41.3
$36.7
$36
$24
$12
$ -
FY16A
FY17A
FY18A
Q319
WATERLOO0
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