Waterloo Brewing Investment Highlights

Industry Overview Canadian craft beer market is a growth market while the overall beer market has matured; creates an opportunity for craft brewers to take share from established players Craft Breweries Have Consistently Grown in Canada Waterloo Is Second in Share Among Regional Brewers Number of Breweries 1,000 800 600 470 390 400 200 2013 2014 CAGR: 21.9% 860 715 580 2015 2016 2017 Moosehead I Waterloo Creemore Springs Big Rock 1.3% 1.0% 0.6% 0.5% Steam Whistle 0.3% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 2017 Canada Beer Market Share by Net Revenue 1.2% 1.4% Ontario Is Canada's Largest Market, and Waterloo's Location in Ontario Is Prime for Expansion Canada is a highly profitable market for beer companies FY18A Waterloo Gross Revenue by Province (1) Ontario is the largest beer market in Canada, accounting for -35% of volume and -40% of the margin pool The craft beer market in Ontario is still underdeveloped and growing quickly Craft beer is less than 10% of volume in Ontario, compared to ~20- 30% in British Columbia and ~40% in the U.S. Pacific Northwest Ontario is the most efficient beer distribution system in Canada The large majority of Waterloo's sales are in Ontario, and it is well-positioned to expand into the U.S. Source: Euromonitor (1) Revenue does not sum to 100% due to rounding 21 Yukon 0.0% Nunavut 0.0% British Columbia Alberta 0.1% 0.4% Manitoba 0.5% Quebec 0.1% Ontario 98.6% U.S. 0.0% Saskatchewan 0.2% Newfoundland 0.1% Nova Scotia 0.0% New Brunswick 0.1% WATERLOO0 -BREWING

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