LEARN ABOUT THE NEW BACKUS COMMERCIAL STRATEGIES

Over the years, Backus has managed to gain the sympathy of the consumer. He accompanied us
through many eras that marked our history. In these hundred years, it went through different
facets and grew thanks to the increase in beer consumption in our population, which has reached
46 liters per capita.

Backus' value in the local market amounts to 4,000 million soles annually. In addition, it is part of
AB Inbev, one of the largest beer groups on the planet and whose portfolio includes well-known
international brands, such as Corona, Stella Artois, Budweiser and Michelob Ultra.

PERUVIAN MARKET LEADER

Backus not only knew how to work on its greatest strength (distribution), but its commercial
operation model allows it to exert certain pressure on the points of sale with which it works. The
absence of their products in one of these points does not concern them as much as the point of
sale itself, since in Peru it is common to order beers such as Cristal, Pilsen or Cusqueña, which
belong to them.

“The value of Backus in the local market amounts to 4,000 million soles
annually. In addition, it is part of AB Inbev, one of the largest beer groups
on the planet.”
Backus works with various brands, segmented for different audiences. It has a national and an
international portfolio. The biggest novelty in the first is the addition of a craft beer segment. In
turn, AB Inbev acquires other brands in the region to promote them through its business
accelerator ZX Ventures.

The new member

Barbarian is a brand that emerged thanks to entrepreneurs interested in betting on craft beer.
Over time, they understood that they had two options to move forward: compete with a giant like
Backus or enter into a negotiation round to define their selling price.

The greatest benefit of the second alternative is that today the Barbarian team can continue its
operations in a new stage, under the commercial strategies provided by the AB Inbev accelerator.
In this context, it is worth asking what the future of the brand will be in Peru.

Growth projections

In the short term, the future of Barbarian is very promising, as it will enjoy a distribution force that
it could never have imagined. In addition, it will be part of the Backus portfolio, which includes
local and international brands. Likewise, the craft beer segment will have a new level of
negotiation regarding inputs. For Backus, the idea is to promote this area and give it a
differentiated treatment.

In the medium term, Barbaría could export its drinks to new markets, through AB Inbev's global
supply chain. Thus, it will gain rapid acceptance due to its great positioning and the international
recognition of the group, and they will be able to be part of the brand portfolio that is marketed
electronically.

Internationally, the craft beer market has a projected value of $107 billion by 2024. In that
context, Barbarian will have to compete with big players, such as Sierra Nevada and Samuel
Adams, who are not part of the group.

Sergio Rincón takes over as President of Backus in December 2019, previously he served as Vice
President of Sales at AB InBev in Mexico, and general manager of the operation in Ecuador.

140 years of brewing tradition guarantee the excellence and quality of its brands

Backus is the leading beverage company in Peru with more than 140 years in the market,
belonging to the AB InBev group, the largest brewing corporation in the world. It has 5 beer
production plants located in Lima, Arequipa, Cusco, Motupe and Pucallpa; in addition to a Malting
Factory and a mineral water plant.
Five of its beer brands are in the top ten of the most beloved brands in the country, among them
Cristal, Pilsen Callao and Cusqueña, which conquered the world along with Peruvian gastronomy,
with a presence in several countries in the region and Europe. The product mix includes soft drinks
and waters, with brands such as Guaraná and San Mateo. The company serves more than 200,000
clients directly, and they are present throughout the national territory.

Consumer trends require greater audience segmentation

For the executive, the Peruvian consumer is not exempt from the influence of the major global
trends that coexist in the local market, and that are manifested through different dynamics in
society. The traditional consumer behaves very differently from the younger public, so one of the
great challenges is to segment audiences, segment tastes, and have a wider range of products.

In relation to customers, there are also very marked trends that are observed in the evolution of
the modern channel versus the traditional channel, the growth of hard discount, the greater
number of regional chains, among others. The company serves more than 15 thousand orders
daily that are delivered in 24 hours, which implies having flexible, fast and dynamic logistics.

Backus had the support of Harvard and Amazon to outline its Digital Transformation strategy

The corporation began its digital transformation more than three years ago under the premise of
changing the organization's mindset to work in a more agile and customer-focused way. Rincón
points out that the executive staff of AB InBev took a course with experts from Harvard and
Amazon to learn about experiences and incorporate learning into the business strategy.

The incorporation of new technologies has made it possible to develop infrastructures for data
processing and analysis, and thereby adapt business strategies. For example, the availability of
data has made it possible to understand the effect of quarantines on people's movement and
mobility, consumption patterns, etc.

In the midst of the pandemic, the company managed to implement an e-commerce channel in just
10 days to reach its customers in the comfort of their home. They also created a digital application
for winemakers called “Tienda Cerca” that has a geolocation system so that customers can find the
store closest to their home, check product availability, and even take orders. They are also working
on a B2B for winemakers through which they will be able to share inventories, place orders, etc.,
under a “frictionless” model.

In some sectors of the capital, online sales represent 5% of the total

At the forefront of major technological trends, the multinational Backus AB InBev launched
'BeerHouse' last year, an e-commerce portal that markets Premium beers designed to reach the
end consumer directly. The platform was created with the objective of adding value to the
shopping experience and improving the positioning of brands.

The president of Backus maintains that the technological implementation of the ecommerce
channel can be enabled very quickly, rather there are other complexities such as the development
of a logistics structure that allows products to be delivered in line with customer expectations,
which is particularly complex in the midst of a pandemic. For the executive, it is essential to
generate an experience of excellence from start to finish.
Innovation is a fundamental driver in the transformation of AB InBev

ZX Ventures, Global Innovation and Technology Center (GITEC) and Z-Tech are units focused on
generating innovation for the company from the brewing process to the product, through digital
ecosystems that generate value. These teams combine StartUp agility and creativity with the
experience of a large corporation to create and scale great innovations for the business.

The pandemic will mark a before and after for organizations, comments the executive. Large
corporations must continue to promote greater agility, disruptive thinking and innovation to
achieve capabilities that allow them to operate in more complex dynamics. You have to walk to
where the consumer is going to be, not where they are today.

Dream, People and Culture: 3 principles of the most attractive company to work in Peru

For Rincón, people are the key to everything, which is why it is essential to have the best
professionals and promote a culture based on diversity. The company invites its employees to
dream big and challenge paradigms with creative thinking and innovation. Finally, the executive
leaves a message of optimism to face these difficult times with the power of unity.