To: Anna

From: Tanvi Goel

Subject: Possible M&A arrangements

Hi Anna,

Here’s a consolidated list of the strongest players in the beverage industry and my recommendations for which
company’s would be a good M&A arrangement.

Company Description Relevance to WorldWide Recommendation

Brewing

HappyHour HappyHour Co. is the largest It has similar operations to Recommend

Co. player in Singapore and WorldWide Brewing across the
Malaysia, in the segments of same segments and is the
beer, spirits and non- leading player in Singapore and
alcoholic beverages. Its Malaysia, suggesting the
operations include potential for strategic benefits
manufacturing facilities, and synergies. It has solid
distribution and direct sales financial results and an
and it has demonstrated ownership structure that is
strong growth in EBITDA in owned by 3 families, one of
FY2020 which was up 20% whom is looking to retire and
pcp and amounted to sell which presents a perfec
US$300mm. opportunity to acquire some
control in the Asian market
rendering a potential acquisition
relatively simple and feasible.
HappyHour Co. would be
appropriate to share.
Spirit Bay is the largest Spirit Bay's operations Recommend with more
Spirit Bay contender in Indonesia and align closely with due diligence
the second largest in Worldwide Brewing's
Malaysia and Singapore in focus on beer, spirits, and
the segment of alcoholic non-alcoholic beverages,
beverages. Similar to offering potential
Happyhour Co., its operations synergies, particularly in
include manufacturing, Indonesia, a large and
distribution and sales. The growing market. However,
the ownership structure
company demonstrates a
could present
strong financial growth up to
complexities. The
40% pcp amounting to
company is 60% owned
USD400mm by a global sponsor. The
involvement of a global
sponsor could mean that
the sponsor has specific
exit strategies or
expectations,
complicating the
acquisition process.
Despite these challenges,
acquiring Spirit Bay could
provide Worldwide
Brewing with substantial
market share and growth
potential in key Southeast
Asian markets.
 Hipsters' Ale is a Hipsters’ Ale, with its recommend
prominent player in the consortium of independent
craft beer segment, microbreweries, taps into the
Hipsters Ale with a presence across growing craft beer market
multiple Asian markets, across diverse Asian regions.
including Japan, Korea, While it offers access to niche
and Malaysia. Unlike markets, its decentralized
the others, it operates ownership structure could pose
through a consortium of significant integration
independent challenges, making it a less
microbreweries, straightforward acquisition.
offering a unique
product appeal. The
company has shown
steady financial growth,
with a 15% year-over-
year increase in
EBITDA, reaching
USD200 mm.
Brew Co. is the largest Brew Co., the largest alcohol Do not recommend
alcohol manufacturer in manufacturer in Malaysia, has
Brew co. Malaysia, focusing strong financials but limited
exclusively on beer and regional presence outside
spirits. It has a strong Malaysia which makes it a less
financial base with an than ideal company due to the
EBITDA of USD800 mm, limited expansion plans. As a
despite a slight decline publicly listed company, it offers
of 5% year-over-year. transparency but could be a
Its operations are
more competitive and expensive
concentrated on
acquisition, with limited
manufacturing, making
immediate regional synergies.
it a dominant local
player.
Bevy’s Direct is a key player Bevy’s Direct provides an Do not recommend
in the distribution of beer, extensive distribution network
Bevy’s spirits, and non-alcoholic across Asia-Pacific, aligning with
Direct beverages across the Asia- Worldwide Brewing’s segments.
Pacific region, including However, its focus on
Singapore, China, and distribution without
Australia. Unlike others, its manufacturing capabilities
operations are centered on makes it more suitable as a
wholesale distribution rather strategic partner rather than a
than manufacturing, allowing full acquisition target for
it to cover a broad production expansion
geographic area efficiently.
The company has seen a 20%
increase in EBITDA,
amounting to USD250 million

Tanvi Goel