Table of Contents Our Segments United States Segment In 2018, we operated the following segments: the U.S., Canada, Europe and International. A separate operating team manages each segment and each segment manufactures, markets, and sells beer and other malt beverage products. Prior to the Acquisition completed on October 11, 2016, MCBC owned a 50% voting and 42% economic interest in MillerCoors (which was originally formed on July 1, 2008, as a joint venture between MCBC and SABMiller), and MillerCoors was accounted for under the equity method of accounting. Following the completion of the Acquisition, MillerCoors became a wholly-owned subsidiary of MCBC and its results were fully consolidated by MCBC prospectively beginning on October 11, 2016. In the United States, beer is generally distributed through a three-tier system consisting of manufacturers, distributors and retailers. A national network of approximately 400 independent distributors and one owned distributor, Coors Distributing Company, purchases our products and distributes them to on- and off-premise retail accounts. • Headquarters: Chicago, Illinois • Approximately 7,300 employees • Second largest brewer by volume in the U.S., selling approximately 24% of the total 2018 U.S. brewing industry shipments (excluding exports) • Currently operating seven primary breweries, six craft breweries and two container operations Sales and Distribution References to on- and off-premise sales volumes are the sales to retailers of these distributors, which we believe is a useful data point relative to consumer trends. In the United States, the on-premise channel industry volume, which includes sales in bars and restaurants, declined approximately 2% in 2018. The off-premise channel includes sales in convenience stores, grocery stores, liquor stores and other retail outlets. The off-premise channel industry volume declined approximately 1% in 2018 versus prior year. The following table reflects the industry channel trends over the last five years in the United States. Note that percentages reflect estimates based on market data currently available. Channels Coors Distributing Company distributed less than 2% of our total owned and non-owned volume in 2018. Manufacturing, Production and Packaging We use high quality ingredients to brew our products. We malt a portion of our production requirements, using barley purchased under primarily annual contracts from independent farmers located predominantly in the western United States. Other barley, malt, and cereal grains are purchased from suppliers primarily in the U.S. Hops are purchased from suppliers in the U.S. and Europe. We both own and lease water rights, as well as purchase water through local municipalities, to provide for and sustain brewing operations in case of a prolonged drought in the regions where we have operations. We do not currently anticipate future difficulties in accessing water or agricultural products used in our brewing process in the near term. 8 Brewing Raw Materials Industry channel trend 2018 2017 2016 2015 2014 On-premise 16 % 16 % 16 % 17 % 17 % Off-premise 84% 84% 84% 83% 83%