Southern Glazer’s Wine & Spirits

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Health &WellnessSocialServicesDisasterReliefSouthern Glazer’s Wine & Spirits2018 Philanthropy and Volunteering UpdateFightingHungerCommunityDevelopmentEducation

Table of ContentsCompany At-a-Glance I Page 3Message from Our Leaders I Page 4Our Approach to Giving Back I Page 5Launch of VolunCheers Online I Page 6Promoting Responsible Consumption I Page 8Supporting Education I Page 9Cultivating Diversity & Inclusion I Page 10 - 11Supporting Our Suppliers I Page 12 - 13Empowering Local Market Giving and Outreach I Page 14 - 19PAGE 2

SouthernGlazer’s Wine& SpiritsAt-a-GlanceAbout Southern Glazer’sWine & SpiritsSouthern Glazer’s Wine & Spirits is theworld’s pre-eminent distributor ofbeverage alcohol, and proud to be amulti-generational, family-ownedcompany. The Company has operationsin 44 U.S. states and the District ofColumbia, Canada, and the Caribbean,and employs 21,500 team members.Southern Glazer’s urges all retailcustomers and adult consumers to market,sell, serve, and enjoy its productsresponsibly.Company At-a-Glance 21,500 employees Operations in 44 states plus the Districtof Columbia, the Caribbean, and Canada 47 distribution centers 6.4 million customer deliveries annually 14.5 million square feet of warehousespace 5.5 million pounds of freight moved 2,650 trucks in fleet Delivers to more than 360,000 customersannually Represents 1,700 wine, spirits, beer andbeverage suppliers Distributes over 5,000 brands and 180million casesExpertise in Wine and SpiritsEducationSouthern Glazer’s has more certified wineexperts than any other North Americanwine and spirits distributor. Its employeeshave successfully completed more than5,000 wine, sake and spirits educationPAGE 3programs, from introductory tomaster-level achievements. These include: 1 Master of Wine 12 WSET Certified Educators 41 WSET Level 3 Wine 23 WSET Level 3 Sake 3,050 WSET Level 2 Wine & Spirits 890 WSET Level 2 Spirits 234 WSET Level 1 Sake 1,667 Court of Master SommeliersLevel 1 121 CMS Certified Sommeliers 21 CMS Advanced Sommeliers 15 Master Sommeliers Over 600 Certified Specialists of Wine 16 Certified Wine Educators 3 Certified Spirits Educators 118 Certified Specialists of Spirits 145 Italian Wine Professionals 22 French Wine ScholarsSouthern Glazer’s employs 20Master Mixologists across NorthAmerica, responsible for educatingbartenders, beverage buyers, andcorporate clients about the latest trends incocktail culture. Michelin star chefs,national restaurant chains, internationalhotels, and top spirits brands rely onSouthern Glazer’s expert Mixologists tohelp them develop world-class beverageprograms that raise the bar for today’sdemanding consumers. Southern Glazer’sMixologists hold multiple certificationsfrom accredited organizations such as theU.S. Bartenders Guild, BarSmarts, theWine & Spirits Education Trust, Societyof Wine Educators, and the CiceroneCertification Program, to name a few.Southern Glazer’s also boasts the industry’sfirst national wine team dedicated toproviding top quality wine education andcertification for their employees acrossthe country. There are only182 MasterSommeliers in North America and 15 ofthem work for Southern Glazer’s.

Message from Our LeadersAs the world’s pre-eminent distributor of beverage alcohol, Southern Glazer’s Wine &Spirits knows there is more than one way to serve. The Company is proud to look backat the past year of giving with our 2018 Philanthropy and Volunteering Update.As we serve our customers and suppliers across North America and the Caribbean,we are committed to pursuing our corporate social responsibility initiatives across thefollowing areas: promoting responsible consumption, supporting education, enhancingdiversity and inclusion, supporting our supplier causes, and empowering local givingand volunteering with charities throughout our local markets.At Southern Glazer’s, giving takes on many forms from financial contributions,in-kind product donations, and team member volunteering. And, as a Company, weknow that employees are happier when they have a purpose. As a multi-generational,family-owned business, we’re proud of our growth over the decades, but we can onlytruly be fulfilled when we give back to our local communities – where we live andserve. This is why we empower and encourage our nearly 22,000 team members todonate their time and talents to help those in need – and with organizations that theyare deeply passionate about supporting in their own backyard.In the Southern Glazer’s 2018 Philanthropy and Volunteering Update, you will see ahighlight of our corporate philanthropy initiatives alongside a selection of localmarket spotlights. This year, we’re especially proud to feature the launch ofVolunCheers Online – our enterprise-wide employee volunteering and giving portalthat has taken the Company’s grassroots outreach efforts into the digital age. Sincelaunching this summer, the corporate social responsibility online portal has allowedour team members to connect and organize with colleagues across our vast network inpromoting, supporting and sharing charitable campaign efforts.We want to raise a glass to each of you – our team members, leaders, supplier andcustomer partners – who have contributed in many ways to support our philnthropicinitiatives and charitable giving. By coming together, we can make a larger impact onthe lives of those community members and organizations we are privileged to engageand interact with every day. Cheers!Harvey ChaplinChairmanWayne E. ChaplinCEOBennett GlazerExecutive Vice ChairmanShelly SteinPresidentPAGE 4

Our Approachto Giving BackSouthern Glazer’s Wine & Spirits is deeplycommitted to giving back to the communitieswhere we live and serve. As an organizationand in coordination with our teammembers, our giving takes on manyforms – from financial contributions, toin-kind product donations and volunteering.For Southern Glazer’s our giving centers onthree key corporate priorities: ResponsibleConsumption, Education, and Diversity &Inclusion.As an industry leader, Southern Glazer’s iscommitted to promoting the safe andresponsible use of beverage alcohol.Supporting a wide variety of local andnational programs, Southern Glazer’spartners with diverse groups and nonprofitsto prevent underage drinking and advocatefor the safe and legal use of alcohol.(Connecting. Hard-Working.Empowering. Educating. Respecting.and Serving) Business Resource Group,to include C.H.E.E.R.S. to Diversity,C.H.E.E.R.S. to Pride and C.H.E.E.R.S. toWomen in Wine & Spirits. This networkof groups promotes a culture of inclusionthrough community service, employeeengagement, professional development,and other actions that align with ourCompany’s Mission, Vision and Values.Among many other diversity and inclusioninitiatives, Southern Glazer’s endeavors tosupport national, state and local nonprofitgroups equally committed to theseprinciples and goals.Southern Glazer’s is especially proud of itssupport for a variety of local and nationaleducational institutions, scholarships andprograms. The Company has a history ofsupporting education as we believe educationleads to opportunity and is a stepping stonefor future success. This includes investing intomorrow’s hospitality leaders, whichSouthern Glazer’s views as an importantinvestment in the future of our Company andthe industry.Following devastating natural disastersin 2017 that impacted Southern Glazer’steam members, our local communitiesand that of our valued partners, SouthernGlazer’s established in 2018 the SGWSRelief & CharitableFoundation, Inc. to furthersupport disaster relief inour communities. Inaddition, the Companymade a financial contributionto the American Red Cross for disasterrelief efforts following HurricaneFlorence that provided food, water,clothing, shelter and other critical suppliesand services to individuals and familiesimpacted by the storm.Driven by Southern Glazer’s dedicationto diversity and inclusion within theorganization, over the past year, theCompany expanded upon its C.H.E.E.R.S.Southern Glazer’s also supports charitiesand organizations throughout our localmarkets, as well as Supplier causes throughdonation matching, fundraising andPAGE 5volunteering. In 2018, Southern Glazer’sdonated approximately 45,000 cases ofproduct for events benefiting countlesscharities across our vast network.At the local market level, SouthernGlazer’s team members generouslyvolunteer and raise money for hundredsof nonprofits and community groups.Employees are empowered at thelocal and state levels to request corporatesupport, either in financial grants orin-kind donations to select and engagewith organizations that are meaningfulto our team members. The 2018 launch ofVolunCheers Online – a corporate socialresponsibility employee volunteering andgiving portal – enables team membersacross the U.S. and Canada to connectwith each other online to easily organizevolunteering and fundraising activities,benefiting local and national charitableorganizations.As you will read in Southern Glazer’s 2018Philanthropy & Volunteering Update, ourapproach to giving back is deeply rooted inour culture and illustrates ourcommitment and continued pledge tosupport our communities, team membersand the beverage alcohol industry.It all adds up to a longstanding awarenessof and commitment to giving back atSouthern Glazer’s, as you will read and seein the following pages.

Launch ofVolunCheersOnlineVolunCheers Online: Takingthe Company’s grassrootsphilanthropic efforts intothe digital ageIn the summer of 2018, SouthernGlazer’s Wine & Spirits launchedVolunCheers Online –an enterprise-wide employeevolunteering and giving portal.Every day, across North America, our teammembers take the initiative to find waysto give back and to help people in theirlocal communities. It was only natural thatSouthern Glazer’s take the Company’sgrassroots philanthropic efforts into thedigital age. The digital platform utilizesleading corporate social responsibilitytechnology to enable Southern Glazer’semployees across the U.S. and Canada toconnect with each other online to mobilize our workforce for volunteering andfundraising activities, benefiting numerouslocal and national charitable organizations.By taking the VolunCheers grassrootsprogram online, Southern Glazer’s teammembers can more effectively:lllConnect with colleagues who sharesimilar charitable passions;Organize and promote volunteering;events and fundraising campaigns;Find and sign up for local volunteerevents;More than7,150 hoursof employeevolunteer time120 eventscreatedlllLog volunteer hours;Donate to favorite charities; andGet recognized for the work they do intheir communities.Southern Glazer’s leadership isexceptionally proud of the hard work anddedication of each of our local marketVolunCheers programs and theircommitment to giving back. Sincelaunching the platform in July 2018, morethan 2,000 of our team members haveleveraged VolunCheers Online and logged:Hosted eventsacross 22 statesMore than 47,500raised in monetarydonationsFrom July 16-December 31*PAGE 6

As the Company further expands ouronline grassroots capabilities, look forfuture platform enhancements toVolunCheers Online. We have alreadycoordinated with our Diversity &Inclusion team to setup dedicated grouppages to support the Company’s BusinessResources Groups – C.H.E.E.R.S. toPAGE 7Diversity, C.H.E.E.R.S. to Pride andC.H.E.E.R.S. to Women in Wine & Spirits– in organizing, promoting and sharingcommunity outreach and philanthropicefforts across each of their chapters.Additionally, Southern Glazer’s willleverage VolunCheers Online toidentify and feature an employeevolunteer in a monthly spotlight on theCompany intranet site SGNN. We lookforward to showcasing the tremendousgenerosity and giving shared by our teammembers day in and day out, to give backto our local communities and make adifference in the lives of others.

ResponsibleConsumptionSouthern Glazer’s iscommitted to promoting theresponsible consumptionof beverage alcohol andpreventing underagedrinking at the local, stateand national levels.As a cornerstone initiative launchedby Southern Glazer’s Wine & Spirits’Youth Alcohol Awareness and EducationFoundation, Inc., the AlcoholEdu forHigh School program has seen tremendoussuccess since launching in 2017.Implemented in partnership with Step UpFor Students – a nonprofit organizationthat helps manage the income-based TaxCredit Scholarship Program in Florida –the program brings the interactive onlineAlcoholEdu for High School curriculumto high schools in South Florida.AlcoholEdu for High School, a 1.5 hourdigital course developed by leading education technology company EVERFI, isproven to reduce negative consequencesassociated with underage drinking byempowering young people to makehealthier choices about alcohol. Topicscovered include: Peer pressure Effects of alcohol on the brain and body Bystander behavior Goal-settingDuring the 2017-2018 school year, theprogram reached nearly 1,600 studentsacross 29 high schools in South Florida.This is the second year of a three-yearcommitment to the program, and thanksto funding by the Company’s YouthAlcohol Awareness and EducationFoundation, is provided at no cost forhigh school students in Miami-Dade andBroward counties in Florida.Through pre- and post-course assessmentsand surveys, students are measured onknowledge gains as well as shifts inbehavior, attitudes, and habits aroundalcohol safety. Those assessments andsurvey results are compared againstEVERFI’s national survey population ofmore than 59,000 students from the 20172018 school year.Program highlights and key learningsfrom the 2017-2018 school year include: After completing the course,participating students in SouthFlorida showed significant knowledgegains of 34%, along withcorresponding positive shifts inattitudes and behaviors. 42% of students identified thatcelebrating was the number one mostimportant reason to drink. Thisfeedback will inform plans for the2018-2019 school year to include anactivation with participating schoolsin advance of prom season whenstudents would be most likely toengage in underage drinking. A notable percentage of studentsindicated that they acquired alcoholfrom parents or family membersover the age of 21. The program willtake this key learning to promote theparent resources provided by theprogram to engage and informfamilies on their role in underagedrinking.While Southern Glazer’s supports a widevariety of local and national programsdedicated to responsible consumption, theCompany is exceptionally proud of thisalcohol safety education program to deterunderage drinking in our communities.We know educators can inspire studentsto make better choices about alcohol safetyand as a partner in this program, we lookforward to continued success and furtherexpansion of the program for many yearsto come.PAGE 8

SupportingEducationSouthern Glazer’s has ahistory of supportingeducational institutions andprograms because we believeeducation leads toopportunity.Over the past nine consecutive years,Southern Glazer’s Wine & Spirits hassupported the Step Up For StudentsScholarship Program. In 2018, SouthernGlazer’s committed 150 million for the2018-2019 school year, matching its ownhistorical donation of 150 million fromthe previous year.Step Up For Students administers theFlorida Tax Credit Scholarship Program,which provides scholarships to qualifiedlower-income families throughout Florida.Southern Glazer’s contribution – onceagain, the largest in the program’s 16-yearhistory – will fund more than 21,000scholarships in the 2018-2019 school year,bringing the Company’s total to a record 615 million since 2010.In addition, Southern Glazer’s commitmentto education is the driving force behindthe Company’s role as host of the FoodNetwork & Cooking Channel South BeachWine & Food Festival.Celebrating its 18th consecutive year ashost, the festival has raised more than 28million for Florida InternationalUniversity’s (FIU) Chaplin School ofHospitality & Tourism Management.Additionally, more than 1,000 FIUstudents volunteer each year to helpPAGE 9produce the festival, giving them a uniquehands-on industry experience participatingalongside event management professionals,world-renowned chefs, winemakers,spirits producers, and restaurateurs.The event has enabled the Chaplin Schoolof Hospitality & Tourism Management tomaintain its reputation as one of the tophospitality programs in the U.S. As host ofthe festival, Southern Glazer’s reinforcesits commitment to the education of thehospitality industry’s future leaders.Southern Glazer’s also continues to makedirect and ongoing donations to FloridaInternational University’s ChaplinSchool of Hospitality and TourismManagement, which features the WineSpectator Restaurant ManagementLaboratory, giving students hands-onrestaurant operating experience; theMel Dick Wine Tower, an above-groundwine cellar and training space; and theSouthern Wine & Spirits BeverageManagement Center, a seminar-styleclassroom designed for the examinationand appreciation of wine.In addition to FIU, Southern Glazer’s hasbeen a long-standing partner with theUniversity of Nevada, Las Vegas (UNLV).Over decades of collaboration throughUNLVino, an annual wine tasting eventthat funds student scholarships, UNLV’sWilliam F. Harrah College of Hospitality’snew Hospitality Hall will feature theSouthern Glazer’s Wine & Spirits BeverageAcademy – openingin 2019.As founding sponsor, Southern Glazer’sis proud to invest in UNLV and theirstudents with a state-of-the-art kitchen,classroom, and office space for theworld-class facility. The academy willprovide students with the opportunity toexperience real-world beverage operationsin a classroom setting.For Southern Glazer’s, it goes beyondjust supporting the advancement ofeducation. By investing in tomorrow’shospitality leaders, we’re also investing inour company’s future. The students oftoday will bring new ideas and innovationsto Southern Glazer’s and the industry foryears to come.

CultivatingDiversity &InclusionAn integral component ofSouthern Glazer’s missionis to build a whollyinclusive and diverseculture – to ensure everyteam member in theSouthern Glazer’scommunity is respected,engaged and motivated togrow professionally andpersonally.It’s this commitment to corporatecitizenship that informs our engagementwith external local, state and nationaldiversity initiatives that align with theseguiding principles.As part of Southern Glazer’s Diversity& Inclusion initiative, the Company hasspent the past year expanding upon itsC.H.E.E.R.S. (Connecting. Hard-Working. Empowering. Educating. Respecting.and Serving) Business Resource Group,to include C.H.E.E.R.S. to Diversity,C.H.E.E.R.S. to Pride and C.H.E.E.R.S. toWomen in Wine & Spirits. Thisnetwork of groups promotes a cultureof inclusion through community service,employee engagement, professionaldevelopment and other actions that alignwith our Company’s Mission, Visionand Values.C.H.E.E.R.S. to Pride supports thecultivation of a diverse culture based oninclusivity, equality, fairness, andawareness for the Lesbian, Gay,Bisexual, Transgender and Questioning(LGBTQ ) community. Additionally,C.H.E.E.R.S. to Women in Wine &Spirits is dedicated to the professionaldevelopment and empowerment ofwomen at Southern Glazer’s.Together, this employee-driven networkof professionals is deeply committedto supporting one another in both aprofessional and personal setting whilealso giving back to their communities.To date, there are 19 active C.H.E.E.R.S.chapters with more than sevenforthcoming chapters to be establishedacross our North American footprint.Each of these chapters initiates impactfulvolunteer and giving programs in theirmarkets, supporting an array ofcharities that impact diverse populations.Examples of some of these successfulinitiatives are included in the localmarket section later in this report.I

master-level achievements. These include: 1 Master of Wine 12 WSET Certified Educators 41 WSET Level 3 Wine 23 WSET Level 3 Sake 3,050 WSET Level 2 Wine & Spirits 890 WSET Level 2 Spirits 234 WSET Level 1 Sake 1,667 Court of Master Sommeliers Level 1

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