[Q&A from Teleconference Meeting] 1Q of Year ending December 31, 2018
<Date and Time> May 11, 11:00-12:00<Speakers> Director Shinichi Soya with the General Manager of the IR Section
1. Japanese Alcoholic Beverages Business
Q. Sales of Sapporo Draft Beer Black Label remain strong. Could you please explain
what is behind the growth in sales?
A. We have consistently promoted the “Otona Elevator” series of commercials andactively provided promotions at which the customers can taste the drinks themselves.
This has helped to promote the brand, and we have expanded our promotions in termsof both customer age group and area. Our analysis is that the main cause for growthin sales is our success in encouraging customers who drink Black Label in bars andrestaurants to then drink cans of Black Label at home.

Q. Your competitors are strengthening their positions in the field of new-genre beer.
Could you explain what measures you have implemented in the first quarter and what
we can expect moving forward?
A. We have consistently focused our efforts on the “Mugi to Hop” brand. However, in thefirst quarter our sales volume fell against the same period in the previous fiscal year inresponse to inventory reductions carried out in preparation for product renewals andbecause of increasing market competition. Meanwhile, we have seized the opportunity
presented by market needs for high-alcohol products, and in the new-genre beer categoryon June 5 we plan to release a 9%-alcohol new product called “LEVEL 9 Zeitaku Strong”.

Q. In the current fiscal year, you are planning to invest actively in sales promotion
expenses with the aim of carrying out multilayered initiatives. Could you explain thesituation in the first quarter?
A. We launched a new RTD product called “Relakusu” on April 3. For this reason, fromMarch onwards we made advance investments in advertising, etc. In the same period in
the last fiscal year we carried out a brand investment for the new launch of “Yebisu –Hanamiyabi”. Accordingly, sales promotion expenses were at a similar level to last year.
From the second quarter onwards, we plan to realize an increase in sales promotion
expenses along with growth in RTD sales volumes.

12. North American Beverages BusinessQ. How much of an improvement in results are you expecting as a result of the businessmerger of Silver Springs Citrus, Inc. and Country Pure Foods, Inc.?
A. In the first quarter, income from the North American Beverage Business fell against
the same period in the previous fiscal year because of lower sales volume and more
expensive manufacturing costs. We completed the business merger of the two companies
on April 28, and we are currently working to reduce costs, under the leadership ofCountry Pure Foods, Inc. On an annual basis, we expect to achieve cost reductions ofabout 1.4 billion yen, and according to the plan there will be a particularly significant
impact in the second half of the fiscal year. The current challenge we face is to catch up
on what needs to be done in order to achieve the plan.

3. Food & Soft Drinks Business
Q. What was the reason for the fall in income from the domestic soft drinks business inthe first quarter?
A. There has been a trend in the market for customers to switch to purchases of coffee in
PET bottles and counter coffee at convenience stores. Accordingly, there has been a fallin the sales volume for canned coffee. When carrying out vending machines negotiations,the key point is to carry out negotiations when the product lineup is being changed fromthe spring/summer to the autumn/winter lineup. For this reason, we plan to implement
full measures as a way of improving our results in the autumn/winter.
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