Molson Coors Beverage Company (TAP) investor relations material

Industry trends and company strategy

• Industry softness is viewed as cyclical, driven by macroeconomic factors affecting consumer sentiment, especially among lower income and Hispanic consumers.

• Portfolio diversification and premiumization within and beyond beer are key strategies, with investments in non-alcoholic and adjacent segments.

• Efficiency measures include reducing discretionary spend and optimizing brewery operations.

• Focus remains on adapting to consumer preferences and expanding into growth categories like non-alcoholic beer.

• Actions are being taken to ensure investments support brand growth and cost savings.

Financial outlook and guidance

• Guidance assumes continued mid-single digit declines in the second half of the year, with long-term expectations for low single-digit sales growth.

• Key growth drivers are price and mix, with premiumization and pricing in North America expected at 1-2%.

• Above premium beer category is growing, supporting top-line growth despite volume declines.

• Margin expansion is supported by premiumization, pricing, and cost-saving initiatives, including reducing low-margin contract brewing.

• Free cash flow guidance reaffirmed at $1.3 billion, supported by ongoing working capital improvements.

Brand and channel performance

• Coors Banquet is experiencing strong growth, attracting new Gen Z and Hispanic consumers, with significant distribution opportunities remaining.

• Core brands Coors Light and Miller Lite remain priorities, with investments focused on retaining and growing share.

• C-store strategy includes targeted promotions and innovation, such as higher ABV brands and partnerships to drive impulse purchases.

• Above premium brands like Peroni and Blue Moon are being supported through increased awareness, distribution, and innovation.

• Non-alcoholic brands Peroni Zero Zero and Blue Moon Non-Alc are growing at 30% in Q2.