Molson Coors Beverage Company (TAP) Barclays 18th Annual Global Consumer Staples Conference 2025 summary

Industry trends and consumer environment

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

• Shift observed toward singles and value packs, with fewer buyers and ongoing channel and SKU shifting.

• U.S. consumer sentiment remains low, with continued uncertainty and stretched budgets through the end of summer.

• Promotional activity remains consistent, with most changes driven by retailers rather than brewers.

• U.K. consumer sentiment is negative despite improving macro indicators; competitive pressure is high, especially in mainstream brands.

Strategic initiatives and portfolio development

• Focus on premiumization within beer and expansion into Beyond Beer, including non-alcoholic and adjacent segments.

• Portfolio includes new non-alc brands (Blue Moon Non-Alc, Peroni 0.0), RTDs like Naked Life, and partnerships with brands such as Fever-Tree.

• C-store strategy targets impulse purchases and includes innovative higher ABV launches (Blue Moon Extra, Simply Spiked Bold, Topo Chico Max).

• Coors Banquet is expanding distribution and attracting younger and Hispanic consumers, with significant growth potential.

• Continued investment in core brands (Coors Light, Miller Lite) with focus on retaining and growing share, especially during key selling seasons.

Financial outlook and operational efficiency

• Guidance assumes mid-single digit declines in H2, but long-term expectations remain for low single digit sales growth, driven by price/mix and premiumization.

• Above premium and Beyond Beer segments are key to top-line and margin growth; pricing in North America expected at 1%-2% annually.

• Operational efficiencies include reducing discretionary spend, optimizing brewery operations, and onshoring production of higher margin brands.

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

• Midwest Premium volatility remains a challenge, with limited ability to hedge due to market opacity.