Molson Coors Beverage Company (TAP) Consumer Analyst Group of New York Conference 2025 summary

Strategic progress and transformation

• Completed revitalization plan and now focused on accelerating growth through core brand strength, premiumization, and simplification for sustainable top and bottom line gains into 2025.

• Achieved strong global brand health, especially in EMEA, APAC, and Canada, with targeted U.S. plans and supply chain modernization supporting long-term growth.

• Retained substantial U.S. market share gains from 2023, increased shelf space, and exited lower-margin businesses, strengthening the balance sheet and returning more cash to shareholders.

• Premiumization efforts raised above-premium share from 23% in 2019 to 27% in 2024, with a medium-term goal of 33%, driven by success in EMEA, APAC, and Canada.

• Long-term growth algorithm targets low single-digit net sales growth, mid-single-digit income growth, and high single-digit EPS growth.

Commercial and category-first execution

• Adopted a "Category First, Molson Coors Best" principle, prioritizing category health and customer needs, leading to disproportionate share gains and captaincy in over 50% of retail outlets.

• Leveraged technology to improve planogram execution, closing execution gaps and enhancing distributor effectiveness.

• Focused on attracting new generations, especially Gen Z, through partnerships, mindful drinking studies, and innovation in both alcoholic and non-alcoholic products.

• Convenience channel prioritized with channel-specific innovation, omnichannel solutions, and targeted marketing, resulting in 10% dollar growth since 2022 and 86% retention of core brand share gains in 2024.

• Banquet brand grew 13.5% in 2024, nearly 50% since 2019, driven by authenticity, new drinker attraction (notably Gen Z and Latinos), and expanded distribution.

Financial strategy and capital allocation

• Delivered over $1.2 billion in free cash flow in 2024, supporting investments in brands, supply chain, and bolt-on M&A, with annual capital investment of $650–$750 million.

• Maintained leverage ratio below 2.5x, with net debt and leverage more than halved since 2016, earning a Moody’s upgrade to Baa1 stable.

• Committed to sustainable dividend increases and a $2 billion share repurchase program, with over 40% completed in five quarters.

• Pursues a "String of Pearls" M&A approach, focusing on bolt-on deals like La Sagra (Madrí) and Fever-Tree, aligning with strategy and funded by operational cash flow.

• Non-alc and beyond beer are key growth drivers, with Fever-Tree and ZOA expanding the portfolio and digital performance, especially among new-to-category consumers.