Molson Coors Beverage Company (TAP) Morgan Stanley Global Consumer & Retail Conference summary

Strategic focus and progress

• Core brands, above premium mix, Beyond Beer, and capability building remain key focus areas, with significant progress in all regions over the past five years.

• Above premium portfolio mix increased from 23% to 27%, with ambitions to reach about a third globally in the next few years.

• Strong momentum in core brands, especially in the U.S., Canada, and Europe, with sustained market share gains and improved brand health.

• Banquet brand achieved 13 consecutive quarters of share gains, driven by expanded distribution and consistent messaging.

• International operations, particularly in Canada and the U.K., are experiencing robust growth, leveraging strategies from the U.S. and successful product launches.

Financial outlook and capital allocation

• Long-term targets include low single-digit revenue growth, mid-single-digit pre-tax growth, and high single-digit EPS growth from the 2023 base.

• Pricing in the U.S. expected to remain in the 1%-2% range, with mix and efficiency improvements supporting margins.

• Exit from the low-margin Pabst business will be a top-line headwind but a margin tailwind, reducing operational complexity.

• Share buyback program is ahead of schedule, with 30% completed in the first year and leverage below target.

• Capital allocation priorities include debt reduction, business investment (including M&A), and returning cash to shareholders.

Portfolio development and innovation

• Above premium growth driven by Blue Moon, Leinenkugel’s, and Simply brands, with new product launches and packaging updates.

• Non-alcoholic and Beyond Beer segments are key growth pillars, with investments in Zoa, Naked Life, and spirits like Blue Run.

• String of pearls M&A strategy continues, focusing on targeted, scalable investments to build capabilities and expand the portfolio.

• Ongoing focus on building Non-alc capabilities and analytics, with plans to further invest in these areas.

• Marketing spend optimized through in-house agencies and digital focus, maintaining flexibility and high returns.