Molson Coors Beverage Company Class A Barclays Global Consumer Staples Conference

Yeah. Thank you, Lauren. First, thanks for having me. Thanks for hosting this. If you think over the last one year and just our category as a whole, I think when we laid out Horizon 2030, there were two key priorities we set. First was making sure we transform our portfolio, and I feel we are making good progress on that we have to transform the portfolio into places where consumers are leading into. That, for us, is in the beyond beer space. Two was making sure that we are getting sharper focused on executing within beer, and that is where you talk about the operating model changes. In the last year we have been pretty busy on scaling our beyond beer agenda. We started with less than 2% a few years ago. We are approaching 10-ish percent. That is something we have got to keep driving with scale.

In beer, we have got to make sure our brands show up differently. We made pretty clear choices on our portfolio, whether it was core, whether it was value. But then how we execute that portfolio in the market is what is going to be different, right? I was convinced a year ago, and I am convinced even more now, that this business, beer, is very local. While we have brands that are across the board, we have to execute local, and that gives me confidence, right? You saw some of the changes we made in the value portfolio. We are seeing improvements there. We continue to lean into brands like Banquet, Peroni, Fever-Tree, Topo. Then to your point of some places we know it is a little more stuck, that we need time. We talk about brands like Miller Lite, Blue Moon.

Some of these things just require a little bit more time. But the playbook is the right one. We have got to make sure we are clear on what these brands stand for, because once you are clear on that and then you can execute locally, I think we can get these brands back into being healthy first and then growth. I feel good about the portfolio choices we made, the transformation we are on, the operating model, obviously six, nine months into it with respect to execution. Then obviously know that there are a few more things we need to be turning around. The only other thing that I would probably add is, inflation has not been our friend. It was not our friend earlier this year. That is the one area that we have got to keep a watching brief on. Obviously, we announced our cost management program, executing against it.

But inflation, I would say, hasn't been our friend.

Yeah. No, absolutely. Some of the changes we made earlier this year was driving accountability as close to the market. That involves the full P&L, making sure we're looking at top and bottom line, making sure incentives are reoriented in terms of being local. So when I talk about local, this is not just about the brand and the portfolio, right? There's an element of that, of how these brands show up or which parts of our portfolio shows up where, but it is also about holding people and making sure execution is local. Your piece around the perception in the distributors, I would say, and our distributor network would say we are moving faster. This has been a volatile category year again. But in the way how we've reacted, whether it's on promotional activity, whether it's on pricing actions, whether it's on brand innovations, right?

If you think about some of the innovation launches we have done earlier this year, whether it was in our value portfolio with Keystone, whether it was High Life in particular states, whether it was, again, Coors Zero Zero in the Northeast, all of that was a function of making sure we are closest to our customer, closest to our retailers. I feel pretty good that if you ask our distributors, they will say that we are reacting faster, we are pivoting faster on where we see the consumer moving to. Again, Monaco was another, I would say, a good example. We knew we needed to get into the RTD space. It is a crowded space. It is a volatile space. How do we enter in a space that makes sense from a consumer perspective, but more importantly, makes sense from a network perspective?

I would say most of our distributors, all of our distributors say Monaco has been a good ad for them.