Q3 2024 Molson Coors Beverage Co Earnings Call Transcript
Key Points
- Molson Coors Beverage Co (TAP) reported a successful relaunch of legacy brands in Romania, contributing positively to their portfolio.
- The company has taken full ownership of COBRA, an above-premium brand in the UK, enhancing their premiumization strategy.
- Molson Coors Beverage Co (TAP) is seeing strong growth in Canada with above-premium brand revenue up nearly 15% in the quarter.
- The company is focusing on premiumization in the U.S. by divesting underperforming properties and investing in scalable above-premium opportunities.
- Molson Coors Beverage Co (TAP) has increased its stake in Zola to 51%, aiming to capitalize on the better-for-you segment in the energy category.
- The company experienced softer than anticipated unit industry performance during the peak summer selling season.
- Molson Coors Beverage Co (TAP) faced gross margin pressure largely due to COVID-19 efforts and unit shipment trends.
- The UK market has become increasingly competitive with higher promotional intensity, impacting volumes.
- The company is adjusting its financial outlook to flat to down approximately 1% due to industry challenges.
- Molson Coors Beverage Co (TAP) is dealing with volume deleverage related to unit shipment issues and contract brewing agreements.
Central and Eastern Europe was supported by Ožujsko in Croatia, which increased volumes 6% in the quarter, as well as the extremely successful relaunch of a legacy brands in Romania called Caraiman. (Salomon) already reached over 250,000 hectoliters since March and has been incremental to the overall portfolio in the country and while certainly early days, it's initial success highlights our ability to identify consumer needs and full white spaces are complementing our existing portfolio and calling is, of course, a top lager in the UK, and we continue to invest to further enhance brand equity another challenge mainstream segment in this market. Turning to our premiumization priorities, both beer and beyond beer, EMEA and A-Pac is an excellent example of our ability to premiumize. We've shared that more than half via an effect net brand revenue is in Above Premium and we have continued to build on that. Much of the success comes from the three, which grew net sales revenue over 15% in the quarter and is now the number to
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