Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — Investor Day (October 2023)
86 slides from Molson Coors Beverage's investor day presentation, Oct 3, 2023
Slide 1: Strategy Day
L M O S ON • C 2023 OO RS • S Y • 2023 A TR A T E GY D Strategy Day
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation includes “forward-looking statements” within the meaning of the U.S. federal securities laws. Generally, the words "expects", "intend," "goals," "plans," "believes," "continues," "may," "anticipate," "seek," "estimate," "outlook," "trends," "future benefi
Slide 3: Michelle St. Jacques, Chief Commercial Officer
L M O S ON • C 2023 OORS • S Y • A TR A T E GY D Chief Commercial Officer MICHELLE ST.JACQUES 3
Slide 4: We Are Doing Things Differently
We Are Doing Things Differently PORTFOLIO INVESTMENT INNOVATION 4
Slide 5: One Set of Americas Commercial Priorities
One Set of Americas Commercial Priorities ALL Geographies ALL Categories ALL Capabilities U.S. Beer Digital Canada Flav or Innovation LATAM Non-Alc (In Aisle / Out of Aisle) Sales Full-Strength Spirits Marketing One Clear Set of Portfolio Priorities One Leadership Team 5
Slide 6: A Stronghold in the U.S. with Our Core Beer Brands
A Stronghold in the U.S. with Our Core Beer Brands Percentage of Americas Breakdown of U.S. Net Sales Revenue* Net Sales Revenue* 2% 14% 84% U.S. Canada LATAM Miller Lite Coors Light Blue Moon Other Beer Flavor Non-Alc & Spirits 6 * Source: Internal Data as of June YTD 2023. Excludes contract brewin
Slide 7: Americas: Who We Are and Where We Operate
#1 craft beer in the U.S. #1 light beer brand in Canada. Americas: Fastest grow ing American beer in Mexico. Who We Are and Fastest share gainer in flav or for both Canada and U.S. Where We Operate 7 Note: Represents YTD 2023 dollar share of U.S. industry as of W E 9/17, per Circana.
Slide 8: Americas: Who We Are and Where We Operate
#1 craft beer brand in the U.S. #1 light beer brand in Canada Americas: Who We Are and Fastest grow ing American beer in Mexico. Where We Operate Fastest share gainer in flav or for both Canada and U.S. 8 Note: Per Beer Canada through July YTD 2023.
Slide 9: Americas: Who We Are and Where We Operate
#1 craft beer brand in the U.S. #1 light beer brand in Canada. Americas: Who We Are and Fastest growing American beer in Mexico Where We Operate Fastest share gainer in flav or for both Canada and U.S. 9 Note: Based on June YTD 2023 internal estimates.
Slide 10: Americas: Who We Are and Where We Operate
#1 craft beer brand in the U.S. #1 light beer brand in Canada. Americas: Fastest growing American beer in Mexico. Who We Are and Fastest share gainer in flavor for Where We Operate both Canada and U.S. 10 Note: Represents 2023 YTD dollar share of U.S. industry as of W E 9/17, per Circana. Canada dol
Slide 11: Grew More Share in Q2 2023 than any Major Brewer
Grew More Share in Q2 2023 than any Major Brewer +2.7 vol. share pts in the U.S. | +1.5 vol. share pts in Canada 11 Note: U.S. v olume share L13W K as of 7/2/2023, per Circana. Canada data sourced from Springboard R3M May 2023.
Slide 12: Delivered on Our Revitalization Plan
Delivered on Our Revitalization Plan STRATEGIC ORGANIZATIONAL Build on the Aggressively Expand in Invest Support our strength of grow Above Beyond Beer in our people and our iconic Premium capabilities communities brands 12
Slide 13: Acceleration Plan
STRATEGIC Grow core power brand net revenue STRATEGIC Aggressively premiumize our portfolio ACCELERATION STRATEGIC Scale and expand in PLAN beyond beer ORGANIZATIONAL Invest in our capabilities ORGANIZATIONAL Support our people, communities, and planet 13
Slide 14: What our Distributors are Saying
What our Distributors are Saying 93% Confidence in Plans to Build Momentum into 2024 14
Slide 15: Acceleration Plan
STRATEGIC Grow core power brand net revenue STRATEGIC Aggressively premiumize our portfolio ACCELERATION STRATEGIC Scale and expand in PLAN beyond beer ORGANIZATIONAL Invest in our capabilities ORGANIZATIONAL Support our people, communities, and planet 15
Slide 16: Grow core power brand net revenue
STRATEGIC Grow core power brand net revenue STRATEGI C Aggressively premiumize our portfolio STRATEGI C Scale and expand in beyond beer ORGANI ZATI ONAL Invest in our capabilities ORGANI ZATI ONAL Support our people, communities, and planet 16
Slide 17: Our Core Brands are Stronger than Ever
OUR PLAN Our Core Brands are Stronger than Ever Every brand growing dollar share, net sales revenue and volume through Q2 2023 17 Note: U.S. share change v ersus prior year per Circana; Canadian share change per Beer Canada.
Slide 18: Light Beer is a Massive Category
OUR PLAN Light Beer is a Massive Category THE BEER CATEGORY IS TOTAL LIGHT BEER IS $115B U.S. 6x retail sales bigger than flav ored alcoholic bev erages 7x bigger than hard seltzers THE LIGHT BEER SEGMENT IS 50% 20x of total sales and growing in dollars bigger than ready-to-drink spirits 18 Note: Be
Slide 19: Coors Light and Miller Lite are Growing Share
OUR PLAN Coors Light and Miller Lite are Growing Share Growing Growing Growing Premium Light Share Light Beer Share Industry Share 19 Note: Represents YTD 2023 dollar share of U.S. industry change v ersus prior year as of W E 9/17, per Circana.
Slide 20: Coors Light, Miller Lite and Molson are Growing Share
OUR PLAN Coors Light, Miller Lite and Molson are Growing Share Grew industry Growing Growing share, dollar share in industry share v olume and 2022 YTD this year net rev enue Growing #1 Light Beer industry share in Canada YTD this year 20 Note: U.S. share change v ersus prior year as of W E 9/17, pe
Slide 21: How Did We Strengthen Our Core Brands?
OUR PLAN How Did We Strengthen Our Core Brands? 1 2 3 Ensuring each brand Building highly Driving flawless sales has clear and effective marketing execution with our differentiated programs that retain chain partners and positioning our existing drinkers independent retailers and attract new ones 21
Slide 22: How Did We Strengthen Our Core Brands?
OUR PLAN How Did We Strengthen Our Core Brands? 1 2 3 Ensuring each brand Building highly Driving flawless sales has clear and effective marketing execution with our differentiated programs that retain chain partners and positioning our existing drinkers independent retailers and attract new ones 22
Slide 23: Building Strong Brand Platforms
OUR PLAN Building Strong Brand Platforms 23
Slide 24: Marketer of the Year
MARKETER “Ke OF THE YEAR
Slide 25: How Did We Strengthen Our Core Brands?
OUR PLAN How Did We Strengthen Our Core Brands? 1 2 3 Ensuring each brand Building highly Driving flawless sales has clear and effective marketing execution with our differentiated programs that retain chain partners and positioning our existing drinkers independent retailers and attract new ones 25
Slide 26: Bolstered Our Sales Execution
OUR STRATEGIC PLAN Bolstered Our Sales Execution Display % Lift 26.9% 26.2% 17.0% 0.0% Note: Represents display lift statistics L4WK as of 9/17/2023, per Circana. 26
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Slide 28: Coors Light Turnaround
OUR PLAN Coors Light Turnaround +0.69 (0.10) (0.15) (0.45) (0.46) 2019 2020 2021 2022 2023 YTD 28 Note: Represents YTD 2023 dollar share of U.S. industry change v ersus prior year as of W E 9/17, per Circana.
Slide 29: Coors Light is Growing in Every State
LIGHT BEER OUR PLAN #1 #1 #1 #1 #1 #1 #1 #1 #1 #1 #1 Coors Light is Growing in Every State 29 Note: U.S. share rank of light beer category L13W K as of 9/17/2023, per Circana. Rev enue growth in ev ery tracked state per Circana YTD through 9/17/2023
Slide 30: Evolving Our Refreshment Platform
OUR PLAN Evolving Our Refreshment Platform 30
Slide 31: Strong media, starting with Super Bowl
1 2 3 Strong media, More starting with Choose Chill Partnerships Super Bowl 31
Slide 32: Coors Banquet is a National Powerhouse
OUR PLAN Coors Banquet is a National Powerhouse Note: Represents YTD 2023 dollar sales change v ersus prior year as of W E 9/17, per Circana. 32
Slide 33: Our Plan
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Slide 34: Our Plan
OUR 1 PLAN Close Distribution Gap 2 Increase Media Spend 3 Expand National Partnerships 34
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Slide 36: Miller Lite Continues to Accelerate
OUR PLAN Miller Lite Continues to Accelerate +0.57 +0.04 (0.32) (0.20) (0.27) 2019 2020 2021 2022 2023 YTD 36 Note: Represents YTD 2023 dollar share of U.S. industry change v ersus prior year as of W E 9/17, per Circana.
Slide 37: Miller Lite Has a Strong New Platform
OUR PLAN Miller Lite Has a Strong New Platform 37
Slide 38: TLTM - Localization
OUR PLAN 1 Strong Media 2 TLTM - Localization Strong Localization 3 Focus on Sports
Slide 39: Molson is Back to Growth
OUR PLAN Molson is Back to Growth 14% -2% -8% -6% -12% 2019 2020 2021 2022 H1 2023 Note: Based on internal data through June YTD 2023. 39 Note: Represents Molson TM total net sales rev enue v ersus prior year sourced v ia internal data. 39
Slide 40: Our Plan
OUR PLAN 1 2 3 Powerful National Building a Broader Leaning Into National Campaign Portfolio of Products Passion Points 40
Slide 41: Grow core power brand net revenue
STRATEGIC Grow core power brand net revenue STRATEGI C Aggressively premiumize our portfolio STRATEGI C Scale and expand in beyond beer ORGANI ZATI ONAL Invest in our capabilities ORGANI ZATI ONAL Support our people, communities, and planet 41
Slide 42: Aggressively premiumize our portfolio
STRATEGI C Grow core power brand net revenue STRATEGIC Aggressively premiumize our portfolio STRATEGI C Scale and expand in beyond beer ORGANI ZATI ONAL Invest in our capabilities ORGANI ZATI ONAL Support our people, communities, and planet 42
Slide 43: Our Plan
OUR STRATEGIC PLAN #1 #1 $ CRAFT BEER LIGHT CRAFT BEER HIGHLY PROFITABLE 43 Note: YTD 2023 U.S. Share data as of W E 9/17, per Circana.
Slide 44: Our Plan
OUR PLAN 44
Slide 45: Tap Handle
OUR PLAN #2 TAP HANDLE 45 Note: Nielsen CGA L12W through 7/15/2023.
Slide 46: Our Plan
OUR PLAN 46
Slide 47: Growing Core Beers in Above Premium
OUR PLAN Growing Core Beers in Above Premium +50% +40% 47 Note: Internal rev enue data through June YTD 2023 v s PY.
Slide 48: Massive Opportunity with Peroni
OUR PLAN Massive Opportunity with Peroni Peroni Dollar Sales ($M) +18% FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 +18% CAGR Fastest-growing EU More media, More vs. 2018 import in U.S. in Q2 markets, More F1 Note: Represents dollar sales per Circana in each period referenced. 48
Slide 49: Beyond beer priorities: flavor, non-alc, spirits
STRATEGI C Grow core power brand net revenue STRATEGI C Aggressively premiumize our portfolio 1 Win in flavor with diversified portfolio STRATEGIC Scale and expand in 2 Go big in non-alc beyond beer 3 Drive margin accretion with ORGANI ZATI ONAL full-strength spirits Invest in our capabilities ORGAN
Slide 50: Win in flavor with diversified portfolio
STRATEGI C Grow core power brand net revenue STRATEGI C 1 Aggressively premiumize our portfolio Win in flavor with diversified portfolio STRATEGIC Scale and expand in beyond beer ORGANI ZATI ONAL Invest in our capabilities ORGANI ZATI ONAL Support our people, communities, and planet 50
Slide 51: Flavor in Our Aisle is Massive and Growing
OUR PLAN Flavor in Our Aisle is Massive and Growing From 5% of TAB to 13% in 3 YRS $9B in Sales and Growing Treasure Hunt 51 Note: Segment size and growth L52W K as of 9/17/2023, per Circana.
Slide 52: Diversified Flavor Portfolio
OUR PLAN Diversified Flavor Portfolio Fastest Share Gainer in Flavor 52 Note: YTD 2023 dollar share as of W E 9/17, per Circana.
Slide 53: Our Plan
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Slide 54: 7M Top 10 Brand
OUR PLAN 7M Cases sold 5% Share of FAB in U.S. On Track to be a Top 10 Brand #1 Flavor Innovation in Canada of summer 2023 54 Note: Share and Flav or Innov ation Ranking L26W K as of 9/17/2023, per Circana ; Cases sold per internal sales data and Beer Canada July YTD 2023.
Slide 55: More Runway with Simply Spiked
OUR PLAN More Runway with Simply Spiked New New New Masterbrand Approach at Flavors Campaign Every Touchpoint 55
Slide 56: Introducing Peace Hard Tea
OUR PLAN Introducing Peace Hard Tea 56
Slide 57: Winning with Innovation
OUR PLAN Winning with Innovation Revenue from Innovation +50% Number of New Products Reduced By 50% Top Innovation in Flavor for 3 Years Note: NSR and number of products statistics based on internal data sources (FY2021 - Q2 2023). 57 Top innov ation brands sourced form Circana (FY2021, FY2022 and Q
Slide 58: Our Plan
OUR PLAN 58
Slide 59: Go big in non-alc
STRATEGI C Grow core power brand net revenue STRATEGI C 2 Aggressively premiumize our portfolio Go big in non-alc STRATEGIC Scale and expand in beyond beer ORGANI ZATI ONAL Invest in our capabilities ORGANI ZATI ONAL Support our people, communities, and planet 59
Slide 60: Our Plan
OUR PLAN 30% of 21+ gen z doesn't drink alcohol Drinking 20% less than millennials at same age Note: Sourced from Gallup Poll published December 2022. 60
Slide 61: Defend and Attack in Non-Alc
OUR PLAN Defend and Attack in Non-Alc DEFEND ATTACK TAB Replacement Pure Play Non-Alc TAB Adjacent 61
Slide 62: Our Plan
OUR PLAN 62 Note: 70 weeks post launch data and L12W K as of 8/13/23, per Circana.
Slide 63: Our Plan
OUR PLAN
Slide 64: ZOA Road Ahead
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Slide 65: Drive margin accretion with full-strength spirits
STRATEGI C Grow core power brand net revenue STRATEGI C 3 Aggressively premiumize our portfolio Drive margin accretion with full-strength spirits STRATEGIC Scale and expand in beyond beer ORGANI ZATI ONAL Invest in our capabilities ORGANI ZATI ONAL Support our people, communities, and planet 65
Slide 66: Our Plan
OUR PLAN Whiskey is the largest spirit type consumed in the U.S. First acquisition in full-strength spirits Blue Run brings new capabilities and industry expertise Source: IW SR 66
Slide 67: We Can Play and Execute in Beyond Beer
We Can Play and Execute in Beyond Beer 067 67
Slide 68: Digital Transformation, Marketing Effectiveness, Sales Excellence
STRATEGI C Grow core power brand net revenue STRATEGI C Aggressively premiumize our portfolio 1 Digital Transformation STRATEGI C Marketing Effectiveness Scale and expand in beyond beer 2 3 Sales Excellence ORGANIZATIONAL Invest in our capabilities ORGANI ZATI ONAL Support our people, communities, a
Slide 69: Growth in E-Commerce
OUR PLAN Growth in E-Commerce +22% +15% B2B Sales B2C Sales 69 Note: B2B Sales includes DSD Link, VIP Retailer, & Rey eBeerline/SIP Marketing. B2C Sales include all measurable B2C eCommerce Sales.
Slide 70: Winning in B2B
Winning in B2B MOLSON COORS & 0 & Ee ee) cont Orders Payments Manage Fetal Insights Objectives Management PayLink Reports Support Users Boer Your Beer Product ListView more Firestone Waker restone Waker Osktobertet 16 Bartel, COsktoberest 50 Lir Keg Kes s7010 Keg 170.20 hog Coors Light 12 Barcel Keg
Slide 71: Partner with distributors to drive value
Partner with Influence how our Voted #1 distributors to drive brands show up in B2B eCommerce value online in 2023 B2B 71
Slide 72: Winning in B2C
Winning in B2C covocgs from CAMP » SUMMER > SHANDY Local beer
Slide 73: Driving Marketing Effectiveness
OUR PLAN Driving Marketing Effectiveness 73
Slide 74: Driving Marketing Effectiveness
OUR PLAN Driving Marketing Effectiveness 74
Slide 75: Incredible Feedback from Our Distributors
OUR PLAN Incredible Feedback from Our Distributors 91% say Molson Coors is their #1 long-term strategic partner, up from 73% in 2019 88% confident in investing at higher level, up 95% confidence in leadership, up from 68% in 2019 from 55% in 2019 95% confidence in Coors 95% confidence in Miller Lite
Slide 76: Incredible Feedback from Our Distributors
OUR PLAN Incredible Feedback from Our Distributors 91% say Molson Coors is their #1 long-term strategic partner, up from 73% in 2019 88% confident in investing at higher level, up 95% confidence in leadership, up from 68% in 2019 from 55% in 2019 95% confidence in Coors 95% confidence in Miller Lite
Slide 77: Incredible Feedback from Our Distributors
OUR PLAN Incredible Feedback from Our Distributors 91% say Molson Coors is their #1 long-term strategic partner, up from 73% in 2019 88% confident in investing at higher level, up 95% confidence in leadership, up from 68% in 2019 from 55% in 2019 95% confidence in Coors 95% confidence in Miller Lite
Slide 78: Incredible Feedback from Our Distributors
OUR PLAN Incredible Feedback from Our Distributors 91% say Molson Coors is their #1 long-term strategic partner, up from 73% in 2019 88% confident in investing at higher level, up 95% confidence in leadership, up from 68% in 2019 from 55% in 2019 95% confidence in Coors 95% confidence in Miller Lite
Slide 79: Leading the Way in Category Management
OUR PLAN Leading the Way in Category Management 79
Slide 80: Leading the Way in Category Management
OUR PLAN Leading the Way in Category Management 74,000+ outlets 80 Note: MCBC Proprietary Space Reporting Data May YTD 2023.
Slide 81: Power of Convenience Store Channel
OUR PLAN Power of Convenience Store Channel Accounting for Growing sales with Molson Coors 1/3 of Beer every major +2PTs* Industry Volume in retailer tracked channels 81 *L13WK and YTD 2023 dollar share of U.S. conv enience channel v ersus prior year as of W E 9/17, per Circana.
Slide 82: We are Ready to Keep Winning
We are Ready to Keep Winning PORTFOLIO INVESTMENT INNOVATION 82
Slide 83: Appendix
MOLSON COORS eanrery Appendix
Slide 84: Underlying Income (loss) Before Income Taxes Reconciliation
Underlying Income (loss) Before Income Taxes Reconciliation In millions 12/31/2022 12/31/2021 * 12/31/2020 * 12/31/2019* 12/31/2018* 12/31/2017* (U.S GAAP) Income (loss) before income taxes (62.5) 1,239.0 (643.9) 479.9 1,359.8 1,383.2 Adjustments to arriv e at underlying: Goodwill impairment 845.0 -
Slide 85: Net Debt to Underlying EBITDA Reconciliation
Net Debt to Underlying EBITDA Reconciliation In millions (except net debt to underlying EBITDA) 12/31/2022 12/31/2021 12/31/2020 12/31/2019 12/31/2018 12/31/2017 12/31/2016* Current portion of long-term debt and short-term borrowings 397.1 514.9 1,020.1 928.2 1,594.5 714.8 684.8 Add: Long-term debt
Slide 86: Non-GAAP guidance note
Our guidance for Underlying Income Before Income Taxes and Underlying Earnings per Share are also non-GAAP financial measures that exclude or otherwise hav e been adjusted for non-GAAP adjustment items from our U.S. GAAP financial statements. W hen we prov ide guidance for any of the v arious non-GA
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