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Mark Anthony is the 4th largest beer/malt bev supplier and still sells over 100 mil cases/yr despite tuffer stretch in the last 5 yrs, prexy David Barnett shared to lead off co's distrib meeting in Chicago yesterday. It has 4 of the top 30 brand fams - White Claw (#7), Mike's Harder (#16) and Cayman Jack (#24) are 3 of just 9 brand fams growing $$ among top 30 overall, while Mike's Hard #29 is having a tuffer yr - plus MXD is rising to a top 100 brand fam. MAB is gaining 2d most share of $$ this yr behind only STZ, and remains the leader of the pack in flavored alc bevs by far, David noted. That's all built from the ground up on innovation thruout co's ~26 yrs in biz, skyrocketing from just 21 mil cases in 2015 behind the advent of White Claw, which still sells a whopping 68 mil cases/yr on its own. Plus, Cayman Jack surged to 12 mil cases this yr, boosted by Cayman Jacked launch while Mike's Harder fam is still around 14 mil cases. Those top brands can still get much bigger, execs believe, especially White Claw. It has an oppy to become a 100 mil case brand fam in the future, perhaps even 300-400 mil case brand down the road, in founder Anthony von Mandl's view, by building just as Constellation did, with efficient SKUs and intent focus, already 67 share of malt/sugar-based hard seltzer and 54 share of total alc bev seltzer. "Most of you probably don't think it's possible," Anthony remarked. MAB's also bringing fresh innovation to Mike's Hard family to help get that brand back on track with new Mike's Dirty Lemonade, a non-carbonated 4.5% ABV flavor-forward sessionable brew that's viewed as a "huge opportunity" amid latest "dirty soda" craze in non-alc. Mike's Hard will also shift almost entirely to cans despite having 80% of its mix still in bottles, since bottles are declining 5X faster. And co's got a couple notable spirit RTD irons in the fire thru Olé tequila cocktails and Dillon's gin & vodka cocktails, both proven concepts in Canada that are getting bigger pushes in US next yr, aiming for one of those and/or MXD 12% ABV line to potentially become its next 5-mil-case brand. Olé is viewed as an especially big oppy, lookin' to take leadership in the tequila cocktail space that's still up for grabs, taking distribution national in 2026 after testing in CA, AZ and NV. Zero Debt & "Powerful Balance Sheet" that "Allows Us to Expand Rapidly" Thru M&A But in this next phase, Mark Anthony is thinking about M&A more prominently as a means to help reach its extremely ambitious future growth targets at a faster clip, Anthony von Mandl and chairman Phil Rosse highlighted. Co's about to sell its billionth case in its history, and Anthony wants to make the next 1 bil cases come much faster. After spending $1.5 bil in 2021 to build "the most advanced robotic breweries and RTD facilities," Anthony acquired another 40 acres next to the SC facility for future expansion. Co has "zero debts" and a "powerful balance sheet" that "allows us to expand rapidly in M&A," he pointed out. Even "more rapidly than growing from the ground up." So "we're open to strategic partnerships" both in US and internationally (recall ABI owns rights to Mike's internationally but not White Claw). "We will get into the spirits RTD business in a far more meaningful way," Anthony also promised, signaling M&A and innovation oppys alike. And to be "perfectly crystal clear," Anthony has "no interest in selling the company," he declared once again. "I've doubled down." Making Hard Choices to Fine-Tune the Mix That doesn't come without makin' some tuffer decisions in the last yr amid more challenging trends and launches that didn't quite work out. Not discussed at the mtg, but MAB is closing its NJ facility and went thru round of layoffs. It discontinued brand lines and SKUs like White Claw Surf, Vodka Soda, among others, dragging trend by 3-pts in 2025, vp of sales Anthony Labrusciano shared. "We don't stay committed to a brand unless we see a path" to becoming a top 30 brand in the industry, said Phil. Co's continuously working to optimize White Claw, Mike's, Cayman Jack and MXD lineups with new flavors, packaging, marketing and more. It hadda learn fast in non-alc bevs thru Mas+ by Messi partnership and White Claw Zero Proof, and while it's had to retool those brands, it's staying committed to building both long-term. MAB remains "convinced our journey" in both alc bevs and non-alc "has just begun," said Anthony. Non-alc oppy remains even larger than alc bevs, in his view. Co has "the ability to produce anything in a can." But MAB "will not launch THC beverages," he asserted, stating his personal concerns on potential "negative health impacts" over the short and long terms. Mas+ Sold 1.5 Mil Cases vs 5 Mil Target; Pivoting to Cans, Stronger "Benefits"; More on White Claw "Zero Proof" Revamp Mas+ by Messi launched 18 mos ago and did not perform the way co hoped, execs acknowledged. It hit 1.5 mil cases annually, well below its "ambition" of 5 mil cases, amid competitive non-alc hydration segment. Yet co "accomplished a lot and learned a lot," said David. It's pivoting and moving forward by looking to brand itself "beyond traditional sports drink occasions," as a hydration-plus brand, "strengthening benefits" from things like increased potassium, magnesium, sodium and vitamin B, and shifting to "more environmentally friendly" slim cans, down to just 7 cals per serving. Meanwhile, White Claw Zero was rebranded as White Claw Zero Proof to more clearly communicate the proposition, co shared. It refreshed packaging to make it brighter, reduced calories to 10 per can, and has reformulated the brew to have less carbonation. Next yr, White Claw Zero Proof will market with social sports and E sports in a bigger way, activating more with pickleball and Evo gaming event, among others. And new flavor, peach orange blossom is launching in 6pks starting this Dec. Depletions grew double digits in Aug vs yr ago. Flavor On Track to Become #1 Category in Beer/Malt; "Not Interested" in Managing a Flat-to-Down Biz "This is a turning point" for MAB, said Anthony. When Mike's Hard Lemonade first launched in 1999, flavor accounted for just 2% of the beer biz. Since then flavored beer & malt bevs soared to 26% of beer category and soon will surpass mainstream lager (30%) as the largest category of the beer biz by $$, co predicts, likely within the next 5 yrs (if not sooner) said Anthony. MAB is here for the long-term, rising to a couple thousand employees, expanding beyond America, but there's "lots of meat… right here at home" in the US, said Phil. MAB feels it's earned a higher share of mind with its efficient portfolio racking up just 150 SKUs. By "cutting the clutter and confusion, just what Constellation did," co can gain significant share in both alc bevs and non-alc as the flavor category continues to grow. In an "inefficient" environment where distribs and retailers are inundated with too many brands/SKUs, MAB wants to "continue to push and bring it back" to brands that are "leading growth categories," said Phil. Co's "not interested at all in managing a flat business," or a "soft or declining" one at that, over the long term. This is "really only about growth," and "the journey has just begun."

MAB is Serious About M&A Oppys While Building Up #1 Flavor Portfolio; Mike's Dirty Lemonade; Can Ole Lead in Tequila RTDs? Non-Alc Revamps

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