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In his first earnings call atop the org chart, new Molson Coors ceo Rahul Goyal made one thing clear: there's a lot more change still to come. Frankly, there are "no sacred cows" and "no constraints from the board or anybody else," he declared when asked what kind of mandate he's been given. As chief exec, Rahul said he's been afforded the freedom to craft a plan to drive the most shareholder value. And while everyone understands current category challenges, that doesn't detract from oppys within the portfolio, he highlighted. Rahul hinted several times at more M&A on the horizon, with aim to ultimately get back to top and bottom line growth. Co's "healthy" balance sheet allows for capital deployment to "augment" growth and fill portfolio gaps, Rahul commented, ideally with "scalable deals" that are accretive and "meaningful" to the total enterprise. And the primary gaps that need filling are "probably in beyond beer," he acknowledged. Tho MC plans to do so in a "disciplined way" and won't "chase topline" just for its own sake, Rahul said, remaining committed to its 2.5x leverage target and dividend/share repurchase program. Could there be more beyond beer partnerships a la co's agreement with Coca-Cola? Both the KO and Fever-Tree partnerships worked "really well" for MC's biz, according to Rahul. Tho whether future opportunities come to fruition as acquisitions or partnerships largely depends on how they "come up."Still "Focused on Beer" but Seeking to Transform Above Premium; "Intend to Fill" RTD Spirits Gaps That said, co is "definitely going to be focused on beer," Rahul assured. Core brands remain "the majority of our business. So we intend to continue to put strong commercial pressure behind them," Rahul reinforced in opening remarks. That includes plans to selectively invest behind economy brands like Miller High Life and Keystone. But he also aims to "lean in even harder" to "transform our above premium" biz both in beer and beyond. Peroni volume grew 25% in Q3 and remains an area where co sees "great potential." But "you can also expect us to step up our focus on Beyond Beer because we believe we can win here," said Rahul. Fever-Tree is "performing strongly" thus far and has been "very well received" by distribs and retailers, he added. Rahul referred to the brand as "just the beginning" of co's non-alc efforts. Then too, "we recognize we have gaps, including RTD spirits, and we intend to fill them." Hmmm.Expects Industry Down 4-6% in 2nd Half with Eventual Reversion to "Pre-2025 Levels" MC estimates broader US beer biz volume fell 4.7% in Q3 and continues to expect an industry decline of 4-6% in H2. "These are dynamic times, and we, like many staples companies, have been impacted by macro-related factors that have pressured consumption behavior," Rahul commented, citing challenging economic and immigration backdrop. These impacts have had a "disproportionate effect on the lower income and Hispanic consumer. And within beer, these consumer segments have driven a reduction in the number of buyers as well as spend per trip with a continued shift to singles in the third quarter." Still, co believes the pressures are cyclical and expects trends to eventually revert to "pre-2025 levels."MC Will "Look at Everything" on Cost Base Going Forward; Not Planning to Close a Brewery for Now "Results will take some time, but we are moving with a sense of urgency," said Rahul. "In my first thirty days, we have already begun to implement structural changes, both in terms of leadership and operations, to put us on the path to success." Asked whether co's recent restructuring was just an appetizer, Rahul noted that latest moves aim to better position MC for 2026 and to "execute faster" in a "challenged" category context. But the brewer is gonna "look at everything" going forward, including "all the elements" of its fixed cost base. "Right now I don't believe we need to be closing a brewery," Rahul added, focusing more on production capabilities and the possibility of "moving our brands around." Tho it's a "fair question as we think about the volume" outlook. Thruout the call, Rahul said several times that he looks forward to sharing more on his strategic vision in coming mos. "There is a lot of work to do," he acknowledged. But we see "a clear path forward."

"No Sacred Cows" or "Constraints" for New MC Chief; More M&A and Above Premium Focus

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