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New CEO running brewing giant Molson Coors hinted to investors yesterday that there's more M&A on the horizon, and much of the focus may be in beyond-beer categories including NAs. That was one message our sibling newsletter Insights Express distilled from first quarterly earnings call of Rahul Goyal. Co's "healthy" balance sheet allows for capital deployment to "augment" growth and fill portfolio gaps, he indicated, ideally with "scalable deals" that are accretive and "meaningful" to the total enterprise. As for the primary gaps that need filling, those are "probably in beyond beer," he acknowledged. But MC will do so in a "disciplined way" and won't "chase topline" just for its own sake, Rahul assured, as it hews to commitment to 2.5X leverage target and dividend/share repurchase program. Could there be more beyond-beer partnerships along lines of agreement with Coca-Cola on alc entries under Simply and other brands? Both the KO and Fever-Tree partnerships worked "really well" for MC's biz, according to Rahul, who in prior strategic role would have been involved in putting them together. So "you can also expect us to step up our focus on beyond-beer because we believe we can win here," said Rahul. He's taking encouragement from Fever-Tree mixer brand that's "performing strongly" so far and has been "very well received" by distribs and retailers. (No mention of other key NA plays Zoa Energy or Naked Life, but see below on Zoa. As we've reported, Naked Life mocktail brand seems to have been dropped as a priority - BBI, Oct 3.) But that's "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."Of course, there's opportunistic element to all this. Whether future opportunities come to fruition as acquisitions or partnerships largely depends on how they "come up," he said. Nor will any of this come at the cost of losing focus on core brands. MC is "definitely going to be focused on beer," Rahul vowed.Broader message from Goyal was that there's a lot more change still to come. 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 opptys 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. (More detailed report is available in Insights Express.)Zoa Energy Moves Beyond Workouts to Everyday Occasions After sweeping restage a year ago, MC now says it's further "fine-tuning" positioning of Zoa Energy to entice consumers into viewing it as suited for everyday occasions rather than just surrounding workout occasions. So marketing going forward will herald "the benefits of energy and electrolytes" as it seeks additional differentiating factor. That new tilt will be reflected in new packs with more cohesive visual identity, MC said. Tho Zoa has been a work in progress despite heavy investment, beer giant is pointing to some "green shoots" suggesting new tack is productive. That includes 10% volume gain in food channel for year thru Oct 5, +15% $$ sales gain for 13 wks ended Oct 5. And it's hoping +15% sales pop on Amazon Prime Day augurs a fruitful Black Friday and Cyber Monday performance in coming weeks.Recall that brand launched in 16-oz black cans with somewhat ominous-looking graphics and tite link to identity of cofounder Dwayne Johnson before doing that seeping pivot to more Alani-like 12-oz sleeks with colorful backgrounds. Not that The Rock has been banished from ads by any means: just-posted animated video keyed to holiday period offers image of "Dwanta" overseeing workshop elves running production line for "feelin' good" elixir that's heralded for its vitamins B and C and electrolytes. Three-minute video also unveils Holiday Punch LTO packed in bright red can and concludes with sweepstakes offering lifetime supply.

Molson Coors' New CEO Goyal Hints at M&A on Horizon to Plug Gaps in Beyond-Beer Activities; Zoa Segues from Workout Thrust to Broader Position as Everyday Energizer

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