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What is the industry outlook according to Molson Coors? Not very good for the foreseeable future, according to new ceo Rahul Goyal. Interviewed at a Morgan Stanley investor conference by analyst Eric Serotta, Rahul talked about "the way I'd contextualize" industry trends. After a long period of being down 1-2%, in the last few years the trend is more like -3% and this year there's "definitely something happening" with trends down more like 4-6%, he said pointing to "folks pressured," "health of the consumer," Hispanics, etc. "This cycle will pass" and then beer will get "back into the 3ish range." That's -3%. The "external context is hard, the category is hard," he added. Not the cheeriest message. Rahul on "Runway Above Premium" Most of Rahul's remarks focused on ways that Molson Coors can win. The "economy category is an important aspect," according to Rahul, "especially in light of what's happening with the consumer and making sure we have an offering for them." And "we have so much runway" above premium, "both in beer and beyond beer." He returned to these themes several times, tho currently MC is not winning in either arena. Economy and flavor are "two areas where we've lost the most share" this yr, Rahul noted.Blue Moon Is "Hard" But MC "Super-Committed" Tho MC's "making progress" above premium, "mostly outside US," in the US, above premium "has been a challenge." Peroni has "done well" and is "growing close to 30%," said cfo Tracey Joubert (but it's still comparatively small). Blue Moon has been "hard," Rahul acknowledged, repeating several times that co has "work to do." This is "taking more time" than co would have liked but Blue Moon remains "important" and co is "super-committed." MC had "success initially" with Topo Chico and Simply, but flavor is a "volatile" category and again there is "work to do." Simply is "where the drag is" but at same time MC has to "make sure we're not over-proliferating."Increased Emphasis on Subpremiums "All segments matter," Rahul said, before returning to "important aspect" of its economy brands. MC has "relevant" and sizable subpremium brands that co hasn't "talked about a lot in recent times," but "we need to make sure they are healthy," he added. Subpremiums are "very regional" biz and in some areas co is "bleeding share" in subpremium. Yet "we've got to win with these brands.""Gaps We Need to Fill" in M&A Morgan Stanley's Eric said MC under Rahul is "much more open about the prospect of M&A." And Rahul again riffed on "gaps we need to fill like an RTD spirit." While co will be "deploying capital to address gaps," it will do so in "a very measured way." He refused to be pinned down on size of the prizes he's presently eyeing, but he did note that MC is an $11 bil co and "needs to have brands that move the needle." If too small, that "doesn't do anything." Plus any acquisition will have to be positive for both top and bottom line; sometimes it's "easy to chase" top-line growth but important for MC to "make sure it has the right return" too."Not Going to Cut" Mktg to "Hit the Bottom Line," Said Tracey "Despite this being a difficult year," said cfo Tracey Joubert, "we're not going to cut our marketing to hit the bottom line targets. We'll continue to put pressure behind the brands, our core brands in particular," said Tracey, but also "behind Peroni as we've seen" and Fever-Tree. "That brand still has a lot of awareness gaps we need to go after," she added, as Fever-Tree will get its first major natl media campaign in 2026.

MC at Morgan Stanley; Rahul on "-3ish Range" for Industry; Challenges, Oppys, M&A

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