About Molson Coors Beverage

Molson Coors Beverage Company manufactures, markets, distributes, and sells beer and other malt beverages to customers, including both domestic and exported product sales. From its core power brands Coors Light, Miller Lite, Coors Banquet, Molson Canadian, Carling and Ožujsko to above premium brands including Madri, Staropramen, Blue Moon Belgian White and Leinenkugel’s Summer Shandy, to the company’s economy and value brands like Miller High Life and Keystone, it produces many beloved and iconic beer brands. While the company’s history is rooted in beer, it offers a modern portfolio that expands beyond the beer aisle as well, including flavored beverages like Vizzy Hard Seltzer, spirits like Five Trail whiskey as well as non-alcoholic beverages. The company’s brands are designed to appeal to a wide range of consumer tastes, styles and price preferences. Segments The company operates through the Americas and EMEA&APAC segments. Americas segment operates in the U.S., Canada and various countries in the Caribbean, Latin and South America. EMEA&APAC segment operates in Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, the Republic of Ireland, Romania, Serbia, the U.K., various other European countries and certain countries within the Middle East, Africa and Asia Pacific regions. A separate operating team manages each segment and each segment manufactures, markets, distributes and sells beer as well as offers a modern and growing portfolio that expands beyond the beer aisle. Americas Americas segment consists of the production, importing, marketing, distribution and sales of the company’s brands as well as other owned and licensed brands in the U.S., Canada and various countries in the Caribbean, Latin and South America. The company operates nine primary breweries, nine craft breweries and two container operations. The company is North America's oldest beer company and the second largest brewer by volume in North America, representing approximately 23% of the total 2023 North America beer market, which is the largest region of its Americas segment. The Americas segment also includes partnership arrangements with Brewers' Retail Inc. (BRI) for the distribution of beer in Ontario, Canada, and Brewers' Distributor Ltd. (BDL) for the distribution of beer in the western provinces of 0Canada. In addition, the company has an agreement with Heineken that grants it the right to produce, import, market, distribute and sell certain Heineken products in Canada. The company also has authorizations from The Coca-Cola Company that grant it the right to produce, market, sell and distribute Topo Chico Hard Seltzer and Simply Spiked branded products in the U.S. and Canada, and Peace Hard Tea branded products in the U.S. The company has agreements to brew, package and ship products for Pabst Brewing Company, LLC (Pabst), The Yuengling Company (TYC) in the U.S. and an agreement with Labatt USA Operating Co, LLC to brew and package certain Labatt brands in Canada for export. The agreement with Pabst ends on December 31, 2024 and is expected to wind down through that time period. EMEA&APAC The EMEA&APAC segment consists of the production, marketing and sales of the company’s primary brands as well as other owned and licensed brands in Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, the Republic of Ireland, Romania, Serbia, the U.K., various other European countries and certain countries within the Middle East, Africa and Asia Pacific regions. The company operates eleven primary breweries, four craft breweries and one cidery. The company’s EMEA&APAC segment is Europe's second largest brewer by volume, on a combined basis, within the countries in which it operates, with an approximate aggregate 18% market share (excluding factored products which are beverage brands owned by other companies but sold and delivered to retail by it) in 2023. The majority of the company’s EMEA&APAC segment sales are in the U.K., Croatia, the Czech Republic and Romania with the U.K. representing over 55% of the segment's net sales in 2023. The company’s portfolio includes beers that have the largest share in their respective countries, such as Carling in the U.K., Ožujsko in Croatia and Niksicko in Montenegro. The company sells Staropramen, Coors, Madri and Miller Genuine Draft in various countries. The company’s EMEA&APAC segment includes the sale of factored brands and its consolidated joint venture arrangement for the production and distribution of Cobra brands in the U.K. Products The company crafts and distributes high-quality, innovative beverages with the purpose of uniting people to celebrate all life's moments. The company has a diverse portfolio of beloved and iconic owned and partner brands, including its core power brands of Coors Light, Miller Lite, Coors Banquet, Molson Canadian, Carling and Ožujsko. The company continues to invest in and focus on growing these brands. In addition to these brands, the company offers products in various categories like flavored malt beverages (which includes hard seltzers), craft, ready to drink beverages, spirits and energy beverages, as well as beers in various price segments. For example, in the company’s EMEA&APAC segment, brands categorized in the Premium classification, such as Carling would be described as core brands in the local market. The following presents the primary brands sold: Owned Brands Above Premium Brands - Aspall Cider, Blue Moon, Coors Original, Five Trail, Hop Valley brands, Leinenkugel's brands, Madri, Miller Genuine Draft, Molson Ultra, Sharp's, Staropramen, and Vizzy Hard Seltzer. Premium - Bergenbier, Borsodi, Carling, Coors Banquet, Coors Light, Jelen, Kamenitza, Miller Lite, Molson Canadian brands, Niksicko, and Ožujsko. Economy - Branik, Icehouse, Keystone, Miller High Life, Milwaukee's Best, and Steel Reserve. Partner Brands The company’s partner brands are licensed through various agreements with third parties, such as license, distribution, partnership and joint venture agreements and include: Arnold Palmer Spiked, Beck's, Blue Run, Cobra, Corona Extra, Heineken, Lowenbrau, Peroni Nastro Azurro, Pilsner Urquell, Redd's brands, Simply Spiked, Sol, Stella Artois, Topo Chico Hard Seltzer, and ZOA. Packaging Materials The company’s primary packaging materials include aluminum, glass bottles, reusable kegs and casks, and recyclable plastic containers. In its Americas segment, a portion of the aluminum cans and ends are purchased from Rocky Mountain Metal Container (RMMC), the company’s joint venture with Ball Corporation (Ball), whose production facilities, which are leased from it, are located near brewery in Golden, Colorado. In addition to the supply agreement with RMMC, the company has supply agreements with Ball and other vendors to purchase aluminum containers in addition to what is supplied from RMMC. In EMEA&APAC, the company has long-term agreements with various suppliers that cover all of its required supply of cans. In the Americas segment, a portion of the glass bottles are purchased from Rocky Mountain Bottle Company (RMBC), the company’s joint venture with Owens-Brockway Glass Container, Inc. (Owens), whose production facilities, which are leased from the company, are located in Wheat Ridge, Colorado. In addition to the supply agreement with RMBC, it has supply agreements with Owens and other vendors for requirements in excess of RMBC's production. Competition In the U.S. and Canada, the company competes most directly with Anheuser-Busch InBev SA/NV (ABI) brands, but it also competes with imports and other providers of craft beer and flavored malt beverages. In the European countries where the company operates, its primary competitors are ABI, Asahi, Carlsberg and Heineken. Sales and Distribution In the U.S., beer is generally distributed through a three-tier system consisting of manufacturers, distributors and retailers. A national network of independent distributors and one Company-owned distributor, Coors Distributing Company, purchases the company’s products and distributes them to on- and off-premise retail accounts. Coors Distributing Company distributed approximately 5% of the company’s total owned and non-owned Americas segment net sales for the year ended December 31, 2023. Transportation of the company’s products to distributors in the U.S. is primarily contracted through third-party logistics providers and shipped by truckload. In the Caribbean, Latin and South America, the company uses a combination of export models and license agreements to sell Blue Moon, Coors Light, Miller Genuine Draft, Miller High Life, Miller Lite and other brands. In its export model markets, the company imports beer from the U.S. and sell it through agreements with independent distributors. In license markets, the company has established exclusive licensing agreements with brewers and distributors for the manufacturing and distribution of its products. In the European countries in which the company operates, beer is generally distributed through either a two-tier system consisting of manufacturers and retailers, or a three-tier system consisting of manufacturers, distributors and retailers. Distribution activities for both the on- and off-premise channels are conducted primarily by third-party logistics providers. Most of the company’s beer in the U.K. is sold directly to retailers. The company has an agreement with Tradeteam Ltd. (Tradeteam, a subsidiary of DHL) to provide the distribution of its products throughout the U.K. until April 2029. The company utilizes several hundred third-party logistics providers across its Central European operations. The company also conducts a small amount of secondary distribution in several Central European countries utilizing its own fleet of vehicles. It is also common in the U.K. for brewers to distribute beer, wine, spirits and other products owned and produced by other companies, which it refers to as factored brands, to the on-premise channel (bars and restaurants). Approximately 17% of the company’s EMEA&APAC segment net sales in 2023 represented factored brands. In addition, the company has an agreement with Heineken whereby they sell, market and distribute Coors in the Republic of Ireland, as well as agreements with ABI to brew and distribute Beck's, Stella Artois and Lowenbrau, and to distribute Hoegaarden, Leffe, and Corona in Central Europe. The company’s operations in Africa, the Middle East and Asia Pacific include markets such as Australia, South Africa and South Korea, with the sale and distribution completed under local license agreements, through the export of its brands from its sites or contract manufacturing with sale through local distributors. Channels References to on- and off-premise sales volumes are sales to retailers, which is a useful data point relative to consumer trends. The on-premise channel includes sales to bars, pubs and restaurants while the off-premise channel includes sales to convenience stores, grocery stores, liquor stores and other retail outlets, including The Beer Store in Ontario, which is Canada's largest beer retailer. Industry channel trends vary by segment. Competition In the U.S. and Canada, the company competes most directly with Anheuser-Busch InBev SA/NV (ABI) brands, but it also competes with imports and other providers of craft beer and flavored malt beverages. In the European countries where it operates, the company’s primary competitors are ABI, Asahi, Carlsberg and Heineken. Seasonality of the Business Total industry volume is sensitive to factors such as weather, holidays, changes in demographics, consumer preferences and drinking occasions including major televised sporting events. Weather conditions consisting of high temperatures and extended periods of warm and dry weather favor increased consumption of the company’s products, while unseasonably cool or wet weather, especially during the summer months, adversely affects its sales volumes and net sales. Consumption of beer in the Americas segment is seasonal, with nearly 39% of financial volume occurring during the months from May through August. In EMEA&APAC, the peak selling seasons typically occur during the summer months and during the Christmas and New Year holiday season. Global Intellectual Property The company owns trademarks on the majority of the brands it produces and has licenses for the remainder. The company also holds several patent and design registrations with expiration dates through 2043 relating to brewing methods, beer dispensing systems, packaging and certain other innovations. Dispositions On August 3, 2023, the company sold its 57.5% controlling interest in Truss LP (Truss) to Tilray Brands. Regulation To operate its facilities, the company must obtain and maintain numerous permits, licenses and approvals from various governmental agencies, including the U.S. Department of Treasury, Alcohol and Tobacco Tax and Trade Bureau, the U.S. Department of Agriculture, the U.S. Food and Drug Administration, state alcohol regulatory agencies and state and federal environmental agencies. U.S. governmental entities also levy taxes and may require bonds to ensure compliance with applicable laws and regulations. History The company was founded in 1774. The company was incorporated in 2003. It was formerly known as Molson Coors Brewing Company and changed its Molson Coors Beverage Company in 2020.