Question · Q2 2026
Carmel Gajrawala inquired about strategies beyond marketing and branding to make products more affordable for Gen Z consumers, who face economic challenges and higher unemployment. She also questioned why margin guidance remains lower than expected, given the beat this quarter and the less substantial spread between depletes and shipments.
Answer
CEO Bill Newlands discussed repositioning Modelo and Premier at somewhat lower price points to cater to value-seeking consumers, noting positive early results for Premier. He also emphasized the importance of price pack architecture to offer iconic brands at accessible price points. CFO Garth Hankinson reiterated that the second half typically has a lower margin profile due to lower volume and scheduled maintenance CAPEX.