Chris Pitcher

Chris Pitcher asked about the wine and spirits business in the second half, noting the difficulty in comparing against a base disrupted by divestments and Q3 last year's significant destocking. He inquired if positive depletions suggest healthy wholesaler inventory levels, potentially leading to a Q3 benefit from destocking normalization.

Answer

CEO Bill Newlands confirmed that inventory levels in the wine and spirits business are in a 'quite good spot' following distributor alignment post-divestiture, assuring that inventory will not be an issue. He reiterated the focus on continuing to win in the market through strong performance of critical brands like The Prisoner, Kim Crawford, Ruffino, and Meiomi.

Chris Pitcher asked about the wine and spirits business in the second half, specifically how to compare against a base disrupted by divestments and Q3 last year's destocking. He inquired if current positive depletions suggest good wholesaler inventory levels and if a benefit from destocking normalization could be expected in Q3.

Answer

CEO Bill Newlands confirmed that inventory levels in the wine and spirits business are in a good spot, following efforts to align distributor inventories post-divestiture. He emphasized that inventory is not expected to be an issue going forward, and the focus remains on continued market wins driven by strong brand performance from The Prisoner, Kim Crawford, Ruffino, and Mi Campo.

Chris Pitcher from Rothschild & Co Redburn inquired about the expected incremental investment in maturing spirits for the next fiscal year and asked if the cautious H1 outlook applies to the Guinness brand.

Answer

Interim CEO & Director Nik Jhangiani did not provide a specific figure for maturing spirits investment in fiscal 2026, but noted a new, more dynamic approach to managing liquid supply is underway. For Guinness, he stated that he does not anticipate a significant slowdown in H1 and expects new capacity coming online in H2 to help accelerate growth.

Chris Pitcher of Rothschild & Co Redburn asked if the consumption shift in China is cyclical or structural and how the company is adapting its sales force. He also inquired about the level of investment in India for long-term growth.

Answer

CEO Michel Doukeris stated the situation in China is 'both' cyclical and structural, requiring the company to protect its on-trade strength while rewiring the business for the off-premise, where it is under-indexed. Regarding India, he described it as a market with long-term growth prospects where AB InBev leads in the premium segment, viewing it as a story that is 'just at the beginning.'

Chris Pitcher inquired about the company's ability to pivot and build its premium business in China's off-trade channel. He also asked for an update on the health and outlook of the business in Argentina.

Answer

CEO Michel Doukeris explained that while the on-trade in China will rebound, the off-trade is a major growth opportunity that leverages their strong brands, requiring only tweaks to the sales force. Regarding Argentina, he noted that as macroeconomic conditions improve, the industry is recovering sequentially, and the business is well-positioned with strong brands and margins to benefit from the rebound.

Chris Pitcher from Redburn asked about the level of investment in commercial execution in South Africa, particularly for the premium portfolio, which has been performing strongly.

Answer

CEO Michel Doukeris attributed the success in South Africa to a strong portfolio with high consumer demand across all segments. He confirmed ongoing investment across the portfolio to support brand value propositions and highlighted that excellent on-trade execution by the local team is driving momentum, with continued investment planned for the long term.

Chris Pitcher asked about the general consumer environment and whether there was evidence of soft demand for discretionary brands. He specifically inquired about the drivers of Centrum's double-digit growth, asking to distinguish between new market expansion and like-for-like growth.

Answer

CEO Brian McNamara attributed Centrum's strong growth primarily to the scientific claims from the COSMOS study, which demonstrated cognitive benefits and drove strong consumer uptake. He noted that while recent launches in new markets like India and Egypt are performing well, they are not yet a material driver of the brand's overall growth.