Long-Term Growth
Q: Long-term growth for core and beyond beer?
A: Management anticipates sustained growth with beyond beer volumes growing 3%-5% and modest gains in traditional segments—reflecting disciplined innovation for robust long-term top‐line expansion. "

Margin Expansion
Q: How will margins improve second half?
A: They expect full‐year gross margins between 43%–45%, with initiatives pushing margins into the high 40s later despite a traditionally lower Q4, underscoring disciplined cost management. "

Twisted Tea Outlook
Q: What is Twisted Tea’s midterm outlook?
A: Management foresees consistent low double-digit growth driven by expanding household penetration and incremental offerings like Twisted Tea Light, reinforcing its leadership. "

SG&A Outlook
Q: Will SG&A expenses rise this half-year?
A: Although first‐half marketing spend was subdued, increased investment later is planned to fuel key launches while balancing cost savings with growth. "

Operating Improvements
Q: How are operational improvements progressing?
A: They are refocusing on internal cost discipline, reallocating sales efforts, and refining execution to boost overall efficiency and future growth. "

Beyond Beer Performance
Q: Why is beyond beer performing strongly?
A: Brands like Surfside and Sun Cruiser have resonated well with consumers, delivering strong market acceptance and even a two-to-one sales advantage in key areas. "

Beer Business Decline
Q: How is the traditional beer segment faring?
A: While beer volumes continue to decline, efforts such as the measured launch of American Light and renewed on-premise focus aim to recapture market share gradually. "

Acquisition Rumor
Q: Is a sale of the company under consideration?
A: Management reiterated its commitment to growing as an independent business, firmly dismissing any rumors of a sale. "

Innovation Pipeline
Q: What’s next in product innovation?
A: Their disciplined approach targets both successful line extensions and entirely new concepts to capture evolving consumer tastes without overextending resources. "

Demand Recovery Trends
Q: How is overall demand recovering?
A: Following an April trough, demand has shown improvement with brands like Twisted Tea bouncing back, supporting a gradual normalization in shipments. "

Sequential Improvement
Q: Has sequential sales improvement been observed?
A: Recent data, particularly through the 4th of July period, indicates a positive shift from earlier soft demand toward stronger seasonal performance. "

Inventory Increases
Q: Why are inventories higher than expected?
A: Lower-than-anticipated production late in the quarter led to higher inventories, though management expects a return to normal levels soon. "

Distributor Inventory
Q: Will distributor inventory levels rebound?
A: Wholesalers are committed to rebuilding inventory to target levels ahead of peak season, ensuring adequate market supply. "

HARD MTN DEW Transition
Q: Why was the MTN DEW transition slow?
A: The transition proved more complex than anticipated, with management working through regulatory and logistical challenges causing delays. "

HARD MTN DEW Update
Q: What's the update on HARD MTN DEW rollout?
A: Execution remains steady across territories, with the full impact expected in 2025 as additional approvals and expanded distribution come online. "