SAVE THE DATE!

Constellation's Gold Network Summit kicked off last night, the evening before the Trump Administration implemented a 25% tariff on Mexican and Canadian goods and amidst an unusually soft period in beer industry and Constellation sales. But even tho GNS happening "during a period of notable change and a lot of volatility," as chief customer officer Bill Renspie acknowledged in opening remarks, "all of you are in the best position to thrive in the face of any condition, good or bad," with Constellation's portfolio, he contended. "It couldn't be better timing to have the Gold Network together for a Gold Network Summit, because you're going to see, we have the right perspective, the right portfolio and the right plans." STZ and its distribs have a "proven approach" that's fostered industry leading growth for more than a decade, and "together, we're going to safely navigate the stormy seas and continue to chart the right course to sustainable, profitable growth and industry stability," Renspie exclaimed. Constellation Beer Up 5% in 2024; Modelo Especial +7%, Pacifico +22%, Cheladas +5%, Familiar +12%, Victoria +25%; Corona NA +75% Constellation beer portfolio remains "the rays of sunlight cutting through the stormclouds" of the industry, with the "healthiest and best positioned and most enviable portfolio," he underscored. Co's coming off "another year of industry-leading results" in 2024, growing depletions nearly 5%, 20 mil cases in an industry that was down ~46 mil cases, he showcased. In the last 3 yrs, while the beer industry lost nearly 300 mil cases, 10% of its volume, Constellation grew 23% and gained over 84 mil cases.The vast majority of its portfolio contributed to co's industry-leading growth in 2024. Modelo Especial grew 7%, +14 mil cases, and "cemented its position" as #1 beer in the US, said Renspie. Suggests Especial sold over 15 mil bbls in the US last yr. Pacifico surged up 22%, +4.5 mil cases to surpass 25 mil cases for the first time, and "the best news is, we're just getting started." Modelo Cheladas grew nearly 5%, gained over 1 mil cases. Corona Familiar grew 12% and gained 1.4 mil cases. Victoria "continues to be on a tear," up 25%, 1.5 mil cases in 2024. Corona NA was a "standout in the emerging NA segment," up 75% and gaining half a mil cases to "well over one million cases total." And that's all with just one SKU, Renspie pointed out, eager to get the new 12pks into mkt. Modelo Aguas Frecas added incremental growth as well. Only soft spots in core portfolio last yr were Corona Extra, with depletions down just 1% for the year, and Corona Premier/Light down steeper. But co's "supremely confident" it can return Corona Extra "to sustainable growth," said Renspie.Growth is happening both off and on premise, including draft sales up 62% last year. Off premise, STZ beer gained 370K new PODs in 2024 vs yr ago, and since 2021 off prem dist grew 27%, adding 1.2 mil incremental PODs. On premise added 40K new PODs in 2024 and rose 26%, 128K PODs over the last 3 yrs. Co "didn't lose any steam" in fall 2024, as STZ's proven this is a portfolio that "needs that oxygen" and "room to grow." Lookin' at shelf space, co gained 11% in measured natl key accounts in both spring and fall, measuring cubic feet, and indie account facings grew by 24%. Shopper First shelf program expanded nearly 6x since 2019 and now 20% of the off-premise volume is sold thru Shopper First shelf sets. Co now has input in about 80% of its natl and regional account outlets, which represents about 83% of its chain volume."Hold Fast and Stay True" Folks "can't allow the current climate to obscure this wave of growth that continues despite the storm above," Renspie contended. Growth and profitability over the yrs provide an extra layer of "safety" for the brands going forward. Co's gotta "stay informed to the rapidly changing conditions" with new plans and innovation. Sometimes, you have to "deprioritize non-essentials" to stay light and agile amidst the storm, Renspie said. Co's gotta "maintain the charted course of speed" and "you can't let the conditions blow you off course." And lastly, you gotta "put your best driver at the helm," with the "momentum to cut through the headwinds." All in, the industry is clearly "challenged," "rapidly changing," and it "may even worsen" before getting better, he acknowledged. But there are "bright horizons ahead." So STZ asked distribs to "hold fast and stay true," as its beer portfolio is "the key to your safety, sustainable growth and profitability."

STZ Up 23%, 84 Mil Cases in 3 Yrs While Total Beer Lost 10%, 296 Mil Cases; "Hold Fast and Stay True" to Navigate the Storm

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