Anheuser-Busch InBev SA/NV (ABI) Earnings Call Transcript & Summary

Please welcome to the stage, Shaun Fullalove.

Hello. Good morning, everyone. So firstly, welcome to St Louis. Thanks to those who've been able to join in person. It's hard to believe that it was 3 years ago already since we were all last together in Mexico City. This also marks the 3-year anniversary of my spinning class career. And so I look forward to revisiting that chapter with some of you at 6 in the morning tomorrow. Hopefully, the weather in St. Louis is as kind to us as it was in [indiscernible]. I know it was a long flight for many. Ironically, we have people from Cape Town, where I think it was quite easy. We had people from London and from Europe, it is quite easy. The hardest part to travel from, apparently, was New York, USA. So those that persevered through the travel disruptions, we really appreciate you being here with us in person. We have a great agenda of presentations and experiences today and tomorrow. So I'm sure we will make it worth your well. Most importantly, we'll have a couple of opportunities to Server. So we look forward to doing that. I think I have met almost everyone here today, but in case not, I am Shaun Fullalove, and I have had the privilege of leading the Investor Relations function here at ABI for the last 5 years. Michel and Fernando, surprisingly have also allowed me to be the MC for the [indiscernible]. So I will do my best to keep on factoring the day. Before I invite Michel to the stage to kick us off, I just have a few housekeeping matters to mention. So firstly, in small words up here, just a quick reminder on the legal side. This is our disclaimer, which is available on our website. I don't expect you to read all of this now. But everything we talk about today that is not a historical fact is a forward-looking statement. And these are not guarantees of future performance. As a help for reference, you can refer to our 20-F on our website that contains a discussion of all of our reactors, including geopolitical and economic uncertainties. For those that have been joined for breakfast this morning, then the bathrooms are to the right as you exit the room. For those that didn't join for spending this morning, which is most of you, so I expect to see you tomorrow. And I think we still have a few seats still. So if you would like to do it in the state of next door, then reach out to me or Pat or Kate and my team we can sign you up. We also have an event WhatsApp channel. So we've evolved from last time to WhatsApp channel. We haven't signed up for that yet. There should be a QR code floating around somewhere. We're using that as a channel to communicate about events, reminders, et cetera, during the next couple of days. What else? We have a planned 20-minute break, should be around 10:30. It might be slightly earlier, depending how the agenda moves. We'll have lunch around 12:15, 12:20. And then we have a short break around 3:00 p.m., just to allow you to drop bags, et cetera. And then we will head to the brewery in the late afternoon for the brewery to dinner and brand experts event. So -- but of course, I know people have traveled from far. So if you need to take a break, more frequently, feel free to do that. Finally, name badges. I'm not wearing mine right now, but they have a few relevant details. First one is your table number, which I think you guys are all at the right tables now, so you've figured that out this morning. The second one is going to be your brewery group for this afternoon. We'll leave in different bands and then we'll split into different groups to make sure you're in the right beer brand group for this afternoon. And then the third is going to be your market visit group for tomorrow. So we all spent into groups then as well. Any issues with listings or scheduling or anything that you need to be resolved. Please stop by the concierge desk right outside here on the second floor, and we can sort it out. And that is it, I think, in terms of reminders and logistics. So let's get it started. With that, I'd like to invite our CEO, Michel Doukeris, to the stage to take us through the introduction. Michel, it's with you. [Presentation]

Please welcome to the stage, Michel Doukeris.

Good morning, everyone, and welcome to the 2026 ABI Capital Markets Day. Thank you for those here in person and those joining us virtually. It is really exciting to come together in St. Louis, the historic home of Anheuser-Busch brewery. It was right here, 150 years ago that a legacy was born. And the first Budweiser was brewed. Over the next few days, you experienced firsthand Anheuser-Busch history and heritage, how we have rebalanced our portfolio to create momentum in the U.S. and our global strategy in action. You also hear from several members of our global and U.S. leadership teams. And we have 3 objectives for our time together. First, update you on the progress we've made in our global strategy. Second, reinforce our unique leadership advantages and even more importantly, show how we have been investing to build superior capabilities. And lastly, share how we have transitioned from the first half of our 10-year plan, what we internally call reset to our next phase of growth called Reignite. Allow me to start by recapping what we discussed during our last 2 meetings together. In 2021, we made the deliberate choice. We moved it from inorganic to organic growth strategy. We set a long-term ambition, simplified our strategy and we committed to consistent compounding growth. In 2023, we shared the elements to create superior value. a large and growing category, hard earned and unique leadership advantages, replicable growth to kits and superior profitability. Together, these elements formed in a compelling investment thesis. One that was so simple, it fits on the back of a beer cost. I hope you have some at your table. Today, we are halfway through our 10-year plan. From the beginning, we committed to delivering consistent and compounding EBITDA growth within the range of 4% to 8%. And since 2021, we have been delivering within or above this outlook every year. And just as important, we have grown our EBITDA in nominal terms, from $19.2 billion in 2021 to $22.4 billion in the last 12 months. This was the result of consistent execution of our strategy across our footprint. Our net revenue increased from $54 billion in 2021 to roughly $63 billion as of the last 12 months. We are growing brand power and market share globally, and we've reached all-time high volumes in 16 of our markets in the H1 of this year, including countries like Mexico, South Africa, Colombia and India. We are digitizing and monetizing our business, scaling this into superior B2B platform. This has achieved $60 billion in annualized GMV this year. This marketplace is delivering around $5 billion in GMV and it is becoming a meaningful incremental revenue stream. We estimate that this marketplace, if treated like a country would be a top 10 contributor to EBITDA growth for us this year. And we continue to optimize our business. We expanded our EBITDA margin and generated $13.9 billion in free cash flow, an increase of $4.6 billion since 2021. And we have reduced our net debt ratio to below 3x. All of this results in industry-leading EPS growth that has been both consistent and compounding. Despite a challenging operating environment, we have delivered in line or above the top quartile of CPGs across relevant KPIs. And as I always say, we have a resilient strategy that just like beer is made for all occasions. 5 years ago, most of our excess free cash flow was allocated to the leverage. Today, we have a stronger balance sheet. Our capital allocation has evolved, and we have increased our capital return to shareholders. As our leverage continues to trend down and our cash flow generation remains strong, we will further increase our capital allocation flexibility. Everything that I have shown so far is what we call above the surface, things you can see in our reported results. But the biggest transformation is what we've been building under the surface. We have a very strong foundation with leadership advantages that differentiate us, an unparalleled ecosystem that give us meaningful scale, a broad diversified footprint with meaningful market positions in large markets, a portfolio of leading and iconic mega brands and superior profitability and cash conversion. This is the foundation on which we began to transform from inorganic to organic. And let me be clear here. While the difference between the words is small. In reality, the transformation is way bigger. Delivering organic growth requires a different muscle, and it was one that we needed to build. So we started with a simple question. What do best-in-class CPG companies do differently? We benchmarked global CPG peers studied what capabilities separate the top quartile from the rest. And then we ask it ourselves. Where are we best-in-class? Where are we good but not yet great? What are the gaps we have to close. And with that clarity, we focused on building the right capabilities. Those that would accelerate our transformation and strengthen our strategy. And for 5 years, we've been consistent investing time and resources to build and embed these capabilities into how we run our business. Today, we have the capabilities that make us more consumer-centric, digitally enabled and financially effective. These include more actionable consumer insights, a focused and effective portfolio, a replicable mega platforms to kit any scaled digital platforms that give us better insights and create incremental revenue streams. We still have work to do, and we continue to benchmark to learn and to improve. Our ambition is to be superior across all these capabilities. You hear a lot about this over the next 2 days. And in a nutshell, this is what we've been doing since 2021, delivering consistent and compounding results, reducing our leverage and investing to build organic capabilities for growth. We are, today, a very different company, very different than we were just 5 years ago. We have an industry-leading portfolio of mega brands and mega platforms, and our markets have momentum. We have the largest and fastest-growing non-alcohol beer portfolio globally. We have been scaling up our bond beer brands. And in this space, we are the challengers, which give us huge headroom for growth. We have a sizable and fast-growing bus marketplace business. Our free cash flow has reached an inflection point, and we have a new level of capital allocation flexibility. This is the company we have today. and what we've been building under the surface. For those who know me, you know I'm a huge basketball fan. This is the next winning the title. So here is one story, and it's a story of a player, Kobe Bryant. He's one of the greatest players in history known for his recessive preparation, discipline and resilience. And after his team took a 2-0 lead in the 2009 NBA Finals, he was asked by a reporter why he was not happy. And he famously replied. What's there to be happy about? Job's not finished. What's there to be happy about? Job's not finished. I tell my team the same thing. That job is not finished, and we are only getting started. 2026 marks the midway point of our 10-year plan in the first year of our next phase, reignite. We will continue to deliver consistent compounding results while increasing investments to accelerate growth and create superior shareholder value. Before I pass it to the team, I would like to leave you with another thought. You came here knowing us a company that's best in beer. And every day, as we continue to strengthen our capabilities, I ask myself, what does it take to be a best-in-class CPG company because that's what we aspire to be. And so as we go through the next 2 days, I would like to ask you to keep that same question in mind. And I would love to hear your feedback over a beer. What does it take to be a best-in-class strategic company?. So thank you for joining us here today. The team worked very hard, including Sean, to create an engaging agenda for you. Please enjoy St. Louis. I'm looking forward to our time together and of course, a beer at the end of the day. Now I'll hand it over to Ricardo Tadeu, our Chief Growth Officer. Thank you. Cheers.

Please welcome to the stage, Ricardo Tadeu.

Good morning, everyone, and welcome again to the growth session now of our ABI's Capital Markets Day. As Michel said, my name is Ricardo Tadeu. I recently completed 31 years with the company, 24 of which were spent in the field and the last 7 leading global functions. Since 2022, I've been ABI's Chief Growth Officer. To be honest, the first time I saw this slide, I thought, can someone for the next time, stop counting. Someone stopped the clock, Shaun, come on, right? Now my friends on a more serious note, when I see these slides, more than thinking about my career, it makes me reflect on how important it is to experience the industry, its cycles and different types of markets. It also reminds me what a great place ABI is to work if you're passionate about learning and of course, about beer. It is really, for me, a great privilege to represent this fantastic ever-evolving organization. And I say that before my heart, there's never a year or a day like the other. As Michel mentioned in his introduction, we have just delivered the first chapter of our 10-year plan, reset and transition into our next phase, which is reignite. And now we are going to address the first 2 elements of our strategy. Lead and grow the category and digitize and monetize our ecosystem. I have 3 topics to cover in my introduction to the growth set. Once I have covered them, Marcel [indiscernible] presentation will follow and detail how we plan to accelerate our growth in the years to come. My first topic is the beer category itself. I will explain the current state of the beer category with a focus on our footprint, its trajectory and opportunities. In the second part, I'll detail what growth means to ABI as it's important to qualify what we want to achieve. And in the third and final part, I'll briefly outline the one ABI Way and some of our best-in-class capabilities that Michel mentioned to lead and grow the category. To start, I'd like to share why we believe the beer and beyond beer category is a great platform to delivering our ambition to be a best-in-class CPG. Let's begin with the foundations of the category. Beer is made from natural ingredients and its local. It has been a part of human culture for a very long time, and it's still relevant today. This is so embedded in consumer lives that even in a challenging consumer environment, the category has continued to grow over the last 5, 10, 15 years. And during this period, it has outperformed the CPG median and kept its participation stable. The relevance of our category can also be seen in its sheer scale. It is one of the largest profit pools among CPGs, creating value through superior margins in the deep emotional connection with consumers. As we can see in the power of beer. On top of all that, beer is estimated to grow volume in the share of [indiscernible] in the next 10 years. Having spent more than 30 years in the beer industry. I have, of course, experienced a number of cycles, shifts in consumer trends and seeing different realities. This experience has talked that the stage of development in each country is an important factor for assessing how to grow and the rate of growth. That's why we classify markets into 3 volume growth stages. Developed markets have lower growth potential but still offer great opportunities for specific levers such as premium, balanced choices and beyond beer. Emerging markets, on the other hand, are the least developed markets with long-term growth potential, mostly driven by our superior core. And developing markets, these are the ones in the middle. These are the countries that present a great opportunity of balanced growth in terms of core volume premiumization, but also category expansion through balanced choices and beyond beer already. Now coming back to developed markets. These markets, they have a lower rate of growth because their LDA populations are growing slowly or decline. While the beer industry consumption level or BICL, what some of you will refer to as LDA per capita consumption. It's at much higher levels already. But even very developed beer markets tend to have a higher income consumer base and clear growth levers. As we refine our portfolio and innovate in the right spaces, we can take full advantage of these opportunities. Now let's take the Netherlands, for example. In this developed market, we increased our volumes by double digits over the last decade. Our whole Europe business grew by 1% in the first half of this year, outperforming the industry. This is real proof that a developed beer market can deliver volume growth. Our very presence here in St. Louis reflects our confidence to drive revenue growth across developed markets. It may take time. With its clarity of direction and consistency in execution, we can grow. Brendan, our host, will take a deeper look at our progress in the U.S. Now what about the less developed markets, emerging and developing countries have 60 million new consumers entering our category every year. much lower consumption levels and great room for expansion. These markets are becoming more relevant each year, and this is where ABI's footprint makes a real difference. More than 60% of our volume comes from there. In these markets, mostly located in Latin America and Africa. We have leading market share positions in advanced commercial capabilities. More than 90% of our volume in these places is commercialized through BEES, and we have large-scale D2C platforms. Now share information. It may surprise you, but we have captured 98% of all beer volume growth in these regions since 2019. I repeat, 98%. That's exactly what we mean by leading and growing the category. Over the last 15 years, global beer volumes have grown at an annual rate of 0.3% while sales have grown steadily at mid-single digits. Of course, this underlying growth is not immune to short-term disruptions caused by weather, macroeconomic conditions and geopolitical events. The global beer industry grew in line and declined in 6 of the last 15 years. But the year-over-year variations were not extreme. Excluding COVID, annual beer volume growth ranged from minus 1.2% to plus 2.6% over this whole period. The steady long-term growth is driven by a structural tailwinds from emerging and developing markets. These markets have grown at the annual rate of 1.8% more than offsetting the decline in the developed markets. Now when we wait each market according to its current share of our portfolio and apply the historical rates we see annual structural growth between 0.3% and 0.5% volume. So while it's impossible to predict how the industry will perform in any given year. We are confident it will grow over time in our footprint. And of course, this is only our starting point, not our ceiling. Our objective is to outperform the category in a profitable way, taking advantage of our differentiated footprint, leadership advantages and superior capabilities, okay? Now let's move to the second part of the presentation and clarify what we mean by growth. While we do intend to outperform the industry we don't intend to grow volume at penny cost. As Michel just said, our growth must be consistent and compounding and consistent growth is the ability to deliver top and bottom line growth while demonstrating the potential to keep compounding that growth as far as anyone can imagine. This can only be accomplished by being the best curators of the category in a responsible way and by building and nurturing iconic brands that are meaningful to our consumers. To translate this into metrics, growth at ABI has 3 distinct elements: One, it demands reliable top line growth, which means volume and net revenue per hectare. This top line growth must flow to the bottom line. It can't be so expensive that it doesn't translate into cash flow generation. And three, it must have a long-term horizon because our goal is to compound and finish every year stronger than we started. And as we aim for consistency, I want to clarify the types of growth that we don't pursue. The healthy growth when top line growth doesn't flow to the bottom line and what we call the chicken flight when top and bottom line growth are achieved, but not consistently. For example, I think you guys may understand, when an innovation gains significant distribution before developing enough velocity. In this case, it can have some initial success but it will be short-lived. The main pillars of our growth model are market share growth, which demonstrates the power of our portfolio and our ability to out-execute our competitors. Revenue per hectoliter outperformance versus CPI, driven by price, mix and additional revenue management initiatives, such as discounts and portfolio optimization. And innovating with a growth mindset. As we expect trends to continue evolving, opening avenues for new products, brands, specs and even business models like D2C and BEES. With that, I conclude my second part, detailing what growth means to us and how we prepare our teams across markets to deliver consistent compounding growth. Moving to the third and final topic, I'm going to introduce some of our unique capabilities to lead and grow the category. Following my presentation, Marcel will cover this topic in a more comprehensive way. He will dive deeper into the One ABI Way, our category growth framework and our growth levels. I'd like to start by highlighting key elements of our growth operational guides, which call the One ABI Way. Developing the beer category in a responsible way, building our brands and constantly refining our portfolio are our main responsibilities. As we know, one brand can't be everything to everyone in a credible way. That's why our job is to craft a strong portfolio to better serve our consumers and customers. Through our portfolio strategy included in the One ABI Way, we identify and sell at our mega brands and become more precise in allocating brand resources. It may sound easy to copy the idea and name any large, big legacy brand, a mega brand. But our model is based on an algorithm that balances scale, profitability, growth potential and a clear alignment with our mega brand. It is this true combination that turns true mega brands into powerful drivers of profitable growth with highly superior ROI. And this is important because not every company has true mega brands. Now the One ABI Way also includes our connections and mega platforms. And again, it may seem easy to become a big sponsor or higher popular influencers. But it's much harder to execute them in a similar way. When the true mega brand can connect through a passion point using real-time insights and technology to reach the hearts, minds and mouth of our consumers. That's why mega platforms are much more than sponsorships. What we just saw in the latest FIFA World Cup was a great example of how our mega brand Michelob ULTRA associated with a mega platform led the digital conversation and was launched in several countries, sowing the seeds of growth for years to come. This is just one of many examples, including Corona Cero in the Olympic Games and Stella Artois. The main point here is that we have a very successful playbook. Through this focused approach, we reduced from 500 to 50, the number of brands with relevant support, increased investments in our mega brands and reached our all-time high brain power in Q2 2026 according to [indiscernible]. And importantly, we are seeing this brand power growth translate into market share. In Brazil, for example, our internal analysis shows that we gained 200 basis points of volume share at the same relative price index. This was a consequence of a stronger portfolio. At the global level, we see the same dynamic. Our portfolio gained 40 basis points of market share at comparable relative price points over the same period. This means Consumers are attributing more value to our portfolio during their weekly visits to their local store. I don't think it can get more tangible than this. And building on the strength of our portfolio, we're also unleashing our digital capabilities to drive growth. Let me highlight some of them. Through our D2C platforms, we connect with consumers at scale, deepen our understanding of their needs in turn doing sites into more relevant innovation and more powerful brands. With this, we are helping our customers to grow and taking our revenue management to the next level. by tailoring offers to every individual customer. We can optimize discounts and measure the incrementality of each investment we make. Through this AI, we are driving a more profitable mix by ensuring the right brands, packs and price points for each market and consumer occasions. Putting all this together, our revenue management has become more precise, fully data-driven and connected to the true value of our portfolio. This has been a great enabler of our growth ambitions. Over the last 3 and 5 years, we have consistently outperformed our peers, delivering net revenue per hectoliter well above other brewers and the medium of CPGs. The first half of this year was no different. Our net revenue per hectoliter grew more than 2 percentage points ahead of our peers, while we outperformed in beer. In an environment where consumers are under pressure, we are very proud to earn our growth through the improvement of our portfolio, our unique revenue management capabilities and the value we bring through innovations. In the end, it's all about compounding growth in building a company that gets stronger every year. With that, I conclude my [indiscernible]. We covered 3 topics. One, the beer category is a big loved profitable, growing category, and we have a unique leadership position in an advantaged footprint. Two, growth for us must be consistent and compounding top line that flows to the bottom line and it's long-term oriented. Three, our superior capabilities will position us to continue outperforming the industry in the years to come. Our next 3 speakers will take you now inside the strategy. First, Marcel Marcondes on how we lead and grow the category, followed by Lucas Herscovici on D2C and why it's now a real competitive advantage and closing with Nick Caton on digitized and monetize. He will show how BIS keeps compounding and how it's helping us become a best-in-class CPG. Thank you so much for your attention. And now, I would like to invite Marcel to the stage. Thank you.

Please welcome to the stage, Marcel Marcondes.

Thank you, Michel, thank you, Ricardo. Great chat. Hello, everyone. It's a big pleasure to be here. I am Marcel Marcondes, Chief Marketing Officer, and a proud ABI owner for more than 20 years. I actually started my career at Unilever. And after many years in beauty, mainly hair care after many years selling shampoos. I decided it would be kind of a good trade to go to beer. At ABI, I had both marketing and sales jobs in Brazil before I moved to the U.S. 12 years ago, where I served as the Head of our Global Brands, CMO of North America and President of our beyond beer business. Now for the last 5 years, I have the privilege of serving as a global CMO. My job today is the following. You heard earlier from Michel about why this strategic direction. Ricardo just spoke about the what, the growth principles. My job is to talk about the how, how to lead and grow the category. And this is when the rubber hits the road. So we're going to get together into a little more details to give you a real inside view. Also, we're going to hear from some of my colleagues through video. The structure of the presentations will follow the same framework we use every single day, and it's split in those 3 parts: our consumer-centric capabilities, our missions to grow the category and the leverage to lead the category. Let's go. So let's get started. On capabilities, you know very well that ABI was built using a powerful inorganic strategy, leading the consolidation of the industry until he became the indisputed leader. But now, as you heard from Michel, our strategy is focused on consistent compounding growth. And so we spent a few years working to build new capabilities and also wiring the whole company in new ways of working. We call it the One ABI Way. The One ABI Way goes from category and consumer understanding all the way to sustainable value creation. And this is what guides the work of our entire commercial teams. So now I'm going to share with you a few highlights of how it works. On category understanding, we built a very unique system that tracks participation, occasions and service for the whole industry in 32 markets, representing 95% of our revenues. We have quarterly readings on an industry level, company level and brand level, also with very specific cuts by consumer cohort. That system gives us the ability to identify gaps and opportunities in a very granular level, and that is a game changer in our process as it becomes the starting point of every commercial plan. In other words, it gives us intentionality in every move we make. Consumer understand. Here, the whole point is to go way beyond research and to really understand real consumer behavior. For that, we have our consumer hours program because just like pilots must have flight hours to fly an airplane. We also require all commercial leaders to dedicate time for direct consumer engagement. By the way, last week, we achieved 50,000 consumer hours across our senior leadership. That's equivalent of years of consumer learnings. And now AI is turning this capability into a real consumer intelligence because all that consumer knowledge, combined with our proprietary data is becoming quickly actionable as it enables us to build digital consumer twins and create synthetic consumer audiences. This new capability was developed in partnership with MIT, and it gives all our teams much faster ways to test insights and innovation ideas, reducing testing times from weeks to just minutes. All in all, this mix gives our leadership the best of analytical power combined with human intimacy. The third is portfolio strategy. And for a CPG that owns 500 brands, that is key. So I'm going to talk a little bit more about it. Our approach is based on the mega brands and mega platforms. As Ricardo just said, this is a transformational capability to drive growth because mega brands gives us focus. As we clusterize our brands according to the strategic roles in every single market. As a consequence of that, we're reducing the amount of brands with meaningful support from 500 to 50, the ones with both scaling potential and healthy growth rates. Those are the mega brands. Around 5 per market. After a few years working like this, mega brands now represents 60% of our volumes, and they're also punching above their weight on investments. So that puts momentum on our favor. Moreover, that focus allows us to invest behind bigger and more global platforms to activate the mega brands. Those are the mega platforms. We've built an unparalleled calendar with the most culturally relevant platforms in sports, music, travel, streaming and more, always aligned with the positioning of our brands. So let's take a quick look at what we have for this year and beyond. [Presentation]

I like this job. But now it's very, very important to note that mega platforms, as Ricardo said, are much more than just sponsorships. They have to represent 3 big elements. Passion points consumers love big beer occasions and they have to allow us to have huge commercial integration, all at scale. So let's see FIFA World Cup as an example. This is how it works in real life. On media, as the official partners we have priority to get all the best placements, we maximize reach. On product, we have exclusive limited edition packs that drive velocity. On trade, our status as official partners allows us to build disproportionate displays, resulting in extra shelf space. Then experiential brings everything together creating moments where people socialize with our beers in their hands. And finally, digital connects our brands with culture. After all, those platforms are naturally what people are talking about. All in all, this massive commercial integration is how we set the bar for the mega platforms with all the efforts connected to the same program at global scale, we naturally get much better ROIs compared to a regular media-only approach. In other words, we become much more effective. And we track effectiveness against our peers. We use the [ FIS ] index, the leading effectiveness entity. We used to be here in 2019. And now since 2022, we've been there. That is progress and consistency. Most importantly, working like this, now we own 8 out of the top 10 most valuable beer brands in the world. And our portfolio now has billion-dollar brands, actually expecting Cutwater to join at least very soon. This is how we're moving from being advertisers to becoming full experienced providers, this is how we turn our brands and our scale into real competitive advantage. All right. So now let's move to innovation. You're all going to see a lot of innovation boosting our plans here these days. And they're all consequence of a new process for consistent growth. It starts with portfolio health, where innovation now becomes accountable for the health of our SKUs, aiming to optimize the good ones and the list the ones with no added value. Guys, we already reduced 25% of all our SKUs in the last years. Second is spectrum price. Revenue management is fully integrated with marketing, so packaging is more than never treated as real innovation, focused on addressing consumer participation and also new occasions. Then comes brand superiority where we now test our mega brands versus competitors every year to make sure they are always superior. And we do that because it's proven. Superior brands always overperform nonsuperior ones and that is a key discipline for a company that owns iconic brands. Finally, we have the new-to-the-world propositions, where we're developing the next generation of beers for the next generation of consumers. To launch those innovations, we use our D2C business that Lucas will talk to us about as a very unique launchpad because that way we're able to sit fast and also get first reaction directly from consumers before we decide to scale up. All in all, by working like this, we currently have both the #1 and the #2 innovations in the majority of our key markets, and our innovation business already delivers more than $6 billion per year. But stay tuned. Later today, you're all going to have a very immersive experience on what's to come. At this point, after category, consumers portfolio and innovation, we're ready with the planning cycle. So now we move into the capabilities for execution. And next is connections and creativity. There's a lot in there, but I'm going to highlight 2 programs. First one is Creative X, which is a process we use to train our teams globally on how to ask for creativity, judge creativity and have external assessments to constantly raise the bar. I was with one same mindset, using creativity to solve business and consumer problems. Very important to say that nobody at ABI gets rewarded for awards, but I believe it's telling that we moved from winning just 2 lines at the current festive in 2016 to winning 200 lines in the last 5 years, becoming the first company in history to be awarded the creative marketer of the year 3 times in '22, '23 and '26. Most importantly, that way, our brand portfolio just reached its all-time high scores in brand power led by our mega brands. But in a highly digitized world, I also need to talk about DraftLine. DraftLines are global in-house agency with offices in 13 countries, working to connect creativity with data and technology to drive personalization at scale. At DraftLine, we take a very analytical and detailed approach to audience segmentation. Then we use AI to serve millions of different consumers with personalized tailor-made content at scale. Also, at DraftLine, we have a global newsroom routine, just like a publisher, where we track all social media conversation across 200 markets, speaking 24 languages. And then we decide when and whether our brands should join in real time. That process makes us move fast with the agility to see a moment going viral during the Olympics at 11:00 p.m. and having it incorporated into our global Corona and paying the very next day. Or when Michel is there cheering and seeing the Knicks winning the NBA, and we have that iconic moment becoming a [indiscernible] campaign in just a few hours. By working like this, we're not only improving significantly our efficiency, but we also make our brands relevant in culture. We even track the share of social med engagements in all big cultural moments, especially our mega platforms, and our brands have been consistently leading all of them on a global basis. I can tell you, those capabilities represent a be competitive advantage in the world as it is today. And from there, we move to trade marketing, where we have been improving our capabilities as well to evolve from driving availability to also building premium brands and expanding consumption occasions. So you all can expect to see much more of this transforming airport spaces into true Corona oasis that immerse travelers in the brand world, the moment they walk in or off-trade shelves that actually make you feel like you're at the beach, making people stop in their tracks and fill the Corona vibe as they shop or interacted displays that double as brand merged stores and much more. After all, we all believe that trade marketing is called trade marketing for a reason. So we're treating that very seriously. And finally, we have value creation, of course, this is when we bring all those capabilities together in one central intelligence to drive consistent compounding growth. As Ricardo mentioned, this is all about top and bottom line growth together with long-term brand building. So in the end, we need to make sure that everything we do lands in that place. And this is why we created the One ABI Way hub because it works at as one source of truth for the whole, bring together all the data points from those 7 pillars also using AI for both automation and optimization. It makes a big difference. Let's take a look. [Presentation]

All right. So this was the first part of our conversation. All of our consumer-centric capabilities. After years of development and big investments, ABI is now working as a top consumer-centric CPG to drive consistent compounding growth. So far so good. So let's now move to the second part of our conversation, which is exactly how we use those capabilities to grow the category, to grow the pie. After all, I know that we all read a lot of different and sometimes conflicting headlines about the industry. So it's very important to have solid data and intentional plans to make an impact. By the way, what a great industry this is I always tell people that it's a privilege to work with something that is made with natural ingredients that is brewed locally and that participates in people's lives in moments like this. When friends and family get together to have a great time to build memories. Guys, I never forget that I started my career selling shampoos. But the point here is that everything starts with building a strong category perception and timing could not be better. Consumers are consistently showing us they want moderation and socialization and that's exactly what beer stands for. This is why we created -- we started to track the power of the category just like we do with our brands. And based on the key attributes that influence perception, we built a full calendar to celebrate beer. For example, during the FIFA World Cup, we had cheers to bars, a massive mobilization to invite consumers to socialize and watch the games there. Also last month, we celebrated International beer day, reminding consumers of the positive role that beer plays in their lives. So let's take a quick look at heers to beer. [Presentation]

Guys, as we work like this and track the category power, we see not only that beer is clearly the strongest category in the industry, but also that it is growing power. And that goes hand in hand with beer consistently gaining share of alcohol according to IWSR. But we know that category perception is just the beginning. As a leaders, we need to go much deeper in the work to actually grow the pie. So let me introduce you to the beer consumption pyramid. We split legal drinking age consumers into groups that do not drink beer, that drink every 6 months, every month and every week. And our plan is based on 3 consumer missions to grow the weekly drinkers, which we call beer lovers, to address the barriers of infrequent drinkers and to position beer to win in more occasions. So let's double click in each of them, growing beer lovers, the key element here is the following: consumers need to socialize. That's what they want and with moderation so they can socialize for longer. And given that's exactly why beer exists, by design or mega platforms always invite consumers to get together. Here is a clear example, the Olympics. That's the biggest event in the world, but beer has never been allowed as a global partner. In '24, the IOC understood our proposal for socialization and moderation. And Corona became the first beer in history to become a global Olympic partner with Michelob both in the U.S. There was a big move for the whole category, but also a big demonstration of consumer behavior when they socialize. Look at that picture. That's Winter Olympics earlier this year. everybody said it would be challenging. It was super cold and people not want to drink cold beer. But look at what happened. If we were not there, all those people would have gone to the other line. But we were there. And Corona had 57% share of all beverages sold in the venues. As we sold more Corona than water. Casing point social moments, shape consumer behavior. And that was a tough example. That was winter. You all saw what happened at the World Cup during summer. Same message from consumers same lines, same performance. This time, even selling more than soda and chicken tenders combined. They were even collecting cups from other people. Again, those social moments are shaping consumer behavior. But don't take it from me. Let's hear directly from them. [Presentation]

Smart guy. This is why we made huge investments to evolve from having in our calendar only 1 global event every 4 years. So now having at least 2 of the largest events in the world every single year because this is how we grow beer levers. So now let's talk about addressing the barriers or should I say the opportunities of infrequent drinkers. After analyzing participation data, we have 3 cohorts here: budget-conscious drinkers, female drinkers and LDA drinkers. They're all very different and therefore, have different barriers to be addressed. Budget-conscious drinkers are actually the biggest opportunity to be addressed because they represent almost 1/3 of the beer volumes. They are the typical beer drinkers. And the clear barrier for them is affordability. As you know, we face all-time low consumer sentiment that plus the constraints on disposable income, makes affordability become the #1 reason to reduce consumption. We know that working minutes to buy beer is a key metric to watch there and data is showing us huge opportunities to make here more affordable, especially in developing markets. To address that, you're going to see a lot of packaging innovations, both with smaller formats for lower out-of-pocket as well as larger formats to deliver more for less. Now female drinkers. Women historically have lower alcohol participation compared to men. Our data showed that many of them are sweet seekers. They prefer sweet over bitter. Also, fitness is an increasing priority for many of them. And this is why we'll double down on 2 areas: on beer, women have higher participation levels with our balanced choices brands like Stella Pure Gold, low calories, gluten-free or Michelob ULTRA, low carbs, low calories. By the way, ULTRA will bring female drinkers to the spotlight next year as Brazil holds the women's FIFA World Cup. Now on the beyond beer side, women actually over-index versus men as they engage with those sweeter and high-end propositions like Brutal Fruit usually shifting from wine and spirits. Brutal Fruit, for example, has 4x more women participation with 84% incrementality to the business. It is a no brainer. And finally, LDAs. LDAs represent 10% of the industry, and they are naturally a more complex group that needs to be addressed in different angles. From the product angle, they have a wider taste profile. And this is why we developed flavored beers. Here in the U.S., this is what happened when we brought Busch Light Apple to the market. Internationally, our global proposition is flying fish and that is what happened when we launched it in Belgium. But pay attention to this number. 50% of those consumers are new to the category. Also for beyond beer, we invested in brands like Beats and Beatbox exactly because they have strong flavor profiles. As a consequence, they not only have very strong results but also 2x higher participation amongst LDAs. But this game is not just about flavors. LDAs frequently choose beer during live experiences, for example, especially concerts. Beer plays a very important role there. As they want to socialize for longer, they often alternate alc and nonalc beer to enjoy the full experience. And this is why we joined forces with Live Nation, the global leaders in live music. We're becoming their preferred partners and turning them into a true channel to connect with the LDAs. Let's take a quick look. [Presentation]

And friends working like this, things are changing. This year, we've seen beer growing participation with LDAs and ABI overperforming the industry. Also, IWSR just released a study showing that the consumption gap between Gen Z and general population is now negligible. In the end, it's always all about socialization. Now let's cover the third consumer mission to grow the category to expand beer occasions. Understanding occasions is key, given the consumers have different needs in different moments, and that brings great opportunities. Here, we also decided to prioritize 3 occasions based on growth and winning ability. First one is watching sports. This occasion is big, growing, and it's a natural choice for beer. All big sports events are reaching record viewership levels, and we have massive synergies with our mega platforms. This is why today, ABI is one of the biggest players across any industry in this territory. And now with the addition of Champions League next year, we'll have not only another global moment for watching sports on weekdays, but also from Tuesdays to Thursday, 10 months per year. But on this one, there's someone that knows it much better than me. David, what would you say about Champions League?

Thanks, Marcel, and I'm really sorry that I can't be with you today. Champions League will always be very special to me, gave me one of the best moments of my career. It represents the pinnacle of European club football with the most passionate fan and week out. I think that heritage and tradition is a perfect fit with stuff. We've obviously already done some incredible work together over the past few years. And I think that we can really create something special with the Champions League partnership. I can't wait to get started. Have a great day, everyone, and cheers.

Cheers, David. Thank you. Second occasion is casual meals. This is another big occasion, but here beer underperforms versus other beverages. And this is a massive opportunity for the non-alcohol propositions because they can occupy that space of the adult refreshment choice because after big investments in brewing technology, today, we deliver high-quality non-op beers with full flavor, different flavors, low carbs, low calories and even with electrolytes and protein. So we're seeing an increasing number of adults substituting soft drinks or other beverages for non-air during meals. That is changing the industry. and it opens a huge addressable market for beer. The third occasion is home gatherings, First, because of COVID and now constraints on disposable income. Consumers are still choosing many times to socialize at home. And the biggest driver of choice here is convenience for hosting. This is why for beer. We're expanding our perfect direct machines led by Stella and also our direct-to-consumer brands like Ze Delivery and TaDa, which, by the way, are growing 11% users just this year. On beyond beer, Cutwater, for example, is a brand designed for hosting because it delivers the convenience of a real high-quality cocktail that is ready to drink. This is why Cutwater is growing triple digits, and it is now the fastest-growing spirit brand in the U.S. But lastly, we did another unprecedented partnership for the in-home occasion, Netflix. With almost 1 billion viewers Netflix is both an occasion on its own and also a very strategic partner to shape the industry, given its impact and influence in culture. Through our partnership, we matched their shows to our brands and worked together to authentically integrate and promote the shows. Only this year, our brands will be present in more than 300 tires, addressing different consumer groups and different occasions. Also for a few big titles, we are together literally coproducing content in a way that it becomes almost impossible to distinguish what is advertising from what is just another episode. So let's see a quick example from the recently launched The Gentlemen, Season 2. If you watch, you will understand what I'm talking about. [Presentation]

Never corner [indiscernible]. All right. So that was the second part of our conversation, how to grow the category. In summary, I shared our efforts to drive category perception, together with very intentional moves to address our 3 consumer missions to grow your levers, to address the barriers of infrequent drinkers and to expand beer occasions. So now let's go to the third and final part of our conversation today, how to lead the category because after growing the pie, let's talk about how to win a larger slice of it. This is our category expansion model. As markets develop, there is a growing level of relevance in 4 levers. Superior core, premiumization, balanced choices and beyond beer. The way we work is to develop replicable solutions to lead each of them at scale. So let's start with superior core. Core brands are the base of the industry. We are leaders in core, and we are gaining share. Our replicable model is based on superiority, affordability and [indiscernible]. Because our core brands carry the colors and the value of their nations. There are big items of local culture must always make consumers proud. Let's now hear from Felipe Ambra, our Marketing VP in Mexico and see our superior core brands in action.

Let's go with Marcel. Hello, everyone. It's a pleasure to be here. When you talk about leading beer category, it starts with one simple belief. A healthy core is the strongest engine of sustainable growth. In Mexico, our core portfolio does more than drive our business. It helps grow the entire beer category. As Marcel mentioned, our approach is based on 3 connected elements. Superior brands, igniting local price with affordability. Together, they provide a powerful value equation. Brands that consumers truly love because they offer the best liquid, the most appealing positioning at the right price and in the right pack formats. In Mexico, we have 2 iconic brands, Corona and Victoria. Corona embodies the ambition and progress of Mexico. The spirit of Mexicans will keep moving forward and conquering the world. This come to life on campaigns and platforms like Corona's 100th anniversary, highlighting the extra that has defined the brand for a century. A mindset that continues to ignite Mexican mission today in a concept that naturally evolved into our FIFA World Cup platform. While Corona represents Mexico's future Victoria Honors Mexico's routes from [indiscernible] to the retails that inspired Victoria [indiscernible]. The brand keeps Mexican traditions relevant for new generations. But strong brands alone are not enough. Consumers participate in the category when they perceive the value is right. That's why we have built a comprehensive price and pack architecture from affordable entry packs to larger multi-serve formats that deliver better value for each offering. Every pack has a role. Every price point has a consumer and every occasion has an offering by balancing brand strength and affordability we create sustainable growth for both our brands and the category. Ultimately, core superiority is about maintaining the right balance, superior brands with deep cultural relevance, the right affordability architecture and consistent investment behind our portfolio. When consumers love and can afford our brands, the entire category grows. That is the power of core superiority in Mexico. Corona and Victoria are not only iconic and superior brands, we believe there will be long-term value-creating assets. Thank you.

Thank you, Felipe. So now let's move to premium. Premium continues to be the biggest volume opportunity for the industry in absolute terms. After all, beer is an affordable luxury and the mix of premium improves year-over-year. We are leaders in premium, and we're gaining share. Our replicable toolkit here is the following. Instead of having one brand trying to be everything to everyone, we are strategically leveraging the power of our global brands, having each one of them positioned to address each of the 4 consumer motivations to drink beer. Corona is all about relaxation. Stella to elevate the moment, Ultra for an active lifestyle and Budweiser, the energy for the celebrations. That complementarity across brands is hard to beat because each of them authentically owns their territories. Playing like this, our global brands are consistently leading premium growth. So now let's hear from Richard Oppy, our Global President for Premiumization.

It is a privilege to lead the premium company at AB InBev. As Marcel just mentioned, we have a powerful premium portfolio organized around the consumer needs days, starting with Corona, which is all about relaxing and unwinding. Corona is the most powerful B brand in the world and the #1 volume growth driver for AB InBev, even commanding a 25% price premium to its key competitor. Corona has been recognized as the most valuable BRAND in the world for 3 consecutive years. Behind this success is a simple formula, consistency. Corona remind people what this is living is all about, an invitation to disconnect from routine and reconnect with nature. Talking about nature, Corona has brewed with 100% natural ingredients and has 1 of the most distinctive assets in the category, the iconic [indiscernible]. Corona owned the summer season, activating Corona Sunset sessions globally, including Copper Cobana, which hosts the biggest beat concept in the world. This corona mindset translates to all seasons throughout the year as we demonstrated through the successful Winter Olympics activation. Stella Artois is the brand that elevates the moment with more than 600 years of growing heritage and an uncompromising commitment to quality. Stella Artois crafted to the highest standard, transforming everyday occasions into moments that are truly worth more. As a leader in premiumization within the on-trade channel, Stella Artois renowned for its iconic perfect service, served in a iconic tells. It delivers a distinctive and elevated experience that reinforces the brand's premium credentials and makes every moment feel more special. To accelerate momentum, we're continuing to activate Stella through its Dani's platform, including Wimborne and Roland Garros. And we couldn't be more excited about our latest mega platform with enormous reach and that is the wafer Champions League beginning in July 2027. This prestigious European football competition of the highest quality will partner with our European beer of the highest quality which has a taste worthy of champions. At the same time, our partnership with Netflix is helping us connect with new consumers in a meaningful way, increasing the brand's cultural relevance. Michelob ULTRA is the superior idea with low cards and low calories, leading the balanced choice needs date and addressing the growing consumer demand for products that fit in active and so to lifestyle. The proposition has already been proven in the U.S. when Michelob ULTRA is the #1 B brand by volume. In 2026, we used the FIFA World Cup as a launch plan to expand Michelob ULTRA across the Americas, and it's working. Today, 45% of Michelob ULTRA's volume growth comes from outside the U.S. to accelerate momentum, we're investing behind superior platforms like the FIFA Men's and Women's World Cup PGA Golf, the MBA and an exciting new global running platform wanting in 2027, allowing the brand to connect with consumers through their passions and grow participation. And finally, Budweiser leads the build energy need state and is the brand at the heart of celebrations, whether it's a personal achievement, a shared victory or a cultural moment, when it comes to celebrating one thing remains true, this calls for a [ band ]. To strengthen this positioning, we are doubling down on one of the most powerful celebration passion points, music. Through iconic partnerships with some of the biggest artists in the world as well as activations at festivals like Tomorrowland, Lola Palooza and Key Live Nation venues. Budweiser's shaping culture and strengthening our relevance with the next generation of LDA drinkers. In closing, we have a powerful and complementary portfolio of premium brands that are delivering exceptional results reinforcing the strength and momentum of our premium company.

All right. Thank you, Oppy. So now let's move to balanced choices, the third growth lever. Guys, here, we're literally building the next generation of beers for the next generation of consumers. Our balanced choices portfolio includes non-op beer and also the beers with full taste and low stats. On the non-alc beer segment, we've been growing 3x faster than the industry, led by Corona Cero globally, Michelob ULTRA Zero in the U.S. and a pipeline with styles flavors and next-generation beers with electrolytes and protein. In parallel to that, we continue to develop our beers with full taste and low stats like low carbs, low calories gluten-free and sugar-free propositions, all of them with significant growth rates. We are leaders in balanced choices, and we are gaining share. This portfolio already represents 11% of our total business. but we strongly believe this is just the beginning because these propositions are changing the industry. With strong brands boosted by pioneer innovation, we are literally working to lead the future of the category. So let's now see the process in action with Dani Waks, our marketing VP in Brazil.

Thank you, Marcel. Excited to talk about the next generation of beers. As we have just seen, balanced choices is a combination of 2 segments, nonalcohol and low stats. And in Brazil, this is not a niche anymore. On the contrary, balanced choices is becoming the next major transformation of the beer market, responsible for a big, big part of its growth. So let's start with nonalc. This is a segment that has been growing way above the industry over the last years, and one in which we are the leaders here in Brazil. We have a portfolio of brands in different price segments. We have [indiscernible], which is the first zero alcohol, zero sugar beer of the market [indiscernible] zero and Corona. We must continue to normalize the consumption of 0 years, close the gap in pack and distribution to expand its occasions and build nonalc intentionally with meals to make sure it is seen as the best option in the adult refreshment space. We're also pushing nonalc into the next generation of view. We just launched [ Spot and Pro ], the first beer with protein in Brazil. Now let's talk about full taste, low stat peers. This is a space that includes no gluten, lower carbs, lower calories. It is a segment in which we also been here in Brazil. It is growing even faster than not. There are 2 brands here that capture the essence of this segment. The first one is Stella Pure Gold, all the flavor of Stella Gluten-free and with 18% fewer calories than the regular stellar. It is so successful that it already represents half of Stella's volume, growing at over 100% CAGR from its launch to 2025. Stella Pure Gold is a great example of a full flavor lower calories. Now let's talk about Michelob ULTRA, 80% as cards the regular beers with a great and refreshing taste that Brazilians love. As a matter of fact, it's the brand in our portfolio with the fastest growth, and we are expanding capacity, developing new pack formats and investing a lot in expiration like the World Cup and the running platform, which is huge in Brazil. To sum up, 3 important messages. Number one, balanced choices is already a reality in Brazil and a massive engine of growth. Number two, we need a full portfolio of different brands and liquid propositions tailored to different consumer needs and spaces. And number three, we must bet big behind the space, be it in experiential, trade, packs, and distribution. When all of these elements come together, we can turn powerful consumer trends into a category growth lever during the next generation of beer for the next generation of LDA consumers.

Thank you very much, Dani. So now to close our growth levers. Let's cover beyond beer. This segment is also shaping the industry and steadily growing participation because it addresses those 20% of drinkers that are set seekers. Also, BNB is profitable and very incremental. But just like every great opportunity, beyond beer comes with a caveat that we learned after wins and mistakes over the years. This is a world for pure-play brands, not for line extensions. On beyond beer, we are not leaders. We're actually the challengers as we expand our footprint. But we're growing 37% revenues and gaining share very rapidly. Here in the U.S., for example, we are already the fastest-growing spirit company based on our beyond beer sales, and we're ready for more. After years of learning how to play this game, we now have 6 pure-play brands with proven performance and lots of momentum. They are ready for expansion. We're talking about Brutal Fruit, Flying fish, Nutri, Cutwater, Beats and BeatBox. The more we simplify the portfolio and expand those brands, the more we grow. You're going to hear a lot about this in the U.S. presentation. So now let's hear from a region that proves beyond beer is an opportunity everywhere. Let's hear from Leanne, our marketing VP in Africa.

Thank you, Marcel. It's 100% true. 20% to 30% of alcohol consumers are sweet seekers regardless of market maturity in Africa. That's why we anchor beyond beer in our global segmentation backing pure-play brands that can win today while building the portfolio of the future. I'm incredibly proud of what we're seeing from 2 beyond beer brands born here in South Africa, the leading brand in our global flavor for and refreshing segment. Flying Fish is our crisp profession lemon-flavored premium beer made for LDA to 24 consumers seeking more flavor. As a pure-play brand, that gives us permission to connect in fresh ways and bring new excitement into the category. We've done exactly this with surprisingly good states, leaning into our passion point of DJs and music streaming, we launched experiences in unexpected locations across SA. And Halloween has given us the perfect moment to really show up differently with a limited edition passion fruit and lemon released. Brutal Fruit elevates everyday occasions, bringing women together to enjoy a glass of fruity sparkling refreshment, some recent innovations have set out to do exactly that. Brutal Fruit [ LaRonde ] rose strengthens our leadership in stress. Our elegant new Brutal Fruit brand [indiscernible] sharing bottle enhances the moment. And following encouraging results, Brutal Fruit nonalcoholic is now scaling nationally, bringing an alcohol-free choice to the category that selfies social and really special. And in party mix, MXD, South Africa's 2025 innovation of the year shows the size of the opportunity in our build energy social occasions. You can count on Africa to keep building the [ Onvia ] brand with distinctiveness, boldness and real consumer relevance, creating the future with more occasions, more growth and more tiers. Thank you.

Thank you, Leanne. All right, everybody. So that was the third part of our conversation, how to lead the category. This is all about the 4 growth levers, and our job is very clear. to deploy replicable models and lead all of them. As you can see on the screen, we have a lot of momentum. We're very ambitious but also very humble. We know there is still a lot to be done. And with that, we conclude our session today on how to lead and grow the category. I really hope you all enjoyed this real insight view of everything we're brewing for the future. In summary, we cover today our consumer-centric capabilities, the One ABI Way, wiring the entire company to behave as a top CPG driving consistent compounding growth. Then we covered how to grow the category, driving category perception by executing 3 consumer missions: grow beer lovers, addressing infrequent drinkers and expanding beer occasions. And then we covered how to lead the category, using replicable models to lead each of the 4 growth levers that shape the industry. There is still a lot to do. But we are very confident that now we have the brands, the capabilities and a very intentional plan to deliver our strategy to lead and grow this amazing category. So thank you all for your time, and see you all at the emerging area. Thank you very much.

Please welcome back Shaun Fullalove.

Thanks, Marcel and team. I know that was a long session. Something else you have to produce to given the format of this presentation is my last name being said multiple times. It's taken 42 years to get used to it. So we're rolling this together, I think, hopefully become normal by the end of the session. We've covered a lot of ground there. I think I know everyone had long travels in years. So we going to take a short break now. I think we're going to take 20 minutes. So let's try and be back in seats around 10:11, 10:30. You should be able to grab some coffee outside, maybe form energy outside. And for those on the webcast, stream, we will see you in 20 minutes. Great. [Break]

Please welcome to the stage Lucas Herscovici.

Good morning, everyone. It's a pleasure to be with all of you today. I'm Lucas Herscovici, Chief Director Consumer Officer for ABI. I joined this company 25 years ago as a global management trainee back in Argentina. After starting my career in sales, I later moved to marketing, embarked on several international assignments in global headquarters and the North America zone. I moved to U.S. 18 years ago here, the St. Louis. I'm honored to be part of the SLT since 2018, first as Chief Non-Alcohol Officer and later as Chief Sales Officer. Now for the past 4 years, I had the privilege of serving of Chief Direct-to-Consumer Officer. D2C is at the frontier of Pillars 1 and 2 of our strategy. And my job today is to show you how D2C is becoming more and more an unmatched competitive advantage to accelerate ABI's organic growth to lead and grow the category. I will use the same framework shared by Marcel to show you how D2C augments each of these 3 pillars, creating a unique competitive advantage for ABI. First, I'll show you how D2C is improving our consumer center capabilities by scaling best-in-class digital products and becoming a powerful tool for insights generation. Then I'll show how D2C is also becoming a unique platform to grow the category through brand building and occasions development. And finally, I'll show you how D2C is helping us to lead the category by becoming an innovation lab for new product development. Now let's go for each of them. Supporting the consumer-centric capabilities, we have scaled our best-in-class digital products across key markets under 3 digital mega brands, Ze, TaDa and PerfectDraft. For developing markets, our value proposition is focused on delivering cold beer in less than 30 minutes at supermarket prices. Ze Delivery is our brand in Brazil, which we replicated to the rest of the world under the brand TaDa. For developed markets, our proposition is called PerfectDraft, which is like an espresso for beers. Consumers get to enjoy the draft beer experience at home from over 40 different beer brands buying their kegs online or in physical stores. Both propositions leverage the breadth of ABI's physical, brand and experiential assets, making them key differentiators versus other players. These products have scale, and they're growing consistently. In the first half of 2026, net revenue grew 9%, active consumers 11%, and we have over 4 million consumers that are already enrolled in our rewards programs. As shown in the chart on the right, online beer sales have grown 5x faster in our D2C markets versus our non-D2C markets. This important difference proves that scaling best-in-class digital products is developing the beer category. Now let's move to insights generation, a key foundation of organic growth companies and of our One ABI Way. Our experience has shown that having D2C creates a unique capability versus other CPG companies in 3 different ways. First, using real-time first-party data helps us detect the man 2 to 5 weeks ahead of other CPGs that usually rely on sell-in data. This gives us a better pulse of the market, helping us make commercial decisions that are more efficient and effective. Next, we use D2C as our crystal ball to understand consumers through proprietary research in highly granular data, where CPGs usually rely on external research in aggregate data. And lastly, we see our data and personalized product algorithms to act as an innovation accelerator where CPGs usually use broader tools that lead to slower and more expensive innovation. D2C insights also increase our consumer understanding and help us build stronger brands. Research companies provide an important foundation for understanding right loyalty across the market. We complement that perspective with our D2C first-party data, survey consumers every week at greater scale. That gives us a more frequent and view of brand loyalty KPIs, including monthly insight Zip Co level, while allowing us to connect what consumers say with their actual purchase behavior. For example, in H1, brand retention, one of our brand interaction KPI reached 62% for Stella Artois family and 73% for Michelob ULTRA compared with 52% for the average of our competition. This shows the power and momentum we have with these 2 premium brands in Brazil. We're now making consumer insights accessible at scale. Our Insights hub in Brazil combines a simple chat-based interface with qual and quant research tools, allowing colleagues to explore multiple data sources and run their own research using AI. This tool also makes the consumer hours mentioned by Marcel more efficient and effective, allowing us to engage one-to-one with the right consumers and understand challenges and opportunities in greater depth. Let's watch a video that brings this to life. [Presentation]

Well, now let's take a look at how D2C contributes to grow the category by building brands and developing occasions. As Marcel shared, there are 3 occasions we're prioritizing, watching sports, casual meals and gathering at home. Let's see some examples on how D2C is helping develop each of them. Through our D2C data, we know that watching football at home represents a meaningful occasion with growing monthly frequency and a strong weekend role. Our D2C platform allows us to know team fandom of each user and their purchase behavior during football games. Based on this capability, Enbrama's partnership with most football clubs in the country, we developed a big national always on 360 activation program that has been growing consistently for the past 2 years. Let's watch a video to learn more about it. [Presentation]

So based on the success in Brazil, we're now scaling this idea to Mexico through a program called Blue Corona that is enabled by TaDa. Consumers scan unique codes under bottle crowns, earn points and redeem rewards. The program is built around returnable glass bottles and is expanding nationwide. Key partners such as OXO, Tigres in America, extend its reach across retail, soccer clubs, and the 12 teams that are participating. Gamification keeps consumers engaged through match time bonuses and result predictions, connecting our brands, consumers and retailers with a full digital ecosystem. Now let's talk about casual meals. It is a sizable occasion, but decreasing versus last year. The occasion is concentrated on weekends where Stella Artois is among the key brands. Based on these insights, we launched Stella Artois Thursdays to create an additional week at a moment for Stella Artois Pure Gold activated across Ze Delivery, Netflix influencers and offline. On Thursday, thanks to the activation of this program, Stella Artois Pure Gold now accounts for around 60% of Stella Artois GMV, and participation is up 90% versus last year. In-Home Gathering is also a meaningful occasion, and perfect draft is a great proposition to activate it in Europe. PerfectDraft in U.K. continues to expand its reach with active households growing 18% versus last year's and volumes growing double digits for 24 consecutive months. As you can see on that beautiful image, we have leveraged our partnerships with David Beckham and FIFA World Cup to activate this occasion with excellent results. Finally, let's see how D2C plays an important role as an innovation lab, enabling ABI to lead the category. D2C impact on leading the category is visible across the growth levers shared by Marcell. We're D2C over indexes in every one of them. As you can see on the slide, D2C is significantly overrepresented in beer lovers past 7-day participation as well as mix for returnable glass bottles, premium brands, balanced choices and beyond beer. Additionally, D2C also helps accelerate innovation. At preseed, we rapidly test concepts with real consumer feedback. We did it with [indiscernible] Colombia, where consumer response did not show potential, helping us avoid investing further in launching the product. At seed, we identified momentum faster than we used to do with traditional research. In Peru, Data Insights helped us develop Mike's Mango, which we then tested through D2C before a broader rollout, helping make August, the strongest RTD sales month in Peru in 6 years. At scale, we trial products nearly 60x cheaper through targeted sampling. For example, in Q2 this year, we reached 240,000 targeted consumers with Michelob ULTRA trial program in Brazil. We estimate this would have cost $90 million through a traditional nontargeted sampling program. There's only 300,000 spend through Ze Delivery to reach consumers in a personalized way. Our ecosystem data can also influence online to off-line execution via integration of D2C with BEES. As we saw before, D2C data shows us what consumers are buying and which brands they love. The data that enriches these algorithms to identify a retailer where Stella Artois Pure Gold is missing despite local consumer demand and loyalty. The opportunity that appears as a suggested order in the BEES seller app and it's a personalized task for the BDR, the business development rep. This closes the loop from consumer signal to retailer action, helping Stella Artois Pure Gold gain distribution and consequently, market share. So now let me close with the key takeaways from today. First, our best-in-class digital products have scale and are delivering consistent growth in key markets. Second, they generate insights capabilities that are very hard for other CPGs to replicate. Third, D2C is enabling us to build brands and occasions that are growing the category. And finally, D2C serves as an innovation lab for faster, cheaper and more targeted learnings. What you saw today is just the tip of the iceberg of what D2C is. Let me share with you a closing video that showcases the full power of D2C within the ABI ecosystem, creating industry-leading capabilities that we are very proud of. Let's watch the video. [Presentation]

Thank you for your time today. Later today, I invite you to visit our booth to learn more about our D2C brands and experience freshly poured Stella Artois and Corona Cero from our perfect graft machines. Now I hand it over to Nick to talk about BEES. Thank you.

Please welcome to the stage, Nick Caton.

All right. Good morning, everyone. 3 years ago, I had the opportunity to stand in front of many of you and talk about BEES, and the transformation we had begun in how we connect with millions of retailers around the world. Since then, we've made substantial progress. And today, I'm excited to share with you how far that journey has taken us. But first, a quick introduction. I'm Nick Caton, Chief B2B Officer at AB InBev. My 14 years at ABI have taken me to Asia Pacific, North America and our global headquarters, working across different parts of the business, from sales and finance to technology. And for the past 4 years, I've had the privilege of leading BEES. During that time, I've seen BEES grow from a transformation within ABI into something with a much bolder ambition. At BEES, we are digitizing the world's B2B transactions. We do this to create value for everyone in the ecosystem. More value for retailers, through easier access to the leading brands and products they need. More value for suppliers through direct, always on digital connections that leverage AI to identify opportunities for growth and more value for communities through more small businesses thriving. Today, to help you understand the journey we have been on and the opportunity we have ahead. I'll share with you how we are addressing retailer needs. The value we are delivering for ABI, the best-in-class capabilities we've developed. And as a consequence, how we are expanding our addressable market. Let me start where it all began. Our retailers. ABI serves millions of retailers around the world across different channels, countries and routes to market. and serving them means being close to the day-to-day reality of running their businesses. That proximity has given us a deep understanding of what these businesses need to thrive and of the barriers that can hold them back. Historically, in traditional train, the relationship with a supplier depended heavily on a brief visit from a sales rep. A few minutes a week determined what retailers could buy and therefore, what they had available to sell. While technology was transforming many aspects of their lives, it was not transforming their businesses. And in an age of rapidly advancing technology, many of those retailers were simply left out. And this wasn't only a traditional trade problem. Modern trade retailers faced many of the same frustrations. Just in a different form. Although key accounts had access to digital tools, much of that infrastructure that connected them with their suppliers have been built decades ago. So in both small neighborhood stores, and large modern trade operations, the way retailers and suppliers work together created friction that made it harder for both of them to grow. [Presentation]

With BEES, we are transforming our route to market through a global platform powered by data and AI. We are fundamentally changing how we serve retailers and how we execute our commercial strategy. And that transformation is already well underway at scale. Today, BEES is live in 30 markets with more than 4 million retailers, generating approximately $60 billion in gross merchandise value through the platform every year. What enables that scale is a common platform and data foundation built to support every market, channel and user we serve. BEES connects every retailer touch point across the route to market through a suite of purpose-built, front-end applications for retailers, sales reps, delivery drivers and customer service agents. Different applications, purpose built for different users, all powered by the same platform and intelligence. Ordering, sales visits customer service and delivery all generate data, giving us a richer and more complete view of every retailer and how best to serve them. And we do this with this AI, our embedded intelligence layer. It processes data at scale, turning it into insights that shape more personalized experiences. And because each interaction informs the next we can continuously improve how we serve retailers and unlock growth. One of the clearest things we've learned is that digitization doesn't make our relationships with retailers less personal. Done well, it makes those relationships stronger. We see it in the way retailers engage with us today, ordering on their terms, spending much more time with us. and reporting higher satisfaction. These gives retailers more control over when and how they do business with us. Today, over 1/3 of orders are placed outside of business hours, giving retailers the flexibility to order when it works for them rather than depending on the timing of a sales rep visit. And greater convenience has led to greater engagement. These adds 30 minutes of direct interaction with our retailers every week. And we've reinforced that engagement through Club BEE, our rewards program. giving retailers more reasons to participate and rewarding them for doing so. Today, over 3 million retailers are active Club BEE members. And ultimately, we see this strength reflected in greater satisfaction. Since we began implementing these, retailer NPS has increased by more than 45 points, reaching 71. Now I've shared so far how we have fundamentally transformed our relationship with our retailers. I hope you see that we didn't just digitize those relationships. We made them stronger. Now I'd like to share how by serving our retailers better, we've created value for ABI at scale. First, BEES enables us to sell more profitably. By empowering our retailers to place orders themselves, we can refocus our sales force on opportunities that create the most value for each retailer. That makes every visit more focused and more productive. These enables each sales rep to serve 15% more stores, while our frontline cost as a percent of net revenue has declined by 1/3. And productivity extends beyond sales. Better visibility and planning help us use our logistics network more efficiently. Today, our deliveries are 15% more productive. And we've improved our financial operations as well with data and AI helping us manage credit risk more effectively, bad debt has declined by 27%. Taken together, BEES is clearly making our route to market more efficient. But efficiency is not the primary goal. The biggest value that BEES creates is growth. Let me highlight Brazil as a case example. Before these, we served around 750,000 buyers in Brazil. Today, we serve 1.3 million. We now have direct connections with retailers who may have been indirectly served in the past, which enables better channel management and more effective revenue management. And because these retailers are directly connected, we can engage with them more frequently and more effectively. Through digital communications, personalized shopping recommendations and tailored promotions, we can surface the products and opportunities most relevant to each retailer. That has helped us increase the number of products we sell with approximately 20% more SKUs per buyer in Brazil. In addition, BEES also supports growth through smarter commercial investment. With Club BEE, instead of relying on broad-based discounts, we can personalize points offers for each retailer. And that investment works harder. Club BEE points offers generate 35% higher ROI than regular promotions. And importantly, the growth that we have experienced in SKUs and buyers came in service of our commercial strategy. Let me show you how. The increase in SKUs and buyers led to a strong increase in our multiple points of distribution in Brazil. This measures the availability of our products in the market. Importantly, our share of distribution also grew. So not only are we growing the distribution of our products, we are growing our share of shelf as well. With BEES, our growth in distribution focuses on the products that have the best fit with our retailers and the most consumer demand. And as a consequence, this distribution growth translates directly into market share growth. So as this example in Brazil shows, BEES enables us to reach more retailers with more products and reinforce our commercial strategy. And we do this not only in Brazil, but globally, we use BEES as a global platform to enable our mega brand and mega platform strategies. These helps us translate our commercial strategy into execution at the individual retailer level. A great example is Corona Cero at the Paris Olympics. These gave us the infrastructure to take this new mega platform, execute across markets and build the availability of Corona Cero globally. Through the platform, we could activate retailers quickly, put the right offers and incentives in front of them and give our frontline clear actions to drive execution. In just 6 months, Corona Cero doubled its global footprint, reaching 30 markets around the world. We simply could not have executed that quickly and that effectively without these. Similarly, being supported the execution of Michelob ULTRA for the FIFA World Cup. Our ambition was clear: use the World Cup mega platform to accelerate Michelob ULTRA's growth. That meant turning one global strategy into thousands of retailer-level activations and sales rep executional objectives. For retailers, we personalize the shopping experience, surfacing Michelob ULTRA through relevant recommendations, offers and incentives. For our sales reps, these force translated that same strategy into retailer-specific actions, helping them prioritize where to span distribution, what to sell and what to execute in store. So rather than executing on campaign, the same way everywhere. We could execute on strategy but with greater precision, retailer by retailer. And the results were significant. For example, in Latin America, Distribution grew 250% with volume growing 200%. This is the advantage that BEES gives ABI, the ability to turn our commercial strategy into execution with greater speed, precision and scale. Now I've showed so far how BEES generates value for retailers and for ABI. I'd like to now share with you some of the leading capabilities that we've built into the Bees platform. With the speed of technology and AI advancement today, our capabilities are accelerating. And I'm excited to share with you some of what makes BEES best-in-class. BEES scale creates a virtuous cycle that is becoming ever more powerful. BEES generates proprietary data from the way retailers buy and the way our teams serve them. BEES AI turns that data into insights about what each retailer needs and where the next best opportunity is. But the real differentiator is what happens next. Because BEES is so deeply embedded throughout our route to market, those insights can immediately shape what we do, what we recommend, what we offer and where our teams focus. More usage creates more data. More data strengthens our AI better AI produces sharper insights and better insights drive better action. And today, this cycle operates at global scale. And that scale comes from how deeply we've embedded BEES AI across the retailer journey. BEES AI identifies opportunities from what we know about each retailer based on their interactions in the platform and the commercial priorities we want to execute. For the retailer, that means an experience built around them. In BEES customer, the products we recommend the orders we suggest, the promotions and Club BEE offers we surface and the communications they receive are all tailored for what is most relevant to that individual retailers' business. And personalization goes beyond what they buy. Retailers can select the delivery timing that works best for them and the best way to pay for their order, including with access to credit. For the sales rep, these force makes the visit just as personalized. It prioritizes the opportunities that matter most in each retailer and guides the rep towards the actions most likely to create value in each and every store. Today, BEES AI powers more than 25 billion of these personalized touch points every year. Let me show you what that looks like. [Presentation]

Every retailer is different. So every interaction is, too. Consider, for example, 3 stores in Colombia, in the same region of Colombia. Even in the same neighborhood, they can have very different shoppers purchase patterns and growth opportunities. BEES AI uses those differences to shape what each retailer sees in BEES customer and the objectives for each sales rep in BEES force. The commercial strategy is consistent, but the execution is adapted to each and every retailer. On the left, the first retailer has never purchased Michelob ULTRA before. BEES AI identified that Michelob ULTRA would be a good fit for this retailer. So we can share an activation directly in these customers and reinforce it with a sales rep task to explain the brand value proposition in support of first purchase. In the middle, by contrast, this retailer already purchases Michelob ULTRA and as a Club BEE Black member, one of our most engaged rewards program members. In this retailer, our objective is to ensure we grow the volume of Michelob ULTRA, leveraging points-based offers and supported again by sales rep execution. And in cases where our retailer does not have an affinity for Michelob ULTRA as in the retailer on the far right, our activations are focused on other strong brands in the portfolio. In this case, Aguila. As I hope is clear, our online activations are fully personalized to the opportunities for each retailer. And even within the same sales rep route the objectives and the importance of each objective is fully personalized. Our deployment of BEES AI is industry-leading in terms of both sophistication and scale. And by better serving our retailers and by enabling our consumers to have greater access to our portfolio, ABI consistently outperforms in our most digitally mature markets. Our volume grows faster, our revenue management is more effective and total net revenue outpaces. Now in addition to these results, there are 3 main reasons that give us confidence that BEES is best-in-class. The first is adoption. Technology only becomes an advantage when it is adopted at scale. And BEES has reached greater scale than all other B2B platforms combined. Second, BEES brings the route to market together in one connected AI-powered ecosystem. Each product is purpose-built for the users it serves, with BEES AI turning our data into the decisions that matter most. So BEES doesn't just connect the route to market. It makes every part of it smarter and more effective. BEES is the most advanced AI-powered product ecosystem in CPG. Third, and perhaps the strongest validation of what we have built is that other leading companies are choosing to deploy BEES in their routes to market. Today, we work with both the world's largest consumer goods companies and iconic local companies. Our partnerships represent around $5 billion in annualized GMV and are growing rapidly. These has the broadest and deepest partnerships of any B2B CPG platform. And as a result, the capabilities we built to transform our own route to market are now creating value across a much broader ecosystem. I've shown so far how these addresses retailer needs, creates value for ABI and has built best-in-class capabilities. But those capabilities are now expanding beyond our own business. Years of deploying and scaling these have validated a platform that can operate across different countries, channels and routes to market. And that enables a massive opportunity, expanding our addressable market. We define our total addressable market as all underserved B2B transactions around the world. These are transactions still held back by fragmented routes to market, disconnected systems and limited access to data, technology and AI. These are exactly the challenges that BEES addresses. Our Marketplace business is scaling rapidly, but the evolution of that growth is just as important as its scale. We established the marketplace through our 1P model using our route to market to sell partner products. Increasingly, growth is coming from the 3P model, where partners use and digitize their own routes to market. Today, 3P represents more than half of the marketplace GMV. And as you can see, it is growing rapidly. As 3P becomes a larger share of the business, our growth shifts towards a more asset-light, higher-margin model. Let me explain more detail how these models work. In 1P, ABI buys and resells partner products through our established route to market. For partners, that means immediate access to our retailer network, expanding their distribution and helping them reach more customers without having to build that route to market themselves. For us, it broadens the assortment we offer and offers retailers. It allows us to monetize our logistics capabilities where the returns are attractive. In 3P, partners implement these within their existing route to market, using our platform to digitize and improve the way they serve their customers, while continuing to operate their own supply and logistics network. That allows partners to benefit from the same digital capabilities we've proven at ABI, while allowing BEES to monetize its platform through a more capital-light, higher-margin model. And in both models, both 1P and 3P. We offer value-added services from digital advertising and sponsored placements to rewards, analytics and financial services. These services give partners more ways to influence demand, target their investment and improve execution while creating additional revenue streams for BEES. And across all of this, the principle is the same. We grow by creating value for the entire ecosystem. For retailers, that means greater access to leading brands with more convenience. Once our retailers gain access to 3P products and BEES. We see them purchase 2.5x more SKUs through these. For suppliers, it means stronger brand execution and more opportunities to grow. On average, our part the SKUs per retailer by 15% after launching these. And for communities, it means more small businesses thriving. Today, we have over 4 million retailers and 2,000 distributors leveraging the BEES ecosystem. This win-win-win value proposition is why leading companies are choosing to scale with us. Let's see an example. [Presentation]

Thank you, Jordi, and the entire Nestle team for the partnership and the trust that you placed in BEES. It's a privilege to extend the capabilities of BEES to an iconic global company like Nestle. We are proud of what we've built together, and we share the belief that there is still much more opportunity ahead. Having proven BEES at global scale with ABI and now another CPG in Nestle, we are confident that BEES can further extend to new industries and new channels. Let's see an example. [Presentation]

I would also like to thank Rodrigo and Rogerio and the L'Oreal and [ Okajima ] teams for their ambition and their partnership. Together, we are bringing these into the pharmacy channel. And as you can see, although it is a new industry and a different route to market, the underlying opportunity is the same, connecting brands, distributors and retailers through one digital platform. For L'Oreal, BEES creates direct digital influence at the retailer level, using targeted offers, communications and recommendations to shape purchase decisions. And because L'Oreal can now interact directly with its retailers with personalized offers. It can more effectively drive conversion and improve its revenue management capabilities. For distributors, like [ Okajima ], these helps them unlock growth improve operational efficiency and serve their retailers more effectively. Now what we've built together is a strong proof point, a proof point that these can travel beyond the immediate industries and channels where it began. And we believe there is much more value we can unlock. The opportunity ahead goes beyond the transaction itself, including value-added services like advertising campaigns, sponsored placements and rewards offers. These digital commercial levers give partners more direct, targeted ways to reach retailers and influence demand. And our advanced capabilities in data, insights and image recognition, help partners understand what is happening in their market and execute more effectively. And with payments and credit, we can address financial friction that can otherwise make it harder for retailers and suppliers to do business. These services create more value and incrementality for our partners while also creating new revenue streams for BEES. Let's hear what one of our partners has to say about these capabilities. [Presentation]

I'd like to thank Martin and the entire PepsiCo Brazil team for showing how BEES can help build brands with retailers digitally and engage them in more relevant and effective ways. Now as the platform evolves, the digital assets and capabilities we've built can create novel and unexpected new revenue opportunities. Club BEE is a good example. As we expanded the catalog of products retailers could redeem with their points, we saw a significant increase in the redemption of electronic goods. That business has now reached some material scale with very attractive redemption margins. The capabilities we've built to create more value for retailers are also now opening entirely new sources of profitability for BEES. And as we continue to scale the platform, we continue to find new ways to create value. The more scale relevance that BEES reaches, the more opportunities we generate. And looking ahead, we truly believe there is a massive opportunity to build further scale. Today, these transacts approximately $60 billion of gross merchandise value annually, and we know there is a much bigger opportunity ahead. If you look at just the markets where BEES has the strongest product market fit today, Latin America and Africa and consider immediately adjacent categories like beverages and snacks, the addressable market in 2030 can expand to nearly $300 billion. Now if you consider additional categories that are already available on these like food, dairy, personal care and household products, the addressable market in 2030 can more than double to approximately $600 billion. Now if you expand further to categories that we're starting to offer on BEES, like health and electronics, the addressable market grows to nearly $1 trillion in Latin America and Africa alone. Now against that opportunity, the $60 billion in annualized GMV that BEES transact today represents only a fraction of the market, we are capable of transforming. And BEES is strategically positioned to win because it combines 2 advantages. First, an end-to-end technology ecosystem that no other supplier has built. And second, the retailer reach distributor relationships and decades of route-to-market experience that others cannot easily replicate. That combination gives BEES the ability to win. BEES is high growth, profitable and cash accretive today. So as we expand into new markets, scale with more partners and develop new revenue streams, we are building from an already profitable foundation, which is becoming increasingly meaningful to ABI. These marketplace is already ABI's #7 contributor to EBITDA growth globally and growing at high pace. And importantly, the composition of that growth continues to improve. As the capital line 3P model and value-added services become a larger and larger part of BEES, the highest margin components of the business grow fastest. I'd like to leave you now with 4 things that I hope you take away from today. First, BEES gives us a best-in-class capability to translate our commercial strategy into execution with greater speed, precision and scale. Second, what we've built creates an opportunity far beyond our own business. BEES expands our addressable market to new geographies, channels and industries. Third, that opportunity is already translating into growth. Our marketplace is scaling rapidly with a proven 3P model that allows us to grow in an increasingly capital-light higher-margin way. And fourth, BEES is profitable, cash accretive. And BEES' marketplace is already the seventh largest contributor to ABI's EBITDA growth. We started BEES by solving real problems for our retailers and transforming our own route to market. In doing so, we built something much bigger, a best-in-class capability that strengthens ABI today and gives us a platform to capture an enormous opportunity ahead. That is why we believe BEES can play a role in digitizing the world's B2B transactions, creating more value for retailers, suppliers and communities as we do it. Thank you for your time today. And I encourage you to stop by the BEES immersion space and experience for yourself many of the capabilities I've shared with you today. Cheers.

Please welcome to the stage, David Almeida.

Good morning. My name is David Almeida, and it's good to be in St. Louis, a city where I had the pleasure to live for 7 years, and that is a hometown of one of my children. But more importantly, a city that is in part of who we are as a company for over 160 years. I joined this company 28 years ago, and I've had the privilege of working in multiple zones and functions. And today, I lead the strategy and technology functions. Over the next 20 minutes, I plan to show you how AB InBev has developed best-in-class tech, data and AI capabilities, and how we're already leveraging those capabilities at scale to create value and how we'll do even more going forward. You've just seen BEES and D2C from Nick and Lucas. They are the visible face of our digital strategy, best-in-class platforms that our customers and consumers touch every day. These platforms directly support our strategy to lead and grow the category and are big levers for digitizing and monetizing our ecosystem. But AB InBev digital capabilities extend well beyond them. Behind the digital storefronts sits a global enterprise backbone, a set of global systems that run commercial, finance, supply chain and people the same way in every market. That helps us optimize our business at scale. Finally, we've developed advanced analytics capabilities that deliver enhanced decision-making to both our front-end applications and our enterprise systems in near real time. This advanced analytics capability is the focus of my presentation. But before we dive into real examples of how AI delivers material value to ADI today, it's important to understand the context in which this capability was developed. We've been investing significantly in our technology capabilities with intentionality since 2019. Before 2019, technology in this company looked like much of the industry, fragmented systems, manual processes, limited visibility across our zones and the cyber risk that comes with all of that. Fragmentation meant duplicated costs and very little that could scale globally. From 2019 to 2023, we transformed our technology capabilities. We modernized our infrastructure. We moved our workloads to the cloud, and we launched our global enterprise platforms, S/4HANA, Workday, o9 and others. We launched and scaled these. We made major investments in our data and analytics capabilities, including our growth analytics center in Bangalore and building our enterprise data platform, Brewdat. This was a period of concentrated investment. Since 2023, we've been scaling what we built, focused on few global platforms that can be best-in-class and leverage globally. This is the phase of reuse and value realization. Earlier this year, we asked Bain and Microsoft to independently benchmark us against CPG peers. They scored us 1.2x the peer set on technology maturity and even higher on efficiency because of our scale and our strategy of standardization on global platforms. And that is the economic point. Because the foundations exist, each additional market should need less incremental investment than the original build. Our strategy is build once, deploy repeatedly, improve globally. Within technology, analytics is where we are furthest ahead on the benchmark, 1.3x the CPG peer set. And the reason is simple. We built the foundations before we build the products. people, data and global platforms. First, people. We built our own teams, data engineers, data scientists, machine learning engineers, and they work as one development flywheel. Data foundations feed data science. Engineering turns models into products and everything is embedded where decisions are made. In a world where intelligence is a competitive advantage, our data, our models and our intelligence stays ours. This is a strategic choice, and it will matter more every year. Second, data. We built Brewdat, one trusted governed data platform designed for analytics and AI. In 2021, 29% of our data assets sat in one place. Today, 95% live and brew that, one version of the truth for every zone and every function. AI is only as good as the data underneath it. When that data is connected, insight reaches a decision faster. Third, global platforms. In 2021, 48% of our technology spend went to global platforms. Today, that number is 92%. Standardized, high-performance platforms are the surface area that brings intelligence to the user directly at the point of decision. 10 years of consistent investment has built the global portfolio of analytics products woven into how we run this company. How we make beer, supply, logistics, procurement, how we grow it, how we sell it, including our most prominent use case, [indiscernible] AI and personalization, which Nick has just covered. And then there's Gen AI, the newest and potentially most promising iteration of AI. It's early days in the application of this new technology. But just as we did with AI, we're building the foundations for what may come while staying laser-focused on creating value. From the brewery to the shelf, there is intelligence in the decisions we make. Now there's a lot of talk about AI. So instead of talking, I'd rather show you real use cases and demos of where AI is integrated at the point of decision, sometimes invisibly and already generating substantial value for AI. So let me show you 3 of them, 3 real problems, 3 advanced AI products and the results they created for our business, starting with logistics.ai. First, the logistics machine that moves our beer. We run one of the largest networks in consumer goods. So better intelligence here means more coordinated, more efficient decisions in every market. The opportunity sits in 3 places: transport, where swings in volume and freight prices drive cost. warehouse, where SKU complexity needs room to build more efficiently and the last mile where route, fleet and distribution planning can work better together. Logistics.ai captures that opportunity by embedding intelligence into the logistics platform you already run and it's delivering $50 million of value and a 6% improvement in case of Let me show you a quick video. [Presentation]

Those are real trust, real savings power. Managing our commercial resource allocation is one of the biggest value opportunities in our business. 30-plus countries, 15-plus brands in each of them, 100-plus variables, 52 weeks. That's more than 15 million decisions a year steering our sales and marketing spend. And every one of them faces the same 3 questions. What drove last month's results? Where should the next million go? And what will it take for us to hit our target? No planner, no team, however, experienced, can answer all those questions. Watch Tower does. Every brand, every market, every time the same way. It attributes what drove the result, commercial investments, price, execution or external factors. That optimizes where the next dollar earns the most within real budget and portfolio constraints. In its first 6 markets, it influenced roughly $600 million of decisions and created approximately $35 million of value. It's now rolling out to 30-plus markets. Our ambition is simple, and I think unprecedented in our industry. Every commercial grounded in science. Let me show you what that looks like on the I love that example. It's a real product used by more than 150 of our colleagues who make commercial investment decisions across our company. Third and finally, the place where every consumer decision ends, the beer shelf. A well-organized beer shelf is worth 6% to 8% of category growth. Most shelves aren't well organized. 80% of volume comes from 21% of SKUs, yet the biggest brands are usually underrepresented on the shelf. 1 in 3 shoppers walk out empty handed. That has lost revenue for us and for our retail partners. CatExpert.ai models each store across 200-plus variables. So suburban supermarket and an urban convenience store each get the right answer. It then resolves more than 15 million SKU shelf combinations into a single executable brand. Where it's live, it can deliver 2% net revenue uplift and 40 basis points of share. And because it grows the whole category, retailers ask for it. It makes us a better partner, not just a bigger supplier. We currently cover more than $2.5 billion of net revenue and estimate that we will cover $7 billion by 2030. Let's look at a quick video here. [Presentation]

What matters is where the value comes from. Growing the whole category, for the retailer, shopper and us. That's why it scales. So let me bring together what you've just seen, around $30 billion. That's the scale of business decisions our analytic products inform every single year. Decisions made with intelligence, not just instinct. These products are embedded in our daily workflows used by thousands of people who may never think of themselves as using analytics at all. And it doesn't stop with decisions. Our portfolio of global products is creating meaningful value. That's what our data and analytics capability makes possible. That's how our company runs today. And we're early in this journey. The path ahead is clear and it's disciplined. We scale what's proven. You've seen the pattern. 6 markets become 30 and the same playbook runs across our whole portfolio. The products exist and now we multiply the footprint of these products across markets. And we accelerate GenAI significant selectively. Gen AI does not reset the technology. It increases the value of the foundations we've already built, the data and the platforms. In Gen AI, we've chosen 4 areas to focus our investment and energy. One, decision copilots embedded in our products, so insights arrive faster; two, agentic automation of the repetitive service and transactional work. That's the lowest hanging fruit; three, AI agents that make our own engineers faster at building and testing; and four, end-to-end process reinvention, where our digital twins are already reshaping cross-functional work in Mexico, Canada and China. Let me take you deeper into one area Marcel touched on earlier, how we're using Gen AI to better understand our consumers and drive growth. [Presentation]

It's not a demo. It's a real use case of how we're transforming our business using Gen AI. So let me conclude. Here's what I'd like you to remember. Five things. One, we lead CPG peers in technology capabilities, and we did it more efficiently. Two, we turn data and analytics into operating products embedded in how we run the business. Three, these products inform around $30 billion of business decisions every year and deliver meaningful value for our business. Four, the job is not done. We have a clear path forward, taking proven products to more markets. And five, Gen AI expands the opportunity from decisions to impact. 28 years ago, I joined a company that ran on experience and instinct. Today, it runs on experience, instinct and intelligence. The next decade belongs to the companies that combine all 3. Thank you. Here's the future with more cheers.

Please welcome, Shaun Fullalove.

Okay. Thanks to Lucas, Nick and David for those presentations. First session this morning, we covered the Leading grow part of the strategy. These 3 sessions here, we covered most, I think, of the digitized and monetized section. So we're going to head to a lunch break shortly. We're going to make it slightly extended today to give you a chance to interact with some of the Bs and the D2C booth that we have outside of the terrace. One reminder for those that do want to spin, apparently, we have 3, 4 bikes left. I'm personally willing to sacrifice mine if there's a fifth that wants to do it. So if you would like to, please register at the desk outside you on the right. One of Fernando's only feedbacks to me for the Capital Markets Day was to make sure that the food is excellent. So make -- I hope the food lives up to everyone's standards outside. Enjoy the lunch, take some time to browse through the booth, interact with some of the products and technology, and we'll see you back here at 1:00 p.m. [Break]

Please welcome to the stage, Brendan Whitworth.

All right. This is the coveted post-lunch presentation, which will be me and my presentation versus you and your digestion. But my name is Brendan Whitworth, and I'm the CEO of Anheuser-Busch and the North America zone. I've been in this position since 2021, and I joined AB InBev in 2013. I started in our global office before joining the U.S. business as a Region Vice President in 2015. I also ran our trade marketing organization and was our Chief Sales Officer prior to my current role. It is an absolute pleasure to host you in St. Louis and share a little bit about the U.S. business. Anheuser-Busch has been around for over 165 years, and it all started right here. And this year marks the 150th anniversary of Budweiser, our flagship beer brand that led to the growth of our broad and diverse portfolio. So while St. Louis houses the history of this great American institution, and it remains vital, a vital location in our company's network today, our business now looks different than it did centuries ago. It even looks different than it did a decade ago. While we have been historically known as the world's largest and very humbly best brewer of laggers and ales, we are now one of the top and the fastest-growing spirits company and an emerging player in energy drinks. And this obviously isn't by mistake. It is the outcome of a deliberate strategy, purposeful investment and sustained execution over recent years. It's also the outcome of deeply understanding the consumer and using our capabilities to generate new adjacent businesses that expand our addressable market. And we know that growth is not uniform across the industry. And while there are certain pockets that are in decline, there are also pockets of growth. And for years, we've viewed the industry and the consumer through the lens of total alcohol and built our portfolio of solutions around it. So even as cyclical macro factors pressure our industry and CPG more broadly, this approach has better positioned us to win and continue making progress in rebalancing our portfolio. So while the St. Louis brewery first made Budweiser 150 years ago, we've invested in its capability and its capacity to make spirits-based brands like Neutral and Cutwater at scale today. And we've done the same in other strategically placed breweries in Los Angeles, outside Atlanta and Upstate New York. Now before I go any further into greater details of where we've been focused for the past few years, I'd like to take a step back and consider the strengths and attractiveness of the U.S. market. The U.S. is a developed market with the world's largest profit pool for global CPGs and stable cash flow generation in hard currency. The U.S. also typically exports trends and brands to other parts of the world. This is true for our industry and many other industries. If we are successful building brands in the U.S., there is a good chance that they can be successful elsewhere in the business. And I think that Michel ULTRA is a pretty good example of that. The U.S. is also an ecosystem of strong and well-resourced partners like our wholesalers and our retailers that help bring our products to consumers every single day. As I mentioned, our addressable market today is total alcohol. That means that we compete in an almost $190 billion industry with 6% growth over the last 5 years. And while we're just getting started in energy, and we have much more to prove, it could bring an additional $25 billion to our addressable market. But now if we just focus on beer and beyond beer, we segment the beer category across core beer, premium beer and no alk beer. And Beyond Beer encompasses all ready-to-drink products, whether they're made on a malt base or a spirits base. And we map our portfolio to these segments, Bush Light and our legacy brands, Budweiser and Bud Light compete in core. Michelob ULTRA leads the premiumization trends for us and for the industry. And similarly, Michelob ULTRA Zero now leads growth in No Elk Beer. Cutwater leads growth in Beyond Beer. And we are also very excited about Nutrl's growth and our most recent acquisition, Beat Box. And if you choose to view us only as a beyond beer company, we are the third largest and by far, the fastest growing. Now for the remainder of my time, I'd like to focus on 2 aspects of our global strategy, lead and grow the category and optimize the business. So let's start with lead and grow the category and dive a bit deeper into the consumer and our portfolio. We began our journey to rebalance the portfolio in 2018. Along the way, we've shifted resources and our execution more disproportionately to our growth brands or what we now call mega brands. We acquired new brands through thoughtful and growth accretive M&A, and we've launched focused innovation. And we build our portfolio for all U.S. consumers, but we prioritize 2 key groups while growing the occasions in which we reach them. So let's start with our true beer lovers, which are 35-plus year-old men. They're at the heart of the beer category and drink more than 50% of all beer. Over the past few years, they are steady in their consumption and growing servings per year. And this group includes Hispanics and it cuts across socioeconomic standings from high income to low income. The second group is LVAs, 21- to 24-year-olds. And first things first, we have to dispel an industry myth. This group is just as likely to drink alcohol as everyone else with over 50% claiming to have had a drink in the past week. This group is very much co-head and over-indexes their consumption towards beyond beer. And across all groups, U.S. consumers have expanded their repertoire with over 70% regularly drinking at least 2 categories. That is compared to just under 60% 10 years ago. And this is why we have tailored our multiyear portfolio strategy to compete across several alcohol segments. Now participation in beer remains higher than any other category. And Beyond Beer is the category that has significantly and consistently grown over recent years, reaching 52%. However, we also know consumers have faced increasing pressure in recent years. The rising cost of essentials weighing on discretionary spending and the consumer sentiment at historically low levels. We're seeing these types of cyclical macro factors affect our industry, and as I mentioned, broader CPG landscape. But our addressable market has remained relatively resilient with beer and beyond beer share of total alcohol remaining stable. So we've been focused on driving our commercial performance across these categories. And if we choose to just look at beer, we've been growing share since the fourth quarter of 2024, led by Michelob ULTRA, which has been growing share for 10 quarters in a row. While ULTRA has been leading the growth for our portfolio and the industry as the fastest-growing beer brand, Busch Light has been the second fastest-growing beer brand. Busch Light has also been the platform for the most successful innovation of the last couple of years in Busch Light Apple. And while ULTRA and Busch Light are different brands, they are similar in their respective positions being relentlessly consistent over decades, reliably meeting consumers where they are and remaining relevant in their lives. Now if we look over at Beyond Beer, we've been leading the way in both volume and share growth. Cutwater has reliably grown double and triple digits for years and route to its position today as the #1 largest ready-to-drink cocktail, almost 5x the size of the next largest brand. And ready-to-drink cocktails as a segment has grown significantly over the past few years to its current size of about $3 billion. And it's important to note that this RTD category sources more than 2/3 of its growth from wine and spirits, with over 40% from spirits alone. So it's highly incremental to our portfolio. But what's even more exciting is that we size the cocktails segment within spirits more broadly as a $25 billion opportunity. And Cutwater is less than a 5% share, while already leading as the fastest-growing spirits brand. So we believe Cutwater has a very long runway ahead of it. And while Cutwater has been leading ready-to-drink cocktails, we've been playing catch-up with neutral vodka seltzer and are happy with our progress so far. Neutral has grown to be a top 4 seltzer regardless of being made on a vodka or a malt base, and it's the only one across the top 5 growing double digits. So if you put our entire alcohol business together, including both beer and beyond beer, we have been growing share of total alcohol for 9 consecutive quarters. And in 2026, we are leading the industry's growth with the top 2 fastest growing in total alcohol brands with Michelob ULTRA and Cutwater, which the largest in their respective growth in beer and their respective growth in spirits. So all of this work has culminated in our above Core Beer and our Beyond Beer brands now representing about 48% of our total net revenue, which is a clear sign of the progress that we're making in rebalancing our portfolio. And this early momentum is not by accident. As I mentioned, it's a result of a deliberate strategy executed over time, combined with purposeful investment. The global company's commitment to invest in the U.S., combined with our local productivity initiatives have allowed us to make increasing investments in our marketing budget to support growth. And our Chief Commercial Officer, Kyle, will take us through how we are effectively spending that money next. And it's too early to mention any highlights about Form Energy, but this is an exciting brand with an exciting platform that includes other categories like protein. We have great partners in First Form, which is one of the leading sports nutrition companies in the U.S. and in Dana White, the UFC CEO and Entertainment Mobile, and we are excited about where this brand and this business is headed. Now it's worth mentioning that our portfolio rebalance has been led by the mentality of doing less and expecting to get more. We repeat the mantra of simplicity, focus and consistency. And to clear bandwidth to accomplish what's most important, we made a deliberate effort to reduce SKUs and delist brands. In Beyond Beer and craft alone, we delisted over 60% and 75% of our SKUs, respectively. And we completely delisted over 30 brands. And overall, we're happy with our portfolio progress to this point, but acknowledge there's much more work to do. So now let's move over to optimize the business. Our goal here has been to drive efficiency where it matters, so we can allocate resources to where it counts. We've made necessary decisions across the business like closing 3 of our large Anheuser-Busch breweries and reallocating volume to our lower cost, more efficient facilities. We closed smaller production locations and verticalized operations. And we sold 11 craft breweries and closed 17 craft pubs. And while these decisions impact people and local communities, they deliver productivity that we have been able to reinvest in our portfolio. Along with our supply chain, we've also rightsized our overhead and found that our organization is more effective and efficient overall and their belief in our work has never been higher. Our recent employee engagement survey came back with the highest scores in our company's history. And while we've driven productivity, we've also made investments to support our portfolio and its growth. We've invested $2 billion in our supply chain over the last few years to increase capacity in the right locations and establish new capabilities like producing No Elk Beer and spirits. And as I mentioned, we now produce cut water in 4 locations across the U.S. and have ample capacity to fuel future growth. Now I'd like to finish up today by talking a little bit more about the industry ecosystem that I mentioned earlier, namely our wholesalers and our retailers. As you know, the U.S. is a 3-tier system with brewers, wholesalers and retailers. And while there are strategic locations where we are legally allowed and we do own the distribution, 95% of our business goes through our independent wholesalers. And almost 100% of our business is sold through chain and independent retailers. And it's critical that we work closely and constructively with these partners because we all mutually benefit from this amazing industry. And while investments in brands and analytical capabilities matter a lot, so do investments in establishing meaningful relationships. Our Anheuser-Busch wholesalers are oftentimes multigenerational businesses that deeply understand their markets and have strong relationships in those markets. But in addition to planning, executing and co-investing in brand plans, we also work with our wholesalers on technology and analytics solutions. We have the scale to invest in these solutions to help them direct their execution, truly know what's happening in the market and fully understanding its impact. And included in those suite of tools is which continues to increase its adoption in the U.S. And while our wholesalers are oftentimes multigenerational with Anheuser-Busch, we've also welcomed new family businesses into our network over the years. Of recent note has been Southern Glazers, Wine and Spirits or should we say Southern Glazers Wine, Spirits and Beer. And for those that don't know, Southern is a $25 billion net revenue company that has a long history as the largest nationwide distributor of wine and spirits in the U.S. And most recently, our wholesalers have given us the highest marks ever in their voice of the wholesaler, an annual internal survey that's been in place for over 40 years. This gives us confidence that one of our most important partners believes in our strategy, our brand plans and the direction that we are headed. Now the relationship with our retailers today goes far beyond planning ads, displays and promotions. Those are routines. We made the decision years ago to become strategic. That meant a significant and recurring investment in the category. We added capabilities, people, insights, research, and we built a retailer collaboration center that we call the Vault. This is the physical space, which you'll see later today, where we bring everything together and co-plan the category with our retailers. We have become true strategic advisers to our retailers, and they have rewarded us by naming Anheuser-Busch as category captain for over 70% of the industry's volume. So in summary, we've done a lot of work over recent years to rebalance the portfolio and rightsize the business. We invested in capabilities to expand our addressable market, and we have become a top growing spirits company. We've driven productivity to invest in the most important parts of our portfolio, and we have taken our most important industry partners along with us. We are encouraged by the early momentum. But as said, the job is not finished. We have a lot of work ahead of us, but we are extremely excited for it. And we are confident that our business is better positioned for future growth now than it has been in a very long time. So with that, I'd like to welcome Kyle, our Chief Commercial Officer, to the stage to walk you all through our commercial strategy. Thank you.

Good afternoon, everybody. I'm Kyle Norrington. I've been with our company leading brands and commercial teams for 26 I started my career at of Canada in sales and marketing. Then I had the opportunity to lead our global brands from New York City. I returned back to Canada as the Business Unit President for a few years. And for the past 5, I've had the privilege of serving as Chief Commercial Officer, leading all marketing and commercial strategy here in the U.S. And I'm very excited to share the progress that we are making and the plans we have to lead and grow the category, leveraging the One ABI way Marcel talked through this morning. Now as Brendan laid out, and you will see throughout my presentation, consumers are at the heart of everything we do. We have a simplified complementary portfolio designed for growing segments. And we activate in the passion points that help us reach and engage our LDA drinkers. We are focused on our beer levers. We are future-proofing with LDAs, and we are obsessed about the occasions where we connect with all of them. Our focus has helped us grow market share across the board, and we have the fastest-growing brand in each of the respective segments. So let's dive deeper into the levers and start with our premium portfolio that has been consistently growing volume, share and brand power since 2024, led, of course, by the #1 in volume and the fastest-growing beer in America. Ultra started its run nearly 25 years ago, defining the Balanced Choice segment with its low carbs, calories and a superior smooth taste. Across the past 2.5 decades, Ultra has shown up consistently delivering on its purpose to champion a social and active world. Let's take a look at our journey to #1. [Presentation]

So as you can see, our mega platforms help reinforce our purpose from the original active lifestyle all the way to a decades-long [ PGA ] partnership that has helped us be the beer for millions of 19 full celebrations. Ultra, like most of our mega brands is well positioned to help reach our key consumer groups and convert occasions through our mega platforms. Perhaps none more mega than this past summer, as the biggest brand had the biggest sporting event in history in our own backyard. So we built a commercially integrated plan like never before, coordinated from TV screens to in-store to the life-changing experiences themselves to ensure we squeezed every last drop out of the opportunity. Let's see it. [Presentation]

We like to say that Spain, one on the field, but Ultra definitely one with the fans. Being commercially integrated is critical to cutting through the clutter and winning the attention war, but it's even harder with LDAs, where we have a big opportunity on category relevance and an important job to drive participation with beer lovers. So our brands and platforms have got to be part of culture. That's why we have Ultra sitting literally courtside for every nationally televised game in America. The NBA is now the second most watched sport in the U.S. and the largest following of any league on social media. It helps us drive next level engagement with this critical LDA consumer and engage we do, creating relevance and an unskippable presence for our brand by being integrated and celebrated throughout from the court to the dressing room, to the parade right down Broadway. Let's check it out. [Presentation]

[indiscernible] fans out there, come on, right? Finally, our international sports platforms help us get after streaming and sports viewing occasions. The World Cup was an amazing opportunity for Ultra. But another summer event on American soil is set to take the country by storm. In 2028, the Summer Olympics are back in America, 32 years in the making. And if the World Cup taught us anything, we need to plan to win. So that's exactly what we've been doing. After many years of faraway locations with challenging time zones, Paris '24 and Milan '26 put the Olympics back on the map. And Ultra maybe's historic sporting moments count, just likely we will for L.A. Let's take a look. [Presentation]

The Olympic rings are the most recognized logo in sport. And the Team USA marks help us flex our patriotic muscles. So we'll waste no time leveraging them to drive occasions. It's been over 30 years since America hosted the Summer Olympics. So we've created a 12-month plan that kicks off next summer as Ultra leads the country down the road to LA '28 and wins gold before the torch is even lit. But as Brennan said, the job is not finished, and we have lots of headroom to keep growing this brand. Today, Ultra is growing in all 50 states. But when you look closer, you see immense opportunity. In many states, Ultra is over a [ 12% ] share of the category. But there are almost as many states, mostly in the Northern U.S., where Ultra is still under a 6 share. Getting these lower states to our national average represents over $0.5 billion revenue opportunity. With the trends at its back, unrivaled platforms, growing investment and the focus of the entire system, we are confident in our ability to keep growing this brand. Next, let's talk about Balanced Choices, where we are the #1 and the fastest growing with over 40 share of no [ Elk ] beer. As you've heard, it's a booming category around the world, and the U.S. is no different with beer lovers and LDAs looking to extend or introduce it to new occasions like meals, but people often ask me, how big can [ NOAC ] actually get? You hear stories of European countries where it's a 10 share of the category, but it feels so distant from the U.S. reality, where it is growing fast, but still only 1.2% of beer. Well, you don't have to look any further than our neighbors to the north for perspective, where the category is already 4% of beer and continues to grow. Just the Canadian sizing represents over $1 billion opportunity. So that's why we've invested in a portfolio across price points, flavors and styles. But we saw an opportunity to help lead and grow this segment. So we asked ourselves, what brand could credibly launch a category-defining active lifestyle, no [ ELK ] beer innovation. Well, the answer was obvious. So after 2 years of development, testing, refining, we launched Ultra Zero. With only 29 calories and the same ultrasmooth taste, it became the #1 innovation of 2025 and in under a year, the #1 no [ ELK ] beer in America. Let's take a look. [Presentation]