TAP · Earnings call · 2026Q2T · Full report

Gross Margin Cost Inflation

MOLSON COORS BEVERAGE CO · 2026-08-06 · Importance 49 · Surprise 50 · From source text

Midwest Premium added approximately $40 million to Q2 cost of goods sold, while fuel prices and tighter freight markets created additional cost inflation. Management now expects full-year Midwest Premium inflation to exceed $130 million versus an initial assumption of at least $125 million, with base aluminum and commodity costs also elevated versus 2025. Hedges, the $450 million three-year cost savings program, productivity initiatives and disciplined spending are expected to partially offset the headwinds through the second half of 2026, although fuel and logistics costs remain volatile.

Key facts

• The company's initial guidance had assumed the Midwest Premium impact would be at least $125 million, but the latest estimate is now above $130 million.
• The company expects Midwest Premium inflation for the full year to be in excess of $130 million.
• Midwest Premium added approximately $40 million of year-on-year cost increase to second quarter cost of goods sold.
• The company says it has hedges on Midwest Premium that will help mitigate some increases, though the market is not very liquid or transparent.

Impact estimates