Constellation Brands, Inc.

Greetings. Welcome to the Constellation Brands Fiscal Year 27 First Quarter Earnings Call. At this time, all participants are in listen-only mode. Question and answer session will follow the formal presentation. If anyone today should require operator assistance during the conference, please press star zero on your telephone keypad. Please note that this conference is being recorded. At this time, I turn the conference over to Blair Venema, Vice President, Investor Relations. Thank you. You may now begin, Blair.

Thank you, Rob. Good morning, all, and welcome to Consolation Brands Q1 Fiscal 27 Conference Call. I'm joined this morning by Nick Fink, our CEO, and Garth Hankinson, our CFO. Before we proceed, we trust you had the opportunity to review the news release and CEO CFO commentary made available in the investor section of our company's website, www.cbrands.com. On that note, as a reminder, reconciliations between the most directly comparable GAAP measure and any non-GAAP financial measures discussed on this call are included in the news release and website. We also encourage you to refer to the news release and Constellation's SEC filings for risk factors that may impact forward-looking statements made on this call. Before turning it over to Nick to kick things off, please keep in mind that, as usual, answers provided today will be referencing comparable results unless otherwise specified. Lastly, in line with prior quarters, I would ask that you limit yourselves to one question per person, which will help us stand our call on time. Thanks in advance, and now over to you, Nick.

Thanks, Blair. Good morning, everyone, and thank you for joining us. Before we get into the Q&A, I'd like to share a few observations from my first two and a half months as CEO of Constellation Brands. Having spent significant time in the market over the last several months, I am increasingly confident in the enduring strength of our brands and the role they continue to play in consumers' lives, even in periods when discretionary spending is more challenged. Over time, we have repeatedly shown an ability to create demand and scale brands through a combination of consumer insights, commercial execution, and disciplined investment. That capability is reflected in the strength of our portfolio today. Whether it's Modelo, Corona, Pacifico, Kim Crawford, or Mecompo, these are brands with strong identities, deep consumer connections, and enduring relevance. I also believe some of our greatest opportunities remain directly in front of us. As brands become larger and more established, it is important to find new ways to remain relevant in consumers' lives. That requires a deeper understanding of behavior, motivation, and the moments that matter most to consumers. That's an area where I believe we have significant strengths and meaningful opportunity, leveraging strong commercial capabilities, rich consumer insights and increasingly powerful data and technology tools that can help us move faster and make effective decisions. My focus is on ensuring that we continue to build on those advantages. And lastly, I believe the most successful companies are willing to challenge their own assumptions about where future incremental growth will come from while still executing with excellence in the core. We have a strong portfolio and attractive positions today, but we also need to maintain a forward-looking perspective about where consumer demand is heading and how we can leverage our capabilities to continue to create value through discipline, investment, and execution. Across all three areas, one common theme is the importance of developing world-class insights. The better we understand consumers and emerging trends, the better positioned we'll be to allocate resources, execute effectively, and create sustainable growth. So while the quarter reflected a continuation of the dynamic consumer backdrop that we've been operating in of as late, my confidence in the long-term opportunity for this business remains strong. We have exceptional brands, outstanding people, and a set of capabilities that position us well for the future. Now back over to you, operator, for any questions.