A：The stronger-than-expected beer operating margins in the quarter were attributed to volume declines being a headwind, which was offset by favorable pricing actions taken in both the spring and fall, and a depreciation timing benefit.

A：The beer operating margins in the fourth quarter are expected to be weighed down by fixed overhead absorption due to lower overall volume, a depreciation headwind as additional assets come online, tariffs related to aluminum pricing and product mix shift, and the timing of when tariffs are accrued and released into inventory.

A：Given the macroeconomic pressures since the last guidance, the company's expectations for FY 27 and beyond will be detailed in the April earnings call, factoring in how the rest of the year unfolds from a consumer and macroeconomic perspective.

A：December came in roughly where expected, being fairly consistent with expectations. It was noted that around the Christmas holiday there was a very strong result against the business, reflecting the strength of the company's overall brands and brand health.

A：The company is planning to manage the CapEx related to the additional Hectoliter capacity by adjusting the modular capacity build-out over the next couple of years against growth projections to achieve optimal utilization levels, taking into account the lower fiscal 2026 volume base compared to the original projections from April.

A：The company's strategy for managing the modularity of the breweries involves bringing assets online as part of planned capacity expansion. This approach entails making commitments to capacity build-out with long lead items, monitoring volume expectations, and postponing or deferring equipment delivery where feasible. The plan for the current year reflects these commitments.

A：The Pacifico brand has achieved significant success, becoming the number two brand in California and resonating well with consumers, especially in the younger demographic. It is number one in social media in terms of share of voice and has gained market share in on-premise venues. The company expects Pacifico to become a strong number three brand in the portfolio and will continue to invest in its growth across the country, similar to the Medelci brand's strategy several years ago.

A：The company views distribution as a strong opportunity going forward, as its portfolio has gained share in the script states and it continues to earn additional distribution capabilities. The acquisition of Pacifico and Victoria has significantly increased distribution. Despite being the number one beer by dollars in the U.S., there is still potential for distribution growth. The category as a whole is challenged, with the Hispanic consumer being particularly sensitive to the socio-economic environment and more cautious with spending. The company's focus remains on distribution, price pack architecture, and other strategic initiatives for future success.

A：The company expects several headwinds in the fourth quarter, including the impact of depreciation which was a benefit in the third quarter but will be a headwind in the fourth. Additionally, higher aluminum pricing due to tariffs has affected the company, with the full impact expected in Q4 due to the timing of when tariffs are recognized in the financials. There is also a minor headwind attributed to certain expenses that were expected in Q3 but pushed into Q4. These factors are expected to result in lower margins compared to the prior year's fourth quarter, which had stronger margin performance despite lower volumes.

A：The company's share gain in the Pacific region was attributed to picking up significant share in on-premise sales.

A：Potential tailwinds that could impact the beer business recovery include easier compares, the benefit of the World Cup, and other similar events. However, the actual impact is difficult to predict due to the volatility of consumer sentiment and macroeconomic issues.

A：The trend in Hispanic consumer behavior suggests that despite the pressure they started to feel in February of the previous year, it is hoped that as the initial shock of immigration policy restrictions is lapped, the decline could potentially become less severe.

A：The company tracks the impact of demographic changes on their business by monitoring performance in zip codes with greater than 20% Hispanic representation and observing trends in states with significant immigration policy volatility.

A：The company's outlook on the beer pricing environment is to maintain a projected range of 1 to 2% growth. They have adjusted their premium pricing to align with the average consumer expectation for white beers, which has shown improved trends in pricing for Modelo Oro and Corona Premier. They have also added 7oz options in various states to meet consumers' needs due to concerns about price points and socioeconomic factors.

A：The company expects shipments and depletions to be equal over the course of the two and a half to four quarters, with any minor variation in the current quarter likely to be reversed in the next. This suggests that financial reporting may fluctuate depending on these variations, but the company aims to maintain alignment between these two measures of sales.

A：The potential impact of cannabis rescheduling on the company's business is minimal since they don't engage in the day-to-day cannabis business. However, they do have shares in Canopy available, which could be interesting as the market develops. The company hasn't seen a significant issue related to their beer business from hemp, with most interaction being in ready-to-drink and ready-to-serve scenarios.

A：The company plans to leverage the World Cup as a major sporting event that is expected to be a significant beer moment, particularly since it overindexes in the Hispanic community. They expect benefits from consumer engagement with the event and various games, focusing on having the right promotions, shelf, and floor presence, as well as in-game media, to maximize the opportunity.