Consumer preferences have changed over time, and today, more than half of consumers drink across all three total beverage alcohol (TBA) categories—beer, wine and spirits. And a person who drinks across categories spends significantly more than someone who drinks in only one category. As the TBA growth leader, we are poised to win with consumers in the TBA category—and so are our distributors and retailers.
As the #1 growth contributor in beverage alcohol in the U.S., we have a unique vantage point from which we’ve seen the landscape’s steady evolution toward the higher-end. It’s why we’ve moved with calculated boldness in continuing to focus our portfolio on consumer-led premiumization.
To maintain our industry-leading results and drive shareholder value, we are relentlessly focused on growing top-line revenue, while we simultaneously drive efficiencies and focus across our business. The strategic decision to divest approximately 30 of our lower-end wine and spirits brands will reshape our portfolio to align with consumer-led premiumization trends and strengthen our financial profile. With a tighter focus on higher-end and higher-margin brands, we’ll be well positioned to deliver against expectations. We believe we have a powerful collection of consumer-centric premium brands and see strong future growth potential from our Canopy Growth investment.
FIT FOR GROWTH & DIGITAL ENABLEMENT
We have strong brands and strategies to win in the marketplace, but they alone are not enough to stay ahead. We continue to build efficiencies and transform how we run our business to better support our goals.
Last year, we launched Fit For Growth, our business decision-making philosophy that enables us to better prioritize resources in support of our most critical growth opportunities—and we continue to reap the benefits of this disciplined approach. We are evaluating how we get work done, and where and how we invest our money to better align with our commercial strategic plans.
Our company-wide digital enablement initiatives are designed to ensure that we can simplify, innovate and grow. We are looking critically at our existing finance and supply chain processes and gathering real-time data from our system. Ultimately, this will enable us to focus our most valuable resources—our people—on creating better consumer insights, making the right decisions at the right time, and implementing strategies to reach our growth goals.