MOLSON COORS BEVERAGE CO (TAP) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that MOLSON COORS BEVERAGE CO surfaced in its latest filing.

• Announced the Americas Restructuring Plan on October 20, 2025, involving elimination of salaried positions across the Americas segment in Q4 2025.October 20, 2025
• February 2021 EU Europe Beating Cancer Plan proposing mandatory health warnings on alcohol beverage product labels.February 2021
• January 2025 U.S. Surgeon General advisory recommending an update to the warning label to include a cancer risk warning.January 2025
• Proposed bills in Canada requiring alcohol manufacturers to include health warning labels addressing cancer, defining a standard drink, and recommending consumption limits.
• Ireland enacted legislation requiring new health warning labels on alcohol beverage products.
• In 2025, the Midwest Premium increased, resulting in an approximate $35 million unfavorable impact on results for the year ended December 31, 2025.2025
• California and the European Commission have published proposed or final rules, including the Corporate Sustainability Reporting Directive, requiring significantly increased disclosures.
• Experienced delays and disruptions in business from the March 2021 cybersecurity incident.March 2021
• The Russia-Ukraine conflict has heightened the risk of cyberattacks.
• Violation of data privacy laws including the EU's General Data Protection Regulation, California Privacy Rights Act, the Virginia Consumer Data Protection Act, the Colorado Privacy Act and other similar comprehensive data privacy laws.
• Emerging regulations such as the EU's Network and Information Security (NIS2) may lead to significant financial penalties and potential executive-level legal liability.
• Unionized employees in Montréal/Longueuil, Québec brewery and distribution centers went on strike from end of March 2022 through mid-June 2022, significantly adversely affecting business, operations, and financial results in Q2 and Q3 2022.March 2022 to June 2022
• Unionized employees at Fort Worth, Texas brewery went on strike in February 2024, adversely affecting business, operations, and financial results in Q2 2024.February 2024
• In September 2025, announced appointment of Rahul Goyal as President and CEO following Gavin D.K. Hattersley's retirement.September 2025
• Coronavirus pandemic in 2020.2020
• Closure of breweries in Chippewa Falls, Wisconsin, and 10th Street in Milwaukee, Wisconsin in late 2024 and early 2025.late 2024 and early 2025
• Major brewery in Colorado, which experienced significant wildfires in 2022.2022
• Major brewery in Texas, which experienced a severe winter weather event in 2021.2021
• One of our facilities in the U.K. has had water use restrictions imposed on its operations due to increased domestic demand on the underlying groundwater aquifer.
• Beginning in the third quarter of 2025, initiated a multi-year implementation of a global ERP system to replace legacy operating and financial systems with a single global system.Q3 2025
• Recorded a partial goodwill impairment loss of $3,645.7 million for the Americas reporting unit in Q3 2025.Q3 2025
• Recorded a partial goodwill impairment charge of $845.0 million for the Americas reporting unit in Q4 2022.Q4 2022
• Full impairment of the definite-lived intangible brand Blue Run Spirits of $75.3 million in the Americas segment in Q3 2025.Q3 2025
• Partial impairment loss of $198.6 million for the Staropramen family of brands in the EMEA&APAC segment in Q3 2025, and reclassification from indefinite-lived to definite-lived intangible asset with a useful life of 50 years.Q3 2025
• Recorded a partial impairment charge of $160.7 million for the Staropramen family of brands in Q4 2023.Q4 2023
• EMEA&APAC reporting unit was fully impaired as of December 31, 2025.December 31, 2025
• Agreement to produce, import, market, distribute and sell certain Heineken brands in Canada.
• Arrangements with ABI to brew and distribute Beck's, Stella Artois, and Lowenbrau and to distribute Hoegaarden, Leffe, and Corona in Central Europe.
• Authorizations from Red Tree Beverages, LLC to produce, market, advertise, promote, sell and distribute products bearing the Simply Spiked trademark in the U.S. and Canada.
• Authorization to produce, market, advertise, promote, sell and distribute products bearing the Topo Chico Hard Seltzer trademark in the U.S.
• License agreement to produce, market, distribute and sell Fever-Tree products in the U.S.
• Joint ventures with Ball Corporation (Rocky Mountain Metal Container) for a portion of aluminum packaging supply in the U.S. and with Owens-Brockway Glass Container Inc. (Rocky Mountain Bottle Company) for a portion of glass packaging supply in the U.S.
• Joint venture with The Yuengling Company LLC to expand distribution of Yuengling beer in the western U.S.
• In October 2024, took a majority ownership stake in ZOA Energy LLC, following an increase in investment in Q4 2024.October 2024
• Blue Run Spirits, Inc. acquisition in Q3 2023.Q3 2023
• Partnership with Fevertree Drinks plc in Q1 2025.Q1 2025
• Early Implementation Agreement (EIA) entered in May 2024 by the Province of Ontario and the Representative Owners (Molson Canada 2005, Labatt, Sleeman), effective July 18, 2024 to December 31, 2030. EIA removed grocery store pack size restrictions and expanded licensed sale to all convenience stores (September 5, 2024) and all eligible grocery and big-box stores (October 31, 2024). Province of Ontario provided 225 million CAD to TBS to support retail footprint during interim period to December 31, 2025. TBS must maintain at least 386 retail locations through June 30, 2025 and a minimum of 300 stores July 1–December 31, 2025; from January 1, 2026, sole discretion to close locations. New wholesale markup structure expected to be announced Q1 2026 and effective April 1, 2026.May 2024
• U.S. tariffs on aluminum imports imposed in June 2018 (partially lifted in May 2019) created volatility and increased the price of aluminum used in some product packaging. Throughout 2025, additional tariffs imposed by the current U.S. administration affected the cost of certain products manufactured outside the United States and contributed to fluctuations in the price of aluminum and the Midwest Premium, resulting in an approximate $35 million unfavorable impact for the year ended December 31, 2025.June 2018, partially lifted May 2019, and throughout 2025
• The European Union-United Kingdom Trade and Cooperating Agreement (TCA), effective May 2021, resulted in disruptions and transportation delays affecting sourcing of raw materials and packaging and ability to import and export products.May 2021
• Modifications to the United States-Mexico-Canada Agreement could adversely affect supply chain and business.
• Enactment of the OBBBA on July 4, 2025, which permanently extended certain expiring provisions from the Tax Cuts and Jobs Act of 2017, including accelerated tax recovery for certain capital investments and R&D expenditures and changes to the business interest expense limitation, reduced cash paid for taxes in the second half of 2025.July 4, 2025
• OECD introduced model rules for a new 15% global minimum tax framework effective for fiscal years beginning on or after December 31, 2023 in jurisdictions with enacted legislation. Several non-EU countries, including Canada and the U.K., have recently proposed and/or enacted legislation consistent with the OECD global minimum tax framework. In January 2026 the OECD announced a comprehensive package for a 'side-by-side agreement' that could exempt many U.S.-domiciled multinational enterprises from certain provisions under the global minimum tax framework, and subsequently enacted tax regulations and proposed rules, including additional guidance, could adversely impact financial results in fiscal year 2026 and possibly beyond.December 31, 2023, and January 2026
• As of January 1, 2026, licensed grocery and big-box stores in Ontario must accept and sort empty containers for recycling; convenience stores exempt. Grocery and big-box stores may enter alternative recycling arrangements with TBS; as of January 1, 2026, some chains have done so, altering return flows.January 1, 2026
• Indemnities to FEMSA relate to the 2006 sale of Kaiser by our Canadian business, covering certain tax, civil and labor contingencies and purchased tax credits.2006
• Pentland and the Coors Trust together control more than 90% of Class A common stock and Class A exchangeable shares, and their voting trust agreement requires the trustees to vote all deposited shares against a matter if the two stockholders do not agree, creating a deadlock.