and good Jane, morning, everyone. Thanks,
year long-term morning, against performance success. QX. resiliency progress demonstrates multiyear the solid the despite Our year-to-date Simultaneously, XXXX our good and we flexibility. we laying making our full uneven environment. in KDP's strong groundwork And to a finish This operating reaffirmed are an outlook year strategy, for we're targeting
acquisition transaction our we We've and our category be the to in accelerates a the and agreement our while drink the This in first stake want portfolio this followed of the consumer-preferred growth-accretive evolution half purchase position strengthens GHOST Now spaces. of as the another just the year enhancing energy 'XX. before of highlight attractive remainder majority by announced business portfolio in to how of towards deal I discipline. yet to reached results, capital quarterly GHOST example exercising an covering our are
the leading is more while in GHOST spanning $X.X and over thanks approximately its unique distinctive brand strong supplements cross-occasion than energy on-premise. drink founder-led, the brand appeal its anchored by fastest-growing remains in flavors categories. presence X in quadrupled and versatile the also The of one emerging consumer young, category, engagement, size with to other and last identity, energy LRB and billion packaging, years and including portfolio an
GHOST further potential Hughes, continue Lourenco Dan KDP's and the in portfolio founders, as significant and refreshment to date. will existing been I've part will its and the success complement see tremendous with substantially with in who unit. very Ryan energy scale beverages their enhance Dan to lead to KDP's presence and We our impressed Ryan GHOST category. collaboration U.S. of brand
in years plan strong KDP's approach their More for importantly, the to come. as I to we GHOST share category. Together, energy growth to take build new platform-based the out heights vision to we
energy channel grow and time with a of demographics, GenZennials. for Now still and and price multiple leading for is billion at relevant ages categories. to on in consumers There's in beverages near the and appeal versus of alertness, fastest-growing in over-indexing enjoys our is penetration significant categories size, across diversity. significant the which characteristics. category beverages They and satisfy the universal pack attention. including household consumer stage architecture in to a headroom These remains beverage to all And other development one demands structural world energy scaled growth $XX need increasingly
well a elements translate positioned large total believe category addressable we these to to KDP and market the capitalize. which on that of will into is All grow
premium which evolving consumer we landscape lends a This more in the itself to category becomes need to states prevalent, approach, is employed nicely consumption occasions. serve drink and portfolio distinct energy have successfully As GHOST become to the We're XX in Rifle category with #X using the over energy, push CX, our the Black last player. into months similar now having a share and accelerated playbook Energy. water
Nutrabolt In a just across emerging today's for distinctive ready-to-drink greater and highly Bloom the with addition can these a consumer Ghost a brands to in our signed beverage complementary SKU. promising scale while energy. work to each DSD distribution Bloom is agreement and announcement, female-oriented brand address infrastructure. we with in of driving ways category Together, needs
capital financial and GHOST elegant the growth Beyond returns structure, an transaction we incentives. example deal merits, leverage are and we balance how is manageable retaining efficient the opportunity long-term while paving way another aligning sheet for strategic its good compelling deployment. of approach capturing Through the
arrangement Our element keep of visionary In from outcomes chosen while energy substantial this helm of to With of all leader, Ryan network. platform win-win and unique Doss, firsthand space entrepreneurs through structure energy founder work with and for white KDP's others, strategy, drive the retains are GHOST's resources seen will a the and alignment support created of we adding value they GHOST KDP. We brands we've like the leaders building relationship formidable Nutrabolt's Cunningham. involved. energy leadership Doss and expansion that at our a scale team, Dan from close drinks, our reinforcing innovative
in We growth with Let's quarter net our now made results. to X.X% solid move Constant volume/mix sales third progress QX. X.X%. currency grew on
international strengthened nicely trends and anticipated, mix healthy. considerably U.S. beverages U.S. momentum coffee grew As refreshment remained volume
price modest Total a KDP in of pressure QX. source was net
a coffee actions including step-up We expect of year. improvement into portfolio parts as further our sequential effect across early single-serve recently pricing and meaningful XXXX next in CSDs take announced QX and
These support elements focus on operating and continued productivity to expansion. margin Our cost to in discipline and gross up ratchet help QX.
X%, income with grew high result, single EPS the grew operating a our in consistent and plan. digits, consolidated As
delivery the also on long orienting business term. truly near-term towards We are while our focused
over we multiyear aim quarter. Our and our strategy each a pillars strong to and and strategic achieving for provides road map consistent time incrementally frame, results advance a every
discuss me consumer-obsessed brand I'll building. latest our Let progress. with start
down yet, And measure we classic comes Our metrics. consumer-centric loyalty ultimately growth. penetration, household how brand-led success scorecards include share market awareness, other and to
of We achieved each and this across share innovation pods liquid States, our refreshment well gained brand a major Canada. verticals, and major United K-Cup product exciting commercial and the delivery. beverages, activity performance we our through and markets, Mexico brewers, strong combination of as as each of in QX, In
While certain top our line stewarding effectively the brands controlling category growth of also our environment and good controllables. impact reflected consumer we share results softer rates, that are the on market QX a indicator are our the
new next to with partnerships. contribution. financial third reshaping been a second to La now priority, our quarter and major during a Colombe has Our pillar, our Both and the through brands primarily growing transition our continued network XXXX DSD Electrolit portfolio
and accelerating with ahead. significant trends influence are their opportunity performance, accordingly, our We are still now able to more directly marketplace
just high-growth with commitment areas. Our to GHOST announced our transaction furthers evolving towards
additions in We will and our likely continuously portfolio targeted shape future, pruning. entail both which brand will the
Moving now market. to to route
record third and network and integrated in quarter, was closed achieved acquired went the of we our assets to recently our The smoothly During in on Arizona. coverage time. transition
have the of We to KDP. part focus now and our of Arizona shifted the as network run operations benefits ensuring possible efficiently being leverage as
continue distribution of also other presence to our Tennessee. opportunistically including tack-on We in expand regions, in incremental the territories recent
the another a traditional Our it company-owned sizable focus Mexico with provides market vital area, advantage competitive trade. network a DSD in given in is
systems strong the all contributed third in of the trends. expanding our and During which relative we selling cooler coverage, to invested quarter, routes penetration,
This to critical particularly environments, is but a for our discipline in and work it's current Turning priority now to overhead productivity moment. all in the generate growth. fuel
the strong we leverage savings third in the such, for quarters. delivered healthy with of the reemergence time As quarter SG&A and during productivity first overhead many
pipeline a the are healthy while goals savings track of productivity into to forward projects for exceed now also year XXXX. We on carrying our and efficiency cost
XXXX, and this Finally, priorities. allocating our cash cash in we expected generation are as multiple to support has flow strengthened dynamically parallel
has growth acquisition allocation commitment pending sheet. we near XX% other capital compelling of productivity our a a including a our being far a consecutive capital raise; objectives, our options X% stock's XX-week share increase and staying in fourth buyback and which included to sizable Our to marked capital deployment support available In resilient this annual are now managing year our dividend words, interest announced across when initiatives; GHOST. in thus our QX, and opportunistic disciplined, expenditures low; become balance our
refreshment which a in me sequential now our observations share with segment at third the nice some mid-single-digit We rate in growth, a acceleration performance, U.S. beverages. starting quarter. Let revenue increased on quarter saw
ramped momentum the completed transition we Our as Electrolit. distribution for significantly activity built display and volume/mix
We also delivered across our solid base brands. core business trends
which having impacts remains is portfolio. across varying dynamic, consumer environment our The
driving well trends. For positioned for innovation revenue also drinks to price same by healthy instance, them slate soft a options accessible CSDs capabilities, time, category with category the carbonated is our are have outperforming provide supported points At that and are in make we programming winning which the strong management share the commercial consumers. value-seeking growth is expectations. and sophisticated
continued well part in thanks creamy Our was successful build-out CSD Zero Dr LTO as line. very Pepper, Sugar led the summertime of coconut with brand by our a performance to as
share recent marketing supported gains sustain, We college by seventh incredibly the expect football the to momentum brand's a Fansville launch of campaign. season popular our of and
the brand under pressure, current in see Canada convenience as to this softness. stepping and now which rolling and iconic This on and true offering brand still categories is is reflection some remain social a with refresh stores for flavor of consumer greater media.
Meanwhile, higher with at In incremental also in the great the hit must a of CSDs, our value continue franchise beverage just demonstrating in the that compelling particularly we time been exposure debuted limited out with like highly We're products appropriately Splash, price has to a Dry XUP Shirley categories activity, most per Elsewhere price engaging design points. remains brand's QX a we significant categories, years ounce consumers also while Temple Fruit behind up with potential launch these is first-in-a-decade emphasizing brand. average key support teas. that ready-to-drink a and
been priority XXXX. stronger In is trends. example beverages, investment still warehouse-delivered we're other which has our an seeing Mott's One brand, billion-dollar during
supporting we're In made performance U.S. as point Electrolit progress core During fresh, Mott's brand. gains highlighted minimally of well, in and for pleased the in top the with growth for notable refreshment line of supporting partnership with campaign, scaling which the QX, differentiation our the portfolio. QX, performed processed share our total, apples segment a and beverages back-to-school
and this working experienced Market due to pricing U.S. context persistent drove promotions, with challenged weighed trends revenue outcome of even We're volume but realization segment these on not we are coffee, quarter. satisfied a In to was the soft escalating mix, share in actively solid and improve overall which profitability. inflation. category momentum
enterprise we're same overall in role that time, category consumption planning remains is the U.S. our prudently regarding coffee's near-term performance. The muted. reality At coffee at-home
outperforming, and judicious, and be within single-serve we're long-term growth control. absolute our But brands However, trend, elements category's below as is on choosing that, our focusing rate that, to within the the within well. because are is are we the
in result should Let deeper me together, into time. over such segment revenue the dive trends X for improving that, areas coffee
market First, momentum. have good we share pod
Our affordability, the X-pronged strategy momentum cold further and meaningful quarter. licensed focused on premiumization in translated owned and share into coffee
both single-serve particular We which including time, same to Green The network a across Mountain K-Cup platform. the and we we incrementality pods, saw and refreshers, ecosystem, addition from during traction line scale into Black Rifle new the of QX. Shop, Donut of our including began our the are Original into Keurig in building new are At strength distinct brands recent attracting which
as our licensed us favorable trends financial stronger position outcomes for and category new owned recovers. the together, set Taken partnerships share market and of a
the continue in shipments. brewer drove double-digit move in right Second, growth QX, brewer strong to direction. In we trends
brewers more coffee-consuming inherently stable should of future the category returned speaks households to gaining supportive quarterly significant ongoing and are trends are share. appeal our While Keurig-compatible among coffee lumpy, footing, This be consumption. and maker to pod has
Chill of retailer days the consumer we're excellent the with to momentum in positioned for important behind holiday our entry-priced out + feedback K-Brew models. and launch good and early Looking season, well our
The yet Third, to in recent are the was half, response notably evident third promotional environment any QX. category by or immediate quarter and easing trends results, inflation. in pricing our in the first expect in competitive while not we encouraged do as in we category escalating not
anticipated increase. volume single-serve expect coming the healthier related announced increases trade-off, recently pricing competitor with revenue industry over an impact quarters as we'd price to and some trend. overall elasticity well result our early should as Even build this XXXX in However, a given
quarter-to-quarter some our in, to All with traction see coffee we segment. across path though come continue the ahead likely will U.S. variability,
are our high-quality we with driving and brands to category other the long term. all remains positioning restraint, innovation As brands marketing continue Keurig at-home to soft, long will longer coffee the Keurig while and we plan words, the game ecosystem. In win assortment of and new attracting as into playing by
high category brand-building single and Mexico, constant and with delivered sales every categories. share good in reflecting operate, nearing almost growth performance, grew Turning fruit. drove We regions now another across bearing digits. to in which productive quarter investments DSD international. multiple currency of market We we In the net activity gains
of which with recently it our notable. the a was PeƱafiel flavored traction #X and often in We performance great the becoming talk Mexico, Squirt's trajectory brand. local iconic powerhouse, but success about CSD of momentum. achieved maintained The brand QX, significant also example its brand and KDP a is milestone another in
coffee, driver Overall, beverages ongoing Canada robust, great Dry by KDP. performance was our X-pronged and strategy no-alcohol investment, brewers helped market momentum remain outsized well this strength also share to our growth to we our in the feel in in pods. Canada cold expect segment gains Pepper as drive across with and both U.S., as for portfolio. about international Our an and led Dr low- continued growth In international as in and
In dynamic operating remains in we're with strong pleased team's a our what environment. closing, execution
on on initiatives are year stage healthy, strong focused and pushing track consistent XXXX. key out the for setting beyond and on closing ahead the We financial while performance strategic
And with to the Sudhanshu. I'll call that, turn