Andrew Lazar

Foley conceded slower implementation and a more pressured consumer, citing price pack architecture, search spend and sharper promotions for 4Q.

Gabriel said accretion and delevering hold despite rate volatility, citing currency mix, a fixed/floating balance and staggered maturities.

Gabriel said the majority offsets ~6% cost inflation; underlying gross margin up ~130bps still leaves room to reinvest.

Foley said the playbook mirrors the prior episode but with faster, more targeted digital execution and segment-specific actions.

Brendan outlined three pillars: best-in-class external integration partner, over a year to develop disciplined plan, and dedicated leadership from both companies. Emphasized this is a combination with invested partner, not a traditional takeover, Unilever employees staying with the business minimizes disruption.

Brendan said both companies are aligned on brand investment driving growth. Fernando confirmed Unilever investing around 10% in brand marketing with gross margins in mid-to-high 40s. Marcos added $100M incremental from synergies will be reinvested in brands.

Marcos said Q1 OP will not reflect full quarter of McCormick de Mexico so slightly below guidance. However Q1 EPS will be at mid to high end of guidance range. EPS and OP become more aligned Q2-Q4.

Brendan detailed by segment: Consumer drives mid-to-high end of 1-3% organic range with volume growth supported by A&P, innovation (Cholula expansion, finishing salts, gourmet relaunch, blends renovation), distribution growth, and price gap management. Flavor Solutions drives low-to-mid end with expected improvement from lapping difficult 2025.

Marcos said it's early to predict exact 2026 tariff impact but mitigation plans around productivity, alternative sourcing, and surgical pricing will scale up. Brendan added they meet weekly on tariff mitigation and identify new opportunities regularly.

Brendan cited deceleration as function of overall food unit growth being down almost a full percent, not MKC-specific. Listed continued AMP investment, innovation launches, expanded distribution, price gap management, and strong holiday merchandising as Q4 volume drivers.

Marcos explained Q2 OI strength: half from stock comp timing reversal, half from CCI/SG&A streamlining including discretionary spend cuts, professional fees, and organizational changes continuing into H2.

Marcos said majority of $50M tariff offset comes from sourcing and CCI savings. Pricing is the residual, applied surgically using analytics. Brendan added price gap management remains in base and surgical pricing targets different SKUs.

Brendan said Q1 was in line internally. Marcos noted adjusted for currency, OI was -3%. Stock comp shift from Q2 to Q1 explains most of the gap. 2/3 of Consumer OI decline rolls away next quarter.

Brendan gave thorough response citing brand marketing, innovation, expanded distribution, price gap management, and strong holiday execution including 90% sell-through on finishing sugars.

Marcos detailed technology investments including ERP implementation, AI/ML capabilities, and new data analytics hub. Brand marketing to continue at high single-digit increases.

Lazar pressed on limited guidance flow-through given the beat; CFO cited Q2 replenishment pull-forward and continued macro prudence. Direct.

Kirk acknowledged increased competitive innovation but stressed rational pricing. Noted spring reset gains and planned H2 momentum with innovation in premium space.

Kirk explained category sales declined due to 2 fewer weeks vs last year. Hershey share and sell-through both exceeded internal expectations despite timing headwind.

Kirk noted encouraging early results since mid-September pricing start. Planning at 0.8 while current elasticities are favorable. Still channels and shelf tags rolling through. Strong activation calendar provides upside opportunity.

Kirk emphasized competitors are sophisticated and hedged similarly. 75% of portfolio under $4. Pricing doesn't fully cover cocoa inflation. Deflationary cocoa momentum reduces future pricing pressure rather than triggering rollbacks.

Steve noted category rational with all pricing flowing. Running better than minus 1 in 2025 but adjusting for long Easter and innovation tailwinds. Minus 1 right center cut for 2026 planning.

Kirk framed 2026 as growing at/above category while building margin over multiple years. Long-term algo 2-4% revenue. EPS has potential upside. Playing for long term with continued brand investment.

Steve noted exhaustive modeling by SRM team. Elasticities slightly more favorable than historical given breadth of pricing across portfolio. Seasons less elastic, other parts more.

Michele defended continuous investment through cocoa crisis: brands, ERP, AI capabilities, transformation program. Kirk brings 3 decades Pepsi experience in snacking and beverage.

Michele noted Jan-Feb worst months, April green shoots. YTD share now positive. Sweets up 10% with 100bp share gain. Expects neutral-to-up share in H2.

Steve confirmed path to 2026 earnings growth even with tariffs, though acknowledged the path is narrower and more challenging. Mitigation actions critical.

Michele confirmed elasticity on track or better than expected, with strategic pricing selection and confidence in pricing ability. Question text corrupted in transcript; referenced by Ken Goldman.

Steve outlined full suite of levers: pricing, productivity, CI savings, SG&A efficiency, marketing optimization. Clear path articulated even at current cocoa.

Dirk gave a full driver list: promotional discipline, innovation, growth channels, price pack architecture and double-digit A&C.

Dirk answered directly with country-level detail, distribution store counts and a structural-not-cyclical framing.

Dirk gave comprehensive region-by-region breakdown. EM 6.3% growth with strong China, India, Brazil. DM improving with strong Easter and Biscoff momentum. Fully addressed.

Luca said guidance built on prudence: US biscuits still subdued, Europe chocolate stable but customer negotiation disruption risk. Wide range mainly because sudden cocoa decline may require flexibility depending on competitive reactions. 2026 pipeline cost determined but higher than current spot. Believes market now better reflects supply/demand.

Dirk reviewed 2025 chocolate execution: India, Brazil, Australia, South Africa performed well. Northern Europe (Germany, UK, Nordics) had higher elasticity requiring 2026 adjustments. Biscoff collaboration expanding significantly. Sudden cocoa collapse creates short-term competitive uncertainty but bodes well for 2027 margins.

Luca cited three unanticipated impacts: tariffs/consumer confidence, US destocking, European heat wave. Q3 added incremental US biscuit softening and higher European elasticities. Lowered rather than cutting costs to protect 2026 growth. Targeting high single-digit EPS growth for 2026 with material brand investments.

Dirk gave thorough Europe review: consumer confidence stable, biscuits/cakes performing well. Chocolate broadly fine but pockets of pressure in UK and Germany from competitor pricing gaps and retailer margin expansion. Elasticity 0.7-0.8 vs expected 0.4-0.5. Adjusting specific price points, investing in innovation and A&C.

Dirk reviewed regions: Europe good with resilient consumer, US more difficult with soft biscuits, EM very good with double-digit growth. Luca added NA pricing coming, productivity boost planned, alternate channels growing.

Dirk gave detailed regional review: Europe negotiations passed with minimal disruption, emerging markets performing well (China, Brazil). NA clearly softer but destocking should ease. Consumer confidence mixed globally.

Luca highlighted positives: customer negotiations upside vs last year, pricing on track, Easter strong, costs favorable. Negatives: US consumer softness, trade destocking (non-recoverable). Retaining flexibility in plan.

Luca said Q1 most pressured as pricing not yet implemented. Sequential improvement Q2-Q4 as pricing flows through. Goal to exit 2025 positioned for EPS growth in 2026 regardless of cocoa.

Dirk detailed comprehensive chocolate strategy: protect category health and share, RGM on $5B+ of net revenue, multiple pricing waves, 0.4 elasticity holding. Europe showing strong results with UK at 0.37 elasticity.

Lazar probed the heavier Q2 organic decline; Brase said pricing is tracking to plan with unchanged elasticity assumptions and no competitor followership modeled.

Brase argued the dividend cut unlocks a $40M brand-building step-up and $125M capital, but did not directly quantify any underinvestment versus what he wanted.

Sean emphasized agility over commitment, noting the volume recovery strategy has worked since FY2024. Willing to pivot to pricing if inflation breaks higher, viewing any volume sacrifice as a 'sabbatical' rather than permanent rebase.

Dave provided detailed coverage: 60% Q1 / 40% full year for total materials. Better covered on steel, contracted line haul freight, crop-based ingredients. Proteins only 15% covered (mostly spot market). Less diesel coverage than typical.

Sean declined quarterly guidance but confirmed H2 organic growth. Dave added three Q3 tailwinds: trade inventory shift from Q2, wrapping supply constraints, and wrapping unfavorable Q3 trade adjustment.

Sean directly denied seeing higher cost-of-volume dynamics, noting volume investment costs are unfolding consistent with expectations based on last year's six consecutive quarters of progress.

Sean directly rejected the structural thesis, citing five consecutive quarters of volume growth before supply issues and listing specific margin recovery levers including 5%+ productivity, inflation relief, chicken plant repatriation, and pricing.

Sean declined to provide FY2026 outlook, citing dynamic macro environment. Offered puts and takes: strong consumer pull, lingering supply costs, no Hebrew repeat, monitoring tariffs.

Sean explained G&S shipment gap was timing-related with holiday shipments falling in Q2 this year vs Q3 last year, not underlying weakness.

Dave explained absorption turning positive, sales mix normalizing, and productivity acceleration give line of sight to offset Hebrew and inflation headwinds.

Sean confirmed more active portfolio reshaping with bolt-on acquisitions and divestitures while targeting 3.0x leverage.

Cunfer said Q1 price investments concentrate in Meals (soup and sauce innovation slotting fees plus holiday programming), while broader list pricing spans snacks and meals across about 60% of the portfolio.

Cunfer explained the $500M four-year program (FY27-FY30): about $150M rolls over from the prior $375M peak program, leaving roughly $350M incremental from headcount reductions, a major direct/indirect procurement initiative, and supply-chain network optimization.

Cunfer detailed base 3% inflation plus oil-driven 2-3% incremental, comp reset, and the $100M SG&A takeout as offsets.

Cunfer reaffirmed dividend importance, leverage reduction to the low 3s, working capital cuts, and hybrid debt as a tool.

CEO walked through each Snacks sub-segment: Goldfish needs sequential consumption progress through H2; Fresh Bakery headwinds continue Q3 (intentionally reducing promos for service) with Q4 normalization; Salty requires surgical promotional competitiveness plus potential list price adjustments. CFO attributed margin collapse: ~25% from Fresh Bakery execution, ~75% from deleverage on -6% net sales. Expect modest Q3 improvement and material Q4 improvement as Goldfish activation (highest-margin line) ramps.

CEO noted snack category dollar consumption stabilized sequentially for third consecutive quarter, expects easier comps in H2. Cited green shoots in cookies innovation, Snack Factory momentum, and Goldfish back-to-school success. Acknowledged more work needed on Snyder's of Hanover and overall Goldfish buy rate.

CEO indicated snacks recovery pushed to FY26, expects marketing spend to increase from low end of 9-10% range. Flagged incentive comp headwind from below-plan FY25 results.

CEO quantified the split: two-thirds category, one-third execution. Highlighted PPA initiatives and innovation focus rather than incremental promotional dollars as the response strategy.

CEO provided detailed bridge: ~$60M from $200M top-line reduction at 30% gross margin, ~$20M net from lower Snacks margin offset by incremental cost savings. Full-year Snacks margin now expected ~13.5%.

CEO acknowledged FY25 is not an on-algorithm year, framed as transitory. Cited easier comps in H2, Rao's moving into organic, and robust investment/innovation as drivers.

CEO confirmed promotional levels consistent with historical norms, emphasized discipline on pricing while using marketing and innovation to compete rather than deep discounting.

Marshall directly identified the reinvestment: McCalla preproduction, admin, and marketing behind Uncrustables, with the balance to debt paydown.

Mark explained the prudent elasticity modeling as pricing is given back, defending the conservative volume assumption.

Tucker gave a direct framework on deflation drivers and the offsets management uses to manage cost inflation.

Mark details alignment areas: operating improvements, portfolio management, organic growth, disciplined capital allocation, and governance. Two new board members added. Very constructive tone.

Mark emphasizes focus on icon brands (cupcakes, Twinkies, Donettes), improved operations for profitability, prudent investment approach. Updated long-term growth assumption to 2%.

Mark details sustainable drivers: c-store improvement, volume shares improving, 25% SKU reduction with flowback into core brands, SuzyQ relaunch. Expects continued acceleration.

Tucker confirms virtually all $0.50 is coffee tariffs, which becomes a FY2027 tailwind.

Tucker explains: Q1 coffee costs slightly higher than expected, Q2 will also have additional hedging/physical receipt costs. But full-year coffee profit outlook intact after absorbing tariffs.

Tucker provides specific updated pricing outlook (mid-20s% from ~20%), details winter pricing action for tariffs, and quantifies volume impact (low to mid-teens down).

Tucker directly explains Q3 flat outlook: coffee pricing elasticity, pet lapping strong comps, SBS called down, partially offset by frozen and spreads growth.

Tucker confirms Lazar's math and explains improvement from execution actions and easier comps.