Good day, and welcome to the Monster Beverage Corporation second quarter 2026 financial results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on the touchtone phone. To withdraw your question, please press star then two. In the interest of time, please limit yourself to one question. Please note that this event is being recorded. I would now like to turn the conference over to Hilton Schlosberg, CEO. Please go ahead. Good afternoon, ladies and gentlemen. Thank you for attending this call. I'm Hilton Schlosberg, Vice Chairman and Chief Executive Officer. Also on the call are Tom Kelly, our Chief Financial Officer; Rob Gehring, our CEO of the Americas; Guy Carling, our CEO of EMEA and OSP; Mike Rodriguez, our COO; and Emelie Tirre, our Chief Strategy Officer. Mark Astrachan, our SVP of Investor Relations and Corporate Development, will now read a caution statement. Before we begin, I would like to remind listeners that certain statements made during this call may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934 as amended, are based on currently available information regarding the expectations of management with respect to revenues, profitability, future business, future events, financial performance, and trends. Management cautions that these statements are based on our current knowledge and expectations and are subject to certain risks and uncertainties, many of which are outside the control of the company that may cause actual results to differ materially from forward-looking statements made during this call. Please refer to our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K filed February 27th, 2026, including the sections contained therein entitled Risk Factors and Forward-Looking Statements for discussion on specific risks and uncertainties that may affect our performance. The company assumes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise. I would also like to note that an explanation of the non-GAAP measures, which we refer to as adjusted, where applicable, mentioned during the course of this call is provided in the notes in the condensed consolidated statements of income and other information attached to the earnings release dated August 6th, 2026. A copy of this information is also available on our website, www.monsterbevcorp.com, in the Financial Information section. Please note regional scanner data is included in an exhibit filed with our 8-K. We point out that certain market statistics that cover single months or four-week periods may often be materially influenced, positively or negatively, by promotions or other trading factors during those periods. I would now like to hand the call over to Hilton Schlosberg. Good afternoon, thank you for joining us. We're pleased to report another quarter of strong financial results and cash generation, with net sales crossing the $2.5 billion threshold for the first time in the company's history in a single quarter. Sales increased by double digits compared to the prior year in all geographic regions, and we gained share in many of our global markets, including the Monster brand in United States. In t he second quarter, reflecting the strength of our core offerings as well as our product innovations. Now turning to the energy drink category specifically. The global energy drink category remains healthy with continued robust growth. We believe household penetration continues to increase in the energy drink category, driven by functionality and lifestyle positioning, diverse offerings that appeal to an increasingly broad and loyal consumer base, and affordable value offerings in addition to premium offerings. We believe our portfolio of existing, recently launched, and planned energy drink offerings is well-positioned to participate in the growing global energy drink category, appealing to a broad range of consumers across geographies, price points, need states, and day parts. Our business continues to be supported by strong marketing programs, impactful retail engagement, and our solid partnership with The Coca-Cola Company and its global bottling partners. In the U.S., according to Nielsen, for the recently reported 13-week period through July 25th, 2026, sales in dollars in the energy drink category, including energy shots for all outlets combined, namely convenience, grocery, drug, mass merchandisers, increased by 7.1% versus the same period a year ago. In EMEA, the energy drink category, according to Nielsen, for our tracked markets for the recently reported 13-week period, which differ from country to country, grew 10.4% versus the same period last year, FX neutral. In APAC, the energy drink category, according to Nielsen, Circana, and INTAGE, for our tracked channels for the recently reported 13-week period, which differ from country to country, grew 11.7% versus the same period last year, FX neutral. In LATAM, the energy drink category, according to Nielsen, for our tracked markets for the three months ended June 30th, 2026, grew 23.8% versus the same period last year, FX neutral. Turning to marketing, Monster maintained strong momentum in the second quarter, with efforts focused on growing our core business, attracting new consumers, and increasing household penetration. Monster Energy participated in America 250 celebrations via our sponsorship of UFC and the introduction of limited time offering products across the Ultra, Juice Monster, Reign, and Bang brand families celebrating this milestone. Monster athletes were also successful in competition in the U.S. throughout the quarter, with notable victories in Supercross 250, NHRA, Motocross, NASCAR, and X Games Sacramento. Monster Energy-based riders in MotoGP won 4 races in the 2Q, including the Monster Energy Grand Prix of Catalunya. Monster Energy's long-standing presenting partnership of the Isle of Man TT was once again dominated by Michael Dunlop, who extended his outright record number of wins to 36, with three more victories to his name. The 2026 TT event, including Monster Energy's participation, also played host to a Hollywood production that will be based around the world-famous race. The Monster Energy music program kicked off the summer by sponsoring Morgan Wallen's Still The Problem Tour. It also brought the tour to life at retail, allowing Monster Energy consumers to earn points redeemable for free merchandise and concert tickets, connecting the brand directly to the tour experience. Monster Energy also had significant consumer activation at the Stagecoach Country Music Festival. Increased selling expenses in the 2Q were largely driven by our marketing efforts aimed at maintaining sales momentum as we execute our marketing strategy, recruiting new energy drink consumers and expanding household penetration. Our 2026 marketing strategy includes increased marketing investments across a variety of new platforms and partnerships, including social and digital media, to support both existing product offerings and innovation to recruit new energy drink consumers, increase household penetration, and reach a broadening consumer base for the company. An example of this is the recently announced partnership with the Big 12 Conference that includes naming rights for Monster Energy for the conference's football and basketball regular seasons, and a co-branded Monster Energy and Big 12 Conference logo that will appear on jerseys, courts, and fields, with additional integration across the Big 12 Conference digital and social media channels. Turning to tariffs. During the 2Q 2026, the impact of tariffs and the increase in the price of aluminum on our operating results was modest. Despite the modest impact on our business in the 2Q, the tariff landscape continues to be complicated and dynamic. For instance, tariffs significantly impacted the Midwest premium for aluminum, which increased the cost of our aluminum cans. We also import some raw materials into the U.S., export certain raw materials for local markets, and export limited quantities of finished goods. We do not believe, based on our business model, that the current tariffs will have a material impact on the company's operating results. However, based on current aluminum pricing and the Midwest premium, we expect a continued modest sequential increase in our aluminum costs through at least the end of 2026. We will continue to recognize tariffs on aluminum through the higher Midwest premium and continue to implement hedging strategies across the business where possible. Turning to 2Q financial results, net sales were $2.54 billion for the 2Q 2026, or 20.2% higher than net sales of $2.11 billion in the 2Q 2025. Net sales, excluding the alcohol brand segment, increased 20.8% in the 2Q 2026. Net changes in foreign currency exchange rates had a favorable impact on net sales for the 2Q 2026 of $48.5 million. Net sales on a foreign currency adjusted basis increased 17.9% in the 2026 second quarter. Net sales, excluding the alcohol brand segment, on a foreign currency adjusted basis, increased 18.5% in the 2026 second quarter. Excluding the alcohol brand segment from our reported results is purely illustrative as it remains part of our ongoing operations. Net sales for the company's Monster Energy drinks segment increased 21.6% to $2.36 billion for the 2026 second quarter, from $1.94 billion for the 2025 second quarter. Net sales on a foreign currency adjusted basis for the Monster Energy drink segment increased 19.3% in the 2026 second quarter. Net sales for the company's strategic brand segment increased 10.6% to $143.7 million for the 2026 second quarter, from $129.9 million in the 2025 second quarter. Net sales on a foreign currency adjusted basis for the strategic brand segment increased 8.1% in the 2026 second quarter. Net sales for the alcohol brand segment decreased 15.2% to $32.2 million for the 2026 second quarter, from $38 million in the 2025 second quarter. Gross profit as a percentage of net sales for the 2026 second quarter was 55.9%, compared with 55.7% in the 2025 second quarter. Adjusted gross profit as a percentage of net sales, excluding the alcohol brand segment, for the 2026 second quarter was 56.3%, compared with 56.2% in the 2025 second quarter. The increase in gross profit as a percentage of net sales for the 2026 second quarter was primarily the result of pricing actions and product sales mix, partially offset by increased aluminum can costs geographical sales mix and increased freight-in costs. Distribution expenses for the 2026 second quarter were $118.8 million or 4.7% of net sales, compared with $82 million or 3.9% of net sales in the 2025 second quarter, largely reflecting higher freight and fuel costs. Selling expenses for the 2026 second quarter were $269.2 million or 10.6% of net sales compared with $196.9 million or 9.3% of net sales in the 2025 second quarter. The increase in selling expenses for the 2026 second quarter was primarily due to increased social, digital media, and other marketing expenses, including sponsorships and endorsements aimed at maintaining strong sales momentum as we execute our marketing strategy to recruit new energy drink consumers and expand household penetration. General and administrative expenses for the 2026 second quarter were $291.2 million or 11.5% of net sales compared with $265.9 million or 12.6% of net sales for the 2025 second quarter. Stock-based compensation was $35.7 million for the 2026 second quarter compared with $33.2 million in the 2025 second quarter. General and administrative expenses in the 2026 second quarter included $6.5 million of expenses related to our digital transformation initiatives. Operating expenses for the 2026 second quarter were $679.2 million compared with $544.8 million in the 2025 second quarter. Adjusted operating expenses for the 2026 second quarter were $662.7 million compared with $505.6 million in the 2025 second quarter. Operating income for the 2026 second quarter increased 17.2% to $740.4 million from $631.6 million in the 2025 comparative quarter. Adjusted operating income for the 2026 second quarter increased 13.3% to $748.1 million from $660.1 million in the 2025 second quarter. Effective tax rate for the 2026 second quarter was 23.9%, compared to 24.4% in the 2025 second quarter. Net income per diluted share for the 2026 second quarter increased 19% to $0.59 from $0.50 in the second quarter of 2025. Adjusted net income per diluted share for the 2026 second quarter increased 15.2% to $0.60 from $0.52 in the second quarter of 2025. Moving to geographic results, we are pleased with our performance in the U.S. and Canada with net sales increasing 11.5% in the 2026 second quarter compared to the 2025 second quarter. According to Nielsen, the Monster brand family also gained 70 basis points of value market share in the 2026 second quarter compared to the prior year period. Our sales performance reflected healthy category growth with solid overall contribution from our core brand families, complemented by innovation and disciplined execution across our organization and bottling partners. Our portfolio of zero sugar or sugar-free energy drinks remained a significant contributor to U.S. growth. According to Nielsen, the Ultra brand family grew 19% in the 2026 second quarter compared to the 2025 second quarter. We view the Ultra family as a core contributor to growth within our portfolio, and we are complementing core SKUs with innovation, enabling us to reach new consumers. We are also sharpening our executional focus to include enhanced distribution and display presence. This includes prioritizing availability of the highest performing flavors and complementary package offerings to satisfy more usage occasions. Monster's full sugar portfolio also continued to contribute to sales growth and was led by the Juice Monster family, which increased 26% compared to the prior year. Innovation was meaningfully additive to second quarter sales growth, with products launched in fall 2025 and spring 2026, complemented by special limited time product offerings celebrating America's 250th anniversary across our Ultra, Juice Monster, Reign, and Bang brand families. During the quarter, we also accelerated our sampling and marketing efforts for Storm and Float. We continued to gain traction in FSOP, which is food service on premise. This includes the recently announced partnership between Marriott International and The Coca-Cola Company, which we believe will open significant distribution opportunities for Monster. Looking ahead, we believe we have a robust innovation pipeline that we will share at the upcoming NACS Show as we have done in prior years. In the United States, we have initiated discussions with our partners and customers to implement selective pricing actions effective during the 2026 fourth quarter. Now to sales international. Net sales to customers outside the United States increased 34.6% to $1.16 billion or approximately 46% of total net sales in the 2026 second quarter compared to $864.2 million or approximately 41% of total net sales in the 2025 second quarter. Net sales to customers outside the United States on a foreign currency adjusted basis increased 29% to $1.11 billion in the 2026 second quarter. Turning to EMEA, our net sales in the region in the 2026 second quarter increased by 27.2% in dollars and increased 22.2% on a currency neutral basis over the same period in 2025. Gross profit in this region as a percentage of net sales for the 2026 second quarter was 38.8% versus 36.1% in the same period in 2025. We implemented a price increase in certain markets in EMEA in the 2026 second quarter. Are proposing price increases in certain other EMEA markets later in the year. According to Nielsen, the MEC portfolio of brands gained 220 basis points of value market share across the region in the 2026 second quarter compared to the prior year quarter. According to Nielsen, the energy drink category continues to grow double digits in EMEA, with our Monster brands growing at approximately twice the rate of the category. Also, according to Nielsen, for the last reported 13-week periods, which vary by country, our portfolio delivered 46% of the value sales growth of the energy drink category in EMEA, with contributions from both our core offerings and innovation across brand families. This growth reflects strong execution across markets, accelerated cooler placements, and space gains enabled by our strong partnership with our Coca-Cola Bottling partners. The Zero Sugar segment continues to grow ahead of the energy drink category in Europe. We are the market leader in the Zero Sugar segment of the category, with a 44.5% value share, according to Nielsen. Also, according to Nielsen, for the last 13-week period, Monster Zero Sugar products represented 38% of the value sales growth of the energy drink category in Europe. We also focused on expanding visibility for the Ultra family with retailers, which is key to bringing new consumers into the category and are continuing with the rollout of new Monster Ultra SKUs. During the quarter, we continued to expand Juice Monster Viking Berry across EMEA, accelerating the growth of the Juice Monster brand family. We launched special limited-edition offerings of Oscar Piastri in both Monster Energy and Zero Sugar variants. The Gold limited edition, Monster Energy Lando Norris Zero Sugar, celebrating his 2025 Formula One World Championship, began rolling out into certain EMEA markets in July. Our affordable portfolio continued to gain momentum. According to Nielsen, we increased share in the affordable energy drink category in Egypt, Kenya, Morocco and Nigeria. We extended the rollout of Bang Energy as an affordable offering in Greece in the second quarter, following its launch in Spain in the 2026 first quarter. Turning to Asia Pacific. Net sales in Asia Pacific in the 2026 second quarter increased $35.7% and 36.7% on a currency neutral basis over the same period in 2025. Gross profit in this region as a percentage of net sales for the 2026 second quarter was 41.4% versus 41% in the same period in 2025. Net sales in Japan in the 2026 second quarter increased $14.5% and increased 24.5% on a local currency basis. Our Japan results benefited from the previously announced agreement to sell Monster Energy Green in vending machines owned by Coca-Cola Bottlers Japan Inc. Sales commenced in June and are off to a good start. Net sales in South Korea in the 2026 second quarter decreased $3.6% and increased 0.6% on a local currency basis as compared to the same quarter in 2025. Results were impacted by bottler inventory fluctuations as purchases far exceeded our shipments in the quarter. We remain the market leader in Korea. Net sales in China in the 2026 second quarter increased 62.5% in dollars and increased 54% on a local currency basis as compared to the same quarter in 2025. Net sales in India in the 2026 second quarter increased 84% in dollars and increased 100.3% on a local currency basis as compared to the same quarter in 2025. We began selling Predator in Pakistan and Azerbaijan in the second quarter. We remain optimistic about the long-term prospects for our brands in Asia Pacific and the expansion of our affordable brands in China and India. In Oceania, net sales in 2026 second quarter increased 57.8% in dollars and increased 44.9% on a currency neutral basis as compared to the same quarter in 2025. Turning now to Latin America and the Caribbean. Net sales in Latin America, including Mexico and the Caribbean in the 2026 second quarter increased 56.1% in dollars and increased 40.4% on a currency neutral basis over the same period in 2025. Gross profit in this region as a percentage of net sales was 46.2% for the 2026 second quarter versus 45.2% in the 2025 second quarter. Net sales in Brazil in the second quarter increased 82% in dollars and increased 61.6% on a local currency basis. Net sales in Mexico increased 29.5% in dollars and increased 20.5% on a local currency basis in the 2026 second quarter. Net sales in Chile in the 2026 second quarter increased 26.3% in dollars and increased 21% on a local currency basis. Net sales in Argentina in the 2026 second quarter decreased 25.6% in dollars and decreased 5.7% on a local currency basis. As discussed on previous calls, we have changed our operating model in Argentina to better manage our foreign exchange exposure. Shipment volume increased in the quarter, and we remain the market share leader in Argentina. Turning to Monster Brewing. On alcohol brands, net sales for the segment were $32.2 million in the 2026 second quarter, 15.2% lower than the 2025 comparable quarter. During this 2026 second quarter, no shares of the company's common stock were repurchased. As of August 5th, 2026, approximately $900 million remained available for repurchase under the previously authorized repurchase program. Turning to our stock split, as previously announced, the company's board of directors has approved and declared a two-for-one split of its common stock. The company anticipates its shares will begin trading at the split adjusted price on August 11th, 2026. Turning to July 2026 sales. We estimate that July 2026 sales, on a non-foreign currency adjusted basis, excluding the alcohol brand segment, were approximately 14.3% higher than the comparable July 2025 sales and 13.9% higher on a non-foreign currency adjusted basis, including the alcohol brand segment. We estimate that on a foreign currency adjusted basis, excluding the alcohol brand segment, July 2026 sales were approximately 13.9% higher than the comparable July 2025 sales and 13.5% higher on a foreign currency adjusted basis, including the alcohol brand segment. July 2026 had the same number of selling days as July 2025. In this regard, we caution again that sales over a short period are often disproportionately impacted by various factors, such as, for example, selling days of the week in which holidays fall, timing of new product launches, the timing of price increases and promotions in retail stores, distributor incentives, as well as shifts in the timing of production. In some instances, our bottlers are responsible for production and determine their own production schedules. This affects the dates on which we invoice such bottlers. Furthermore, our bottling and distribution partners maintain inventory levels according to their own internal requirements, which they may alter from time to time for their own business reasons. We reiterate that sales over a short period, such as a single month, should not necessarily be imputed to or regarded as indicative of results for a full quarter or any future period. In conclusion, I'd like to summarize some recent positive points. We had a strong second quarter with double-digit sales growth across all of our geographic regions. We gained share in many markets globally in the second quarter, including for the Monster brand in the U.S. We remain focused on the growth of our existing core offerings, as well as the continued introduction of product innovations, which remain central to our long-term growth strategy. We continue to expand our sales in non-Nielsen track channels with an objective to expand our FSOP business. Energy drink category continues to grow globally, and consumer demand, as measured by scanner data, remains strong. We believe that household penetration continues to increase in the energy drink category due to product functionality and affordable value proposition and lifestyle positioning. We are also seeing increases in purchase frequencies as well as usage occasions expanding across day parts. We continue to review opportunities for price increases, both domestically and internationally. We are continuing our digital transformation in order to modernize our enterprise platforms and strengthen end-to-end business capabilities across commercial operations and supply chain, including our upgrade to SAP S/4HANA, with a planned go-live date of January 1, 2028. Lastly, we are planning to host an investor meeting in New York City on December 1, 2026, and look forward to seeing many of you there. I would now like to open the floor to questions about the quarter. Thank you. Thank you. We will now begin the question- and- answer session. To ask a question, you may press star then one on your touch tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. In the interest of time, please limit yourself to one question. At this time, we will pause momentarily to assemble our roster. The first question today comes from Kaumil Gajrawala with Jefferies. Please go ahead. Hey, everybody. Good afternoon. Congratulations. I believe we're the end of earnings season for most of us. Great results. Thanks. I'd like to dig into the commentary around the pricing. It sounds like it's some global decisions. It sounds like it's maybe piece by piece. Can you just maybe give us a little more detail on where, how much? Anything you're able to provide, I think, would be helpful. Sure, Kaumil. We are fortunate we have Rob Gehring with us. We have Guy Carling with us here today. Rob, I'm going to ask Rob to talk about the U.S. piece. Guy will talk about the EMEA piece. You bet. Thanks for the question. Appreciate the compliment. We're proud of the results on behalf of all of our employees, our bottling partners, and our retail partners. We have consistently moved over the past few quarters and years to consistent pricing year upon year. We believe that our pricing model continues to drive volume growth. Our goal is to drive revenue ahead of volume and profit ahead of revenue. We believe it's working for us and our retail business partners. We also believe that modest inflation is good for the retail landscape. We're quite pleased with our results thus far. We will continue to do so. I'll turn it over to Guy. Thanks, Rob. Look, I think the approach is consistent around the world. In EMEA, we've taken aggregate low single digits pricing. As part of an ongoing strategy, we take price on an opportunistic periodic basis in the context of the category and competitive dynamics in each country, and will continue to do so. The next question comes from Kevin Grundy with BNP Paribas. Please go ahead. Great. Thanks. Good evening, everyone. Can you hear me okay? Yeah, we can. Thank you. First, just to echo, fantastic results internationally. A couple years ago, in the second and third quarter, we were talking about a bit of a slowdown ex-Argentina pricing, and the results really could not have come back more strongly, up 29% in the quarter. You seem to be, in most regions, growing 2x the category growth rate, and it is really broad-based. A couple questions here. Number one, maybe just comment on what you think is different about the business operational changes, better coordination with the Coke bottlers. Anything you can comment there that you think is really driving sustainably stronger results internationally. Then I know you don't like to guide, but maybe just talk a little bit about how you see the sustainability of this growth, what the runway is based on your market share, et cetera. Any color there I think would be helpful. Thank you. I think let's start with EMEA. I can pick up with the rest of the world. Thank you, Hilton, and thank you for the question. I think as with U.S. and around the world, the strong category growth in double-digit is driven by an overall strong value proposition, combined with brand image and category functionality, which are making the energy drink category all-day, multi-occasion beverages with a wide appeal across age groups. Our portfolio is over-indexing the category across these drivers and across these occasions, which, as per the script, is leading us to be 46% of category growth across EMEA. Structurally, we are outperforming the category with growth delivered both by existing SKUs and products, which are 42% of our growth, as well as innovation, which is 58% of our growth, versus the category, which is reliant predominantly on innovation. I think also, you mentioned our increasingly strong partnerships with the Coca-Cola bottling partners across the region. It continues to contribute and drive growth, increasing our availability and our average SKU assortment. It allows scaled innovation launches. We're expanding Monster-led energy zones with key retailers. We're accelerating our branded cooler footprint. This is contributing to higher rate of sale and consistent share gains across multiple markets. I think then another key factor is the zero sugar segment. That continues to accelerate. It's growing 23% in Europe, for example, versus 5% for full sugar. It's 63% of category growth. The Monster portfolio is responsible for 61% of zero sugar growth. We lead the segment as per the script with 44.5% share. The overall portfolio is balanced. We're offering consumers choice. Our full sugar range is growing at 10%, which is twice the rate of the category segment. Ultimately, the portfolio is offering, and specifically with Ultra, recruiting younger adults and females into the category and those that have a heavier drinking profile. I think it's a combination of ingredients that are contributing to the growth story. Thanks, Guy. Turning to LATAM, we've had very strong growth in a number of countries in LATAM. You'll see the increase in sales that we spoke about earlier and the gross profit, which has come up nicely as well. In particular, I've got to call out Brazil. We've got incredibly strong growth in Brazil. Brazil's soon to become one of our very top countries in terms of sales. We've got great teams that are operating well and working well with the Coca-Cola bottlers. We have major investments going forward with coolers. Innovation is playing a very big role. We're excited about the future in LATAM. Turning to Asia very quickly. Most of the world's population lives in emerging and developing markets. Again, that's a big opportunity for us. We're opening a number of markets in Asia-Pacific. We're working very closely with the Coca-Cola bottlers in that area as well. India and China, I know there were a lot of stresses, I think, both on our side and on your side over the years. The achievements in India and China are also very respectable. The next question comes from Filippo Falorni with Citi. Please go ahead. Hi. Good afternoon, everyone. I wanted to ask about the innovation pipeline for this year. Obviously, a lot of different launches that you had. Can you give us a context of how this year compared to prior years? In particular, I wanted to ask about the limited time offerings that you had around America's 250th. What were the learnings around LTOs? I know this is a bit of a different innovation approach versus your prior, could we see more of this? The second part on the FLRT and the female-oriented energy. Can you give us an update there? What are your expectation for the brand? Thank you. Just this year, we had staggered launches of innovation versus one-time launches that we had historically. We were staggered this year, and we were able to achieve better execution, I think, this year than in past years. Also, the LTO. The LTOs were really successful, as you guys no doubt will see through your own Nielsen numbers. We've been really pleased about our LTOs and, in particular, Ultra Red, White, and Blue accounted for 5% of sales in scanner since the national launch in May. That all worked incredibly well. For 2026, we have some innovation coming in the fall, in 2027, we have a full innovation calendar that we will be presenting and looking forward to sharing with you at NACS in October. Turning to FLRT. We still think FLRT is early, as marketing efforts and ready to spend only started in June. We feel we are reaching the right target audience. We're working on repeat, but building a base. We have an exciting LTO plan for the brand as well later this year, and NPD for next year as well, which you'll see at NACS. Overall, we really do think it's too early to tell, but we remain committed to the brand. The next question comes from Dara Mohsenian with Morgan Stanley. Please go ahead. Hey, guys. We've been in a period of much higher growth for the energy category in Monster for a year and a half now. The category's really brought in new customers with innovations, zero sugar products, et cetera, in recent years. I'd also argue that there's been a ramp-up in permissibility of the energy category in general from a consumer standpoint. I'd just love to hear post that greater permissibility with this expanded consumer base. Are there incremental areas from here where you think about incremental penetration, where perhaps you haven't had as much success or traction before now enabled by this recent success you've had that might be food service or vending from a channel standpoint where partners are even more excited to carry your products, maybe smaller can sizes with more female or health-oriented consumer penetration. I'd just love any thoughts on sort of under-penetrated areas and plans you have going forward and what might be enabled by this recent success you've had. Thanks. Dara, I think that's a really good question. We spoke earlier on the call about FSOP, and we feel that's a big opportunity for us. You've read about the Marriott opportunity, which we worked together on with Coke and looking forward to success there. We've launched 12 oz to appeal to a broader audience. You saw in the quarter that we accelerated some of our marketing to address the new consumer and expand household penetration. The new entrants into the category differ from the traditional category drinkers. You've got Gen Z over-indexing versus other generations and women driving incremental growth. Notably, as Rob mentioned earlier, I think I mentioned earlier as well, zero sugar accounts for more than 75% of category growth. The category is still bringing in new consumers. Household penetration hasn't reached its peak, I believe. We have a lot of opportunities there. The next question- I think Rob wanted to. Oh, sorry. Pardon me. Go ahead. Dara, I think Rob wanted to make a point. Rob? Yeah, Dara, if I could just make a quick point. Great question. We constantly try to use innovation as a recruiting tool. Based on our last cut of household panel, we're bringing in consumers at twice the rate of the category. The new entrants to the category is about 19%. We're bringing in almost twice that rate. The goal of using innovation to, one, drive our core business and always fuel our core growth, but also recruitment. We believe recruitment is critical to our success. The next question comes from Robert Ottenstein with Evercore. Please go ahead. Great. Thank you very much. I just wanted to touch, if you could touch on the Marriott win. I know you're not going to tell us how big it is. What I'm really interested in is kind of how it came about working with the Coca-Cola system. My sense is it's the first or one of the first major contracts that you've done hand in hand with the Coca-Cola system. Perhaps if you can talk about how you and the Coca-Cola system may be executing differently on these global accounts or large customers, anything along those lines, because it does seem to be a significant change and improvement over a few years ago. Thank you. I think that's a good question. I think we've spoken in the past about the relationship that we have with the new C-suite at Coke, looking forward to working very closely with them in the future. We are doing a lot of work with them. I think our business is complementary to the business that they offer, a lot of FSOP customers now are requiring energy drinks as part of their product offerings. My belief is that we'll continue to work very closely with the company and the bottlers to create a really good business in FSOP. The next question comes from Bonnie Herzog with Goldman Sachs. Please go ahead. Thank you. Hi, everyone. Hi, Bonnie. Hi. A question on your operating expenses, including both distribution and selling expenses, which stepped up on a per case basis in Q2. Just trying to understand if there was something unique in the quarter, maybe color on the drivers of the higher expenses. Ultimately, should we think about per case operating expenses in Q2 as a good run rate, or could this move lower moving forward? Thank you. The quarter was marked by increases in distribution expenses, largely freight and fuel. That's something I'm sure that you've seen across a broad base of companies. That's something that we hope will come down in terms of political settlements. Right now, we have to deal with that. Secondly, our 2026 marketing strategy, we built that to capture the evolving consumer. We expanded our portfolio and our communications to better align with the new lifestyles that I spoke about earlier and the need states. To connect with a broad and younger audience, there were a lot of additions that we did this year that we hadn't done historically. For example, we launched Lando Norris in the U.S. in Miami as a full SKU this year. There was Formula One. We had the Morgan Wallen tour that we spoke about earlier. We had the UFC fight at the White House and the additional expenses of that. In May, we started our largest campaign of the year, which we called Unleash the Beast for the Next Generation. There we had connected TV, programmatic, social, and retail media, and the campaign enforced Monster as the badge of those who want an energy drink that's got image, culture, style. Featured Gen Z athletes such as Lando Norris, Rayssa Leal, and Haiden Deegan. All of these were conscious attempts to address the new consumer and to keep ourselves culturally together and reinforce the properties and the benefits of the brand. The next question comes from Chris Carey with Wells Fargo Securities. Please go ahead. Hi, everybody. Thank you for the question. Hilton, I just wanted to go back to the comment around pricing, maybe bring in the inflation angle as well. I think in your prepared remarks, you said something to the extent that aluminum inflation will increase a bit into the back half of the year relative to where you just were. It seemed like you had made a point to say through 2026, and just conscious that Q2 gross margins feel like they came in a bit better than expectation. When you spoke about pricing, it was more in the context of additional potential actions in EMEA as opposed to global pricing. The question I suppose is your confidence around your ability to protect gross margins, say, without a major global pricing round getting a bit better? Perhaps that's because of easing inflation relative to where it had been at peak. Maybe that's because of the strength of the low sugar or zero sugar offerings helping your mix. I just can't help but think that the gross margins are coming in a bit better, and you feel maybe a bit less need to take as much pricing with a changing evolution of the macro or maybe the business model. I'd be curious how you'd entertain anything there. Thanks so much. Yeah. We have inflation across the board. We spoke a little bit about distribution expenses earlier, and that was a big chunk of change. We look at aluminum. We hedge a portion of our aluminum, as everybody knows, and we use a ladder approach. Which means that we don't buy everything on the same day. We structure a ladder for our aluminum hedges. Of course, we've had this huge increase from the Midwest premium, which is a very limited market that we have hedged, but probably not sufficiently as if we'd known today what we knew when the hedges were being placed. We are looking at additional aluminum costs going forward, and that's something that we're dealing with. We believe that the addition is going to be modest, but it's something that we still have to deal with. In terms of inflation, we live in a world with other consumer goods companies that are subject to inflation and all sorts of things, and all sorts of purchasing of raw materials and other materials that they need in their business. We will continue to see increases through inflation in our business. We will continue to see increases in aluminum and in freight, and in fuel until such time as things regularize. We continue to review opportunities for price increases, both domestically and internationally. You heard from Guy, you heard from Rob about the price increases that had been implemented historically and where we're looking to head going forward. On the gross margin, obviously, we would like as high a gross margin as possible. Remember what happens, it's great having these significant international sales, but they come at a gross margin percentage cost. We don't make the same gross margins as we do in the U.S. from our international markets. That's something that we've spoken about many times on the calls before. I've always said we bank dollars, we don't bank percentages. Overall, I think we are pleased with where we are, and we're going to continue to do the very best we can in delivering gross margins the best we can achieve. This concludes our question- and- answer session. I would like to turn the conference back over to Hilton Schlosberg for any closing remarks. Thank you. On behalf of Monster, I'd like to thank everyone for the interest in the company. We're confident in the strength of our brands and the talent of our entire Monster family throughout the world. I'm excited to be working with them and thank them all for their contributions. We believe in the company and our growth strategy and are committed to innovating, developing, and differentiating our brands and expanding the company both at home and abroad. We are proud of our relationship with the Coca-Cola system and the opportunities this presents to us. We believe that we are well-positioned in the beverage industry and are optimistic about the future of our company. Thank you so much for your attendance. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.