Two, globally, Molson Coors' net sales revenue from its above premium portfolio has surpassed 25% of our brand volume net sales revenue on a trailing 12-month basis for the first time since the revitalization plan was announced.
Fuel prices are up, truckers are in short supply around the world and freight costs are up 2%.
We are once again shipping approximately one million barrels per week in the U.S., and that has helped us increase distributor inventories by approximately 20% over the past few weeks.
Coors' growing share of the segment in Canada as well with Miller Lite also growing approximately 30% in the quarter.
For the first nine months of the year, we have sold nearly two million cases of non-alcohol beverages as we continue to drive toward our $1 billion revenue ambition for our emerging growth business by 2023.
It's the number one new energy franchise in 2021, and it's already a top 20 energy drink brand.
Zoa already has 31,000 buying outlets and over 115,000 points of distribution with more coming online every day.
Now hard seltzer is going to keep growing at 200% per year.
There are over 10% of beer category sales and growing.
Vizzy brand volumes grew 50% in the third quarter versus the prior year and passed yet another competitor to become the number four hard seltzer in the United States.
Despite only being launched in 16 different markets in the U.S., Topo Chico Hard Seltzer occupies the number three slot as a new item in the general malt beverages category.
The brand also garnered a 2.4% share of the U.S. market according to IRI, and this success has led to the national expansion of the brand.
By the end of August, it was already available for purchase in 40,000 locations across the state.
And this quarter, we announced plans to build upon the success of Blue Moon LightSky, which our data shows is 96% incremental to the flagship Belgian White.
So much so that as of the third quarter, the percentage of Molson Coors portfolio that is above premium has surpassed 25% of our brand volume net sales revenue on a trailing 12-month basis for the first time since the revitalization plan was announced.
In Western Europe, our new Mediterranean lager, Madre, has already doubled its distribution goal for the year, now at approximately 5,500 on-premise outlets with more coming in the fourth quarter.
In Central and Eastern Europe, New Smooth pilsner lager Pravha, has been performing above expectations across the market with presence in more than 15,000 outlets supported with strong media campaigns, reaching over 13 million consumers.
And in Latin America, Coors Light is growing in Puerto Rico for the first time in 15 years, where it sells at an above premium price point.
As Gavin mentioned, we are again reaffirming our key financial annual guidance for 2021.
Consolidated net sales revenue increased 1% in constant currency, delivering over 99% of third quarter 2019 level despite the on-premise continuing to operate below pre-pandemic levels.
Consolidated financial volumes declined 3.9%, primarily due to lower brand volumes, which were down 3.6%, largely due to the economy segment, including the economy SKU deprioritization program.
Net sales per hectoliter on a brand volume basis increased 3.6% in constant currency, driven by the strong pricing growth, coupled with positive brand and channel mix.
Underlying COGS per hectoliter increased 8.9% on a constant currency basis, driven by cost inflation, including higher transportation and input costs, mix impact from premiumization and volume deleverage.
Underlying MG&A in the quarter increased 3.5% on a constant currency basis due to higher marketing investment behind our core brands and innovation as well as parking targeted reductions to marketing spend in the prior year period due to the pandemic, which was largely offset by lower G&A expenses.
As a result of these factors, underlying EBITDA decreased 10.9% on a constant currency basis.
You may recall in the second quarter of last year following the issuance of certain U.S. tax regulations, we recognized a material discrete tax expense of $135 million.
As a result of the settlement, we had a release of unrecognized tax benefit positions in the quarter that resulted in a P&L tax benefit of $68 million, including a $49 million discrete tax benefit in the third quarter.
Underlying free cash flow was $933 million for the first nine months of the year, a decrease in cash received of $227 million, from the prior year period.
As a reminder, in 2020, working capital was positively impacted by over $200 million for benefits related to these government tax deferral program.
Capital expenditures paid was $363 million for the first nine months of the year as we continue to invest behind capability programs such as our previously announced Golden Brewery modernization project and our new Montreal brewery expected to open by year-end.
In the third quarter, the on-premise channel accounted for approximately 14% of our net sales revenue in the quarter, compared to approximately 12% in the second quarter of 2021 and 16% in the same period in 2019.
In the U.S., the on-premise accounted for about 88% of 2019 net sales revenue in the quarter.
In Canada, restrictions continue to ease throughout the quarter with the on-premise net sales rising to 80% of 2019 levels in the third quarter, up from about 25% in the second quarter.
North America net sales revenue was down 2.1% in constant currency as net pricing growth and positive brand mix were more than offset by lower volume.
In the U.S. domestic shipment volumes decreased 6.6%, trailing brand volume declines of 5.2%, driven by unfavorable shipment timing and declines in the deprioritized economy segment.
Economy was down double digits as we deprioritize and announced the rationalization of approximately 100 non-core SKUs, which were primarily in the economy segment.
Canada brand volumes improved 0.5% in the quarter, and Latin America brand volumes continued their strong performance and experienced 9% growth, reflecting the easing of on-premise restrictions.
Net sales per hectoliter on a brand volume basis increased 2.4% in constant currency with net pricing growth and favorable brand mix, partially offset by unfavorable geographic mix given the growing license volume in Latin America.
U.S. net sales per hectoliter increased 3.2%, driven by net pricing growth and positive brand mix, led by best premium innovation brands, including Vizzy, Topo Chico Hard Seltzer and Zoa.
Underlying cost per hectoliter increased 7.3%, driven by inflation, including higher transportation and packaging materials and brewery costs, volume deleverage and mix impact from premiumization.
Underlying MG&A decreased 1% as higher marketing investments were offset by lower G&A due to lower incentive compensation expense and the recognition of the Yuengling Company joint venture equity income.
North America underlying EBITDA decreased 14.3% in constant currency.
Europe net sales revenue was up 14.7% in constant currency, with an 11% increase in net sales per hectoliter on a brand volume basis driven by positive brand, channel, geographic and packaging mix and positive net pricing.
Europe financial volumes decreased 2% and brand volumes decreased 3%.
Underlying EBITDA increased 2.7% in constant currency as revenue growth was partially offset by higher marketing investments.
As of September 30, 2021, we had lowered our net debt to underlying EBITDA ratio to 3.3 times and reduced our net debt to $6.6 billion, down from 3.5 times and $7.5 billion, respectively, as of December 31, 2020.
On July 15, we announced that we had repaid in full the $1 billion, 2.1 senior notes that are maturing that day using a combination of commercial paper and cash on hand.
We ended the third quarter with strong borrowing capacity with approximately $1.5 billion available capacity under our U.S. credit facility.
Also, we expect continued solid progress against our previously discussed emerging gross revenue goal of $1 billion in annual revenue by 2023, against which we continue to track ahead of plan driven by Zoa, La Colombe and Latin America.
We continue to anticipate underlying depreciation and amortization of $800 million, and net interest expense of $270 million, plus or minus 5%.
However, due solely to the discrete tax benefit in the third quarter, we have adjusted our effective tax rate range for 2021 only to 13% to 15% from 20% to 23% previously.
Also, as a reminder, in 2020, our working capital benefited from the deferral of approximately $130 million in tax payments from various government-sponsored payment deferral programs related to the coronavirus pandemic.
As such, we expect to continue to improve our net debt position and reaffirm our target net debt to underlying EBITDA ratio to be approximately 3.25 times by the end of 2021, and below three times by the end of 2022.
And third, on July 15, our Board of Directors determined to reinstate a quarterly dividend on our Class A and Class B common shares and declared a quarterly dividend of $0.34 per share payable on September 17.

Summary:
As Gavin mentioned, we are again reaffirming our key financial annual guidance for 2021.
Consolidated financial volumes declined 3.9%, primarily due to lower brand volumes, which were down 3.6%, largely due to the economy segment, including the economy SKU deprioritization program.
Net sales per hectoliter on a brand volume basis increased 3.6% in constant currency, driven by the strong pricing growth, coupled with positive brand and channel mix.
We continue to anticipate underlying depreciation and amortization of $800 million, and net interest expense of $270 million, plus or minus 5%.