On Thursday, Molson Coors announced a new strategic partnership with Fever-Tree in the U.S. set to begin on February 1.
According to a press release, Molson Coors will acquire an 8.5 percent stake in the U.K.-based non-alcoholic drinks brand as well as exclusive commercialization rights to Fever-Tree’s U.S. portfolio, which includes both carbonated drinks and cocktail mixers. Molson Coors states that the $88.3 million deal will allow it to bolster its Beyond Beer portfolio and support its premiumization strategy.
“Our strategic partnership with Fever-Tree in the U.S. is a meaningful step in Molson Coors’ journey to becoming a total-beverage company with a winning portfolio of drinks for a wide variety of consumer occasions,” Molson Coors CEO Gavin Hattersley said in the release. “The U.S. is our biggest global market by revenue, and the same is true for Fever-Tree, so we believe this partnership provides ample opportunity for our teams to build on the strong success Fever-Tree has achieved to date.”
As per the deal, Molson Coors will take the reins of Fever-Tree’s U.S. production, sales, marketing, and distribution. With the beverage conglomerate’s vast distribution network and production capabilities, Fever-Tree hopes to lay the groundwork for continued U.S. growth through this new partnership.
“Today’s announcement marks a transformational step for the Fever-Tree brand in the US and is not only a reflection of how far we have come since first entering the market in 2008 but also how the opportunity ahead for the brand continues to grow,” Fever-Tree CEO Tim Warrillow remarked in the release. “With a national network providing scale and muscle, proven track record, supply chain expertise and clearly stated strategic desire to drive the future of their business beyond beer, Molson Coors are the ideal partner to take the Fever-Tree brand to the next level across the US.”
The news arrives amidst several moves from Molson Coors to expand its non-alc portfolio. In November 2024, the company acquired a majority stake in energy drink brand ZOA Energy. Additionally, the Chicago-based conglomerate is planning to bring Naked Life, an Australian non-alc RTD brand, to the U.S. this spring, according to the release.
After news of the deal broke early this morning, shares of Fevertree Drinks PLC (the company’s trading name) jumped nearly 24 percent.
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