Molson Coors secures exclusive US rights to Fever Tree in £71m deal

Molson Coors has acquired an 8.5% stake in British drinks company Fever Tree in a £71m deal that enables the mixer brand to “unlock growth” across the US.  

 

It comes as the Colorado-based brewer revealed ambitions of broadening its non-alcoholic offering to become a “total-beverage company”.

 

From 1 February, Molson Coors will have exclusive rights to sell, distribute and produce the premium carbonated mixer brand in the US.

 

Fever Tree first entered the US market in 2008 and claims to be the “number one tonic and ginger beer brand” across America.

 

The newly announced partnership will enable Fever Tree to leverage Molson Coors’ national network of distributors and customers across the on- and off-trade.

 

Fever Tree also outlined plans to commence a share buyback programme of £71m following the enhanced cash generation of the business.

 

Tim Warrillow, co-founder and chief executive of Fever Tree, added: “With a national network providing significant scale and muscle, alongside its proven track record, supply chain expertise and clearly stated strategic desire to drive the future of their business beyond beer, Molson Coors is the ideal long-term partner to take the Fever Tree brand to the next level across the US. This partnership will be fuelled by a step change in marketing investment to take advantage of the highly compelling opportunity ahead.”

 

Gavin Hattersley, chief executive of Molson Coors Beverage Company, added: “Our strategic partnership with Fever Tree in the US 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. We’ve made progress here, and today we are building on that progress in a significant way with Fever Tree as the latest and largest non-alcohol brand to join our portfolio.”

 

Michelle St Jacques, chief commercial officer of Molson Coors Beverage Company, added: “Fever Tree sits at the intersection of beer and non-alcohol and is often available in stores where beer is sold, so it perfectly complements our Beyond Beer and premiumisation strategies, playing in both alcohol occasions and non-alcohol occasions. We’re excited to welcome Fever Tree into our portfolio as we work to reach more consumers and unlock growth in new channels and outlets across the US."

 

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