Molson Coors has acquired an 8.5% stake in British drinks company Fever-Tree in a £71m deal, aiming to help the mixer brand 'unlock growth' across the US.
The deal comes as Molson Coors, the Colorado-based brewer, aims to broaden its non-alcoholic offering and position itself as a “total-beverage company”.
Starting 1 February, Molson Coors will have the exclusive rights to sell, distribute, and produce Fever-Tree products in the US. This move is part of a broader strategy by Molson Coors to expand its non-alcoholic and beverage portfolio.
Fever-Tree first entered the US market in 2008 and has since become the “number one tonic and ginger beer brand” in America.
The partnership between Fever-Tree and Molson Coors will allow Fever-Tree to leverage Molson Coors’ extensive national distribution network and customer base, covering both on-trade and off-trade.
As part of the Fever-Tree’s strategic move, the company has announced plans to initiate a share buyback programme worth £71m.
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.'
