Fevertree Soars After UK Tonic Maker Signs Molson Coors Deal

Fevertree Drinks plc (FEVR.L), the UK-based premium mixer brand, has seen its share price soar following the announcement of a strategic partnership with Molson Coors Beverage Company (TAP.N). The deal, valued at £71 million, gives Molson Coors exclusive commercialization rights to Fever-Tree's U.S. portfolio, alongside an 8.5% equity investment in the UK company.

The partnership, set to commence on February 1, 2025, will see Molson Coors assume responsibility for co-manufactured production, marketing, sales, and distribution of Fever-Tree's award-winning lineup of tonics, ginger beers, cocktail mixers, and more in the U.S. market. In exchange, Fever-Tree will receive a share of the profits from the U.S. operations and a substantial marketing investment to drive brand awareness and category growth.



The strategic partnership is a significant step forward in Molson Coors' ambition to build a total-beverage portfolio for a wide range of consumer preferences across traditional alcohol occasions and non-alc occasions alike. Gavin Hattersley, Molson Coors' Chief Executive Officer, stated, "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."

The partnership is also a transformational step for Fever-Tree, which has consistently built on its first-mover advantage in the U.S. market, becoming the #1 tonic and ginger beer brands nationwide. Tim Warrillow, Fever-Tree's CEO, commented, "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."

The partnership with Molson Coors builds on Fever-Tree's strong recent momentum in the advancement of its Beyond Beer and premiumization strategy. The company has taken a majority stake in ZOA Energy and is preparing to bring Naked Life, Australia's #1 non-alc RTD cocktail, to the U.S. market this spring.

The strategic partnership is subject to customary closing conditions, and both parties have agreed to a substantial marketing investment to be deployed over the initial period of the partnership. Fever-Tree's share price jumped 17% when markets opened on January 30, 2025, reflecting investors' enthusiasm for the deal and its potential to drive long-term growth and shareholder value.