In a significant move to expand its non-alcoholic portfolio. Molson Coors Beverage Company has announced a strategic partnership with Fevertree Drinks. This deal grants Molson Coors exclusive rights to distribute Fevertree’s premium mixers, tonic waters, and ginger beers across the United States. To solidify the alliance, Molson Coors is making a £71 million (approximately $88 million) investment in Fevertree. Acquiring an 8.5% stake in the UK-based company.
This partnership comes as Molson Coors, known for iconic beer brands like Miller Lite, Foster’s, and Carling. Seeks to diversify its offerings and capitalize on the growing popularity of non-alcoholic beverages. The company has faced challenges in recent years due to declining beer volumes and increasing prices. This has led them to explore new avenues for growth, including a recent investment in ZOA Energy. A beverage company co-founded by Dwayne “The Rock” Johnson.
A “Game Changer” for Fevertree
For Fevertree, this partnership represents a significant opportunity to expand its presence in the lucrative US market. The company, which already generates over a third of its revenue in the US, anticipates a substantial boost from Molson Coors’ extensive distribution network and marketing expertise.
Fevertree anticipates low-single-digit revenue growth in 2025, marking a transitional year.Followed by double-digit growth in 2026 and a sustained uplift in the medium term. Analysts at Jefferies have hailed the deal as a “game changer” for Fevertree’s earnings potential. Furthermore, the company’s strong performance in 2024 reinforces this positive outlook, as US revenue grew by 12% at constant currency.
Fevertree, whose name originates from the colloquial term for the cinchona tree (the source of quinine, a key ingredient in tonic water). Plans to return proceeds from the Molson Coors investment to shareholders through a share buyback program.
This strategic partnership leverages the strengths of both companies. Molson Coors gains access to a portfolio of premium non-alcoholic beverages that are perfectly positioned to complement its existing offerings. Fevertree, in turn, gains a powerful distribution partner to accelerate its growth in the US market. This win-win scenario is expected to drive significant value for both companies in the years to come.
