Molson Coors Beverage Company Announces Strategic Partnership With Fever-Tree in U.S.

Rhea-AI Summary

Molson Coors Beverage Company (NYSE: TAP) has announced a strategic partnership with Fever-Tree, securing exclusive U.S. commercialization rights for Fever-Tree's premium mixer portfolio starting February 1, 2025. The deal includes Molson Coors acquiring an 8.5% stake in Fevertree Drinks plc, becoming its second-largest shareholder.

The partnership involves Molson Coors taking responsibility for co-manufactured production, marketing, sales, and distribution of Fever-Tree products in the U.S. market. Fever-Tree, established in 2004, is the #1 tonic and ginger beer brand nationwide and has been voted 'Number One Top Selling Mixer' for 11 consecutive years.

This move aligns with Molson Coors' strategic ambition to build a total-beverage portfolio, following recent expansions including a majority stake in ZOA Energy and plans to launch Naked Life in the U.S. The company aims to leverage its commercial scale and supply chain expertise to expand Fever-Tree's distribution and brand awareness in the U.S. market.

Positive

• Secures exclusive U.S. commercialization rights for premium mixer brand Fever-Tree
• Acquires 8.5% stake in Fevertree Drinks plc, becoming second-largest shareholder
• Expands into high-growth premium mixer segment with #1 tonic and ginger beer brand
• Leverages existing distribution network and supply chain for new revenue stream

Negative

• None.

Insights

Financial Analyst

This strategic partnership marks a pivotal moment in Molson Coors' transformation from a traditional beer company to a comprehensive beverage powerhouse. The acquisition of exclusive U.S. commercialization rights to Fever-Tree, combined with an 8.5% equity stake, positions TAP strategically in the premium mixer segment.

The deal's significance lies in three key aspects: First, it provides immediate access to the fastest-growing segment of the mixer market, where Fever-Tree holds the #1 position in both tonic and ginger beer categories. Second, it leverages Molson Coors' extensive distribution network and supply chain expertise, potentially reducing costs and expanding market reach. Third, it complements recent strategic moves, including the ZOA Energy stake and upcoming Naked Life launch, creating a robust non-alcoholic portfolio.

The financial implications are compelling. Fever-Tree's premium positioning aligns with higher margin opportunities, while the equity stake provides upside potential from the brand's global growth. The U.S. market, being the largest revenue generator for both companies, offers significant scale advantages and operational synergies.

However, investors should monitor execution risks, including potential channel conflicts and the challenge of maintaining Fever-Tree's premium brand positioning within a mass-market distribution system. The success will largely depend on Molson Coors' ability to preserve the brand's premium status while achieving broader market penetration.

Market Research Analyst

This partnership is strategically timed to capitalize on several converging market trends. The premium mixer category has experienced substantial growth, driven by the 'premiumization' of at-home cocktail culture and increasing demand for sophisticated non-alcoholic options. Fever-Tree's position as the #1 tonic and ginger beer brand in the U.S. provides Molson Coors with immediate category leadership.

The deal structure is particularly noteworthy. By securing exclusive commercialization rights while taking an equity stake, Molson Coors gains both operational control and participation in Fever-Tree's broader success. This hybrid approach minimizes risk while maximizing potential returns.

The partnership also addresses shifting consumer preferences. Modern consumers increasingly seek premium experiences and are willing to pay more for quality mixers, a trend accelerated by the rise of home bartending. For Molson Coors, this represents an opportunity to participate in both traditional alcohol occasions and the growing non-alcoholic beverage market.

The timing and structure of this deal, following investments in ZOA Energy and Naked Life, demonstrate a methodical approach to portfolio transformation. These strategic moves position Molson Coors to capture value across multiple beverage categories and consumption occasions, reducing dependence on traditional beer markets.

The deal gives Molson Coors exclusive commercialization rights to Fever-Tree’s U.S. portfolio, alongside an equity investment by Molson Coors into Fevertree Drinks plc

Partnership designed to fuel Molson Coors’ Premiumization and Beyond Beer strategies

CHICAGO--(BUSINESS WIRE)-- Molson Coors Beverage Company ("Molson Coors" or “the company”) (NYSE: TAP, TAP.A) is expanding its U.S. non-alc portfolio through a new strategic partnership with Fevertree Drinks plc (“Fever-Tree”), the world’s leading supplier of premium carbonated drinks and mixers.

(Photo: Business Wire)

Starting February 1, 2025, Molson Coors will assume exclusive commercialization rights to Fever-Tree’s award-winning lineup of tonics, ginger beers, cocktail mixers and more in the U.S. and will be responsible for co-manufactured production, marketing, sales and distribution of the brand in the U.S. The move is a significant step forward in Molson Coors’ strategic ambition to build a total-beverage portfolio for a wide range of consumer preferences across traditional alcohol occasions and non-alc occasions alike.

“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. 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-alc brand to join our portfolio,” Molson Coors Chief Executive Officer Gavin Hattersley said. “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. Our customers have been asking for a brand just like Fever-Tree from us, and by leveraging the scale, strong relationships and expertise of our team at Molson Coors, I’m confident in the road ahead for Fever-Tree as part of Molson Coors’ growing set of non-alc offerings in the U.S.”

Established in the UK in 2004, Fever-Tree has become a proven leader in a high-growth, above premium space. Drinks International voted it the ‘Number One Top Selling Mixer’ and ‘Number One Top Trending Mixer’ for 11 years running, while the New York International Spirits Competition voted it ‘Mixer Brand of the Year’ for four years running. In the U.S., Fever-Tree's largest global market by revenue, the brand has consistently built on its first-mover advantage, and in doing so has become the #1 tonic and ginger beer brands nationwide, per Nielsen [since 2007].

Molson Coors plans to build on the position Fever-Tree has already established in the U.S. by leveraging its core strengths, commercial scale and supply chain expertise to expand distribution, grow brand awareness, and create a solid runway for long-term growth in the U.S. market.

“Fever-Tree is the perfect fit for our growing portfolio of non-alc beverages. The quality is unmatched, the variety is fantastic, and the brand has achieved impressive scale in the U.S. and we believe there is more runway ahead,” Molson Coors Chief Commercial Officer Michelle St. Jacques said. “Fever-Tree sits at the intersection of beer and non-alc and is often available in stores where beer is sold, so it perfectly complements our Beyond Beer and premiumization strategies, playing in both alcohol occasions and non-alc 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 U.S.”

Underpinning the partnership and reflecting Molson Coors’ long-term focus on – and belief in – the opportunity, the company has agreed to acquire an 8.5% stake in Fevertree Drinks plc, resulting in Molson Coors becoming Fever-Tree’s second largest shareholder.

“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,” said Fever-Tree CEO, Tim Warrillow. “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 partnership with Fever-Tree builds on Molson Coors’ strong recent momentum in the advancement of its Beyond Beer and premiumization strategy. The company took a majority stake in ZOA Energy in November 2024 and has since expanded distribution into new accounts and channels. Additionally, Molson Coors is preparing to bring Naked Life, Australia’s #1 non-alc RTD cocktail, to the U.S. this spring.

Molson Coors and Fever-Tree’s strategic partnership is subject to customary closing conditions.

ABOUT MOLSON COORS BEVERAGE COMPANY

For more than two centuries, Molson Coors has brewed beverages that unite people for all life's moments. From our core power brands Coors Light, Miller Lite, Coors Banquet, Molson Canadian, Carling, and Ožujsko to our above premium brands including Madrí Excepcional and Staropramen, Blue Moon Belgium White and Leinekugel’s Summer Shandy, to our economy and value brands like Miller High Life and Keystone Light, Molson Coors produces some of the most beloved and iconic brands. While Molson Coors history is rooted in beer, it offers a modern portfolio that expands beyond the beer aisle as well, including flavored beverages like Vizzy Hard Seltzer, spirits like Five Trail whiskey and non-alcoholic beverages. Molson Coors also has partner brands, such as Simply Spiked, ZOA Energy, among others, trough license, distribution, partnership and joint venture agreements. As a business, our ambition is to be the first choice for our people, our consumers and our customers, and our success depends on our ability to make our products available to meet a wide range of consumer segments and occasions. To learn more about Molson Coors Beverage Company, visit molsoncoors.com.

ABOUT FEVER-TREE

Fever-Tree is the world's leading supplier of premium carbonated mixers for alcoholic spirits by retail sales value, with distribution to over 90 countries worldwide. Based in the UK, the brand was launched in 2005 to provide high quality mixers which could cater to the growing demand for premium spirits, in particular gin, but also increasingly for vodka, rum and whisky. The Company sells a range of carbonated mixers to hotels, restaurants, bars and cafes ("On Trade") as well as selected retail outlets ("Off Trade").

FORWARD LOOKING STATEMENTS

This press release includes “forward-looking statements” within the meaning of the U.S. federal securities laws. Generally, the words "expects," "intend," "goals," "plans," "believes," "continues," "may," "anticipate," "seek," "estimate," "outlook," "trends," "future benefits," "potential," "projects," "strategies," "implies," and variations of such words and similar expressions are intended to identify forward-looking statements. Statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances are forward-looking statements, and include, but are not limited to, statements regarding Molson Coors’ strategy, its expectations regarding premiumizing its portfolio and the anticipated consummation of the strategic partnership and the timing and benefits thereof. Although Molson Coors believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Actual events or results may differ materially from those contained in the forward-looking statements due to risks, uncertainties and assumptions. These risk factors include those detailed in Molson Coors’ public filings with the Securities and Exchange Commission (the “SEC”), including its most recent Annual Report on Form 10-K and subsequent filings with the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Molson Coors does not undertake to update any forward-looking or other statements in this release, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250129464093/en/

Media inquiries

Molson Coors: Rachel Gellman Johnson, Senior Director, Corporate Reputation: rachel.gellmanjohnson@molsoncoors.com

Fever-Tree: Oliver Winters, Director, Communications: oliver.winters@fever-tree.com

Investor inquiries

Molson Coors: Traci Mangini, Vice President, Investor Relations: traci.mangini@molsoncoors.com

Fever-Tree: Ann Morris-Gibbons, Director of Investor Relations: ann.hyams@fever-tree.com

Source: Molson Coors Beverage Company

FAQ

When will Molson Coors (TAP) begin distributing Fever-Tree products in the US?

Molson Coors will begin distributing Fever-Tree products in the U.S. starting February 1, 2025.

What percentage stake did Molson Coors (TAP) acquire in Fever-Tree?

Molson Coors acquired an 8.5% stake in Fevertree Drinks plc, becoming its second-largest shareholder.

What rights does the TAP-Fever-Tree partnership include?

The partnership gives Molson Coors exclusive commercialization rights, including co-manufactured production, marketing, sales, and distribution of Fever-Tree products in the U.S.

How does Fever-Tree fit into Molson Coors' (TAP) business strategy?

Fever-Tree fits into Molson Coors' Beyond Beer and premiumization strategies, helping the company expand its total-beverage portfolio for both alcoholic and non-alcoholic occasions.

What is Fever-Tree's market position in the U.S. mixer category?

Fever-Tree is the #1 tonic and ginger beer brand in the U.S., which is its largest global market by revenue.