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Premium mixer manufacturer Fevertree has announced a groundbreaking partnership with American beverage giant Molson Coors, marking a significant shift in its US market strategy. The deal, valued at £71 million, will see Molson Coors acquire an 8.5 per cent stake in the British tonic maker at 654.2p per share.
The exclusive licence agreement encompasses sales, distribution, and future production of Fevertree’s products across the United States, which has recently emerged as the company’s largest market. The partnership arrives as Molson Coors seeks to diversify beyond its traditional beer portfolio, responding to declining beer consumption trends in the American market.
Shares in Fevertree responded positively to the announcement, surging 20.2 per cent to close at 791p, though still notably below their historic peak of £39.56 achieved in September 2018. The London-listed company plans to return the proceeds to shareholders through a share buyback programme.
Tim Warrillow, Fevertree’s chief executive, characterised the partnership as “transformational,” highlighting the expanding opportunities in the US market. The company’s total group revenues showed modest growth of 1 per cent, reaching £367.9 million for the year ending December 31.
Industry analysts have offered mixed reactions to the deal. While Investec’s Matthew Webb emphasised the partnership’s potential to transform Fevertree’s US prospects, Goodbody’s Fintan Ryan cautioned about the company’s reduced control over its largest market. Panmure Liberum analyst Anubhav Malhotra suggested the stake purchase could position Molson Coors as a potential future acquirer.
The strategic alliance follows a broader industry trend of beverage company consolidation, coming months after Carlsberg’s £3.3 billion acquisition of Britvic. Fevertree has forecast low single-digit revenue growth for 2025 as the partnership takes effect, acknowledging potential short-term adjustments during the transition period.
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