Molson Coors is investing £88 million in Fevertree Drinks in a deal that will give the beer giant exclusive rights to market the UK firm’s cocktail mixers, tonic waters and ginger beers in the US.
The maker of Miller Lite, Foster’s and Carling beers will take an 8.5% stake as it looks to expand its portfolio of non-alcoholic drinks, the company announced on Thursday.
Fevertree’s shares surged almost 24% following the news, while Molson Coors saw a 0.5% lift in pre-market trading.
Molson Coors’ stake purchase was executed at 654.2 pence each.
The company has been grappling with a hit to volumes in the US amid higher prices, and thus it has looked to expand its offering beyond alcoholic beverages.
In November, it forecast lower full-year sales and said it would buy a majority stake in ZOA Energy, a drinks company co-founded by Hollywood actor Dwayne ‘The Rock’ Johnson.
Fevertree, which generates more than a third of its revenue in the US, forecast low-single-digit revenue growth for 2025 as the partnership takes effect, double-digit growth in 2026, and a “sustained uplift” in medium-term revenue.
In a note, Jefferies analysts said, “Whilst full-year 2025 will be a transition year, the deal is a gamechanger for Fevertree’s potential earnings power.”
Fevertree’s US revenue grew 12% at constant currency in 2024, it said.
Fevertree – a name derived from the colloquial term for the tree whose bark produces a key ingredient in tonic water – said it will return proceeds from the stake sale to shareholders via a share buyback.
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