In This Article:
Molson Coors Beverage Company TAP has signed a deal with Fevertree Drinks plc (Fever-Tree), a global leader in premium carbonated beverages and mixers. The partnership is aimed at broadening its U.S. non-alcoholic portfolio.
Under the deal, Molson Coors will get exclusive commercialization rights for Fever-Tree's products, including tonics, ginger beers, cocktail mixers and other products in the United States. As part of the deal, TAP will manage co-manufactured production, marketing, sales and distribution of Fever-Tree's products in the United States, starting Feb. 1.
Molson Coors Expands Beverage Portfolio With Strategic Investment
This strategic move represents a major milestone in Molson Coors’ ambitious plan to build a comprehensive beverage portfolio that spans traditional alcohol and rapidly growing non-alcoholic segments. As part of this expansion, Molson Coors will acquire an 8.5% stake in Fever-Tree, a leading U.K.-based tonic and mixer manufacturer, for £71 million ($88.3 million) in cash. This investment is a cornerstone of what Fever-Tree has described as a "long-term strategic partnership," positioning both companies for long-term success.
The U.S. market, the largest global revenue generator for both Molson Coors and Fever-Tree, presents a prime opportunity to capitalize on the incredible success Fever-Tree has already achieved. With Molson Coors’ unparalleled scale, strong industry relationships and expertise, both companies are poised to drive substantial growth in the rapidly expanding non-alcoholic beverage space.
Founded in 2004, Fever-Tree has solidified its position as the dominant leader in the high-growth, above-premium mixer space, consistently recognized as the top-selling and top-trending mixer for 11 consecutive years. Its market leadership and strong brand reputation make it an ideal fit for Molson Coors’ growing non-alcoholic portfolio.
Molson Coors views Fever-Tree as a perfect complement to its Beyond Beer and premiumization strategies, creating significant growth potential across alcohol and non-alcohol occasions in the United States. The brand’s quality, variety and scale provide significant growth opportunities across alcohol and non-alcohol occasions in the United States. This partnership underpins Molson Coors’ commitment to becoming a major player in the total beverage space, ensuring long-term success across diverse consumer preferences.
More Insights Into TAP
Molson Coors is one of the largest brewers in the world and boasts a strong portfolio of well-established brands. The company remains committed to growing its market share through innovation and premiumization. To accelerate portfolio premiumization, the company has been aggressively growing its above-premium portfolio for the past few years.
The company is prioritizing the stabilization of some of its larger above-premium brands in the United States while exploring significant growth opportunities for key brands. Combining these efforts, the company remains confident in its ability to achieve global premiumization objectives, leveraging strong brand positioning and innovation.
Shares of this Zacks Rank #4 (Sell) company have gained 4.6% in the past six months against the industry’s decline of 15.3%.