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Molson Coors Beverage Company has announced a strategic partnership with Fever-Tree in the US, aiming to fuel its premiumisation and ‘Beyond Beer’ strategies.
Through the deal, Molson Coors will assume exclusive commercialisation rights to Fever-Tree’s range of tonics, ginger beers, cocktail mixers and more in the US, starting from 1 February 2025.
Molson Coors will be responsible for co-manufactured production, marketing, sales and distribution of the Fever-Tree brand in the US. The move is a significant step forward in Molson Coors’ ambitions to build a ‘total beverage’ portfolio for a range of consumer preferences across both traditional alcohol occasions and alcohol-free.
As part of the partnership, Molson Coors has also agreed to acquire an 8.5% stake in Fever-Tree for $88.3 million, becoming the company’s second largest shareholder.
Gavin Hattersley, Molson Coors’ CEO, said: “The US 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”.
Molson Coors plans to build on Fever-Tree’s position in the US 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 market.
Michelle St. Jacques, Molson Coors’ chief commercial officer, commented: “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 premiumisation strategies, playing in both alcohol occasions and non-alc occasions”.
Fever-Tree’s CEO, Tim Warrillow, described the partnership as a “transformational step” for Fever-Tree, reflecting the brand’s progress since it first entered the US market in 2008 after being established in the UK in 2004.
He added: “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 [is] the ideal partner to take the Fever-Tree brand to the next level across the US.”