Molson Coors Beverage Co. announced Thursday that it has acquired an 8.5% stake in Fevertree Drinks PLC, the British premium mixer brand, for £71 million ($88 million). The deal is part of Molson Coors’ strategy to diversify beyond beer and expand Fevertree’s presence in the U.S. market.
Under the agreement, Molson Coors will acquire 10.8 million new shares in Fevertree at 654.2 pence per share in an all-cash transaction. The exclusive licensing deal will begin Feb. 1, with shares expected to be admitted to the Alternative Investment Market (AIM) of the London Stock Exchange on Feb. 5.
Molson Coors Sees Fevertree as Strategic Fit
Michelle St. Jacques, Molson Coors’ chief commercial officer, called Fevertree a “perfect fit” for the company’s growing non-alcoholic beverage portfolio.
“Fevertree sits at the intersection of beer and non-alcohol, and is often available in stores where beer is sold. It perfectly complements our alcohol and non-alcohol strategies,” St. Jacques said.
The U.S. has become Fevertree’s largest market, surpassing the U.K. The British brand entered the American market in 2008 and generated £60.3 million ($75 million) in revenue from North America for the first half of 2024, compared to £50.9 million ($63 million) in the U.K.
Fevertree CEO Calls Deal ‘Transformational’
Fevertree’s co-founder and CEO, Tim Warrillow, described the agreement as a “transformational step” for the brand’s growth in the U.S.
