“With a national network, supply chain expertise, and a strong strategic vision beyond beer, Molson Coors is the ideal long-term partner to take Fevertree to the next level in the U.S.,” Warrillow said.
U.S. Expansion and Shareholder Returns
The exclusive license agreement gives Molson Coors control over Fevertree’s sales, distribution, and future production in the U.S.. Fevertree stated that the £71 million proceeds from the share issuance will be returned to shareholders through a buyback program starting in February.
The company’s total revenue for 2024 rose 1% to £368 million ($459 million). However, Fevertree warned that short-term pre-tax profits could dip as it transitions to its new U.S. partnership.
Market Analysts See the Move as a Strong Endorsement
Russ Mould, investment director at AJ Bell, said Molson Coors’ investment is a “big endorsement” of Fevertree’s success in the U.S. market.
“For Molson Coors, shifting consumer habits mean there’s an incentive to diversify its portfolio. Despite Fevertree’s past supply chain challenges, it has built a strong premium mixer brand with lasting appeal,” Mould said.
Legal Counsel and Responses
- Molson Coors and Fevertree did not immediately respond to requests for comment.
- Counsel information for both companies was not immediately available.
The investment signals Molson Coors’ growing ambition in the premium beverage space, as the company positions itself for long-term growth in both alcohol and non-alcoholic markets.
