Molson Coors is to acquire an 8.5% stake in the Fever-Tree, in a deal giving the beer giant exclusive rights to market the British company's cocktail mixers and tonic water in the United States.
The $88-million deal (€84.4 million) comes months after Carlsberg agreed to buy British soft drinks maker Britvic for $4.2 billion (€4.03 billion) in a move the Danish brewer said would create a UK beverage powerhouse.
Fever-Tree, which generates more than a third of its revenue in the United States, forecast low-single-digit growth for 2025 as the partnership takes effect, double-digit growth in 2026, and a sustained increase in medium-term revenue.
A Game Changer
'Whilst full-year 2025 will be a transition year, the deal is a game changer for Fever-Tree's potential earnings power,' Jefferies analysts said in a note.
The company has been grappling with a hit to volumes in the United States amid higher prices, and has looked to expand 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.
Fever-Tree, known for its cocktail mixers, tonic water, ginger beers, and flavoured sodas, said US revenue grew 12% at constant currency in 2024.
"It looks like an interesting deal for Fever-Tree as it gets to leverage the Molson Coors platform both on production and distribution," analysts at Peel Hunt said in a note.
Fever-Tree, a name derived from the colloquial term for the tree whose bark produces a key ingredient in tonic water, said it would return proceeds from the stake sale to shareholders via a share buyback.
