The recent sale of an 8.5% shareholding in Fever-Tree signifies a strategic alignment between Fever-Tree and Molson Coors. Under this partnership, Molson Coors will take exclusive charge of the sales, distribution, and production of the Fever-Tree brand in the United States.
To maximize this collaboration, Molson Coors plans to utilize its extensive national network of distributors and customers across both the on-trade and off-trade sectors. This robust distribution strategy aims to enhance the accessibility of Fever-Tree products.
In addition, Molson Coors has committed to establishing a “substantial incremental marketing fund” for the initial phase of the partnership. This investment will focus on increasing brand and category awareness, ensuring that Fever-Tree gains further market traction.
The proceeds from the sale will benefit shareholders through a share buyback program scheduled to launch next month. Fever-Tree is currently valued at 654.2p per share, calculated based on its 10-day volume-weighted average price (VWAP).
Fever-Tree’s product line extends beyond tonic water, encompassing a diverse array of premium soft drinks, including soda water and ginger ale.
Tim Warrillow, co-founder and CEO of Fever-Tree, views this partnership as a pivotal milestone for the brand, which he and gin industry expert Charles Rolls launched in London in 2004.
Warrillow expressed, “Thanks to the superb work of our US team, we have seen Fever-Tree become the number one brand in both the tonic and ginger beer categories, a remarkable achievement which has redefined the US mixer category amongst consumers and customers alike.” He further highlighted the exciting potential for growth as the Fever-Tree brand expands within the United States, underscoring “the increasing number of categories and occasions that our products are relevant to.”
Meanwhile, Gavin Hattersley, CEO of Molson Coors, explained that Fever-Tree now stands as the largest non-alcoholic addition to its portfolio, which includes brands like Carling, Coors, Foster’s, and Molson.
Hattersley noted, “Our strategic partnership with Fever-Tree in the US is a meaningful step in Molson Coors’ journey to becoming a total-beverage company with a winning portfolio of drinks for a wide variety of consumer occasions.”
He emphasized the demand from their distributors and customers for a brand like Fever-Tree, stating, “By leveraging the scale, strong relationships and expertise of our team at Molson Coors, I’m confident in the road ahead for Fever-Tree as part of Molson Coors’ growing set of non-alcoholic offerings in the US.”