Fevertree Drinks Shares Surge on Long-Term Strategic Partnership with Molson Coors

Fevertree Drinks (LON: FEVR) shares jumped Thursday after the company announced a long-term strategic partnership with Molson Coors, one of the world’s largest beverage companies, to accelerate its growth in the US market. 

The news sent Fevertree shares more than 20% higher as investors welcomed the deal’s potential impact. The stock is currently up over 16%, trading at 764.5p, its highest level since October 2024.

As part of the agreement, Molson Coors will acquire an 8.5% stake in Fevertree for £71 million, with proceeds set to be returned to shareholders through a buyback programme beginning in February 2025.

The partnership will see Molson Coors take over exclusive sales, distribution, and production of Fevertree’s premium mixers in the US. The company will leverage its extensive national network, marketing expertise, and supply chain capabilities. 

Fevertree CEO Tim Warrillow called the partnership a “transformational step” for the brand in the US, adding, “Molson Coors are the ideal long-term partner to take the Fever-Tree brand to the next level across the US. This partnership will be fuelled by a step change in marketing investment to take advantage of the highly compelling opportunity ahead.”

Molson Coors CEO Gavin Hattersley highlighted the move as part of the company’s total-beverage strategy, stating, “Our distributors and customers have been asking for a brand like Fevertree.”

With local U.S. production planned, the companies aim to expand Fevertree’s footprint across both alcohol and non-alcohol occasions.