Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Fevertree taps Molson Coors with £71m stake sale to fuel US growth

by January 31, 2025
January 31, 2025
Fevertree taps Molson Coors with £71m stake sale to fuel US growth

Premium mixer maker Fevertree has secured a deal with US beverage giant Molson Coors that will see the latter take an 8.5 per cent stake in the British-based company for £71 million, or 654.2p per share.

The move, underpinned by an exclusive licensing agreement, aims to boost Fevertree’s sales, distribution and production footprint across the United States.

Shares in Fevertree, which floated at just 134p in 2014, leapt by 20.2 per cent on Thursday to close at 791p—though this remains far short of the record high of £39.56 set in September 2018. Proceeds from the new stake sale will be returned to Fevertree shareholders through a buyback programme.

Molson Coors, the Chicago-headquartered name behind Carling and Doom Bar, has been broadening its non-alcoholic portfolio in response to declining beer sales, with shipments of US beer last year hitting their lowest levels since the 1990s. “This is a meaningful step towards becoming a total beverage company,” said Gavin Hattersley, Molson Coors’ chief executive, highlighting the opportunity to diversify into premium mixers.

Fevertree founder and CEO Tim Warrillow called the deal a “transformational step”, adding that it reflects growing demand for higher-quality mixers across multiple drink categories in the US, now Fevertree’s biggest market by revenue.

Under the agreement, Molson Coors will leverage its extensive American sales and distribution network, as well as operational scale, to amplify Fevertree’s presence. The new partnership is expected to improve the mixer maker’s cash conversion in the US, reducing working capital needs.

Some analysts, such as Fintan Ryan at Goodbody, believe relinquishing direct operational control could prove a strategic trade-off. However, Matthew Webb of Investec and Anubhav Malhotra at Panmure Liberum suggest that the deal not only unlocks fresh capital returns for Fevertree shareholders but also secures Molson Coors as a potential long-term acquirer of the brand.

Meanwhile, Fevertree reported a modest 1 per cent increase in full-year group revenues to £367.9 million and signalled a likely dip to low single-digit revenue growth in 2025 as it transitions its US operations to Molson Coors.

This tie-up follows other high-profile industry collaborations, including Carlsberg’s recent $4.2 billion purchase of Britvic, the British drinks maker behind Robinsons and J2O, as brewers and beverage groups continue to expand into alternative and soft-drinks markets.

Read more:
Fevertree taps Molson Coors with £71m stake sale to fuel US growth

0
FacebookTwitterGoogle +Pinterest
previous post
OpenAI nears record-breaking $40bn funding deal as valuation doubles
next post
Homebase owes £650m unsecured debt as administration details emerge

You may also like

Monzo Tops Satisfaction Rankings in the UK Banking...

August 15, 2023

Investec and OakNorth embroiled in row over COVID...

October 26, 2023

Swift Partners Up With Chainlink For New Crypto...

June 20, 2023

UK SMEs are the most tech savvy in...

May 12, 2023

UK Wage and Price Growth Set to Slow,...

June 7, 2024

Greggs says sales up by more than fifth...

October 3, 2023

A million UK businesses missing out by not...

April 13, 2023

Secrets of Success: David Davies, Founder and MD...

October 23, 2023

How To Put The Data Your Company Collects...

February 13, 2024

Sky signals end of satellite dishes on homes...

September 28, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • US and China hold London talks to ease trade war tensions

      June 9, 2025
    • British fathers urged to join landmark ‘dad strike’ over poor paternity leave

      June 9, 2025
    • IVF parents should have right to paid fertility leave, says GMB union

      June 9, 2025
    • Reform UK clashes with Bank of England over interest payments to lenders

      June 9, 2025
    • Trump ally stands firm against ‘big, beautiful bill’ despite pressure: ‘It’ll completely backfire’

      June 8, 2025
    • Rubio condemns assassination attempt on Colombian presidential candidate Miguel Uribe

      June 8, 2025

    Categories

    • Business (8,156)
    • Investing (2,019)
    • Politics (15,571)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved