Molson Coors Gains U.S. Co-Production Rights to Fever-Tree Drinks
In a bid to become a total beverage company that caters to both the alcohol- and non-alcohol-partaking consumer, Molson Coors has acquired co-manufacturing and production rights to Fever-Tree products.
Fever-Tree includes a portfolio of products in the premium carbonated drink and mixer category, including tonics, ginger beers, cocktail mixers, and more. The U.K.-based company launched in 2004 and distributes to over 90 countries worldwide.
The partnership means Molson Coors can produce, market, sell, and distribute the brand in the U.S.
The Strategy
The U.S. is the largest global market by revenue for both Molson Coors and Fever-Tree, and this collaboration marks the largest non-alc brand to join the Molson Coors portfolio, according to the company.
“Our customers have been asking for a brand just like Fever-Tree from us, and 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-alc offerings in the U.S.,” said Molson Coors CEO Gavin Hattersley.
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Through the partnership, Molson Coors hopes to expand distribution, grow brand awareness, and scale commercial and supply chain efforts to drive long-term growth in the U.S. market. The deal accounts for an 8.5% stake in Fever-Tree, making Molson Coors its second-largest shareholder.
A ‘Beyond Beer’ Approach
Molson Coors chief commercial officer Michelle St. Jacques said, “Fever-Tree sits at the intersection of beer and non-alc and is often available in stores where beer is sold, so it perfectly complements our Beyond Beer and premiumization strategies, playing in both alcohol occasions and non-alc occasions.”
As part of those strategies, Molson Coors also recently purchased a majority stake in ZOA Energy in November.
The company is also preparing to bring Naked Life, a popular non-alc RTD cocktail brand in Australia, to the U.S. this spring, aligning with a consumer shopping trend in the category as previously highlighted by Molson Coors CEO Gavin Hattersley.
“Consumers, as we've learned in this space … have a little bit of [a] treasure hunt mentality. So, keeping innovation, flavor innovation, in particular, is really important to keep pace with this flavor consumer.”
