Molson Coors buys minority stake in Fever-Tree mixers

Dive Brief:

• Molson Coors is acquiring an 8.5% stake in Fever-Tree, a maker of nonalcoholic carbonated mixers. The beer giant is paying $89 million, according to a TD Cowen note to investors.
• Gavin Hattersley, Molson’s CEO, said the purchase furthers its goal of “becoming a total-beverage company with a winning portfolio of drinks for a wide variety of consumer occasions.”
• Molson Coors will co-manufacture the brand’s products and handle sales, marketing and distribution in the U.S. The Coors Light brewer said it will build awareness for Fever-Tree in the U.S. and expand its scale through its large distribution network.

Dive Insight:

As sales of traditional beer decline, giants in the space are diversifying their portfolios to increase sales and accelerate growth within their businesses.

Fever-Tree, founded in 2004 in the U.K., has emerged as one of the best-selling mixer brands in the U.S., with products such as Elderflower Tonic Water, Ginger Beer and Sparkling Pink Grapefruit. Molson Coors is now Fever-Tree’s second-largest shareholder, according to the press release.

“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,” said Michelle St. Jacques, Molson Coors’ chief commercial officer.

Molson Coors has prioritized building out its “Beyond Beer” strategy under Hattersley. This has included growing its presence in premium spirits like whiskey along with ready-to-drink cocktails aimed at younger consumers. Last fall, the company deepened its presence in energy drinks, buying a majority stake in Dwayne Johnson’s Zoa.

In a note to investors, TD Cowen analyst Robert Moskow said the partnership could help Molson Coors realize its potential as it expands its reach beyond beer into premium beverages. It could also result in more opportunities in the RTD category, he added.

Fever-Tree competes with other nonalcoholic mixers designed to complement spirits, including Q Mixers and Coca-Cola’s Topo-Chico Mixers. The cocktail mixer market was valued at $11.9 billion in 2024, and is projected to grow at a compound annual growth rate of 6.8% through 2030, according to Grand View Research.