Molson Coors expands non-alcoholic portfolio with exclusive Fever-Tree partnership in U.S.

Molson Coors Beverage Company has announced a landmark partnership with Fevertree Drinks plc, securing exclusive commercialization rights to Fever-Tree’s U.S. portfolio. The agreement, set to take effect on February 1, 2025, is a significant step in Molson Coors’ strategy to expand its presence in the premium mixer market and diversify beyond traditional beer offerings. Under the deal, Molson Coors will take full responsibility for the marketing, sales, distribution, and co-manufacturing of Fever-Tree’s premium carbonated mixers in the United States. Additionally, the company has acquired an 8.5% equity stake in Fevertree Drinks plc, becoming its second-largest shareholder.

The partnership aligns with Molson Coors’ broader objective to establish a dominant position in the non-alcoholic beverage market. Fever-Tree, a globally recognized leader in premium mixers, has built a strong foothold in the U.S., and this collaboration provides an opportunity for both companies to accelerate growth in a high-demand segment.

Why Is Molson Coors Investing in the Premium Mixer Market?

The global premium mixer market has experienced rapid expansion, driven by increasing consumer demand for high-quality cocktail mixers and the rising popularity of premium spirits. Fever-Tree, widely regarded as the number one tonic and ginger beer brand in the U.S., has benefited from this shift as more consumers prioritize high-end beverage options.

Molson Coors CEO Gavin Hattersley emphasized that this partnership is a pivotal move for the company’s Beyond Beer expansion, allowing it to capitalize on changing consumer preferences. He noted that the U.S. is the largest market by revenue for both Molson Coors and Fever-Tree, making the partnership an ideal fit for both brands. He also highlighted that by leveraging Molson Coors’ commercial scale, strong retail relationships, and distribution expertise, the company can amplify Fever-Tree’s growth and further solidify its leadership in the non-alcoholic beverage market.

The decision to invest in Fever-Tree aligns with Molson Coors’ commitment to premiumization, a strategy focused on offering high-quality, aspirational beverage options that appeal to evolving consumer tastes. Fever-Tree’s premium mixers have already secured a strong presence in bars, restaurants, and retail outlets, and the partnership is expected to enhance accessibility and distribution across the U.S.

How Will the Fever-Tree Partnership Strengthen Molson Coors’ Portfolio?

Fever-Tree has established itself as a leader in the premium mixer market, consistently earning industry recognition for its high-quality ingredients and superior taste. The brand has been voted the Number One Top-Selling Mixer and Top-Trending Mixer by Drinks International for 11 consecutive years and was named Mixer Brand of the Year by the New York International Spirits Competition for four years in a row. Fever-Tree’s strong market presence in the U.S. positions it as a key asset in Molson Coors’ expansion strategy.

With Molson Coors’ extensive retail and distribution capabilities, Fever-Tree is expected to benefit from increased availability in both on-premise and off-premise locations, making its products more accessible to a broader audience. The ability to integrate Fever-Tree’s premium mixers into existing sales channels will also allow Molson Coors to strengthen its presence in premium and non-alcoholic beverage categories.

Molson Coors’ Chief Commercial Officer Michelle St. Jacques highlighted how Fever-Tree aligns with the company’s long-term vision. She pointed out that Fever-Tree sits at the intersection of beer and non-alc, making it an ideal complement to Molson Coors’ growing beverage portfolio. She added that Fever-Tree’s placement in retail locations that already sell beer creates an opportunity for cross-category growth, allowing Molson Coors to target both alcoholic and non-alcoholic beverage consumers.

How Does This Deal Fit Into Molson Coors’ Beyond Beer Strategy?

Molson Coors has been steadily diversifying its beverage portfolio, expanding beyond beer to establish a stronger foothold in non-alcoholic and premium beverage categories. The company’s investment in Fever-Tree follows several strategic initiatives designed to enhance its presence in the broader beverage market. In November 2024, Molson Coors acquired a majority stake in ZOA Energy, strengthening its position in the fast-growing functional beverage sector. The company has also announced plans to bring Naked Life, Australia‘s top-selling non-alcoholic RTD cocktail brand, to the U.S. market.

The Fever-Tree deal represents Molson Coors’ largest investment in the premium mixer market to date. By aligning with a brand that has already achieved significant success in the U.S., Molson Coors is positioning itself to capture a larger share of the non-alcoholic beverage market and reinforce its reputation as a leading total-beverage company.

What Can Consumers Expect From the Molson Coors-Fever-Tree Partnership?

For consumers, the partnership is expected to result in greater accessibility to Fever-Tree’s premium mixers, particularly in supermarkets, liquor stores, and hospitality venues. Molson Coors’ well-established retail network will provide Fever-Tree with expanded shelf space and increased visibility, making it easier for consumers to find and purchase their favorite mixers.

Fever-Tree CEO Tim Warrillow emphasized that this partnership marks a transformational moment for the brand in the U.S. He noted that Molson Coors’ extensive national network, supply chain expertise, and commitment to expanding beyond beer make it the ideal partner to drive Fever-Tree’s next phase of growth. He added that Fever-Tree has come a long way since first entering the U.S. market in 2008 and that the opportunity for continued expansion remains strong.

By leveraging Molson Coors’ marketing and distribution capabilities, Fever-Tree is expected to reach new audiences and increase its market penetration. The collaboration is also likely to introduce Fever-Tree to new retail formats and sales channels, creating additional opportunities for brand growth.

What’s Next for Molson Coors and Fever-Tree?

Pending customary closing conditions, the Molson Coors-Fever-Tree partnership will officially take effect on February 1, 2025. Industry analysts predict that the collaboration will reshape the premium mixer market, with Molson Coors utilizing its logistical expertise and established retail partnerships to drive Fever-Tree’s success.

As consumer preferences continue shifting toward premium and non-alcoholic beverages, this partnership signals Molson Coors’ commitment to leading the transformation of the beverage industry. By expanding its portfolio to include Fever-Tree, the company is reinforcing its long-term strategy of providing diverse and innovative drink options that align with changing consumer demands.