Molson Coors Beverage Company TAP has signed a deal with Fevertree Drinks plc (Fever-Tree), a global leader in premium carbonated beverages and mixers. The partnership is aimed at broadening its U.S. non-alcoholic portfolio.
Under the deal, Molson Coors will get exclusive commercialization rights for Fever-Tree's products, including tonics, ginger beers, cocktail mixers and other products in the United States. As part of the deal, TAP will manage co-manufactured production, marketing, sales and distribution of Fever-Tree's products in the United States, starting Feb. 1.
Molson Coors Expands Beverage Portfolio With Strategic Investment
This strategic move represents a major milestone in Molson Coors’ ambitious plan to build a comprehensive beverage portfolio that spans traditional alcohol and rapidly growing non-alcoholic segments. As part of this expansion, Molson Coors will acquire an 8.5% stake in Fever-Tree, a leading U.K.-based tonic and mixer manufacturer, for £71 million ($88.3 million) in cash. This investment is a cornerstone of what Fever-Tree has described as a "long-term strategic partnership," positioning both companies for long-term success.
The U.S. market, the largest global revenue generator for both Molson Coors and Fever-Tree, presents a prime opportunity to capitalize on the incredible success Fever-Tree has already achieved. With Molson Coors’ unparalleled scale, strong industry relationships and expertise, both companies are poised to drive substantial growth in the rapidly expanding non-alcoholic beverage space.
Founded in 2004, Fever-Tree has solidified its position as the dominant leader in the high-growth, above-premium mixer space, consistently recognized as the top-selling and top-trending mixer for 11 consecutive years. Its market leadership and strong brand reputation make it an ideal fit for Molson Coors’ growing non-alcoholic portfolio.
Molson Coors views Fever-Tree as a perfect complement to its Beyond Beer and premiumization strategies, creating significant growth potential across alcohol and non-alcohol occasions in the United States. The brand’s quality, variety and scale provide significant growth opportunities across alcohol and non-alcohol occasions in the United States. This partnership underpins Molson Coors’ commitment to becoming a major player in the total beverage space, ensuring long-term success across diverse consumer preferences.
More Insights Into TAP
Molson Coors is one of the largest brewers in the world and boasts a strong portfolio of well-established brands. The company remains committed to growing its market share through innovation and premiumization. To accelerate portfolio premiumization, the company has been aggressively growing its above-premium portfolio for the past few years.
The company is prioritizing the stabilization of some of its larger above-premium brands in the United States while exploring significant growth opportunities for key brands. Combining these efforts, the company remains confident in its ability to achieve global premiumization objectives, leveraging strong brand positioning and innovation.
Shares of this Zacks Rank #4 (Sell) company have gained 4.6% in the past six months against the industry’s decline of 15.3%.
TAP Stock's Past Six Months Performance
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Key Picks
We highlighted some better-ranked stocks from the broader Consumer Staples space, namely Freshpet, Inc. FRPT, Vita Coco Company COCO and The Boston Beer Company SAM.
Freshpet, together with its subsidiaries, manufactures, distributes and markets natural fresh meals and treats for dogs and cats and currently sports a Zacks Rank #1 (Strong Buy). FRPT delivered an earnings surprise of 144.5% in the last reported quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Freshpet’s current fiscal year’s sales and earnings implies growth of 27.2% and 228.6%, respectively, from the year-ago reported number.
Vita Coco develops, markets and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. The company currently has a Zacks Rank of 2 (Buy). COCO has a trailing four-quarter earnings surprise of 17.6%, on average.
The Zacks Consensus Estimate for COCO’s current financial-year sales and earnings suggests growth of 3.8% and 29.7%, respectively, from the year-ago reported figures.
Boston Beer is one of the largest craft brewers in the United States. The company produces beer, malt beverages and cider products at company-owned breweries and under contract. Boston Beer currently has a Zacks Rank #2.
The Zacks Consensus Estimate for the company’s 2025 earnings implies growth of 35.3% from the previous year’s reported number. SAM has a trailing four-quarter average earnings surprise of 154.6%.
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Free: See Our Top Stock And 4 Runners UpVita Coco Company, Inc. (COCO) : Free Stock Analysis Report
Molson Coors Beverage Company (TAP) : Free Stock Analysis Report
Freshpet, Inc. (FRPT) : Free Stock Analysis Report
The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report
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