Molson Coors Acquires 8.5% Stake in Fevertree Drinks to Expand Non-Alcoholic Beverage Portfolio
Molson Coors, the brewer behind Coors Light beer, has acquired an 8.5% stake in Fevertree Drinks, a British producer of cocktail mixers and lightly flavored sodas.
The deal, valued at £71 million ($88.3 million), is part of Molson Coors' strategy to bolster its non-alcoholic beverage offerings in the United States. Fevertree's strong presence in the U.S., its largest market by revenue, is expected to drive growth for Molson Coors in this segment.
Fevertree intends to distribute the proceeds from the stake sale to shareholders through a share buyback program commencing next month.
Molson Coors has struggled with declining volumes in the U.S. due to rising prices. The Fevertree acquisition aims to mitigate this by providing access to a growing and profitable product line.
To acquire the stake, Molson Coors will issue approximately 10.9 million new shares at a price of 654.2 pence per share.