Molson Coors has announced it is expanding its non-alc portfolio in the United States through a new strategic partnership with Fever-Tree that sees it take a major stake in the company.

Molson Coors has assumed exclusive commercialisation rights to Fever-Tree’s tonics, ginger beers, cocktail mixers and more in the US and will be responsible for co-manufactured production, marketing, sales and distribution of the brand in the US.

The move follows Molson Coors announcing that it will bring Naked Life, Australia’s number one non-alc RTD cocktail, to the US later this year.

“Our strategic partnership with Fever-Tree in the US is a meaningful step in Molson Coors’ journey to becoming a total-beverage company with a winning portfolio of drinks for a wide variety of consumer occasions,” Molson Coors Chief Executive Officer Gavin Hattersley said.

“The US is our biggest global market by revenue, and the same is true for Fever-Tree, so we believe this partnership provides ample opportunity for our teams to build on the strong success Fever-Tree has achieved to date. 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 US.”

Drinks International has voted Fever-Tree the ‘Number One Top Selling Mixer’ and ‘Number One Top Trending Mixer’ for 11 years running, while the New York International Spirits Competition voted it ‘Mixer Brand of the Year’ for four years running. In the US, Fever-Tree’s largest global market by revenue, the brand has consistently built on its first-mover advantage, and in doing so has become the number one tonic and ginger beer brands nationwide, per Nielsen [since 2007].

Molson Coors said it plans to build on the position Fever-Tree has already established in the US by leveraging its core strengths, commercial scale and supply chain expertise to expand distribution, grow brand awareness and “create a solid runway for long-term growth in the US market”.

“Fever-Tree is the perfect fit for our growing portfolio of non-alc beverages. The quality is unmatched, the variety is fantastic, and the brand has achieved impressive scale in the US and we believe there is more runway ahead,” 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. We’re excited to welcome Fever-Tree into our portfolio as we work to reach more consumers and unlock growth in new channels and outlets across the US.”

Underpinning the partnership, the company has agreed to acquire an 8.5% stake in Fevertree Drinks plc, resulting in Molson Coors becoming Fever-Tree’s second largest shareholder.

“Today’s announcement marks a transformational step for the Fever-Tree brand in the US and is not only a reflection of how far we have come since first entering the market in 2008 but also how the opportunity ahead for the brand continues to grow,” said Fever-Tree CEO Tim Warrillow.

“With a national network providing scale and muscle, proven track record, supply chain expertise and clearly stated strategic desire to drive the future of their business beyond beer, Molson Coors are the ideal partner to take the Fever-Tree brand to the next level across the US.”