don't give the shorters your stock peeps |
Yes, nice to see the DD, also bod are showing confidence in growth issuing buybacks at the inflated rate following the partnership. |
Good to Director buying |
if i am being honest - it strikes me UK invstors have no balls. if the US was such a great opportunity -investors should have been willing to fund it. Now it is less capital light and de risked - they want to own the stock. I will hold mine as we will bounce to sensible levels but the true blue sky valuation has gone to the yanks |
Directors loading up. First buys in a year. Taken an opening position here.
- Domenic De Lorenzo, Non-Executive Chairman, purchased 8,872 ordinary shares in the Company at a price of £7.85 per share;
- Andy Branchflower, Chief Financial Officer and Executive Director, purchased 31,688 ordinary shares in the Company at a price of £7.85 per share; and
- Kevin Havelock, Senior Independent Non-Executive Director, purchased 122,492 ordinary shares in the Company at an average price of £7.71 per share. |
"the Coors Light-to-Carling brewer will take over Fevertree’s US operations, while Fevertree will receive a share of the profits of the US operations as a royalty, which should materially improve over time. Historically, Fevertree’s growth in the US has required significant working capital investment, but this cost will now all be on Molson Coors’ books."
investors
An hour after US market opened, shares in Molson Coors (NYSE:TAP) are up around 1% on news of the deal - which maybe suggests the market regards FEVR as being the far bigger beneficiary. |
Connor Clark have 0.5% short to close and are a USA based fund, so would expect they wake up and want to cover, JP Morgan UK fund have 0.95% short to cover in total £10m cash value to close. |
This deal is similar to what Pepsi struck with energy drink Celsius in the USA about 2 years agoCelsius ( CELH) shares took off The booster to that deal and hopefully this was access to the distribution network and the subsequent huge uplift in sales.Clearly energy drinks and tonic are not the same thing but nevertheless this is an excellent way to get the product around the USAPepsi also took a stake in CELH in their deal. From memory it might even have been the same % acquired! |
Should press towards the EMA200 832p today. |
https://x.com/tradingfloorai/status/1884881613684707766?s=46 |
Excellent deal IMO, should start to see the benefits in FY26.Not holding atm |
Perfect deal for Molson Coors. The world's third biggest brewer. Way more significant than their last non-alc tie-up (acquisition of ZOA Energy Drinks 10 weeks ago). Shareholders have been wanting the company to find a way of competing with Fever-Tree in that non-alc/alc-linked sector in the US. Don't need to now.
Away from the non-alcs mission, I reckon their spirits wing, which has only been running a couple of years and is mainly whisky, might want a gin brand next (in addition to their Tarquin's brand). |
So, they take in £70m at 654p and will then use it to buy back shares now valued at 20% higher. So, £14m just evaporated.
Seems like a great deal!!! |
Sizzling Smoky flavour, shorts:
Disclosed short positions in Fevertree Drinks (FEVR)
Fund % short change Date changed
Connor, Clark & Lunn Investment Management Ltd 0.50% 0.0% 6 Dec 2024
JPMorgan Asset Management (UK) Ltd 0.95% -0.05% 16 Dec 2024
Total 1.45% |
They did well to keep that quiet. |
Interesting short squeeze unfolding |
Jpm short - suspect he spat out his corn flakes |
Market seems to think otherwise so far, up 18%! |
@sweetstocksblog
Fevertree's Molson Coors deal looks poor
* issuing shares at lowest price in 10yrs, not the long-hoped-for big premium
* FEVR itself paying upfront towards extra marketing
* big profit warning for 2025, with jam from 2027 on?
Was no better deal on offer? |
looks a good move and a buy back using the £71m.??
Where are the shares coming from for the stake?
New or treasury shares?
Looks a good deal for shareholders.
I expect a rise today
tiger |
Yes. Nice ISA addition for sure.imo |
On shoring of production will navigate potential tariff issues..Could 650 pence be the floor now with the dilution then buyback to come..The start of a road to recovery of the share price .? |
Good to see, quite a decent thing for FEVR Mgt to do. |
Is this a way for companies to sidestep the threat of Trumps Tariffs?
Will we see other UK co's forming partnerships of this nature? |
 Fever-Tree announces a Strategic Partnership with Molson Coors to drive the next stage of growth in the US
Underpinning the partnership and reflecting its long-term focus and belief in the opportunity, Molson Coors will acquire an 8.5% shareholding in Fevertree Drinks plc. The proceeds of the issue will be returned to shareholders via a share buyback programme of £71.0m, beginning in February 2025.
Fever-Tree, the world's leading supplier of premium carbonated mixers and Molson Coors, one of the world's largest beverage companies, are pleased to announce that they have entered into a long-term strategic partnership for the exclusive sales, distribution and production of the Fever-Tree brand in the US.
Since first entering the US market in 2008, Fever-Tree has consistently delivered very strong growth in the US and has become the number one tonic and ginger beer brand across America. The market leading position that Fever-Tree has built, combined with Molson Coors' expertise, scale and total beverage ambition, provides a transformational platform to drive the brand to the next level in its largest and most dynamic market.
The strategic benefits of the partnership include:
· Strategic Alignment: Fever-Tree and Molson Coors have a shared vision, belief and commitment to driving the brand's expanding opportunity across alcohol and non-alcohol occasions.
· Scale and Platform: Ability to leverage Molson Coors' national network of US distributors and customers across the On- and Off-Trade as well as the scale and strength of their dedicated sales and commercial teams, to maximise Fever-Tree's momentum, brand strength and ability to grow its total addressable market.
· Step Change in Investment: A substantial incremental marketing fund will be deployed across the initial period of the partnership providing the firepower to drive further brand and category awareness.
· Local US production: Partnership will capitalise on Molson Coors' broad supply chain network, procurement strength and expertise to drive operational efficiencies, as well as managing the onshoring of US production.
Equity Investment and Buyback
Underpinning the partnership and reflecting its long-term focus and belief in the opportunity, Molson Coors will acquire an 8.5% shareholding in Fevertree Drinks plc (post-issue) for cash consideration of £71.0m (654.2 pence per share based on the 10-day VWAP).
In addition, Fever-Tree today announces its intention to commence a share buyback programme of £71.0m, beginning in February 2025. Due to the enhanced cash generation of the business under the strategic partnership, we remain mindful of our capital allocation framework and will consider the opportunity for further shareholder returns beyond this initial buyback programme.
Commenting on the new partnership, Tim Warrillow, co-founder and CEO of Fever-Tree, said:
"Today's announcement marks a transformational step for the Fever-Tree brand in the US. Thanks to the superb work of our US team, we have seen Fever-Tree become the number one brand in both the tonic and ginger beer categories, a remarkable achievement which has redefined the US mixer category amongst consumers and customers alike.
But what is so exciting is that as the Fever-Tree brand has grown in the US, so has the opportunity ahead of us, reflecting the increasing number of categories and occasions that our products are relevant to.
With a national network providing significant scale and muscle, alongside its 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 long-term partner to take the Fever-Tree brand to the next level across the US. This partnership will be fuelled by a step change in marketing investment to take advantage of the highly compelling opportunity ahead."
Commenting on the new partnership, Gavin Hattersley, Chief Executive Officer of Molson Coors Beverage Company:
"Our strategic partnership with Fever-Tree in the U.S. 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. We've made progress here, and today we are building on that progress in a significant way with Fever-Tree as the latest and largest non-alc brand to join our portfolio.
The U.S. 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 distributors and 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 U.S."
Commenting on the new partnership, Michelle St. Jacques, Chief Commercial Officer of Molson Coors Beverage Company, Americas:
"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 U.S. and we believe there is more runway ahead.
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 U.S."
There will be live audio webcast on Thursday 30th January 2025 at 9:00am GMT. |
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