Fever-Tree's America Performance Boosted by Molson Coors Tie-up

Dow Jones
5 hours ago

0913 GMT - Fever-Tree Drinks is showing good U.S. momentum following its tie-up with Molson Coors, Ed Mundy at Jefferies says. The U.K. maker of tonics and mixers reported an 11% organic increase in U.S. revenue over the first half of the year, outstripping wider group growth, with CEO Tim Warrillow saying the partnership with Molson Coors "is delivering." The American brewer last year signed a deal to acquire a minor stake in Fever-Tree and to produce and distribute its drinks in the U.S. The first-half sales results provide "early proof points of U.S. growth acceleration," Mundy says, noting the partnership's boost to the company's scale and execution capability in the U.S. Jefferies has a buy rating and a 1,100-pence target price on the London-listed stock. Shares lose 6% to 764.5 pence.

 

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