Fevertree Drinks PLC skyrocketed over 15% on Thursday after unveiling a long-term partnership with Molson Coors in the US.
Molson Coors would buy an 8.5% stake in Fevertree for £71 million and take on exclusive sales, distribution and production of the carbonated mixer brand in the US.
Fevertree would in turn launch a buyback using the proceeds, a statement said, adding further shareholder returns could be considered.
“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,” Fevertree head Tim Warrillow said.
“This partnership will be fuelled by a step change in marketing investment to take advantage of the highly compelling opportunity ahead.”
Fevertree jumped 15.1% to 757p on Thursday.