Barclays raised its rating on Fever-Tree Drinks to overweight, citing the mixer company's accelerating U.S. expansion through its partnership with Molson Coors. The bank expects Fever-Tree's U.S. distribution network to grow from 60,000 accounts to 500,000 by 2026, driven by a strategic shift toward off-trade retail channels.

The upgrade reflects confidence in Fever-Tree's improved capital efficiency and profit guarantees from Molson Coors, which holds an 8.5% stake. The beer giant has committed to minimum U.S. profit levels for Fever-Tree through 2030, while also funding local inventory and receivables. This helped reduce Fever-Tree's working capital ratio to 16.7% of sales in early 2025, down from historical levels above 20%.

Barclays notes Fever-Tree's premium mixers align with consumer shifts toward moderation and higher-end beverages. Its non-tonic products now make up 45% of revenue, growing at a 16% annual clip. The bank projects these categories could reach 60% of sales by 2030, supported by 18% annual growth in markets like Australia and Canada.