Fever-Tree Expands in Germany With €9.5 Million Acquisition
Fever-Tree has acquired Global Drinks Partnership, the tonic and mixer group’s sales agent in Germany. GDP is a well-established sales agent and importer of premium drinks, with a strong track record of growing premium brands in a complex, fragmented market. The acquisition consolidates the strong partnership that Fever-Tree and GDP have developed over the last seven years in Germany, during which GDP has enabled Fever-Tree to establish a growing brand presence in the on-trade and a strong footprint across national and regional retailers in the off-trade.
The German market represents a notable opportunity for Fever-Tree. It is one of the largest mixer markets in Europe and is underpinned by emerging premiumisation trends evident in both the mixer and spirits categories. The acquisition of GDP, with established management, distribution relationships and sales channels already in place allows Fever-Tree to accelerate the strength and depth of its presence in Germany much faster than could have been achieved by building the same capabilities from scratch.
Alongside Fever-Tree, GDP also distributes a portfolio of complementary premium beer and spirits brands, which generated €10 million of sales in 2019. This portfolio approach is highly suited to the size and outlet fragmentation of the German market, and Fever-Tree will continue to work with these brands in the future.
The total consideration for the acquisition comprises €2.6 million cash, plus a €5 million consolidation of historic balances owed to Fever-Tree by GDP at completion. Alongside this, Fever-Tree has agreed to fund the repayment of €1.9 million of shareholder and other third-party loans owed by GDP.
