4 million in 2025. This decline reflects broader challenges in the company's financial performance for the year. 2 million in one-off costs tied to the transition to this partnership and winding down its historic primary US bottling relationship.
These costs contributed to the overall earnings drop. Additionally, Fevertree has seen an impact from US tariffs, as it makes the majority of its US products in the UK, adding to the financial strain from international trade policies. 8 million for the country's new packaging tax and is disputing the Extended Producer Responsibility (EPR) scheme.
This is in line with the position taken by the UK government in relation to other packaging regulations.
The company argues the EPR scheme should not apply to some glass bottles sold in bars and restaurants, citing specific exemptions it believes are warranted. This dispute involves ongoing regulatory discussions that could affect future liabilities. 5 percent stake in Fevertree in January 2025 and has exclusive rights to market Fevertree's drinks in the US, a strategic move aimed at expanding the brand's presence in the American market.
This partnership is expected to drive long-term growth despite the short-term costs. 2 percent at 793p by 10:45 am, indicating volatile market reactions to the financial results as investors weighed the negative news against potential recovery prospects.
Given there is uncertainty in the outcome, from an accounting perspective the board now considers it prudent to provide for the potential incremental EPR liability.
We are working to mitigate this impact ahead of the prospective onshoring of US production in the medium term, which alongside Molson Coors' operational capabilities and economies of scale will unlock significant incremental US profitability.