Fever-Tree grows global trade amid home decline

UK revenues at Fever-Tree declined by 22% to £103m in 2020, though this mostly was offset by growth in Europe and the US, leading to a more modest global decline of 3%, and total revenues of £252m.

The premium tonic producer said the resilient performance in 2020 was underpinned by strong sales and strategic progress in retail and e-commerce, which helped to mitigate the impact of widespread closures of pubs, bars and restaurants.

In the UK, the group’s off-trade sales increased by around 20% compared to 2019, with new flavours and formats, and an upweighted marketing spend driving greater consumer awareness at home.

In the on-trade, periods of lockdown and restrictions led to a decline of around 60% year-on-year.

Fever-Tree expects some of the off-trade demand to switch to the on-trade as it begins to re-open during the year.

Tim Warrillow, CEO of Fever-Tree said: “I am very proud of how the Fever-Tree team has responded over the course of 2020 and the results that we have delivered. The last twelve months have highlighted the strength of the Fever-Tree brand amongst our consumers and customers as well as the fantastic team and partners we have in place. We made a conscious decision not to furlough any of the team while continuing to invest in the opportunity ahead and this has positioned us well as we look beyond the current uncertainty.

“The covid-19 pandemic has thrown up many challenges but it has also accelerated the trends we have been talking about for a number of years - namely the growing interest in premium spirits and long mixed drinks as at-home mixing has taken hold not only with consumers but retail and spirits partners alike. Our ability to capitalise on and drive this trend has seen Fever-Tree reach more households and become a feature in more fridges worldwide than ever before.”