Fever-Tree H1 sales climbBy Melita Kiely
Tonic and mixer maker Fever-Tree experienced strong double-digit revenue growth during the first half of its 2021 financial year, boosted by success in Europe.
In the six months ending 30 June 2021, Fever-Tree saw total revenue grow by 39% on a constant currency basis, compared with the previous year.
Sales during the first half of the year reached £141.8 million (US$192.9m) – up from £104.2m (US$141.8m) in 2020.
Tim Warrillow, CEO of Fever-Tree, said: “Our performance in the on-trade as it has reopened has been encouraging in all our markets and our performance in the off-trade has also remained strong, with sales far exceeding pre-Covid levels in the UK, US, across Europe, and the rest of the world.”
The company delivered ‘strong sales growth’ across all of its key markets during H1, as the on-trade gradually reopened during the second quarter and off-trade sales remained ‘very encouraging’.
Sales of Fever-Tree in Europe have rocketed over the last six months, up by 104% at a constant currency basis to £41.3m (US$56.2m). The ‘incredibly strong performance’ was aided by importers stockpiling in anticipation of a ‘strong summer of trading’.
In the UK, Fever-Tree’s revenue rose by 4%. The brand said there have been ‘clear signs of pent-up demand’ as bars, pubs and restaurants reopened, even with restrictions in place.
Fever-Tree continued its ‘strong momentum’ in the States, with revenue up by 42% to reach £36.2m (US$49.3m).
The brand attributed its success in the US to off-trade sales, which have ‘remained very strong’ and Fever-Tree is driving category growth.
Across the rest of the world, Fever-Tree enjoyed 71% revenue growth. In Australia and Canada, Fever-Tree said it continued to drive category growth.
Global logistics disruption
Due to its H1 performance, Fever-Tree has increased its full-year revenue guidance to £295m-£304m (US$402m-US$414m).
However, the company said its gross margin has been impacted by ‘significantly elevated costs’ from disruptions to global logistics.
Warrillow added: “Our margins have been notably impacted by global logistics disruption. Despite this, we remain confident as ever in the strength of our business model and the opportunity to improve margins as we cycle out of the current period of Covid disruption.
“Our long-term opportunity continues to be enhanced by the structural trends we are seeing, including the growing interest in premium spirits and the popularity of long mixed drinks.
“This momentum is being supported by our retail and spirit partners, and Fever-Tree’s ability to capitalise and drive this opportunity is unmatched by any other premium mixer brand, giving us confidence in the future growth potential for Fever-Tree.”