Fever-Tree full-year sales soar 23%
Tonic and mixer producer Fever-Tree saw revenue growth of 23% in 2021, boosted by ‘significant momentum’ in the US.
For the year ending 31 December 2021, Fever-Tree reported £311.1 million (US$418.3m) in revenue, compared to £252.1m ($339m) for the previous 12 months.
The company said the off-trade channel remained strong across markets, still performing ahead of 2019 levels. The return of the on-trade in the second half of the year also drove growth.
“I am very pleased with the performance of the brand this year,” said Tim Warrillow, CEO of Fever-Tree.
“Our fantastic team have worked incredibly hard through another year of uncertainty and disruption to produce an outstanding set of results, taking the brand’s strength and breadth around the world to new heights.”
The company’s positive full-year results follow ‘strong sales growth’ in H1.
In the US, revenues climbed by 33% year on year, reaching £77.9m ($104.7m).
Last year, Fever-Tree became the top ginger beer brand in US retail, and in the four weeks to 1 January 2022, it surpassed Schweppes to gain the title of top tonic water brand in the American off-trade.
Warrillow called the latter development “a significant achievement”, and pointed out that the brand already holds this number-one status in the UK market.
Meanwhile, Fever-Tree saw 15% growth in the UK, hitting £118.3m ($159m) thanks to its ‘robust’ on-trade performance, with sales in the channel increasing by about 59%. The brand grew its value share of the on-trade mixer category to 50.5%, reflecting 2.4% growth.
The firm’s UK off-trade sales were also ‘very strong’ in 2020, bolstered by new product innovation. Fever-Tree boasts a value share of 39.8% in the mixer retail channel.
Sales in the European market were ‘significantly ahead’ of the firm’s forecast, with £78.8m ($105.9m) – a year-on-year increase of 34%.
The rest-of-world (ROW) region saw a revenue increase of 6% to £26.7m ($35.9m), with Australia and Canada leading the way.
Supply chain disruptions impacted the business in the first half of 2021; in the US, Fever-Tree is looking to mitigate this with a second production site on the east coast. The company plans to ramp up production during the first half of 2022, and expects the new facility to help alleviate increased logistical costs, cut down on carbon emissions and reduce lead times.
Warrillow commented: “The group continues to deliver impressive growth in every one of our key markets, however, I am of course mindful that short-term logistics challenges and cost pressures remain, along with on-trade restrictions, albeit at a much lower level than this time last year.
“Despite this, Fever-Tree’s strong growth and track record against the competition, alongside supportive global trends, gives us confidence in our ability to capitalise on the substantial global opportunity.”
The company has forecast its full-year 2022 revenues to grow to between £355m ($476.9m) and £365m ($490.2m).