Fever-Tree posts flat H1 sales
Tonic and mixer producer Fever-Tree reported stagnant sales in the first half of 2025 as growth in the US helped to offset a challenging UK market.
UK-based Fever-Tree saw total revenue reach £171 million (US$232.3m) for the six months of this year, a similar performance to last year when sales hit £170.6m (US$224.3m). The first-half results for 2025 followed a full-year sales rise of 3% in 2024.
Fever-Tree said diversification beyond tonic remained a key strategic driver, with the broader portfolio delivering a compound annual growth rate (CAGR) of 16% over the last three years. Beyond tonic, the broader range of mixers now represents 45% of total revenue for the group.
While Fever-Tree recorded a decline of 6% in its home market to £48.1m (US$65.3m), the US and the rest-of-the-world region rose by 4% and 10% respectively. Revenue in Europe dipped by 1% to £44m (US$59.8m).
US sales for the first half of this year reached £62.4m (US$84.8m).
In the US, Fever-Tree’s retail sales surpassed the mixer category with the brand’s four-strong core range (tonic, ginger beer, ginger ale and club soda) rising by 16% – more than five times the total category’s growth.
In January this year, Fever-Tree agreed to sell an 8.5% stake to brewing giant Molson Coors for £71m (US$88.4m) to “take the brand to the next level” in the US.
The brand expanded into Molson Coors’ network of 400 regional distributors in June.
Tim Warrillow, CEO and co-founder of Fever-Tree, said the deal with Molson Coors created the “ideal platform to maximise our brand strength and future potential in what is our biggest growth opportunity”.
He added that the transition of its business to Molson Coors was “progressing well” despite its complexity.
Struggling UK market
Fever-Tree’s performance in the UK was impacted by ‘continued challenges’ in the on-trade and a decline in the gin category.
The UK on-trade continues to face higher duty, wages and business rates that are ‘driving pricing pressure’ and ‘disproportionately impacting the spirits and mixer categories’, Fever-Tree warned.
However, it remains the largest mixer brand by value in both the UK on- and off-trade – more than one-and-a-half times bigger than its nearest competitor.
Excluding tonic, Fever-Tree noted that its broader portfolio has risen by a CAGR of 13% over the last three years, representing 30% of UK sales.
Sales in Europe were affected by the phasing of distribution orders.
In the European off-trade, the brand delivered growth of 9%, compared with 1% for the total category.
Ginger beer was the standout growth driver for the region, with value sales of the product up by 26% year on year.
In terms of the rest of the world, Fever-Tree highlighted that its revenue in Australian retail rose by 12%, driven by its soda range and ginger beer.
The group noted that sales in Canada were ‘resilient in the face of challenging consumer environment’.
Ahead of its deal with Molsons Coors, Fever-Tree wound down a key US bottling arrangement and as a result the majority of the brand’s products are currently made in the UK.
The company said that while it had exposed the partnership to tariffs, it would work with Molson Coors to “mitigate this impact ahead of the prospective onshoring of US production in the medium term”.
In June, Fever-Tree explained that the 10% import tariff to the US would be shared equally between the two companies. The group said at the time that it expects the impact of US tariffs to be mitigated over time by local production and its Molson Coors partnership.
Fever-Tree noted that its £100m (US$135.8m) share buyback programme, announced earlier this year, is progressing well and is expected to run until the end of 2025. The company will extend the scheme by a further £30m (US$40.7m) to continue in 2026.
In addition, the group addressed the UK’s Extended Producer Responsibility (EPR) scheme, which was introduced on 1 April this year and charges producers for waste disposal.
“We believe that the glass formats that we sell into the on-trade should be classified as non-household packaging for EPR purposes and therefore be exempt from the levy,” the company said. “While this is in-line with the position taken by the UK government in relation to other packaging regulations, the Environment Agency have challenged this view.”
If Fever-Tree is required to pay this charge, it anticipates an approximate £3m (US$4.1m) impact on its profit this year.
Diversification strategy
Warrilow added that the group’s strategic move to diversify beyond tonic water has helped the business to “straddle adult socialising occasions” and tap into multiple serves.
“This breadth puts us at the heart of the underlying consumer trends that are shaping the market, namely a longstanding move to longer and lighter drinks, moderation and premiumisation,” he noted. “This gives us broader relevance, deeper loyalty and the opportunity to drive greater frequency with consumers.
“Together with the operational progress we are making and the strong performance we have seen over the summer months, we are well placed for both the second half of the year and to capture the long-term opportunities ahead.”
In its outlook, the group said it had made a good start to the second half of 2025 and “remained comfortable with full-year market expectations”.
In a trading update in June, the group stated it would comfortably meet low-single-digit revenue growth for its 2025 full year.
In the same month, Fever-Tree announced that its North American CEO, Charles Gibb, would be replaced by US chief commercial officer Judd Hausner.
Gibb left Fever-Tree to join LVMH-backed American whiskey maker WhistlePig as its new CEO.
Related news
Could functional beverages boost tonics and mixers?
