Fever-Tree sees strong growth in America
Fever-Tree (LON:FEVR) announced on Thursday that it expects its revenues to rebound this year past pre-pandemic levels.
The company expects a lift by increased at-home drinking as well as the gradual easing of lockdown restrictions increasing its sales at bars and restaurants.
The producer of tonics and other mixers also confirmed its preliminary sales numbers during 2020 showed a 3% fall to £252.1m. The company anticipates revenue growth of between 12% and 16% in the coming year, while its adjusted core profit dropped by 26%.
Robust growth in America, where people are having drinks at home, has offset a 22% dip in UK sales.
In a show of confidence Fever-Tree proposed a full-year dividend of 15.68p per share, an increase of 4% from the year before.
Tim Warrillow, Co-Founder and CEO of Fever-Tree, commented on Fever-Tree’s performance throughout the pandemic:
“Our performance in the Off-Trade was especially strong, exceeding our expectations across all our regions. Numerous periods of lockdown during the year encouraged increased consumer interest in premium spirits and stimulated excitement about mixing drinks at home, attracting more households and new consumers to the Fever-Tree brand than ever before. Consequently, we have increased our penetration in the UK, driven value share gains in the US, and Europe, and gained real traction in Canada and Australia.”
“Despite the restrictions and closures that impacted the On-Trade for a large proportion of the year we didn’t furlough any of our team enabling us to support our customers across the On-Trade and Off-Trade, strengthening our relationships and securing new contracts.”
“Our resilient performance can also be attributed to the proactive and rapid actions taken by the business to respond to the evolving consumption and purchasing habits that emerged during the pandemic. Crucially, we did this while remaining focused on the longer-term opportunity. We expanded our team across all our regions, as well as acquiring our sales agent in Germany, and began local production in the US for the first time. We also launched new products with our Premium Soda range in the UK targeting the significant vodka category and Pink Grapefruit in the US targeting the fast-growing tequila category. Both launches were very encouraging, delivering an excellent rate of sale growth as well as attracting new consumers to the brand.”
