Fever-Tree continues to lead the premium pack by adapting to low-cal and dark spirit trends

By Jo Gilbert

Published: 13 March, 2018

Fever-Tree accounted for 91% of the value growth of all mixers on the UK’s retail shelves last year, as the UK-based company continues to lead the march of premium mixers.

Preliminary results for the global carbonated mixer brand shows that Fever-Tree once again significantly grew its share of the UK mixer market in 2017, boosted by “exceptional” Christmas sales.

The UK-based company ended 2017 on a high as the number one mixer brand by value in the UK off-trade channel, pushing Schweppes into second place, and achieving a record 39% value share of the total off-trade mixer category (IRI, 13 weeks to 31/12/17).

Sales in the UK were particularly strong, with revenues increasing by 96%, while group revenue reached £170.2m (+66%) across its global markets.

Despite another strong set of results, co-founder and CEO Tim Warrillow said there remains “significant opportunity in front of us across all our regions" as the mixer category is now the fastest growing category across the carbonated soft drinks sector.

Such opportunities include the announcement of an upcoming North American operation in December 2017, reflecting an increased focus on the US – the company’s second single biggest market after the UK.

The company was launched in 2005 to provide quality mixers which could cater to the growing demand for premium spirits, in particular gin.

Gin accounts for only 6% of the global premium spirits category compared to dark spirits category however, which accounts for 60%.

More recently, there has been a push from the company to reflect these trends, with new additions Smoky Ginger Ale and Spiced Orange Ginger Ale extending Fever-Tree’s dark mixing range.

In its preliminary results for 2017 released today, Fever-Tree also announced an upcoming extension to its range of low calorie mixers, off the back of strong sales last year.

According to the results, the company’s light tonic continued to perform extremely strongly in 2017, once again growing at over 100% YOY and accounting for 31% of Fever-Tree’s total sales in the UK off-trade.

In order to relfect growing consumer demand for healthy and lighter choices, a new ten-strong Refreshingly Light range is due to be launched nationwide from April.

“Fever-Tree is a firm household favourite because they've listened to what their customers want by delivering low-calorie mixers,” Martin Lane, managing editor of money.co.uk said.

“The nation’s drinking habits have changed, so much so that the price of gin is currently included in the basket of goods used for official inflation statistics. More of us are choosing lighter options when it comes to alcohol like gin and tonic and artisan products are becoming ever more popular. The health conscious are willing to spend extra on quality products and Fever-Tree are doing very well out of it.”

The UK represented 52% of sales in 2017, with 48% of sales generated overseas, with regions grouped into UK, USA, Europe and rest of world.

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