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Fever-Tree's revenue soars 49%

Published:  23 March, 2015

In its inaugural financial year results as a publicly traded company, Fever-Tree beat analysts expectations and saw revenue grow by 49%.

Revenue grew from £23.3m at the end of 2013 to £34.7m according to the company's preliminary results for the year ending 31 December 2014.

The global appeal of the the Fever-Tree brands is what the chief executive officer of Fever-Tree, Tim Warrillow, believes is helping to drive international growth.

Warrillow said: "2014 was a notable year for Fever-Tree as we continued to strengthen our market share and reputation as the leading international premium mixer brand.  We achieved a 49% increase in revenue and 48% increase in adjusted EBITDA.  Encouragingly, growth came from all four of our international regions, illustrating the global appeal of the brand and was underpinned by strong margins and high cash conversion rates.  We look forward to the year ahead with confidence."

Both the UK and the US, Fever-Tree's largest markets, grew by nearly 60%.

Bill Ronald, the chairman of Fever-Tree said: "Although high growth was achieved in all regions, of particular note is the growth achieved in our two largest single territories - UK, which grew by 60% and USA, which grew by 59%. This growth continued to be underpinned by strong stable margins."

Both the on and off-trade in the UK did well. In the on-trade, sales saw both an increase in the rate of sales and saw new distribution channels opening up helping to contribute to the growth in sales.  The off-trade also grew particularly through the retailer Tesco.  The Christmas trading period saw a 'notable' sales performance over the prior year, according to Warrillow.

US sales also saw an increase due to new national distribution deals that were established in 2014. Notably the company attributed the popularity of the 'Moscow Mule 'cocktail,  a contributing factor to growth.  The company saw a 91% growth in ginger beer sales in the US in 2014, making it group's highest selling product in America and a third of the company's stateside revenue.

The trend amongst consumers to buy up and the increase in craft and artisanal spirits is also helping to drive growth for the brand. Consumers are looking for a premium mixer to accompany the premium spirits they are consuming.

Charles Rolls, the executive deputy chairman of Fever-Tree said: "Fever-Tree's organic growth continues to be driven by consumers' desire to drink premium mixers that match the quality of their favourite premium spirits. Fever-Tree's superior taste, ingredients and brand proposition is winning new converts in both old and new markets alike.

Fever-Tree first began trading on the AIM market of the London Stock Exchange under the ticker 'FEVR' on 7 November 2014