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Fever Tree sees strong growth in demand for premium mixers

Published:  08 November, 2016

Premium tonic water producer, Fever Tree, is in line to jump ahead of predictions in the second half of 2016, with analysts predicting full-year UK sales growth of 95%.

In a trading update this week, the group anticipated beating expectations for the year to December 31, 2016.

Performance was particularly strong in the UK - the group's largest market - the group said, where new distribution gains have combined with strong sales to drive growth.

Cenkos, a securities firm focused on UK small and mid-sized companies, said the growth was impressive considering the general uncertainty introduced into the UK economy over the past six months and estimated that the group's full year revenue would hit £93.8m. 

"UK sales grew 100% in H2/15, leading us to anticipate a slower rate of growth in H2/16. However, management has indicated that across both the on and off-trade performance remains strong and we now expect full year UK sales growth +95%," a spokesperson for Cenkos said.

The premium mixers category is continuing to gain traction across the market, thanks to a growing trend of consumers trading up to make their own home-made premium cocktails, with sales at Waitrose up 17% this year.

UK-based Fever-Tree is one of the world's leading suppliers of premium carbonated mixers for alcoholic spirits by value, with distribution to over 50 countries worldwide.

Approximately 65% of the group's sales were derived from outside of the UK in financial year 2015, - mainly in the US and Europe - with total group revenues reaching £59.3m.