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Fever-Tree profits more than double thanks to UK growth

Published:  21 March, 2017

Posh mixer brand Fever-Tree continued to go from strength to strength in 2016 driven by accelerated growth in the UK.

Global sales at the business, which celebrated its tenth anniversary in 2015 by becoming a listed company, were up 73% to £102.2m for the year to December 31, 2016, while profits rose 55.2%, according to annual results released today.

Sales in the UK were particular impressive, growing 118% - an acceleration of the 84% growth achieved in 2015 - boosted by sparkling performances in both the on and off-trade, with increased penetration in both channels, including a new listing with Asda last May.

Off-trade sales also benefitted from "the success" of the 150ml can format, launched in 2015, which fever-Tree said represented 33% of retail sales in 2016.

On-trade sales, where 54% of UK revenue is generated, were driven by an increasing distribution footprint combined with underlying rate of sale growth as the premium gin and tonic movement continued to gather momentum across the UK.

The second half of 2016 was particular lucrative, generating 124% growth capped by an "exceptional" performance across the Christmas period, even when measured against strong comparatives from the prior year, said ceo Tim Warrillow.

"It has been another exceptional year of growth, with strong results achieved across all regions, channels and flavours, emphasising the global appeal of the Fever-Tree brand," he said, adding Fever-Tree's "quality range of products" continued to help drive the momentum towards premiumisation and simple long drink mixability that was transforming both the spirits and mixer categories worldwide.

As part of today's annual results, it was announced current executive deputy chairman and co-founder Charles Rolls would transition to become non-executive deputy chairman this May.

Rolls would in his new capacity continue to provide "invaulable support and advice" to the business, said Warrillow.

"I personally look forward to continuing to work with Charles as we further build on the success of the brand that we created together 14 years ago - we have had an encouraging start to 2017 and remain confident that we are increasingly well positioned to deliver further growth across the business."