Fever-Tree has credited its growing brand strength and awareness with helping to drive revenue growth of 23 per cent over 2021 to £311.1m.
Adjusted EBITDA profit rose 11 per cent, from £57m to £63m, as the drinks mixer brand capitalised on a growing consumer trend towards premium spirits and away from wine and beer in retail stores, as well as the re-opening of bars and restaurants post-Covid.
Despite rising costs from inflation, supply chain difficulties and the impact of Covid-19, Fever-Tree continued to invest in marketing over the last year. The business invested in TV advertising campaigns in the UK and Spain, “upweighted” digital marketing spend across regions, and executed strong on-trade activations across the summer period.
Premium spirit brands are also “more engaged than ever” in seeking co-promotional opportunities, Fever-Tree says, resulting in multiple significant campaigns across key markets. Total marketing spend from the group remained “strong” at 9.3 per cent of Fever-Tree brand revenue, compared to 9.9 per cent in 2020.
In the UK, the brand claims to have maintained its number one position in the retail mixer category with 39.8 per cent value share. Revenues for the region grew 15 per cent, from £103.3m to £118.3m. In the on-trade market, “strong execution, brand strength and customer loyalty” helped the brand extend its leading share to 50.9 per cent.
“Overall, I’m pleased with the progress the brand has made in the UK during the year,” says CEO and co-founder Tim Warrillow.
“We have been encouraged by our performance as the on-trade re-opens, as well as the sustained strength of our off-trade sales. We have maintained or increased our value share and number one position in the off-trade and on-trade respectively and continue to invest to drive our brand awareness and excite the category with new products.”
Meanwhile, in the US the business has continued to place “a lot of emphasis” on marketing and investment to grow Fever-Tree’s brand awareness with both consumers and the trade. The business finished the year as the number one tonic water brand by value at US retail, matching the position it has held in the UK and several European markets for a number of years.
Warrillow adds the business’s confidence in its long-term opportunity “only increases” as the spirit and mixer categories continue to grow and premiumise.
“We are excited by the growing interest in the long-mixed drink category from retailers, spirits brands and consumers, especially given the increasing focus on premium segments, which places Fever-Tree, as the largest global premium mixer brand, at the centre of these trends,” he says.
