Fever-Tree surpasses Schweppes by value in the UK off-trade

Up-market mixer brand Fever-Tree has forecast that its revenue in 2017 will have risen by 66% to reach £169 million as the latest data from IRI shows that it is now the number one mixer brand by value in the UK off-trade.

Fever-Tree’s Tim Warrillow and Charles Rolls

Data from the US market research company IRI has revealed that, using data from the 13 weeks to 31 December, Fever-Tree was the number one mixed brand by value in the UK off-trade with a 39% market share compared to rival Schweppes with a 31% share.

According to Fever-Tree co-founder Tim Warrillow, this lead over the Coca-Cola owned company has been extended over the past four weeks, with Fever-Tree on 43% and Schweppes on 30%.

The mixer specialist has increased its 2017 forecasts, stating that it has delivered another period of “very strong” growth, and after an “exceptional” festive period it expects its full-year results to be “comfortably ahead of market expectations”.

Overall sales in the UK are expected to rise by 96% compared to the same period last year, boosted by a predicted rise of 58% in sales during the second half of the year.

Outside of the UK, the group stated that US sales are expected to be up 39% compared to last year, while European sales, bolstered by demand in Spain and Belgium, are forecasted to be 42% higher.

Sales growth was also reported across the rest of the world where full-year revenue is expected to surpass 2016’s figures by 57%.

Over the Christmas period, Fever-Tree also released a limited edition tonic water flavoured with clementine and cinnamon.

Its better-than-expected results mirror the performance of gin, with a record 47 million bottles purchased in the UK last year (year ending 9 September 2017). This month, the WSTA also revealed that the number of distilleries has risen by 125% in five years, with gin thought to be the “key driver”.

Tim Warrillow, co-founder and CEO of Fever-Tree, said: “While we have seen strong growth across all regions, our performance in the UK over the Christmas period was once again exceptional.

“Our growing range of mixers and formats are appealing not only to our loyal customers but also bringing consumers back to the category and importantly attracting a new younger audience.

“There is clear evidence that the same trends of premiumisation and mixability that we’ve previously highlighted are accelerating and we are increasingly excited by the global opportunity this presents particularly as we transition to our own operations in the US”.

Fever-Tree will announce its preliminary financial results on 13 March.

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