Premium mixer brand Fever-Tree saw its revenue growth accelerate to 7% in the second half of its financial year to 31 December, helping it recover from a wet start to the summer season in 2024.
The firm’s total revenue was up 4% to £364.0m over the 12-month period, despite a 3% drop to £111.1m in the UK, where low consumer sentiment and a declining gin category hit demand for its products.
Performance was driven by its operation in the US, where revenues jumped 9% (+12% constant currency) to £128.0m after growing its presence in the off-trade. Revenues in Europe slipped 2% to £92.7m but grew 19% to £32.2m in its Rest of World division.
Meanwhile, a significant gross margin improvement of 540bps resulted in a 66% increase in adjusted EBITDA to £50.7m, which was in line with analysts’ expectations. Fever-Tree stated that this was helped by operational improvements such as the localisation of production.
In January, Fever-Tree entered into a deal with Molson Coors that saw the brewer become the exclusive sales, distribution and production partner for the mixer brand in the US. The tie-up was underpinned by Molson Coors acquiring an 8.5% shareholding in Fever-Tree for a cash consideration of £71.0m.
Fever-Tree entered the US market in 2008 and has since become the number one tonic and ginger beer brand in the country. The British firm noted at the time that the combination with Molson Coors’ expertise and scale would allow it to “drive the brand to the next level in its largest and most dynamic market”.
Fever-Tree said today that while only a few weeks have passed since the announcement of the deal, sales momentum has remained strong and good initial progress has been made.
The company stated that it was expecting 2025 to be a “transition year” for the US business and, therefore, was “comfortable” with consensus expectations of low single-digit group revenue growth and around 12% adjusted EBITDA margin for the year.
Tim Warrillow, Co-Founder and CEO, commented: “The Fever-Tree brand performed well in 2024, despite the subdued consumer environment. Across every key region, we are gaining market share, with more consumers discovering, enjoying, and becoming loyal to Fever-Tree each year across a growing variety of drinking occasions. This was particularly noticeable in our largest region, the US, where once again the brand grew strongly and well ahead of the market.
“Our growing market share continues to be driven by our deep understanding of global drinking trends allowing us to make the most of evolving consumer preferences. As a result, non-Tonic products now make up c.45% of our global revenues, driven by the success of our Ginger Beer and our expanding position in cocktail mixers and adult soft drinks.
“Looking to the future, our focus remains on unlocking Fever-Tree’s long-term potential across the world and capitalising on the unique position the brand has established sitting across alcohol and non-alcohol occasions.”
