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Fever Tree fires warning over commodity price rises

by LLB Reporter
16th Mar 22 12:32 pm

Fever Tree Drinks, the posh mixers, this morning warned that the rise in commodity prices has “created significant uncertainty” and dampened profit forecasts.

Fever-Tree delivered revenue growth of 23% (26% at constant currency), growing strongly across all markets, extending its position as the leading global premium mixer brand

The Off-Trade performed well, and remained ahead of 2019 levels, even as the On-Trade re-opened, with consumers increasingly enjoying long mixed drinks at home and premiumising their serves.

It now expects to deliver earnings before interest, taxes, depreciation, and amortisation of between £63 million and £66 million in the present year, down from a forecast of between £69 million  and £72 million.

Tim Warrillow, Co-Founder and CEO of Fever-Tree, commented:  “Our fantastic team has delivered a great set of results with impressive revenue growth in all our key markets during another year of uncertainty and disruption. Our growing momentum reflects the brand’s increasing presence and popularity around the world, nowhere more so than the US where we finished the year as the No.1 Tonic Water brand by value at US retail. This is a significant achievement and matches the position we have held in the UK, as well as several European markets, for a number of years.

Whilst the tragic situation in Ukraine has resulted in significant uncertainty in relation to our input costs in the short term, the long-term global opportunity for Fever-Tree remains substantial and we are as confident as ever in the brand’s ability to capitalise on this. 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.”

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