- Sector: Food & Drink
- Region: London
Over the past decade or so, the UK’s drinks market has seen growing demand for high-quality mixers, particularly in the spirits market – a trend that Fever-Tree has tapped into with spectacular results.
The firm has become the world’s leading supplier of premium natural mixers for alcoholic spirits by retail sales value, distributing to more than 65 countries worldwide. It all started in 2005, when the firm launched its Fever-Tree brand to provide high-quality mixers for premium spirits. Today Fever-Tree sells a range of carbonated mixers to hotels, restaurants, bars and cafés (on-trade), as well as selected retail outlets (off-trade).
“Over the last few years there has been a ‘premiumisation’ trend, particularly in the premium spirits market,” says Tim Warrillow, Co-Founder and CEO of Fever-Tree. “This sits alongside the movement towards long drinks and mixability, which is driving the pace of growth in the UK mixer category. As the latest market data demonstrates,
Fever-Tree is changing the shape of the wider mixer market. We have clearly captured the consumer imagination and made people appreciate the importance of a high-quality mixer.”
“Over the last few years there has been a ‘premiumisation’ trend, particularly in the premium spirits market”
Such demand for its products helped the company to achieve 118% growth in the UK in 2016, and expand its share of the entire mixer category at retail to 24%. Fever-Tree has also seen huge demand for its products abroad. In the 2015 financial year, two-thirds of its sales were to customers outside the UK, particularly in the US and Europe.
This market penetration is a reflection of the strong performance the business has delivered since joining AIM in 2014. “We have made excellent progress in developing the optimum infrastructure, relationships and team to capitalise on the strength of our brand,” says Tim.
- 118% - The growth that Fever-Tree achieved in the UK in 2016
With Fever-Tree expecting demand for premium mixers to keep growing, Tim believes great opportunities exist for the company to grow its business further. He says: “We are only in 16,000 of the estimated 55,000 premium on-trade UK accounts, and have increased our sales capabilities to take advantage of these opportunities.”