Thursday 28 January 2021 7:58 am

Fever-Tree to beat revenue expectations as supermarket sales soar in lockdown

Fever-Tree expects to beat revenue expectations for last year following strong supermarket sales of its soft drinks and mixers during the pandemic.

The firm said this morning that total revenue for 2020 is expected to be £252.1m, ahead of guidance provided in September. 

Revenue will be down three per cent on the previous year due to the impact of pub, bar and restaurant closures.

UK revenue slipped 22 per cent during the year to £103.3m, as on-trade sales declined around 60 per cent due to lockdown periods and restrictions on hospitality.

However supermarket sales were up 20 per cent as Fever-Tree “took proactive steps to build on the growing popularity of long mixed drinks as an everyday affordable treat at home”.

Meanwhile total US sales soared 23 per cent to £58.5m.

Chief executive Tim Warrillow said: “The Covid-19 pandemic has thrown up many challenges but it has also accelerated the trends we have been talking about for a number of years – namely the growing interest in premium spirits and long mixed drinks as at-home mixing has taken hold not only with consumers but retail and spirits partners alike.

“Our ability to capitalise on and drive this trend has seen Fever-Tree reach more households and become a feature in more fridges worldwide than ever before.”

Fever-Tree said its earnings before interest, tax, depreciation and amortisation margin is in-line with expectations.

The group had cash of £143m, a 12 per cent jump on the previous year.