FDBusiness.com

Fever-Tree, the world’s leading supplier of premium carbonated mixers, increased revenue by 73% to £102.2 million for the year ended for 31 December 2016. The revenue growth achieved in 2016 was underpinned by improving margins, with a gross profit margin of 55.2% and adjusted EBITDA margin of 35.1%, resulting in adjusted EBITDA of £35.8 million generated in the year, growth of 97% on 2015. Fever-Tree ended the year with a robust balance sheet and net cash of £26.9 million, an increase of £15.3 million on the previous year.

Based in the UK, the brand was launched in 2005 to provide high quality mixers which could cater to the growing demand for premium spirits, in particular gin, but also increasingly for vodka, rum and whisky. The company now has distribution to over 50 countries worldwide. Approximately 56% of the group’s sales were derived from outside of the UK in financial year 2016, with key overseas markets in the US and Europe.

Tim Warrillow, chief executive of Fever-Tree, comments: “2016 has been another exceptional year of growth for Fever-Tree, with strong results achieved across all regions, channels and flavours, emphasising the global appeal of the Fever-Tree brand. As the pioneer and market leader of the premium mixer category, in both market share and reputation, our quality, award winning range of products continues to help drive the momentum towards premiumisation and simple long drink mixability that is transforming both the spirits and mixer categories worldwide.”

He adds; “We have had an encouraging start to 2017 and remain confident that we are increasingly well positioned to deliver further growth across the business.”

Manufacturing and distribution is completely outsourced, with the group responsible for arranging for the delivery of key ingredients, flavours, water, glass, cans and packaging to a manufacturer who then bottles or cans the final product from these component parts.

Fever-Tree’s primary bottling partner in the UK completed an investment in a new site in 2016 which will double capacity from 2017. In addition to this, Fever-Tree also uses a second UK bottler for contingency purposes, fills its 150ml cans with a Netherlands-based canner and continues to bottle locally in Germany with the reusable glass bottles required in that market. Therefore, Fever-Tree works with four different partners across three different countries to manufacture its products, which underlines the flexibility of the outsourced model and its ability to scale and fulfil the production demands generated by the group’s strong growth.