Fever-Tree now generates more revenue in the US than in Britain, following solid growth in ‘off-trade’ sales across the former territory.
The tonic waters maker revealed that US-based revenues climbed by 24 per cent on a constant currency basis to £117million last year.
It credited the result to a ‘strong performance’ from its new can format among all flavour categories and higher demand at ‘off-trade’ outlets, which include online purchases, convenience stores and supermarkets.
Biggest market: Fever-Tree now sells more products in the United States than Britain
This came against a weaker macroeconomic backdrop and a ‘greater than expected’ impact from foreign currency fluctuations.
By comparison, its domestic sales dipped by 1 per cent to £114.8million due to poor summer weather and cost-of-living pressures faced by consumers.
Yet this was still ahead of guidance as the group benefited from a good Christmas season, buoyed by considerable demand for its new Espresso Martini mixer.
In addition, the West London-headquartered business finished the year with its best-ever value share in the British on-trade sector.
Fever-Tree’s total revenue increased by just over £20million to £364.4million, with a further uplift provided by modest sales gains across Europe.
Tim Warrillow, its chief executive and co-founder, said: ‘The Fever-Tree brand has performed well in 2023, growing our market share in all of our key markets, despite a challenging macroeconomic environment.’
Meanwhile, the company expects to post annual adjusted earnings before nasties of around £30million, which is at the bottom end of its guidance range.
It said core profit more than doubled in the second half of last year thanks to operational efficiencies and easing inflationary pressures.
Fever-Tree warned 12 months ago that spiralling energy prices would elevate its glass costs by £20million, which came on top of rising ingredients, packaging and trans-Atlantic freight costs.
In response, the company agreed on new glass contracts that included fully-hedged energy pricing, hiked prices on products, and boosted local US production.
As a result of these measures, plus declining freight rates, it anticipates a ‘significant improvement’ in gross margins this year.
Fevertree Drinks shares were 4.8 per cent up at £10.61 on late Thursday afternoon but remain far below their pre-pandemic levels.
Fellow drinks company Britvic – producer of Tango and Robinsons Squash – declared sales expanded by 8.1 per cent to £443.5million in the first quarter.
Trading was uplifted by a healthy performance in Britain and recent acquisitions in Brazil, including the Extra Power energy drink brand from GlobalBev.
