Drinks maker Fever-Tree has forecast revenues to rebound this year and exceed pre-pandemic levels, buoyed by at-home drinking and gradual easing of coronavirus restrictions helping sales at bars and restaurants build momentum.
The maker of premium tonics and drink mixers confirmed preliminary 2020 sales figures that showed a 3% drop to £252.1 million and said it expected to deliver revenue growth of between 12% to 16% this year. Adjusted core profit for 2020 fell 26%.
Strong growth in the United States, where more people are consuming drinks at home, largely offset the 22% fall in UK sales.
The London-based firm, said it was banking on the growing popularity of at-home drinking and the possibility of restaurants and bars reopening to boost sales in 2021.
The pandemic has boosted demand for affordable drinking at home, as many countries closed bars and restaurants and banned events to curb the spread of the coronavirus, and the company spent on marketing these new social settings.
"Although 2020 presented many unforeseen challenges, our resilient performance highlights the strength of the business and the Fever-Tree brand which is testament to the proactive and entrepreneurial way our team and our partners responded," commented Tim Warrillow, co-founder and chief executive.
"Our performance in the Off-Trade was especially strong, exceeding our expectations across all our regions. Numerous periods of lockdown during the year encouraged increased consumer interest in premium spirits and stimulated excitement about mixing drinks at home, attracting more households and new consumers to the Fever-Tree brand than ever before.
"Consequently, we have increased our penetration in the UK, driven value share gains in the US, and Europe, and gained real traction in Canada and Australia."