Fever-Tree has announced that it achieved its highest ever value share in the on-trade during its first quarter trading period.
In a statement to coincide with its AGM, the British tonic maker said that the value share of on-trade was 6% higher than its share in the first quarter of 2020.
Elsewhere, it expects off-trade sales to build in momentum as the year progresses, while overall, it is trading in line with expectations in the UK.
Fever-Tree said it is looking forward to the 'key' summer trading period, with multiple activations planned across its portfolio and what it says are 'encouraging performance' signs from its new Adult Soft range.
The company added that it continues to innovate and broaden its portfolio of drinks, launching its range of cocktail mixers across both channels at the beginning of the second quarter, with strong interest from customers and activations planned over the summer.
US And Europe
Fever-Tree said its US business has had a strong start to the year in both the on- and off-trade, with good value and volume growth across all categories, with particularly strong growth in Flavoured Sparkling and Club Soda.
Meanwhile, in Europe, Fever-Tree said it continues to gain value share of the premium mixer category at retail, with particularly encouraging growth in Italy and France.
Read More: Tonic Maker Fever-Tree To Increase Prices, As Packaging Costs Rise
Inflationary Cost Pressures
In its trading statement, Fever-Tree noted, 'We are confident that the brand will continue to deliver strong revenue growth as we start our key summer trading period and therefore reiterate our top-line guidance range as set out in March at £390m to £405m.'
'Whilst inflationary cost pressures remain elevated, the Group continues to be focused on delivering initiatives to mitigate these costs and expects to drive margin improvements as we progress through the year, which means we're on-track to deliver EBITDA in-line with our guidance range of £36m to £42m for 2023.'
Read More: Fever-Tree Expects 2023 Revenue To Jump Despite Inflationary Concerns
© 2023 European Supermarket Magazine – your source for the latest A-Brands news. Article by Robert McHugh. Click subscribe to sign up to ESM: European Supermarket Magazine.