Premium mixers brand Fever-Tree Drinks has reported a significant increase in off-trade sales, despite its core on-trade business remaining closed, the business said in a statement.
In a briefing note ahead of its Annual General Meting, the company said that on-trade sales continue to account for around 50% of its UK revenue, and that this has been 'severely impacted' by the continued closure of the HoReCa sector.
At the same time, however, sales in its off-trade division were up 24% in the first full month since lockdown measures were introduced, and it has seen 'continued positive momentum since', particularly in the convenience channel.
"While the on-trade remains fully or partially closed across many of our regions, the group's performance across the off-trade continues to be very encouraging,' commented Bill Ronald, the company's chairman.
"Management remain focused on delivering our long-term strategy and we are confident the group will be well placed once the current period of uncertainty ends."
According to analyst Russ Mould at AJ Bell, the brand could even be considered a "lockdown winner, as consumer confinement may have prompted more people to try its products, and loyalty may have been strengthened among existing customers".
According to Mould, the group's solid performance indicates that many consumers have continued to enjoy their gin and tonics during lockdown.
"Strong sales of its tonic waters in convenience stores and supermarkets is welcome news for the business given how its growth trajectory had been under pressure prior to the coronavirus crisis," he said.
© 2020 Checkout – your source for the latest Irish retail news. Article by Stephen Wynne-Jones. Click sign-up to subscribe to Checkout.