Fever-Tree Sees 2021 Sales Fizz Up On At-Home Drinking, Reopening
Drinks maker Fever-Tree on Thursday forecast revenues will 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 ($352.2 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.
"Our performance in the Off-Trade was especially strong, exceeding our expectations across all our regions," Co-Founder and Chief Executive Tim Warrillow said, adding that in 2021 this segment which caters to individual customers and accounts for retail sales had a "very positive" start.