Fever-Tree Set to Exceed Profit Expectations Amid Shift Towards Alcohol Moderation
Fever-Tree, the renowned premium mixer brand, is poised to outperform profit projections after witnessing a significant uplift in sales of its soft drink offerings. This surge is largely attributed to a growing consumer trend towards reducing alcohol intake, which has bolstered demand for non-alcoholic alternatives.
Financial Performance and Market Dynamics
The company reported a 2% increase in total adjusted revenues, reaching £375.3 million for the fiscal year 2025. This growth was notably supported by a 3% rise in US market revenues, which climbed to £131.9 million. In contrast, UK revenues experienced a slight decline of 2%, settling at £108.4 million for the same period.
Tim Warrillow, Chief Executive of Fever-Tree, emphasised that the business is strategically positioned to capitalise on the evolving consumer preferences towards moderation. He stated, "We are well placed to take advantage of consumer trends towards moderation." Warrillow further highlighted the company's progress, noting, "We made excellent progress in 2025."
Strategic Partnerships and Brand Expansion
A key driver behind the positive performance in the United States has been the distribution partnership with Molson Coors, the American brewing giant. This collaboration is advancing as planned, contributing to enhanced market penetration and brand visibility. Warrillow commented, "Our partnership with Molson Coors in the US is progressing well, and the momentum behind the brand is especially encouraging."
Additionally, Fever-Tree is successfully broadening its product portfolio beyond its core tonic offerings. The company reported "increasing momentum" from its premium soft drinks, which has helped offset the softer performance in the UK market. Improved trading in the second half of 2025, driven by robust sales in major retail outlets such as supermarkets, further underscores this positive trajectory.
Future Outlook and Market Confidence
Looking ahead, Fever-Tree is confident in its ability to sustain this growth. The company is now on track to achieve revenues and adjusted earnings that are "marginally ahead of current market expectations." Warrillow expressed optimism about the future, stating, "Across all our markets, we are continuing to build momentum as we broaden Fever-Tree beyond tonic, positioning the brand as not only the premium mixer but also premium soft drink of choice."
Investor sentiment reflected this positive outlook, with shares in Fever-Tree rising by 3.9% during Thursday morning trading. This uptick signals strong market confidence in the company's strategic direction and its capacity to leverage the ongoing shift towards healthier consumption habits.
