Fevertree Drinks
plc
FY22 Interim Results
13th September 2022
AGENDA
1 | H1 Summary, Long-term strategy and opportunity |
2 | Sustainability |
3 | FY22 Interim Financial review |
4 | Strategic update |
5 | Summary |
H1 FY22 Summary
Strong revenue growth
- Group revenue growth of 14%
- Fever-Treecontinues to extend its market-leading premium position in the UK, US, Europe & RoW
- On-Traderecovering well, and consumer demand remains strong, especially in the US and Southern Europe
- Good distribution gains across markets
Continue to invest in the brand
- Working with our customer and spirit brands on a range of marketing activities and co-promotions
- Strong, increasing brand awareness
- Continue to innovate and broaden the range for an increasing number of spirit occasions
- Exciting new initiatives: Soft drinks, non-carbonated mixers, and our first airport bar
Uncertain macro backdrop continues
- Significant inflationary cost pressures and logistic cost headwinds impacting gross margin
- Increasing glass costs and trans-Atlantic freight charges have been the two main drivers of cost increases
- Expected elevated costs to continue for the rest of the year
Mitigating cost headwinds
- Expanding and scaling local production to reduce our reliance on sea freight
- Working closely with our production partners to increase the efficiency of our existing operations
- Optimising price in the UK and more mature markets in Europe
- Continue to drive volume growth to unlock
economies of scale to be captured in the future | 3 |
Global long-term supportive trends underpin the opportunity
Spirits continue to gain share of total beverage alcohol | Global spirit premiumisation is forecast to continue |
Total beverage alcohol value pool analysis1
Global spirits value by price tier2 | CAGR | CAGR |
2016 vs 2026E
Global
N. America
Europe
CAGR 2015-20 & 2020-25 forecast | 2015-202020-25 |
forecast |
23% 27%
49% 44%
25% 22%
5%
29%
36%
43% 29%
20%
24%
13%
20% 23%
37% 36%
40% 38%
$85.8Bn | $104.6Bn | $135.2Bn Total | ||
15.2% | 20.9% | Super | ||
Premium + | ||||
29.3% | ||||
15.2% | ||||
18.0% | Premium | |||
19.8% | ||||
53.3% | Standard | |||
49.1% | 42.3% | |||
16.2% | 12.0% | 8.6% | Value | |
4.1% 5.3%
10.9% 12.6%
7.6% 7.3%
2.3% 2.2%
(2.0)% (1.5)%
2016 | 2026 | 2016 | 2026 | 2016 | 2026 |
Cider RTDs Wine Beer Spirits
2015 | 2020 | 2025 |
FORECAST |
4
1IWSR (excl National Spirits); 2IWSR Fever-Tree Top 15 Markets: Australia, Austria, Benelux, Canada, Denmark, France, Germany, Italy, Netherlands, Portugal, Spain, Sweden, Switzerland, UK, USA
Fever-Tree is at an early stage of the total opportunity
Substantial volume growth opportunity1
2021 FT volume | Core opportunity | |
Stronghold | Next wave | White Space |
Adjacencies
- Significant opportunities beyond carbonated mixers
- Extending into non-carbonated cocktail mixers in the US, with other markets to follow
- Exploring premium adult soft drinks, starting with the UK
White space (incl. Asia, LatAm)
- Earlier stage
- Focus on establishing On-Trade in key cities
- Long-termopportunity as Western drinking habits establish
Next Wave (incl. US, Germany, Italy, Spain, France, Aus, Canada)
- US premium spirits category > 10x the size of the UK
- Strong momentum in key European markets
- Driving category growth and premiumisation in Australia and Canada
Stronghold (incl. UK, Belgium)
- Transformed mixer category
- Clear leadership position with significant price premium to mainstream brands
- Higher UK household penetration than #1 UK beer brand
5
1Chart based on Group estimates - methodology based on mixability of premium carbonated mixers to premium spirits alongside underlying category growth assumptions - chart not to scale
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Fevertree Drinks plc published this content on 13 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 September 2022 09:29:06 UTC.