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Fever-Tree sales in the US have overtaken the UK market for the first time

Fever-Tree now generates more revenue in the US than in Britain, following solid growth in ‘off-trade’ sales in the former territory.

The tonic water maker revealed that US sales rose 24 per cent on a constant currency basis to £117m last year.

It attributed the result to the «strong performance» of its new cans across all flavor categories and higher demand in «off-trade» outlets, which include online shopping, convenience stores and supermarkets.

Biggest market: Fever-Tree now sells more products in the United States than in Britain

This came against a weaker macroeconomic backdrop and a «greater than expected» impact of foreign currency fluctuations.

In comparison, its domestic sales fell 1 per cent to £114.8m due to poor summer weather and cost-of-living pressures facing consumers.

However, it was still ahead of management as the group benefited from a good Christmas season, boosted by strong demand for its new Espresso Martini blender.

In addition, the west London-based business ended the year with its best-ever share in the UK on-trade sector.

Fever-Tree’s total revenue rose by just over £20m to £364.4m, with modest sales gains across Europe contributing to the further increase.

Tim Warrillow, its chief executive and co-founder, said: «The Fever-Tree brand performed well in 2023, increasing our market share in all our key markets, despite a challenging macroeconomic environment.»

Meanwhile, the company expects to post an annual adjusted profit of just shy of £30m, which is at the lower end of its guidance range.

It said core profit more than doubled in the second half of last year thanks to operational efficiencies and easing inflationary pressures.

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Fever-Tree warned 12 months ago that spiraling energy prices would lift its glass costs by £20m, on top of rising costs for ingredients, packaging and transatlantic shipping.

In response, the company agreed to new glass contracts that included fully hedged energy prices, raised product prices and boosted local U.S. production.

As a result of these measures and falling freight rates, he expects gross margins to improve «significantly» this year.

Shares in Fevertree Drinks were up 4.8 per cent at £10.61 late on Thursday afternoon, but remain well below pre-pandemic levels.

Britvic, the maker of Tango and Robinsons Squash drinks, said sales rose 8.1 per cent to £443.5m in the first quarter.

Trading was lifted by a healthy performance in Britain and recent acquisitions in Brazil, including GlobalBev’s Extra Power energy drink brand.

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