Fever-Tree reports 73% sales surge in 2016

The artisanal gin boom has lead to a surge in mixer sales, with luxury tonic water maker Fever-Tree reaping the benefits. The company has just given a trading update that reveals its revenue has grown a whopping 73% in the past year to £102.2 million.  

Fever-Tree is forecasting a 118% increase in full-year revenues in the UK compared with 2015, while sales in Europe were expected to increase 39% and the US about 55% higher. Rest of world sales growth also accelerated in the second half of 2016 and full year revenue is expected to be around 88% ahead of 2015.

Tim Warrillow, chief executive, said: “Fever-Tree continues to gain market share in both the on and off trade, and while we have experienced strong growth across all regions, our performance in the UK has been particularly notable culminating in a very strong Christmas period.”

Warrillow explained to Metro.co.uk that the key to Fever-Tree's success was using natural ingredients: "If you are going to buy expensive gin why would you drown it with a cheaper quality, poorer tasting tonic water?"

In the UK, gin sales grew 14.5% to £420 million in supermarkets in 2016, making it the best performing spirits category. Sales of tonic water also grew 12% to £98 million in 2016.

Aussie gin and tonic fans are rapidly growing in numbers too. Roy Morgan research revealed last year that the average number of monthly gin drinkers nationwide has grown from 633,000 adults in March 2010 to 860,000.