Fever-Tree, a supplier of carbonated mixers for alcoholic spirits has posted an encouraging trading update ahead.
The encouraging aspect from its trading update was that it has seen as a significant increase in its ‘off-trade’ sales compared to ‘on-trade’ as more consumers have stocked up on Fever-Tree products through convenience channels such as the supermarket.
Within the UK market, it noted that on-trade sales continue to be ‘severely impacted’ by the lock-down, but off-trade sales in the first full month of lock-down surged by 24% year-on-year in the UK. And it has seen this momentum continue with the increase in stay-at-home drinkers.
The growth in home consumption was even better news for the on-trade business in the US – with a staggering 96% year-on-year growth in the four weeks to 16th May.
Although, the on-trade business remains core to the business and it revealed that it views it as ‘increasingly likely’ that it will be a gradual and cautious back to normal for its on-trade clients:
“Given the uncertainty and dynamic nature of the situation, it continues to be hard to predict how sales will evolve both during and as we emerge from the lockdown period. The easing of restrictions and the pace at which the On-Trade re-opens will vary between regions, but it is becoming increasingly likely that this process will be gradual and cautious, with social distancing measures remaining in place for some time.”Fever-Tree AGM Statement & COVID-19 Update