Business
Trading Statement
Trading Statement.
About this update from Fevertree Drinks Plc
[{"type":"text","content":"\n \n \n RNS Number : 8793S\n Fevertree Drinks PLC\n 14 July 2020\n \n \n \n \n July 14, 2020\n \n \n \n \n \n Fever-Tree Drinks plc\n \n \n Trading update & acquisition of Global Drinks Partnership in Germany\n \n \n Fever-Tree, the world's leading supplier of premium carbonated mixers, announces a trading update ahead of reporting its Interim Results on 8th September 2020.\n \n \n We had a solid start to the year with Group trading in the first two months in-line with expectations. From March onwards, trading across our regions has been dominated by the impacts of COVID-19, leading to widespread closure of the On-Trade alongside a consistently strong performance through our Off-Trade channels.\n \n \n In the UK, positive momentum in both the spirits and mixer categories in the Off-Trade during lockdown has continued, with Fever-Tree's Off-Trade sales for the last 12 weeks to 14th June increasing 34%1 year-on-year as the popularity of long mixed drinks as an everyday affordable treat continues to resonate with consumers.\n \n \n The Group's Off-Trade sales have grown very strongly in the US, where the increasing popularity of the Fever-Tree brand is driving category growth. Nielsen data, which covers just under half of Fever-Tree's US Off-Trade sales, has reported 89%2 year-on-year sales increases for the last 12 weeks to 13th June, reflecting the increased at-home consumption during lockdown, as well as the benefit of incremental distribution that was secured over the course of 2019. We have also been encouraged by the successful implementation of the pricing and format optimisation, gradually introduced on-shelf between March and June 2020.\n \n \n In Continental Europe, while Off-Trade sales have been robust across the region, the impacts of COVID-19 have been more significant in the South which is more reliant on the On-Trade relative to Northern Europe. The increased uncertainty during the last few months has led some of our importers to de-stock, which has impacted our European sales over the first half of the year. However, we are confident that our prevailing brand strength will support our growth in the region as countries continue to emerge from lockdown.\n \n \n In the ROW region, we continue to deliver strong Off-Trade sales and secure new distribution, particularly in Australia and Canada, with our ...