Fever-Tree Drinks has shrugged off worries about rising input cost inflation after making a “solid” start to the year.
The premium tonic and mixer maker said in a trading update ahead of its AGM it remained confident of achieving full-year market expectations.
The group also extended its ongoing share buyback programme by another £30m following the completion of a £100m buyback completed in FY25.
Fever-Tree already fully hedges the energy costs related to the manufacture of its glass bottles, but today said it had significantly extended coverage through 2027 and into 2028, as well as increasing its hedging position across all other significant cost components into next year.
It added the partnership with Molson Coors in the US continued to progress well and was beginning to leverage the new networks, with new account wins and increasing distribution. The brand launched its first national US marketing campaign in April.
Fever-Tree also launched a new marketing campaign in the UK in April to highlight the brand’s relevance as a mixer and a premium soft drink across a wide range of occasions.
“We have continued to make good progress against our strategic priorities so far this year,” CEO Tim Warrillow said.
“Fever-Tree is well placed to drive long-term growth across our markets as both a premium mixer and soft drink brand and this year we are significantly increasing marketing investment and innovating to support our growth ambitions.
“Notwithstanding the current uncertainty in the geopolitical backdrop, we are well hedged from a cost perspective and remain confident in achieving market expectations for both adjusted revenue and EBITDA.”
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