Long Term Opportunity
FEVER-TREE REMAINS AT THE CENTRE OF A NUMBER OF SUPPORTIVE GLOBAL TRENDS
SPIRITS CONTINUING TO TAKE SHARE FROM BEER & WINE
The last two decades has seen consumers continue to turn away from beer and wine in favour of spirits. This trend has accelerated in recent years, most notably in the US, Fever-Tree’s largest market, as a surge in craft and premium spirits enter the marketplace. Spirits revenue market share grew from 28.7% in 2000 to 42.2% in 2023, surpassing beer with wine accounting for 16.1%.
PREMIUM SPIRITS DRIVING CATEGORY GROWTH
Despite the global economic headwinds seen in 2023, spirits growth continues to be driven by the premium end of the category. Consumer trends embedded by the COVID 19 pandemic, most notably increased interest in premium drinks and drinking less but better, has continued.
In 2015, the super-premium segment of the market represented just c.15% of the overall global spirit’s market. By 2025, this is expected to increase to c.29%.
In contrast, the standard segment is expected to drop to 42% (previously c.53%) and the value segment is expected to drop to c.9% (previously c.16%). In the latest Bacardi Global Consumer Survey, 7 in 10 respondents globally said that they would pay more for quality spirits when choosing a drink and 41% of US respondents aged 21-44 are looking to seek more premium spirits in 2024.
GROWING INTEREST IN COCKTAILS
Consumers are increasingly exploring a wider range of long mixed drinks both in the On-Trade and at home. In the UK On-Trade cocktails share of licenced sales increased from 6% to 10% post COVID 19 as consumers returned to the On-Trade looking to replicate the drinks they had been making at home.