20th May 2021 14:40
(Alliance News) -Â Fevertree PLC on Thursday reported strong at-home sales in 2021 so far and welcomed the easing of virus restrictions for the UK hospitality industry.
The premium mixer maker, which held its annual general meeting on Thursday, emphasised its ongoing success with off-trade retail in the first four months of the year as consumers adjust to the closure of hospitality venues. The on-trade market includes outlets like restaurants, bars and cafes, while the off-trade market is centred on at-home consumption.
In the UK, Fevertree estimates that around a third of venues were able to reopen at reduced capacities after outdoor hospitality opened on April 12, which was then followed by the return of indoor space at the start of this week. This phased reopening has given the hospitality industry "renewed optimism" for the second half of 2021, it said.
"Whilst it remains too early to predict the pace of on-trade recovery this year, Fever-Tree's brand strength, distribution footprint and strong relationships with our customers means we are well positioned to take advantage of the return of this important channel, which represented about 50% of UK revenue pre-Covid," said Fevertree.
Positively, its off-trade performance has been strong since the start of the year, with sales in the 13 weeks to April 18 up 10% year-on-year.
In the US market, off-trade sales have continued to perform strongly, surging 38% year-on-year in the 12 weeks to March 27.
Europe's recovery will likely lag the UK and US, Fevertree said, where hospitality sales remain limited. However, an anticipated easing of restrictions in the coming months lends confidence in the outlook, and it has continued its "encouraging progress" in the off-trade space.
Looking ahead, the company said: "The continuation of restrictions relating to the pandemic, along with increasing logistics cost pressures have affected us, alongside the whole industry for the first four months of the year. Despite these sustained impacts, we have delivered a strong sales performance and are trading in line with the board's expectations for the full year to 31 December 2021, assuming levels of uncertainty surrounding the pandemic continue to subside."
Shares in Fevertree were up 5.6% at 2,710.21 pence in London on Thursday.
By Scarlett Butler; [email protected]
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