Fevertree Drinks : ANNUAL REPORT AND NOTICE OF ANNUAL GENERAL MEETING

THE RIGHT PRODUCTS IN THE RIGHT MARKETS

Annual Report and Financial Statements 2022

for the year ended 31 December 2022

FEVER-TREEDRINKS PLC  |  Annual Report and Financial Statements 2022

CONTENTS

AT A

GLANCE

PAGE 4

OVERVIEW

Highlights	01
Our Key Strengths	02
At a Glance	04
Chairman's Statement	06

Q&A WITH HEAD

OF INNOVATION

PAGE 26

For the latest investor relations information, visit our website: www.fever-tree.com_gb/investors

STRATEGIC REPORT

Market Overview	10
Our Business Model	12
Our Business Model in Action	15
Our Strategy	20
Q&A with Head of Innovation	26
Chief Executive's Review	28
Business Review	32
Sustainability Review	41
Financial Review	63
Section 172 and	67
Stakeholder Engagement
Principal Risks and Uncertainties	71
Viability Statement	76

OUR BUSINESS

MODEL IN ACTION

PAGE 15

SUSTAINABILITY

REVIEW

PAGE 41

OUR MARKET

OVERVIEW

PAGE 10

GOVERNANCE

Board of Directors	78
Corporate Governance Statement	80
Nomination Committee Report	84
Audit Committee Report	86
Remuneration Committee Report	90
Directors' Report	105
Statement of Directors'
Responsibilities	107

FINANCIAL STATEMENTS

Independent Auditor's Report	110
Consolidated Statement of
Profit or Loss and Other
Comprehensive Income	118
Consolidated Statement
of Financial Position	119
Consolidated Statement
of Changes in Equity	120
Consolidated Statement
of Cash Flows	121
Notes to the Consolidated
Financial Statements	122
Company Statement
of Financial Position	149
Company Statement
of Changes in Equity	150
Notes to the Company
Financial Statements	151

OTHER

Company Information	154
Notice of Annual General Meeting	155

Overview

HIGHLIGHTS

STRONG REVENUE GROWTH

The long-term opportunity for the business remains significant and we continue to focus on investing

in our regions, our products, marketing activities and our team.

FINANCIAL

2022		£344.3m	2022	£39.7m		2022	£95.3m
				2021		£63.0m	2021	£166.2m
2021	£311.1m
			2020		£57.0m	2020	£143.1m
2020	£252.1m

	REVENUE		ADJUSTED EBITDA		CASH
	£344.3m		£39.7m		£95.3m
(2021: £311.1m)		(2021: £63.0m)	(2021: £166.2m)
				Payment of £50m
				special dividend

	OPERATIONAL
CANS SOLD			BOTTLES SOLD
198m			520m
(2021: 219m)			(2021: 469m)

Footnote: Analysis on pages 01 to 107 of this front end of the Annual Report refers to adjusted EBITDA. The Group believes adjusted EBITDA to be a key

indicator of underlying operational performance, adjusting operating profit for several non-cash items. As a consequence of these adjustments, the Group believes that adjusted EBITDA represents normalised corporate profits. Adjusted EBITDA for the year ended 31 December 2022 is operating profit of £30.6m before depreciation of £4.3m, amortisation of £1.5m and share based payment charges of £3.3m. Adjusted EBITDA is an appropriate measure since it represents to users a normalised, comparable operating profit, excluding the effects of the accounting estimates and non-cash items mentioned above. The definition for adjusted EBITDA as defined above is consistent with the definition applied in previous years. This measure is not defined in the International Financial Reporting Standards, which forms the basis of the presentation of the Financial Statements included on pages 118 to 121, and is not intended as a substitute for other GAAP measures. Since this is an indicator specific to the Group's operational structure, it may not be comparable to adjusted metrics used by other companies.

01

FEVER-TREEDRINKS PLC | Annual Report and Financial Statements 2022

OUR STORY IS ABOUT GOING TO EXCEPTIONAL LENGTHS IN THE PURSUIT OF THE VERY BEST.

OUR PURPOSE

Fever-Tree was founded in 2005 on the belief that there had to be a better way, a refusal to compromise and a willingness to never settle for the status quo. This is as true today as it has always been and remains central to everything we do across the business.

We are passionate about the pursuit of excellence, continuing to innovate our products and packaging, and challenging ourselves to make a meaningful difference both where we source our ingredients from and where we live and work.

We want our approach to inspire and engage our colleagues, our customers, our partners and our consumers as together we strive to be the very best.

OUR CULTURE

Our culture continues to be inspired by the entrepreneurial values of the Group's co-founders.

Whilst the business grows in depth, breadth and complexity, we continue to maintain and champion this entrepreneurial ethos. Ensuring that we maintain an informal and open structure and culture that enables all of our team members to feel that they can make a real difference to the business, whatever their role or seniority, and be part of its ongoing international success.

See our Colleagues / pages 60 to 61

OUR KEY STRENGTHS

1. AWARD-WINNING, HIGHEST QUALITY PRODUCTS WITH EXPERTLY SOURCED INGREDIENTS AND PREMIUM PROVENANCE.

• We strive to only use the highest quality ingredients in our products, working with growers and experts who share our relentlessness for the best.
• We work together to fully understand how local climates and growing techniques affect the ingredients and contribute to the flavour.
• This approach has allowed us to forge meaningful, long-term relationships with many of our suppliers, creating a clear differential from Fever-Tree'smass-market competition, which remains key to our product quality and brand image.

2. AUTHENTIC AND AMBITIOUS SUSTAINABILITY CREDENTIALS, UNDERPINNING THE BRAND'S PREMIUM POSITIONING.

• All of our mixers sold in the UK are now certified carbon neutral by The Carbon Trust
• • the first mixer brand to reach this status
  • contributing positively to the fight against climate change.
• Our ambitious sustainability targets provide a clear point of difference for customers and consumers alike, demonstrating we are a considered brand with a conscience.
• Our carefully curated approach to sourcing and how we work with specialist growers and suppliers provide opportunities
• 
  to ensure not only the quality of the ingredients, but also the sustainable methods used in their production.

3. AN AWARD-WINNING BRAND WITH FIRST MOVER ADVANTAGE.

• We have been voted the number 1 best- selling and top-trending mixer brand by the world's most acclaimed bars and restaurants for nine years in a row, underpinning the recognition of the quality of our products.
• We have always been a trailblazer within our industry. We were the first mover and innovator of the global premium mixer category, which enriches the brand's authenticity and attractiveness to the industry's leading bartenders and trade influencers.

Find out more on / fever-tree.com

Read our sustainability section / pages 41 to 61

Read about our innovation / pages 26 to 27

02

Overview

4. GLOBAL MARKET-LEADING	5. A TRACK RECORD OF SUCCESSFUL
POSITION WITH EXPOSURE TO	INNOVATION, WITH PRODUCTS AND
EXISTING AND FUTURE GROWTH	FORMATS CREATED FOR A WIDE
OPPORTUNITIES.	VARIETY OF MIXING OCCASIONS.

6. A FUTURE-PROOF, SCALABLE AND AGILE BUSINESS MODEL.

• We are the leading premium mixer brand globally. Our revenue, and global opportunity ahead, are well diversified across geographies, channels, customers and products.
• Our belief in the long-term opportunity for the business has meant that despite the many unprecedented challenges we've faced over the last couple of years, we have remained focused on investing in and building the brand through consumer recruitment and retention.
• As the only premium mixer player with true global scale, we are ideally positioned to benefit from the shift in the total beverage market towards spirits and away from beer/ wine, alongside a strong premiumisation trend and growing interest in long
  mixed drinks.

• Innovation is - and has always been - at the heart of our brand and business. We remain the pioneer, continuing to lead the way within premium mixers, creating original and exciting products for unrivalled drinking experiences.
• Our innovation is governed by drinking trends and the evolving needs of our consumers worldwide, enabling us to produce new products and move into adjacent categories that reflect drinking habits across different regions.
• Alongside new flavours and ranges, we continue to evolve our format mix to reflect changing purchasing behaviour across all of our markets.

• Our outsourced business model, underpinned by strong, well-established relationships with suppliers, bottlers and distributors, allows for scalability and operational flexibility whilst maintaining the highest quality control, without requiring a major capital commitment from the Group.
• We continue to build our capabilities to scale the brand by expanding our number of global production sites to ten across the UK, Europe and the US which will reduce our reliance on sea freight and start to build economies of scale as we continue to grow.
• We have also been investing in our team, especially within supply chain where we have recruited a number of new hires over the last year, as well as in technology, through a new wide-ranging programme embedded into all our global operations to give us best-in-class ways of working, new data and insights to manage disruption, as well as underpinning our future growth.

See our regional reviews / pages 32 to 39

See our Products / page 5

See our business model / page 12

03