Fevertree Drinks : ANNUAL REPORT AND NOTICE OF ANNUAL GENERAL MEETING

GOING TO

EXCEPTIONAL

LENGTHS

Annual Report & Financial Statements 2023

for the year ended 31 December 2023

OUR STORY:

GOING TO EXCEPTIONAL

LENGTHS IN PURSUIT

OF THE BEST

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

OUR PURPOSE

Fever-Tree is built on the unwavering belief that there is always a better way

• a refusal to compromise and a commitment to never settle for the status quo. This founding principle remains as true today as it was at the very outset.

We are dedicated to the pursuit of excellence, continuously innovating our products and packaging. But our passion extends beyond crafting exceptional mixers and soft drinks; it involves challenging ourselves to make a meaningful positive impact in how we source our ingredients and the communities in which we operate. And in doing so inspire and engage not only our colleagues, customers, and partners but also our consumers.

OUR CULTURE

Rooted in the entrepreneurial values of our co-founders,Fever-Tree's culture thrives even as the business expands in depth, breadth, and complexity.

We remain committed to maintaining and championing this entrepreneurial ethos. Our organisational structure remains informal and open, fostering a culture where every team member, regardless of role or seniority, feels empowered to make

a genuine difference in our ongoing international success.

Overview		Strategic Report		Governance		Financial Statements	01

OUR STRATEGIC

BLUEPRINT

p14

CONTENTS

OVERVIEW

Highlights

At a Glance Chairman's Statement

Going to exceptional lengths in…

CEO'S REVIEW

p20

	STRATEGIC REPORT		GOVERNANCE		FINANCIAL STATEMENTS
02	Our Business Model	12	Board of Directors	74	Independent
04	Our Strategic Blueprint	14	Corporate Governance		Auditor's Report	108
06	Delivering Against		Statement	76	Consolidated Statement of
			Profit or Loss and Other
	our Blueprint	16	Nomination Committee
		Comprehensive Income	115
10	Underpinning the		Report	80
			Consolidated Statement
	Opportunity	18	Audit Committee Report	82
	of Financial Position	116
	Chief Executive's Review	20	Remuneration
		Consolidated Statement
	Q&A with Kate Stables	22	Committee Report	86
	of Changes in Equity	117
	Directors' Report	102
	Business Review	24	Consolidated Statement
	Statement of Directors'
	Sustainability Review	32		of Cash Flows	118
	Responsibilities	104
	Financial Review	58	Notes to the Consolidated
	Going to exceptional
		Financial Statements	119
	Section 172 and
		lengths in…	106	Company Statement
	Stakeholder Engagement	62
			of Financial Position	144
	Principal Risks and
				Company Statement
	Uncertainties	66
			of Changes in Equity	145
	Viability Statement	71
			Notes to the Company
	Going to exceptional
				Financial Statements	146
	lengths in…	72

SUSTAINABILITY REVIEW	OTHER
Company Information	150
p32
Notice of Annual
	General Meeting	151

02 FEVER-TREEDRINKS PLC |Annual Report & Financial Statements 2023

2023 HIGHLIGHTS

THE FEVER-TREE BRAND IS STRONGER THAN EVER, MAINTAINING OUR POSITION AS THE NUMBER ONE MIXER BRAND GLOBALLY

Financial highlights

2023	£364.4m
2022	£344.3m
2021	£311.1m

REVENUE

£364.4m

(2022: £344.3m)

Operational highlights

2023	£30.5m
2022	£39.7m
2021			£63.0m

ADJUSTED EBITDA

£30.5m

(2022: £39.7m)

2023	£59.9m
2022		£95.3m
2021			£166.2m

CASH

£59.9m

(2022: £95.3m)

Expansion of our global production footprint, to reduce emissions and drive efficiencies through our supply chain.

Successful launch of Cocktail Mixer range and expansion of our Adult Soft Range, enabling our portfolio to be relevant across an even greater number of drinking occasions.

Established Fever-Tree Australia with a local team based in Sydney and Melbourne.

Footnote: Analysis on pages 1 to 105 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 and other items deemed not to have an impact on the sustained operating performance of the business. As a consequence of these adjustments, the Group believes that adjusted EBITDA represents normalised operating profits. Adjusted EBITDA for the year ended

31 December 2023 is operating profit of £20.8m before depreciation of £6.3m, amortisation of £1.7m and share based payment charges of £1.7m. Adjusted EBITDA is an appropriate measure since it represents to users a normalised, comparable operating profit, excluding the effects of the accounting estimates, non-cash items and non-recurring items as 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 115 to 118. Since this is an indicator specific to the Group's operational structure, it may not be comparable to adjusted metrics used by other companies. Adjusted EBITDA is not intended to be a substitute for metrics determined in accordance with International Financial Reporting Standards.

	Overview		Strategic Report		Governance		Financial Statements	03

Sustainability highlights

5%

REDUCTION IN EMISSIONS RELATED TO OUR PRODUCTS SOLD IN THE UK IN 2022

100%

RENEWABLE ELECTRICITY USED ACROSS ALL FEVER-TREE OFFICES

10th

YEAR OF SUPPORTING MALARIA NO MORE UK

See our sustainability section to find out more / pages 32 to 57

2023 awards and recognition

DRINKS	THE KING'S
INTERNATIONAL	AWARD

NEW YORK INTERNATIONAL SPIRITS COMPETITION

BEST COMPANIES TO WORK FOR

Voted	'Number	One Top
	'Number
	Mixer'	and
Selling			Mixer'	for
One Top Trending
the 10th	year in a row

For international	trade

Mixer	brand	of the
4th year
year for the
in a row

		'very	good to work	for'
Received		the Brand	in the
rating,	placing
	companies
			and drink
top 5 food
to work	for

04 FEVER-TREEDRINKS PLC |Annual Report & Financial Statements 2023

AT A GLANCE

FEVER-TREE IS THE WORLD'S LEADING SUPPLIER OF PREMIUM CARBONATED MIXERS. 2023 SAW THE US BECOME THE GROUP'S LARGEST MARKET

BY REVENUE

QUALITY,

Our products

FLAVOUR AND CHOICE ARE CENTRAL TO OUR PRODUCT RANGE

Premium Indian Tonic

Our very first product. Designed to enhance the very best gins, vodkas and fortified wines, like vermouth, fino sherry and white port.

Flavoured

Tonics

Designed to provide choice to consumers reflecting the growing range of gins and other spirits that are increasingly available in the On and Off-Trade.

Ginger Ales, Ginger Beers & Colas

Mixers for pairing with dark spirits such as whisky, bourbons and rums.

For more details see our website /

www.fever-tree.com/products

Overview		Strategic Report		Governance		Financial Statements	05

Europe

	UK
US	Rest	of the
	World

Global reach and % split

TOTAL REVENUE

Revenue

% Share of Revenue

£364.4m	UK	£114.8m	32%
US	£117.0m	32%
	Europe	£105.4m	29%
	Rest of the World	£27.2m	7%

See our regional business reviews / pages 24 to 31

Lemonades

Perfectly balanced to be mixed with vodkas and gins or equally delicious as a sophisticated drink on its own.

Sodas

Premium sodas designed to be paired with a variety of spirits from gins and tequilas through to vermouths and Italian Liqueurs, creating longer, lighter mixed drinks.

Adult Soft Drinks

Our sophisticated sparkling soft drinks are low in sugar and calories with no compromise on flavour. The range includes our Cloudy British Apple, Sicilian Lemonade and Sparkling Mexican Lime.

Cocktail Mixers

Our new range includes classic cocktails such as the Margarita, Mojito, Passion Fruit Martini, Espresso Martini and Bloody Mary, each expertly crafted with the same expertise as our award-winning mixers.

06 FEVER-TREEDRINKS PLC |Annual Report & Financial Statements 2023

CHAIRMAN'S STATEMENT

IT IS A GREAT PLEASURE

AND HONOUR TO BECOME

CHAIR OF FEVER-TREE

This is my first report as Chair of Fever-Tree following the retirement of Bill Ronald. Bill joined the company in 2013 when the business generated turnover of £23million and employed 16 people.

Board Engagement

As part of the Board's ongoing support of the Group's sustainability initiatives. Clare Swindell presented at Fever-Tree's quarterly Women's network lunch, sharing her experience and advice on a range of topics including imposter syndrome/assertiveness/presence at work, as well as balancing work and family life.

For more details see our colleagues section of our sustainability review / pages 56 and 57

Placed Top 5

IN FOOD AND DRINKS COMPANIES BY 'BEST COMPANIES'

Bill oversaw the remarkable growth of the Group from its grass roots to a truly global premium beverage business, an achievement he, and the management team, should be commended for. It was a privilege to work with him on the Board, we will miss his wise counsel, personal warmth, and calm leadership.

Strategic performance

2023 was another challenging and volatile year for many consumer goods companies, and Fever-Tree was no exception. The macro economic backdrop remains tough, particularly as it follows a number of exceptionally difficult years, and it is a credit to the wider Fever-Tree team that once again faced the year with agility, enthusiasm, resilience, and commercialism, delivering a good result in difficult circumstances. I strongly believe that these efforts continue to underpin the potential of Fever-Tree and will hold us in good stead in the years to come. On behalf of the Board, thank you for your enormous contribution.

The operational challenges faced by the Group in recent years against a volatile macroeconomic and geopolitical backdrop has accelerated management focus on continual improvement of the underlying foundational systems and capabilities of the Group. I believe that our global supply chain capability, procurement processes, operating business models and talent development structures have improved significantly over the last two years. We have learnt important lessons and

are increasingly better placed to capitalise on the global potential of the brand in years to come. In the US specifically, we are confident that we have sufficient capabilities, flexibility and contingencies in place to both ensure continuity and capture growth.

These efforts require strong leadership, teamwork, changes to ways of working, and new behaviours which have taken up significant human and financial resource during 2023. In the shorter term, these initiatives, coupled with a gradually improving and less volatile inflationary environment, allow us to be confident about our margin recovery pathway.

Overview		Strategic Report		Governance		Financial Statements	07

As importantly, over the long term these initiatives improve our capability to fully support our global growth ambition.

It would be wrong to assume that this deeper focus on capability, process, and cost management, implies a loss of attention on the potential growth trajectory of Fever-Tree. Despite the current headwinds, the fundamentals of our business remain very attractive, underpinned in part by the well documented long term sectoral tail winds in the related long alcoholic drinks category in our key markets. Fever-Tree's intrinsic strengths such as quality of ingredient, depth of flavour, and strength of innovation means it is well placed

to take advantage of the consumer's appetite for premiumisation, quality and authenticity.

The brand has significant headroom to grow our share of the global mixer market, and we have started to bolster our core mixer range with the introduction of products in adjacent categories, such as premium adult soft drinks and cocktail mixers, diversifying our growth platform

to even more occasions.

In terms of long-term strategic focus, Fever-Tree remains very focused on driving and investing in the top line.

The Board works closely with the founder-led executive management team, and as part of its responsibilities, carries out a formal review of the Group's strategy on an annual basis.

We remain strongly supportive of the actions taken by management during 2023 to anchor the necessary focus on the long-term opportunity of Fever-Tree. In the coming years, while we are mindful of continued global turbulence and ongoing cost inflation, as well as the need to rebuild our gross margin, we will continue to invest in the brand. This will include new product development and innovation, evolving our route to market platforms, accessing new scale markets, developing our relationships with key spirits partners, and in our execution capability.

We believe that this investment is fundamental to the long-term superior performance of the business.

Find out about our strategic blueprint /

pages 14 and 15

Fever-Tree has

significant headroom

to grow our share

of the global

mixer market."

Domenic De Lorenzo

Non-Executive Chairman

Culture

At its heart, Fever-Tree is a founder- led, highly entrepreneurial, positive and collaborative company, with the essential purpose of our mixers being to enhance the flavour, taste and sociability of various drinking occasions. The Board sees one

of its core roles as fostering and embedding that culture. Therefore, as part of its responsibilities, the Board regularly reviews Fever-Tree's culture, behaviours, skills, and people capabilities, considering the evolution of the business, and is satisfied that executive management are building the appropriate team and underlying people structures to meet Fever-Tree's future challenges and opportunities. External validation of this view is also important, and this year the business conducted an engagement survey through 'Best Companies' and received 'very good to work for', placing us in the top five food and drink companies.

08 FEVER-TREEDRINKS PLC  |Annual Report & Financial Statements 2023

CHAIRMAN'S STATEMENT CONTINUED

Culture continued

Diversity and equality of talent and an inclusive environment are fundamental building blocks to Fever-Tree's culture and implicit values. During this financial year we have enhanced the capability, objectives and governance of the Group's Diversity, Equality, and Inclusion Committee ('DE&I Committee'), including direct oversight of the Board on the development of this initiative within Fever-Tree. There remains work to do in terms of diversity and equality at senior levels in the organisation, which is a focus for the Board, and I will look to report on our progress over my tenure.

Sustainability

The business continues to make progress across all five of our sustainability branches; climate, circular economy, conservation, communities, and colleagues. As part of this, we have long-standing projects and partnerships, including our commitment to reducing our greenhouse gas emissions per litre of product, along with our 10-year support for Malaria No More UK to help fight one of the world's deadliest diseases.

I am encouraged by the ongoing work that's being done in this area of the business, which will be enhanced going forward by a new set of Sustainability KPIs to keep us even more accountable from 2024.

See our sustainability section /

pages 32 to 57

The Board

This year, there are a number

of changes to the Board to report:

• As noted in my introduction, the retirement of Bill Ronald as Chair and Non-Executive Director after 10 years of service, combined with my appointment as Chair with effect from 25th May 2023. As a result, of this appointment, I stepped down as Chair of the Audit Committee on the same date.
• We were delighted to welcome Clare Swindell as a new Non- Executive Director and as Chair of the Audit Committee with effect from 25th May 2023. Clare was, until recently, Co-Chief Executive Officer of Camelot and prior
  to that she was Chief Financial Officer at dunnhumby and is also a non-executive director and chair of the audit and risk committee at John Lewis Partnership. She brings a wealth of experience across general management, finance, and operations in a number of related consumer sectors which further strengthens our Board's capabilities. I am sure Clare will only improve on the performance of the Audit Committee and we wish her great success in her role at Fever-Tree.
• We announced during the year that Coline McConville has relinquished her role as Non- Executive Director, as Chair of the Remuneration Committee and as Senior Independent Director. Coline joined the Company in November 2014, and formally resigned with effect from 31st December 2023. As a result, during this financial year, we announced the appointment of Kevin Havelock as Senior Independent Director and Laura Hagan as Chair of
  the Remuneration Committee with effect from 25th May 2023.

Coline was a strong and valuable contributor to the Board, especially regarding the development of

the People function and the Remuneration Committee, and we will miss her careful consideration.

• We are delighted to announce the appointment of David Lapp as a Non-Executive Director with effect from 1st January 2024. David recently retired from PepsiCo Beverages North America, where he was employed for over 35 years in numerous roles across that Group's supply chain, including Chief Supply Chain Officer for PepsiCo Beverages North America, and most latterly as Senior Vice President of Manufacturing Strategy, PepsiCo North America. David has deep experience of all aspects of supply chain management, of the US Beverage Industry and global business expansion and will deepen and improve the Board's capabilities as well as supporting Management as required. We look forward to working with him in the years to come.

Following these changes, the Board will be made up of eight highly committed and experienced individuals with women representing 25% of the total. The Board is committed to the continued enhancement of Fever-Tree's desired culture and within that the improvement of Fever-Tree's diversity and inclusion levels throughout the organisation. We have an objective to add further to the Board's capabilities while increasing the diversity of the Board in the coming years.

See our Board of Directors /

pages 74 and 75

At its heart, Fever-Tree is a founder-led, highly entrepreneurial, positive and collaborative company."