Fevertree Drinks : Interim Results Presentation 2022

Fevertree Drinks

plc

FY22 Interim Results

13th September 2022

AGENDA

1	H1 Summary, Long-term strategy and opportunity

2	Sustainability

3	FY22 Interim Financial review

4	Strategic update

5

Summary

H1 FY22 Summary

Strong revenue growth

• Group revenue growth of 14%
• Fever-Treecontinues to extend its market-leading premium position in the UK, US, Europe & RoW
• On-Traderecovering well, and consumer demand remains strong, especially in the US and Southern Europe
• Good distribution gains across markets

Continue to invest in the brand

• Working with our customer and spirit brands on a range of marketing activities and co-promotions
• Strong, increasing brand awareness
• Continue to innovate and broaden the range for an increasing number of spirit occasions
• Exciting new initiatives: Soft drinks, non-carbonated mixers, and our first airport bar

Uncertain macro backdrop continues

• Significant inflationary cost pressures and logistic cost headwinds impacting gross margin
• Increasing glass costs and trans-Atlantic freight charges have been the two main drivers of cost increases
• Expected elevated costs to continue for the rest of the year

Mitigating cost headwinds

• Expanding and scaling local production to reduce our reliance on sea freight
• Working closely with our production partners to increase the efficiency of our existing operations
• Optimising price in the UK and more mature markets in Europe
• Continue to drive volume growth to unlock

economies of scale to be captured in the future

3

Global long-term supportive trends underpin the opportunity

Spirits continue to gain share of total beverage alcohol

Global spirit premiumisation is forecast to continue

Total beverage alcohol value pool analysis1

Global spirits value by price tier2

CAGR

CAGR

2016 vs 2026E

Global

N. America

Europe

CAGR 2015-20 & 2020-25 forecast	2015-202020-25
	forecast

23% 27%

49% 44%

25% 22%

5%

29%

36%

43% 29%

20%

24%

13%

20% 23%

37% 36%

40% 38%

$85.8Bn	$104.6Bn	$135.2Bn Total
15.2%	20.9%			Super
		Premium +
	29.3%
15.2%
	18.0%			Premium
		19.8%
53.3%				Standard
	49.1%	42.3%
16.2%	12.0%	8.6%		Value

4.1% 5.3%

10.9% 12.6%

7.6% 7.3%

2.3% 2.2%

(2.0)% (1.5)%

2016

2026

2016

2026

2016

2026

Cider RTDs Wine Beer Spirits

2015	2020	2025
		FORECAST

4

1IWSR (excl National Spirits); 2IWSR Fever-Tree Top 15 Markets: Australia, Austria, Benelux, Canada, Denmark, France, Germany, Italy, Netherlands, Portugal, Spain, Sweden, Switzerland, UK, USA

Fever-Tree is at an early stage of the total opportunity

Substantial volume growth opportunity1

2021 FT volume	Core opportunity
Stronghold	Next wave	White Space

Adjacencies

• Significant opportunities beyond carbonated mixers
• Extending into non-carbonated cocktail mixers in the US, with other markets to follow
• Exploring premium adult soft drinks, starting with the UK

White space (incl. Asia, LatAm)

• Earlier stage
• Focus on establishing On-Trade in key cities
• Long-termopportunity as Western drinking habits establish

Next Wave (incl. US, Germany, Italy, Spain, France, Aus, Canada)

• US premium spirits category > 10x the size of the UK
• Strong momentum in key European markets
• Driving category growth and premiumisation in Australia and Canada

Stronghold (incl. UK, Belgium)

• Transformed mixer category
• Clear leadership position with significant price premium to mainstream brands
• Higher UK household penetration than #1 UK beer brand

5

1Chart based on Group estimates - methodology based on mixability of premium carbonated mixers to premium spirits alongside underlying category growth assumptions - chart not to scale