Fever-Tree to raise prices after glass bottle costs rocket
The tonic and mixer maker said it will pass ‘some’ of its inflationary pressure onto customers through higher pricing.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Fever-Tree is to raise the price of its drinks in the face of soaring glass bottle costs amid shortages in the UK.
The tonic and mixer maker said it will pass “some” of its inflationary pressure onto customers through higher pricing.
As a result, shares in the company made gains in early trading on Wednesday amid hopes from investors the move will boost profitability.
Fever-Tree told shareholders that “conditions remain challenging” in the face of continued cost inflation in the production of its drinks.
We have seen an encouraging start to 2023 in our key growth markets
It came as fresh figures from the Office for National Statistics showed a surprise rise in UK inflation to 10.4% for February, driven by a 45-year-high in food and drink inflation.
Fever-Tree reported that operating profits slid in 2022 by around 45% to £30.6 million due to the higher costs.
It stressed that “glass costs and trans-Atlantic freight costs” particularly hit profitability.
Meanwhile, revenues increased by 11% to £344.3 million over the year, despite a dip in the UK.
The drinks firm said it represented “a very positive performance” in the face of disruption to sales in bars and restaurants at the start of the year as well as pressure on consumer finances.
Tim Warrillow, co-founder and chief executive officer, said: “We have seen an encouraging start to 2023 in our key growth markets and are confident of maintaining the group’s momentum in the months ahead.
“The Fever-Tree brand, as shown by our highest-ever combined market share in the UK, and leadership position across many markets, is stronger than it has ever been and we remain committed to investing for the long-term both within our core mixer category but also through our expansion into adjacent categories such as adult soft drinks and cocktail mixers.”
Shares were 8.9% higher on Wednesday morning.