Fever-Tree: The European Thirst for Tonic

In the last ten years, gin has enjoyed a revival – it has even been dubbed the “ginaissance”. Premium tonic maker Fever-Tree has benefited strongly from this trend, growing rapidly along with sales of high-end gin. 

While Fever-Tree is the UK’s market leader for mixers, it has found its sales growth losing its fizz in its saturated home market. To live up to high growth expectations, it must look abroad, especially with looming risks of a post-Brexit consumer slump.

Growth of Fever-Tree in Europe

Analysts have suggested that it’s getting harder for Fever-Tree to grow its market share in the UK since it already dominates nearly half of the on-trade – the industry term for bars, restaurants and pubs.

On the bright side, continental Europe is the group’s second largest region in terms of revenue and sales are increasing in double digits every year (16% in 2019). There could be even more room for growth. According to Statista, eight out of 10 countries with the highest per capita consumption of gin are in Europe. Spain takes the top spot, Belgium is second while the Dutch, who helped to popularize gin, rank third. 

Looking into our CPG data*, which covers point-of-sale transactions in on-trade channels in Europe, we have indeed seen a strong surge in demand for Fever-Tree over the last two years. 

Perfect pairing

We also turned to our data to see which gins are most frequently paired with Fever-Tree tonic.

Unsurprisingly, it’s most frequently served with top-shelf gins like Hendrick’s, which arguably sparked the craft gin craze. 200-year-old Tanqueray and Bombay Sapphire are the second and third most popular brands drunk with Fever-Tree, respectively. Relatively young brands like Monkey 47 and Brockmans round up the list. No generic gins make the cut here! 

While Fever-Tree was the first mover in the premium mixer category, the competition is heating up as me-too brands start popping up. Now let’s see if it will continue to be the top brand on everyone’s lips at the bar this summer. 

About our data:
Suburbia partners with companies in the payments and retail industries to create data sets that track anonymized consumer purchases across Europe, delivering a daily view into some of the world’s biggest consumer brands. For insights on consumer packaged goods (CPG) trends, Suburbia’s data set covers sales in over 10,000 on-trade channels across six countries in Europe.

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