Premium mixers brand Fever-Tree has made a 'solid start' to the year, it said in a trading update, adding that its performance is in line with its expectations set out in March.
In the on-trade sector, the group said that while sales at the start of the year were affected by the Omicron variant, it has seen momentum build month-to-month.
'As we look ahead to the summer months our brand strength, growing presence, and the close relationships we have built with our partners puts us in a strong position to take advantage of the consumer appetite to return to social occasions out of home,' the company said.
Off-Trade Performance
In the off-trade, the company saw a slower start to the year, due to the on-trade reopening, however it added that it remains 'well-placed' heading in to the summer months, with 'strong plans' in place with retailers around the forthcoming Platinum Jubilee celebrations in the UK in early June.
In the US, it said off-trade demand remains 'very strong', with an increase in sales of more than 150% since pre-pandemic levels.
'We continue to operate against an industry-wide backdrop of logistics disruption, most notably in relation to the shipping of product to the US, and inflationary cost pressures,' the company said.
'Whilst uncertainty remains in the near term, we are working with our supply chain partners on a large number of initiatives'.
Commenting on Fever-Tree's performance, the Liberum Consumer Discretionary Team said, "We believe structural improvements in profitability are now starting to kick in and the company is moving into an upgrade cycle."
Read More: Fever-Tree Needs To Build On Momentum After Solid 2021, Says Analyst
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