By now we’re all familiar with the impact Covid-19 has had on almost every industry in the United States. From retail and wholesale trades to manufacturing, transportation, and warehousing, disruptions in the supply chain have made it increasingly difficult for American consumers to not only be able to obtain their favorite goods, but also continue to be able to afford them. The Consumer Price Index, a measurement tool for the United State’s government to monitor inflation, has risen by 8.3 percent over the last twelve months, the highest inflation rate since 1982.
Fever-Tree, a leading producer of premium alcohol mixers, has faced their own set of difficulties when it comes to overcoming these challenges. Due to concerns over increased costs of ingredients, packing and shipping, the company’s shares have decreased by over 40 percent in value over the last six months. Furthermore, earlier this year, Fever-Tree cut their expected earnings by approximately 80 million dollars, a move that boded poorly for the company going into the remainder of 2022.
In a surprising turn of events, the company now expects this year’s annual sales to fall somewhere between $446 million and $459 million, a growth of over 15 percent. The company credits strong demand in the United States as their main driver for revenue growth; the beverage company only launched in the United States four years ago, but the American market size quickly surpassed that of the United Kingdom, where the company originated.
Fever-Tree also credits their growth to an ease in COVID restrictions in the UK that has allowed for more consumers to enjoy their beverages with more friends and out in public. As more people return to bars and restaurants, the company has observed growth in sales.
A spokesperson for Fever-Tree stated, “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.” Looking to the future, they expect their sales will soar during celebrations for the Queen’s Platinum Jubilee in June.