Fevertree Drinks : FY22 Results Presentation

Fevertree Drinks

plc

FY22 Preliminary Results

22nd March 2023

AGENDA

1	Fever-Tree's blueprint for long-term success

2	FY22 Financial Review

3	Sustainability

4	Strategic update

5

Summary

FY22 I Delivering growth, mitigating headwinds and investing in the opportunity

Good revenue growth

Significant cost headwinds

Continue to invest in the brand

International markets driving top line growth

• Group revenue growth 11%
• Achieved c.18% growth across our international markets: US, Europe & RoW
• Good distribution gains across markets giving us confidence going into 2023 and beyond
• Entered significant adjacent categories; soft drinks and cocktail mixers, to drive further revenue growth

Significant cost headwinds

impacted gross margin

• Mitigating actions only partly offset significant cost headwinds
• Price increases across markets
• The business is focused on a range of initiatives, which alongside a more positive macro backdrop, will drive margin improvements from 2024 and beyond

Confidence in the long-term opportunity drives investment

• Co-investingwith customers and spirit brands on a range of marketing activities, increasing brand awareness
• Investing in our team; upweighting senior hires
• Continue to innovate to cater to an increasing number of spirit and soft drink occasions as part of the substantial global opportunity

3

Fever-Tree's strategic blueprint is creating success across global markets

Innovation-led brand, with a focus on quality

• The brand has revitalised the category through innovation
• Unrivalled focus on sourcing the best quality ingredients from around the world that excite the consumer

Strong relationships and brand reputation

• Endorsements from the world's best bar tenders, mixologists and chefs
• Stimulate the category alongside retail & spirit partners
• Exclusive deal with Southern Glazer's in the US

Premium position

• Clearly differentiated products with demonstrated pricing power in stronghold markets
• Enhance category margins: Our customers benefit, making us highly desirable by creating a virtuous circle for the brand and the trade

Strong cash flow

• Enables investment into new growth markets
• Allows us to focus on consumer recruitment & lifetime customer value
• Optionality to return cash to shareholders alongside growing the business

Fever-Tree is at the centre of supportive macro trends

Spirits are taking share	Spirit growth is being
from beer and wine
	driven at the premium end
Consumers are
searching for quality	Health & wellness (no and low
ingredients
and drinking less but better)
	increasingly important
Easy-to-
make
cocktails		Provenance
are
	and craft
trending
	are being
		sought out
Consumers want to		more and
try new drinks and		more

treat themselves

Growing interest in long mixed drinks, fuelled by spirit companies, retailers and the On-Trade

4

Delivering against the blueprint

Fever-Tree has driven growth of UK mixers and become the

market leader of a larger category1

		+92%
	800	784	60%
(£m)			50%
600			Market share
Mixer market size			40%
400	408	30%
		20%
200
		10%
	0		0%

2014	2015	2016	2017	2018	2019	2020	2021	2022
	Mixer category size				Fever-Tree market share
	Schweppes market share			Other premium brands

• First mover advantage
• Premium price point
• Strong relationships with customers and spirit partners
• Ability to extend into adjacent categories; Adult Soft Drinks & cocktail mixers

1IRI & CGA MAT to 31/12, 2014-2022;2Kantar 2022; 3CGA 2022

Building blocks in place in the US

• Market leading shares in Ginger Beer and Tonic
• Driving growth of Sparkling with Pink Grapefruit and Lime & Yuzu
• Strong relationships with customers supporting distribution gains across both channels

✓ Southern Glazer's partnership is a key competitive advantage

• • Localising US production to reduce reliance on freight and set us up to drive growth
  • Delivering economies of scale over time
  • Launching Fever-Tree cocktail mixers Q2 2023
  • Large, growing, premiumising category
• First mover advantage
• Premium price point
• Exclusive premium mixer partner of Southern Glazer's
• Strong distribution footprint established with significant whitespace ahead

5