Fevertree grows revenue and broadens product mix as U.S. transition pressures margins

Fevertree Drinks plc (LSE:FEVR) delivered modest revenue expansion in 2025, with Fever-Tree branded sales rising 4% at constant currency and showing stronger momentum in the second half of the year. Adjusted EBITDA declined 16%, reflecting the impact of the company’s new U.S. partnership structure, transition-related expenses and higher marketing investment.

The group continued to diversify its portfolio beyond tonic water, which now accounts for about 45% of total revenue. Performance in the United States remained robust during the transition to the company’s distribution partnership with Molson Coors. In Europe, the business recorded market share gains, while ginger beer sales grew at a double-digit rate, reinforcing the brand’s broader product momentum.

Profitability was affected by softer conditions in the U.K. on-trade channel, along with a cautious provision related to a possible U.K. packaging levy. Despite these pressures, management reiterated confidence in the company’s ability to generate cash and confirmed that its ongoing share buyback program remains in place. The company also maintained that its 2026 outlook aligns with current market expectations.

Fevertree Drinks’ near-term outlook continues to be supported by solid financial performance and favourable corporate developments, particularly the ongoing share repurchase program. However, the company’s relatively high valuation and mixed technical signals temper the overall outlook. In addition, the lack of recent earnings call commentary makes it harder to fully assess management’s forward guidance and investor sentiment.

More about Fevertree Drinks

Fevertree Drinks plc is a premium mixer and soft drinks company best known for its Fever-Tree brand. Its portfolio includes tonic waters, ginger beers and a range of mixers designed to complement premium spirits. The group is increasingly expanding beyond tonic into a broader line-up of premium soft drinks aimed at adult social occasions, and has established strong market positions in the U.K., U.S., Europe and selected international markets.