This is how Fever-Tree has weathered economic headwinds as it aims to grow margins

It helped take overall earnings to around £30m for the period, in line with what Fever-Tree had told shareholders to expect.

The company said that, despite cost-of-living pressures on its customers, it still managed to grow its market share, based on the value of the products it sold.

It said the on-trade business – sales in pubs and restaurants rather than in shops – was especially strong in the UK over Christmas, and singled out its new Espresso Martini mixer as a strong performer.

Chief executive Tim Warrillow said: “The Fever-Tree brand has performed well in 2023, growing our market share in all of our key markets, despite a challenging macroeconomic environment.”

Revenue in the UK was down £1 per cent to £114.8m, allowing US revenues, which rose 22 per cent to £117m, to form the company’s biggest market for the first time.

“The US ended the year as our largest region, where we have extended our leadership position in both the tonic and ginger beer categories,” Mr Warrillow said.

“The brand enjoyed a strong Christmas trading period in the UK, especially in the on-trade, whilst at home our new Espresso Martini mixer clearly became a festive drink of choice.

“Despite recession in Germany impacting our European performance and the one-off effect of the transition to our new subsidiary in Australia, we remain confident of driving good growth in those regions in 2024.”

The business expects revenue for the Fever-Tree brand to rise 10 per cent this year, and total group revenue will grow 8 per cent.

It said new glass contracts, where energy prices have been fully factored in and hedged, will help improve gross margins this year, as will lower transatlantic freight rates and some of the company’s cost savings.

It expects adjusted EBITDA margin to hit 15 per cent this year.

Separately on Thursday, fellow drinks maker Britvic reported an 8.1 per cent rise in revenue to £443.5m in the three months to the end of December.

The company saw its Brazilian revenues rise 21.0 per cent thanks to a recent acquisition in the country.

Changes in the ranges and prices in France offset a decline in the amount of product the Pepsi maker sold there, with revenue up 1.1 per cent.

In the British market revenue was up 6.9 per cent.

Earlier this week, a report suggested that UK household incomes are expected to improve in 2024.

The EY Item Club upgraded its outlook for UK growth in 2024, to 0.9 per cent from the 0.7 per cent it previously pencilled in last October.

Growth is expected to step up again in 2025, with an expected increase in gross domestic product (GDP) of 1.8 per cent compared with the 1.7 per cent previously predicted, according to EY’s latest economic forecast.