Fever-Tree has reported strong strategic progress in its full-year 2025 results, with growth accelerating in the second half and confidence building for 2026 thanks largely to its partnership with Molson Coors in the US.
However, the UK-based company has also suffered from costs associated with Extended Producer Responsibility (EPR) to the tune of £4.4m, with a new legal challenge having been launched in recent weeks.
The premium mixer brand delivered 4% revenue growth between 1 January and 31 December 2025 to £372.7m. Momentum also improved to 5% in H2 as performance strengthened across key regions.
A key theme of the year was diversification beyond tonic: 45% of group revenue now comes from products such as Ginger Beer and premium soft drinks, underlining the brand’s shift towards broader consumption occasions.
US partnership reshapes growth trajectory
The year 2025 marked the first year of Fever-Tree’s strategic partnership with Molson Coors in the US – a move described as “transformational” for its largest growth market.
The brand saw US revenue rise 6% as the brand embedded into a network of around 400 regional distributors.
However, the shift to a profit-share model weighed on reported profitability. Adjusted EBITDA fell 16% to £42.4m, reflecting transition costs and the new structure.
EPR challenge
In the UK, the impact of the Extended Producer Responsibility (EPR) levy has also taken a toll.
Adjusted EBITDA includes a £4.4m in costs relating to EPR. That includes £2.8m set aside to cover potential future costs from the levy and £1.6m already incurred relating to off-trade packaging.
Recently, it has also launched a formal legal challenge over whether its on-trade glass formats should be exempt.
Despite margin pressure, Fever-Tree generated strong cash flow, completing a £100m share buyback in 2025 and launching a further £30m programme.
Outlook
Looking ahead, the company said it remains “comfortable with market expectations” for FY26, supported by locking in costs at stable prices and having a clearer view of trading conditions as it moves towards 2027.
CEO and co-founder Tim Warrillow called 2025 “a pivotal year for Fever-Tree. The strategic partnership with Molson Coors in the US creates a significant opportunity to take Fever-Tree to the next level.”
He added: “Across our markets, the long-term trends shaping adult socialising, namely premiumisation, moderation and longer, lighter serves, continue to play directly to our strengths.
“Notwithstanding the current uncertain geopolitical outlook, our expectations for 2026 remain unchanged and in line with market expectations.”
