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Fevertree Plc expects US "topline momentum" behind its Fever-Tree mixers to "build through the year" as it benefits from distrib gains via Molson Coors partnership and "doubling of local marketing spend," CFO Andy Branchflower detailed alongside CEO Tim Warrillow during co's FY2025 earnings presentation this morn. US natl campaign, including natl TV for first time, debuts in Apr, Tim added, coinciding with big distribution gains expected for spring resets. Notably, Tim shouted out recent meetings with Reyes, Manhattan Beer and JJ Taylor to underscore excitement among MC distrib network nationally. He pointed to his discussion with Reyes "chief executive" (presumably Tom Day) in Chicago, "struck by" the size of Reyes' overall biz, and "fantastic to hear&hellip;how genuinely excited they are" to have Fever-Tree as they build out "their beyond-beer portfolio." Reyes, Manhattan and JJ Taylor each expressed "very ambitious" plans, "putting real focus, resources and sales incentives behind it." All told, Fevertree says its brand is "now embedded across approximately 400 regional distributors." Co "worked very closely" with MC "to develop the campaign" that would "remain true to the brand," looking to communicate "a simple idea: Fever-Tree is the mixer bartenders reach for." That's a "powerful signal for the quality of the brand," Tim said. Expect a "fully integrated, multichannel program" with social, streaming, out-of-home, sampling, sports partnerships and other "premium brand experiences." This is a "genuine step-change" in how the brand's supported, marking the beginning of what co sees as an oppy for "double-digit US growth CAGR over the medium-term." The US campaign will be followed up by Fever-Tree's largest mkg campaign ever in the UK and Europe this summer, communicating that whether it's "straight up or mixed, it's a matter of taste." Altogether, 2026 outlook for Fever-Tree globally calls for "acceleration," co detailed.Soft UK Market but Strong Rest of World By region, core UK market declined 2% to &pound;108.4 mil with "a much-improved second-half performance, offsetting the 6% decline in the first half." Diversification is helping there too, with 6% tonic decline offset in part by strong Ginger Beer and Pink Grapefruit gains. In US market, sales rose 3%, +6% on constant-currency basis, to &pound;131.9 mil. In Europe, excluding other brands that Fevertree distributes there, Fever-Tree-branded sales advanced 2% to &pound;94.7 mil, with its Ginger Beer the standout performer. In Rest of World segment, sales soared 17%, +22% in constant currency, to &pound;37.7 mil, with Australia, New Zealand and Canada the stars.Low EBITDA in 25-26 Will Be Offset Over Medium Term, Sez Andy This yr, currency exchange rates are expected to impact US revenue translation but won't have a "material impact" on US EBITDA, Andy acknowledged. US EBITDA is projected flat at just &pound;8.2 mil, after sinking 55% in 2025 with margin down 8.2 pts to just 6.3%. Yet that was "as expected, given transition inefficiencies, US tariffs and sharing of US profit" with MC, he explained. Earnings are expected to see "step change" improvement over medium term, especially as MC begins to onshore production in 2027, execs underscored. Co's also emboldened by agreement with MC that guarantees "minimum level" of Fever-Tree US profits from 2026-2030, "underlining their confidence in the opportunity and underpinning our confidence in the ability to deliver&hellip;over the medium term." There will be "strong improvement" in working capital starting this yr too as MC took on most of Fever-Tree's US team, leaving Fever-Tree with just a small project oversight team in US, which itself will "reduce to very low levels as US production is increasingly on-shored," said Andy.US 'Beyond Tonic' Portfolio is 68% of the Mix, Growing at a 13% CAGR Recall that Fevertree was a bit late in recognizing that its core tonics comprise much lower occasion base in US than in core UK market.That's dramatically changed in recent years as co has built out range of mixers in synch with Americans' spirits preferences, including tequila, vodka and whiskey, with additions like ginger beer. On call, they said they're pleased with sustained US "momentum" thruout the transition year of 2025 as reported US sales grew 3% to &pound;131.9 mil, "extending" the brand's leadership position in tonic and ginger beer categories. As Fever-Tree portfolio continues to evolve beyond tonic, US is its most developed mkt in that regard with 68% of its mix "beyond tonic" vs just 31% in UK and Europe, 45% globally. "Beyond tonic" products grew at a 13% CAGR over past 3 yrs in US, and MC provides the "perfect platform to drive" more of those "adjacent opportunities" in premium soft drinks, non-alc RTDs and cocktail mixers, co highlighted. While that suggests tonic sales are extra soft in the US lately, the portfolio balance has shifted toward growth.

After Modest 2025, Fever-Tree Expects US Momentum to Build Thruout 2026 as Mktg Spend Doubles, Molson Coors Distribs Proceed with 'Very Ambitious' Plans

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