Mixers supplier Fever-Tree is hoping to expand into new markets after launching its first canned products.
From next week (28 June), the brand will be rolling out eight-packs of 150ml cans of Indian and Naturally Light Tonic Waters. The products – the only canned tonic waters with no saccharin, aspartame or artificial preservatives, according to Fever-Tree - will go on shelf in Sainsbury’s and Waitrose from mid-July.
The supplier said cans accounted for a third of all UK off-trade tonic sales, adding the new format would also allow the business to tap opportunities in the travel and transport sectors.
“We wanted to extend the quality we offer in glass bottles to the canned category,” said co-founder and CEO Tim Warrillow. “We’ve fielded lots of enquires from lots of people over the past few years requesting the products in a can.”
With an rsp of £4.50, the new packs offer the same volume price as Fever-Tree’s other formats. In contrast, a 12-pack of 150ml cans of Schweppes tonic water is around £4 in the big four supermarkets [Brand View].
“This move is not value driven; we are offering choice via a format,” said Warrillow, adding he hoped the launch would drive volume. “The research has been very favourable. It has been very well received by the retailers and we think it will open up a new and bigger market for us.”
The liquid in the cans was identical to Fever-Tree’s bottled tonic water, he added. “The production and development of cans has improved so much that the slight metallic taste one used to get with cans is no longer an issue,” he said. “We did extensive taste testing.”
Announcing its first results as a listed company in March, the business said it had set its sights on major US growth after recording a near-50% rise in sales. The business, which completed its AIM IPO in November 2014, generated revenues of £34.7m in the 12 months to 31 December, up 49% year on year. Adjusted EBITDA climbed 48% to £10m.
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