Fever Tree Australia: Positioning & Distribution Strategy
Former Director at Fever Tree's Former Australian Distributor
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Fever Tree Australia: Positioning & Distribution Strategy(August 14, 2023)
Former Director at Fever Tree's Former Australian Distributor
Former National Sales Director at Fever Tree's Former distributor in Australia, managed the Fever Tree portfolio, growing business revenues from $86M to $152M in 3 years.
Interview Transcript
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Do you categorize spirits separately from beer, wine, and RTD? Or do you count RTD as part of spirits?
It varies depending on the market data you're looking at. Generally, the combined category of spirits and RTD is significantly larger. However, spirits alone have seen substantial growth in value over the years, contributing significantly to the overall business growth. Beer accounts for $7 billion, wine for $5.1 billion, spirits for $5.3 billion, and ready-to-drink products for$ 4 billion. These figures are in billions of dollars. In terms of volume, ready-to-drink products account for 279 million liters, wine for about 320 million liters, and beer for one billion liters. So, beer still holds the largest share of overall sales within Australia, both in terms of volume and value.
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Is it only with gin, or was it also with whiskey that you could upsell?
In the early stages, we only had tonic, and so it was really just about gin and tonic. Fever-Tree then introduced sodas to match up with a Paloma in tequila or a rum and soda that they had produced, which kind of diverted away from their core business. This happened quite quickly. I think they realized that there was initially going to be a downturn in tonic sales because the gin sales were growing and were going to reach capacity. Then gingers kind of came in with ginger beer and ginger ale and spicy this and clementine and all these other things that kind of came in at a rush. But ultimately, my point to you before about the share of a mix of sales was 95% tonics., people still just wanted to talk about gin and tonic in Australia. With ginger beer and ginger ale, Schweppes ginger ale and Bundaberg ginger beer have never put a foot wrong. They are great products and very entrenched in the way of life here. So that's a much harder area.
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