Fever Tree: US Distribution
Current Executive Vice President at Southern Glazer's Wine & Spirits
inpractise.com/articles/fever-tree-us-distribution
Why is this interview interesting?
- Southern Glazer's strategy of pitching Fever Tree to on-premise accounts
- How bartenders view Fever Tree and buy mixers
- Advantage of Southern Glazer's versus Schweppes distribution
- Fever Tree's structure of co-merchandising with spirits brands and Southern Glazer's
- How the change in pricing of Fever Tree could impact volume
Fever Tree
Why is this company interesting?
Fever Tree is a founder-led beverage business that sells premium mixers such as tonics, ginger ale, and club soda.
Over the last decade, two tailwinds have fuelled FEVR's ~50% revenue CAGR: premiumisation and spirits winning share from beer and wine. The company defined the UK premium mixer category which accounted for 43% of all mixers in H121. In the US, the premium segment is only 10% but is growing at ~3x the total mixer market.
In 2018, the company launched a national distribution agreement with Southern Glazers, the largest spirits distributor in the US. Fever Tree focused on building the brand equity with premium spirits companies in the on-premise channel and has the longest and deepest relationships with companies like Diageo and Pernod.
Fever Tree is a beverage company that operates closer to a premium spirits business with 30%+ ROE, deep distribution agreements and high brand equity in both channels that provide high barriers to entry for competitors.
Fever Tree: US Distribution(May 28, 2020)
Scott Westerman
Current Executive Vice President at Southern Glazer's Wine & Spirits
Scott has 35 years experience distributing spirits and wine across the US. He is the Current Executive Vice President of Southern Glazer’s Wine and Spirits, the largest spirits distributor in the US, where he is responsible for distributing the portfolio of spirit brands and Fever Tree across all Central US states. Southern Glazer’s distributes the major global spirit brands in both on-premise and off-premise accounts across the United States.
Interview Transcript
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