Fever-Tree has been growing rapidly. According to preliminary results for 2016 financial year, the Fever-Tree brand's revenue was £102.2m globally; registering year-on-year growth of 73%, and its gross profit was £56.4m with 83% year-on-year growth.

Why is Fever-Tree so successful? One of the main reason is that Fever-Tree capitalizes on the premiumisation trend in spirits. Its tagline "if 3/4 of your gin and tonic is tonic, make sure you use the best" resonates well with spirits consumers in UK, particularly those who prefer premium/high-end options.

Premiumisation is the aspirational behavior that drives consumers to buy higher-priced, luxury items. The desire for indulgence and opting for premium variants is a classic characteristic of alcoholic beverage consumption choices. A higher proportion of consumers in the UK say they buy alcoholic beverages at premium price ranges than globally, across all alcoholic beverage categories.

Furthermore, in the UK, higher-ABV beverages such as spirits and liqueurs are more likely be bought at the premium/highest end of the price range than milder drinks such as wine and beer, according to GlobalData 2014 global consumer survey.

Spirits