CAPITALISING ON MARKET TRENDS

The Group expects to continue to influence and benefit from the twin drivers of global spirit category premiumisation and the move towards simple long drink mixability, as evidenced by the continued rise in popularity of a premium gin and tonic across the UK and Western Europe, the resurgence of the Moscow Mule in the USA and the global opportunity within the wider dark spirits category.

STRENGTHENING DISTRIBUTION IN EXISTING MARKETS

The Group intends to drive increased penetration in all of the markets in which it has established a presence, increasing the number of customers in both the On-Trade and Off-Trade.

There are opportunities to grow further in the Group's existing territories by expanding the Group's distribution footprint, its customer penetration, and the volume of sales to each customer, particularly as Fever-Tree's awareness grows with end consumers in each territory.

EXTENSION OF CO-PROMOTION STRATEGY WITH OTHER INDUSTRY BRANDS, INCORPORATING BOTH ON AND OFF-TRADE

Global spirits companies are increasingly focused on driving customers towards higher-margin "premium" products. The Group has proven the value to both parties of co-promoting with leading spirits brands and intends to drive growth from further involvement in co-branded promotional activities with leading spirits brands across the wider spirits category.

EXPANDING DISTRIBUTION INTO NEW MARKETS

Whilst the Group expects growth to continue to be driven mainly within its existing markets, it intends to generate growth in the medium to long term by entering new markets and is actively assessing new distribution opportunities.

NEW PRODUCT DEVELOPMENT, INCLUDING EXPANSION OF EXISTING RANGE, AS WELL AS DEVELOPMENT OF NEW PRODUCT LINES

There are further opportunities to develop new products and variations of existing flavours.

For example, the expansion of our refreshingly light range of low calorie mixers also under the Fever- Tree brand will took place during 2018. The Group also sees opportunities to develop further limited-edition variants of its products such as the Clementine Tonic and Cucumber Tonic launched in the UK Off-Trade for as well as regional variants for its international markets.

In addition to new flavours there may be opportunities to launch new formats, such as the 150ml can format launched in the UK in 2015, and to refresh packaging, such as the updated branding applied across the Group's range in 2015 and the new bespoke embossed bottle design introduce

As the world's leading supplier of premium carbonated mixers for alcoholic spirits by retail sales value, we believe that Fever-Tree has the following key strengths:

A STRONG DISTINCTIVE BRAND

Fever-Tree is the leading brand in the premium mixer market internationally.

Protection and enhancement of the brand's market position is a major focus of the Group.

CLEARLY DIFFERENTIATED PRODUCTS WITH PREMIUM PROVENANCE

The Group uses only the highest quality ingredients in its products and the founders continue to travel the globe to track down and source these ingredients.

This premium provenance is a clear differentiator from Fever-Tree's mass-market competition and is key to both product quality and brand image.

FIRST MOVER ADVANTAGE

Fever-Tree was the first mover and innovator of the premium mixer category, which enriches the brand's authenticity and attractiveness to the industry's leading bartenders and trade influencers, as demonstrated by the brand being voted the no.1 best-selling and no.1 trending tonic water for the fourth year running by the World's best bars in Drinks International's Annual Brand Report.

SCALABLE BUSINESS MODEL

The Group's largely outsourced business model, underpinned by strong, well-established relationships with suppliers, bottlers and distributors, allows for scalability and operational flexibility without the requirement for major capital commitment from the Group.

STRONG AND DIVERSE CUSTOMER RELATIONSHIPS

The Group has strong well-established relationships with its network of importers and distributors as well as its On-Trade and Off-Trade customers.

Revenue is diversified across geographies, channels and customers, with no single end customer generating more than 5% of Group revenue.

EXPERIENCED FOUNDER-LED MANAGEMENT TEAM

The Group's management team and Board includes the founders of the business, who have considerable experience in the mixers and premium spirits sectors.

The executive Directors are also supported by experienced operational team as well as outsourced partners with many years' experience in the beverage industry.

STRONG CASH FLOW GENERATION AND ADJUSTED EBITDA MARGINS

The Group requires minimal capital expenditure, and has, to date, achieved strong cash generation. In 2017, operating cash flow was 74% of adjusted EBITDA.

The Group's largely outsourced business model supports its operating margins. In 2017 the Group achieved a gross profit margin of 53.5% and an adjusted EBITDA margin of 34.5% of revenue.