Our strategy is to continue to grow the Group's business organically. The overall mixer market may be mature, but the significant and rapid trend towards premiumisation, mirroring what has happened in the spirits space, is expected to offer continued growth opportunities. The principle routes to achieve this organic growth are:
CAPITALISING ON MARKET TRENDS
A key trend in the mixer market is the increasing shift in consumption towards "premium" products. This trend has been seen in many other consumer products, notably chocolate, crisps, beer and, of direct relevance, in premium spirits. The Directors believe that the Group is well-placed to benefit from this well established trend, by being positioned as a premium mixer, to accompany the growing market of premium spirits.
STRENGTHENING DISTRIBUTION IN EXISTING
The Group intends to continue to drive penetration in all of the markets in which it has established a presence, by endeavouring to increase the number of customers in both the On Trade and Off Trade. We believe that 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, as our profile grows with consumers in each territory.
EXTENSION OF CO-PROMOTION STRATEGY WITH OTHER INDUSTRY BRANDS, INCORPORATION BOTH ON TRADE AND OFF TRADE
We believe that global spirits companies are focused on driving customers towards higher margin "premium" products. The Group have proven the value to both parties of co-promoting Fever-Tree with leading spirits brands. As a result the Directors expect to see further growth from the Group's involvement in co-branded promotional activities with leading alcohol brands.
EXPANDING DISTRIBUTION INTO NEW MARKETS
The Group expects to generate growth by entering new markets and is actively assessing new distribution opportunities. We are currently focused on markets where western drinking patterns are established or are trending, such as Colombia which is following both US and Spanish drinking customs in embracing the gin and tonic culture. The Company will also evaluate opportunities in the short-term to enter additional markets in Asia, Latin America, Eastern Europe, the Middle East and Africa.
NEW PRODUCT DEVELOPMENT, INCLUDING EXPANSION OF EXISTING RANGE, AS WELL AS DEVELOPMENT ON NEW PRODUCT LINES
We believe that there are further opportunities to develop new products and variations of existing flavours, for example, expanding the "naturally light" range. The longer-term strategy is to: offer a premium carbonated mixer for the revival of each classic long drink mixed with premium spirits; capitalise on regional opportunities to develop, for example, tonic water flavours more suited to specific local tastes; introduce new packaging formats; and explore opportunities to expand into the adult soft drink category.