Schweppes competes with Fever-Tree in the premium drinks market

Schweppes (Coca-Cola) has announced a new range of premium tonic water, Schweppes 1783, and plans to inject £6.6 million (about $11.4 million) into its marketing to combat competitors in the UK.

As consumer preferences shift towards long mixed drinks, the premium tonic market has increased in value in recent years. Rival company Fever-Tree has established itself as a premium product range, and has been gaining popularity in the UK since its launch in 2005.

Joe Hutson, a consumer analyst from GlobalData, explained: “The evolving market has enabled Schweppes’ rival, Fever-Tree, to experience vast growth in 2017.”

Fever-Tree’s UK revenues doubled to almost £33.6 million (about $58.2 million), whereas Schweppes retail sales fell by 6% in 2017. The company also saw 76% gross profit growth in the UK during this period, with sales split evenly between on- and off-trade.

“The new range will be of the same design that was formed by inventor Jacob Schweppe in 1783. It will be hoped that the golden sash and black livery will allow the product to stand out in both the on- and off-trade, where Fever-Tree’s presence has been mounting,” Hutson said.

Schweppes sought guidance from mixologists and drinks experts in the development of the range in order to broaden their appeal to today’s consumers. The company will offer both traditional flavours, such as Crisp Tonic Water, Light Tonic Water and Golden Ginger Ale, and unique flavours including Salty Lemon, Quenching Cucumber and Aromatic Floral.

The tonics are not necessarily limited to just the gin market, as they could also serve as mixers to other alcoholic beverages; for instance, salty lemon could be combined with tequila.

The launch and design of the range is expected to be worth £6.6 million ($11.4 million), making it the largest marketing effort in the brand’s history. This entails engagement at taste experiences, festivals and nationwide cocktail events, as well as digital efforts and TV and cinema advertising, including the sponsoring of The Jonathan Ross Show.

With consumers becoming more adventurous with their flavour combinations, Schweppes is hoping the 1783 range of tonic water will help position the company firmly within the premium drinks market and increase sales.