6th April 2018
The popularity of its light tonic and ginger beer have boosted profits at drinks-maker Fever-Tree, but its shares fell on a less sparkling outlook for 2018.
The company has benefited from the gin craze, which has boosted sales of tonic water, in particular its low-calorie tonic whose sales more than doubled in the UK. Fever-Tree plans to launch more low-calorie mixers, which now account for just under a third of its tonic sales.
It is also expanding into mixers for dark spirits, with the co-founder and chief executive, Tim Warrilow, saying: “Within the dark spirits category we are seeing clear evidence that the same trends of premiumisation and mixability that are driving the rise of premium gin and tonic consumption are also emerging.”
Fever-Tree tonic became the number one mixer brand in shops in Britain last year, and is also popular in North America, where people are consuming more long drinks. In Italy and Germany, the company’s non-alcoholic ginger beer brand, Moscow Mule, is selling well.
The firm said annual revenues rose by 66% to £170m, propelling pretax profits up 64% to £56m in 2017. But the Aim-listed shares dropped 4% to £25.83, as investors were hoping for a better outlook.
Source: The Guardian, by Julia Kollewe
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