Fevertree sales lose fizz after cold weather
Fevertree Drinks has ridden the wave for premium spirits, but in its home market, the growth that propelled the company to a peak market capitalisation of £4.6bn (€5.1bn) last autumn is slowing.
The company reported yesterday that UK sales rose by just 5pc in the six months to June 30, sending its shares down almost 10pc.
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Some of this deceleration can be explained by the strong performance recorded a year earlier.
In the first half of 2018, UK sales rose 73pc as Britons toasted a royal wedding and watched the World Cup amid soaring temperatures. This year, unseasonably cold weather in the early summer had the opposite effect.
The UK still accounts for half of group sales. The company now has the number-one
position by value in the UK mixers category, in both pubs and retailers.
In the US, Fevertree’s sales rose by 24pc, excluding currency movements, in the first half, and the company has the number-one position in the country’s premium mixer market.
The business expects the full-year outcome to be in line with its previous expectations.