Fever-Tree, the producer of carbonated mixers for alcoholic spirits, said that the UK saw a moderation in growth rates for the first half of 2019.
Shares in Fever-Tree were down over 10% during Tuesday morning trading.
In the UK, Fever-Tree’s largest market, revenues were up 5% over the period, considerably less than the 73% half-year growth experienced a year ago.
Fever-Tree cited the poor weather in the past quarter as having a dampening effect on growth rates in the short term, a factor which has impacted several different sectors. This year’s summer has been unable to match the incredibly strong trading period experienced in summer 2018.
The company said that, in the UK, its range of flavoured tonics now accounts for over half of its total tonic sales at retail. Alongside the growth of the UK gin craze, its tonics continue to stimulate consumers’ appetites for exploring different flavour combinations.
As Britain’s unquenchable thirst for gin grows, consumers purchased 66 million bottles of gin last year, an annual rise of 41%.
In the US, revenue grew 31% compared to the first half of the previous year, which is a growth of 24% on a constant currency basis.
“It has been an encouraging first half for the Group with growth across all our four regions, most notably in the US, where we have made significant distribution gains and operational progress,” Tim Warrillow, CEO of Fever-Tree said in a company statement.
“While we have not been immune to the impact of the unseasonably poor weather in the UK, we have further strengthened our market leadership position within the UK and have seen positive momentum in Europe and the rest of the world reflecting our increasingly global footprint,” the CEO continued.
“The move to long mixed drinks is gathering momentum and starting to win share from beer and wine. Our broad range of high-quality mixers, relationships with spirits companies, brand strength and our growing international distribution network provide us with confidence in the significant global opportunity that lies ahead for the Group.”
“Whilst we remain mindful of the tough comparators over the remainder of the summer in the UK, the Board anticipates that the outcome for the full year will be in line with its expectations.”
Shares in Fevertree Drinks plc (LON:FEVR) were trading at -10.10% as of 11:13 BST Tuesday.
