Fevertree Drinks Warns On Revenue As UK Retail Spending Cools
Premium tonic water maker Fevertree Drinks Plc has warned on its annual revenue as Britons spent less on its mixers sold in retail stores, even as other regions, especially the United States, performed well.
Fevertree now expects revenue of £266 million to £268 million for the year ending December 31, missing analysts' consensus of £275 million, according to brokerage Jefferies.
In its interim results in July, the company forecast full-year revenue in line with expectations.
Retailers in UK have faced slack consumer spending as the country grapples with economic uncertainty against the backdrop of Brexit. Last month, a survey showed that people spent money on entertainment and experiences rather than in shops.
Hotel And Pub Mixer Business
Fevertree, named after the colloquial term for the cinchona tree, the bark of which produces tonic water ingredient quinine, said its business that supplies mixers to hotels and pubs in UK performed well in the second half of the year.
In July, the company also pointed to wet weather dampening its sales following a boost from a hot British summer that fuelled sales of tonic water.
Fevertree, which has been targeting growth in the United States, said that sales in the country accelerated in the second half as it built its distribution channel.