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Has Fevertree hit peak G&T?

The premium mixer brand has come up short of expectations in the domestic market
January 20, 2020

Shares in Fevertree Drinks (FEVR) pulled back sharply after the mixer specialist revealed that UK revenue had fallen by 1 per cent through 2019. Sales in its other locales have held up, but the domestic decline will raise questions as to whether Fevertree has achieved market saturation in the UK.

IC TIP: Hold at 1620p

Christmas trading was disappointing in the UK, though the company has continued to market the brand in its growth regions. The upshot is that margins have ended the year behind expectations, leading to a 5 per cent fall when compared to 2018. The ongoing investment is anticipated to feed through to gross and cash margins of 49 per cent and 28 per cent, respectively, for 2020.