Tonic maker Fever-Tree on track as market share climbs

6th Jun 2024 07:45

(Sharecast News) - London-based tonic and soda maker Fever-Tree Drinks said on Thursday that sales have risen over the year to date, as it continues to drive market share gains across all regions.

While no numbers or guidance was given in a relatively short trading update to accompany the company's annual general meeting, management said they remained "comfortable" with full-year expectations.

In the UK, the brand has "strengthened its category leading position", which it said was helped by appealing to new markets with mixers for rum, vodka and other spirit categories, as well as its cocktail mixers.

The US market continues to be Fever-Tree's biggest contributor to growth at the retail level, with the company claiming to hold the number-one position in the tonic and ginger beer categories.

Meanwhile, the company said it was seeing "good underlying momentum" in Europe, notably in France, Italy and Denmark, and expects strong growth in the 'Rest of World' geography due to the new subsidiary model in Australia, where it is bringing sales, marketing, and distribution in-house.

"We look forward to our key summer trading period, which will include a range of marketing initiatives and activations, and remain comfortable with full year expectations," the company said in a statement.

The stock was up 3.7% at 1,122p by 0844 BST.