Don’t make mine a G&T

Gin and tonic sales fell last year, say Diageo and Fevertree

PREMIUM tonic and mixers maker Fevertree today warned margins are being squeezed by a surge in costs of glass production while UK revenues were hit by the rail strikes .

Shares in the former stock market darling fell slumped 11% to 989p after it revealed UK sales in 2022 dipped 2% to £118 million last year. The company said the downturn had been exacerbated by a wave of train strikes in the middle of the Christmas party season. However, total global sales rose 11% to £344 million thanks to a jump in the US.

Fevertree said energy pricing “remains volatile and at least three times higher than 2021 levels, impacting both the cost of raw materials and the direct energy cost in glass manufacture.

“As a glass-led business, with c80% of our sales mix in glass bottles, we are particularly exposed to this significant headwind.”