Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

UK drinks makers bet on summer splurge after pandemic drought

Stock MarketsJul 20, 2021 05:36AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Products from the drinks company Fever Tree are displayed in London, Britain May 11, 2016. REUTERS/Neil Hall

By Yadarisa Shabong

(Reuters) - Three UK-listed drinks makers and sellers raised their financial targets on Tuesday betting on people stocking their fridges for the summer and soaring demand from bars and restaurants as they reopen after months of pandemic lockdowns.

Fevertree, which sells premium tonics and drink mixers, expects 2021 revenue to rise by as much as 21% compared to last year, while Irn-Bru maker A.G. Barr forecast profit for the year ending January 2022 to exceed pre-crisis levels.

Online wine retailer Virgin Wines, which was bought out from billionaire Richard Branson's Virgin Group, also upgraded its revenue and core earnings targets following strong demand over the past two months.

"We have seen nothing but encouraging signs over recent months that the customers we have acquired are staying loyal," its boss Jay Wright said.

Companies making and serving drinks are recouping some of their lost business from the past year when the health crisis shut down a major source of their income: the hospitality industry. That hit could not be fully offset by more people stocking up their bars at home with alcohol and mixers during lockdowns.

Virgin Wines UK shares climbed 4% and A.G. Barr was little changed by 0757 GMT, while Fevertree slumped 6% after a warning that margins would narrow to 44% from 46.2% last year due to supply chain issues and higher input costs.

"Whilst we anticipate some margin improvement next year, we believe logistic cost headwinds will continue alongside input cost increases on raw materials and product cost," Fevertree said.

J.P.Morgan analysts said Fevertree's caution may make some investors wary of the 2022 outlook.

Sales to retail outlets, or off-trade, were strong across all its markets even as tap rooms reopened, Fevertree said.

The company, whose tonic water comes in a range of flavours, lifted its revenue forecast for 2021 to between 295 million pounds ($402.91 million) and 304 million pounds. It reported 252.1 million pounds in revenue last year.

($1 = 0.7322 pounds)

UK drinks makers bet on summer splurge after pandemic drought
 

Related Articles

Is Zillow Setting Up for a Big Move?
Is Zillow Setting Up for a Big Move? By StockNews - Sep 23, 2021

Zillow Group (NASDAQ:ZG) Inc. (Z) has been trending in a sideways range over the past few weeks where it has formed a resistance line and a level of support. The stock is expected...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email