Fever-Tree share price: where next as analysts warn of ‘gin fatigue’
The drinks maker saw its share price slide last week after analysts at Jefferies slashed their price target for the stock and claiming British gin fatigue could harm its first-half results.
Fevertree saw its share price take a major hit last week after the investment bank Jefferies slashed its target price for the stock to £27.00.
Since the announcement last week, the drinks maker has seen its share price fall by more than 7% to £21.74 – its lowest point since late-December last year.
Jefferies blames Fever-Tree downgrade on UK gin fatigue
Analysts at the US-based bank said that poor weather and British ‘gin fatigue’ will likely hurt its half-year results, which are scheduled to be released on July 23.
In a note to investors, Jefferies analysts Edward Mundy said that despite ‘good momentum’ in the US market, gains have begun to normalise in the UK, with steady growth in European markets like Spain and Belgium.
Earlier in the year, Mundy noted that consumer demand for gin may have reached its peak, as drinkers turn to more exotic beverages this summer.
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Fever-Tree helps British drinkers pair their G&Ts
In a bid to end British gin fatigue, Fever-Tree partnered with Amsterdam-based creative agency The Brave New Now to create a Gin & Tonic Pairing Wheel campaign to run this summer.
The campaign will help consumers better understand which of Fever-Tree’s premium tonics best suits a variety of different gins.
‘Bringing our Gin & Tonic Pairing Wheel to life in an outdoor campaign with a new graphic approach has been the perfect way for us to help G&T drinkers discover their favourite G&T pairings and keep exploring the vast array of gins available today,’ Fever-Tree UK brand manager Fergus Franks said.
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