Fevertree shares fizz on US push

Fevertree Drinks shares leaped on enthusiasm about the softdrink company’s US expansion, as drinkers spend more money on upmarket tonic waters and other mixers.

“Given the strong performance in the first half of the year, the board anticipates that the outcome for the full year will be comfortably ahead of its expectations,” CE0 Tim Warrillow said on Tuesday.

The company’s shares rose as much as 15%, the most since January, to a record 3,987p in early London trading.

As of June, the company has full control of its marketing in the US, where bar goers are increasingly ordering spirits paired with Fever-Tree mixers instead of beer or wine amid growing demand for cocktails.

Fevertree Drinks also signed an agreement with Southern Glazer’s Wine & Spirits, North America’s largest liquor distributor, to drive sales in bars and nightclubs, the London-based company said in the statement.

Fevertree has appointed Charles Gibb, the former CEO of LVMH’s Belvedere vodka, to run its North American business. The value of its shares has almost doubled over the past 12 months as demand soars for the company’s products.

Fevertree sells carbonated mixers, such as Indian Tonic, for alcoholic spirits as luxury products. The company has launched a low-calorie product range ahead of the April introduction of a sugar tax in the UK.

While the UK accounted for 58% of first-half revenue and the rest of Europe brought in just over a quarter, the US generated only 15%, indicating room to grow in the world’s largest spirits market.