Shares in drinks maker Fever-Tree rose over 2% on Wednesday after the company revealed it expected 2017 earnings to be well ahead of expectations.
In a trading update for the year ended 31 December, Fever-Tree said it anticipated revenue to reach £169m, a 66% increase on the prior year.
Fever-Tree sees sales over the second half of the period growing by around 58% year on year.
Data shows the company has continued to gain substantial market share, making it the number one mixer brand by value in the UK off-trade channel (IRI - Total UK Retail Mixer Market value share - 13 weeks to 31/12/17).
Focused on sales to restaurants and bars, Fever-Tree has enjoyed particularly strong growth from drinks such as tonic water, the natural complement to gin, which has itself been experiencing rapid growth in UK sales.
UK revenues are expected to be up 96% on 2016.
“The group's performance over the Christmas period was particularly notable with impressive rate of sales growth across all channels, formats and flavours. The growth of the mixer category continues to accelerate, driven by Fever-Tree's unwavering focus on quality and supported by the on-going premiumisation of the wider spirits sector,” said Fever-Tree.
In terms of global regional performance, sales in Continental Europe performed well in the second half of 2017, with the group now expecting full year revenue to be around 42% ahead of 2016.
Similarly, US revenue is anticipated to be about 39% higher. Rest of world sales growth is forecast to be around 57% ahead of 2016, helped by an acceleration in the second half of 2017.
“While we have seen strong growth across all regions, our performance in the UK over the Christmas period was once again exceptional. Our growing range of mixers and formats are appealing not only to our loyal customers but also bringing consumers back to the category and importantly attracting a new younger audience,” said Tim Warrillow, co-founder and chief executive of Fever-Tree.