Tonic maker Fevertree Drinks and Irn-Bru maker A.G. Barr on Tuesday raised their annual forecasts as customers stocked up drinks for the summer and pubs and restaurants reopened their doors.
While closures of bars and restaurants in the past year hit businesses making and serving drinks, sales of alcohol and alcohol mixers were still strong, as stuck-at-home people turned to supermarkets to stock up their bars at home.
Fevertree, which makes premium tonics and drink mixers, lifted its revenue forecast for the year ending in December to between £295 million ($402.91 million) and £304 million.
A.G. Barr Profit Forecast
A.G. Barr, meanwhile, raised its profit forecast for the year ending January to be slightly ahead of pre-COVID-19 levels.
Still, Fevertree has said COVID-19-related supply chain issues and higher input costs have pressured gross margins, which is expected to be about 44% for the year.
Online drinks retailer Virgin Wines UK also upgraded its revenue and core earnings targets following strong levels of customer demand in May and June.
News by Reuters edited by Donna Ahern, Checkout. For more drinks stories click here. Click subscribe to sign up for the Checkout print edition.
