Once a stock market darling, Fever-Tree languished in the red – nursing yet another hangover.
Founded in 2004, the posh tonic maker floated on the London Stock Exchange in 2014, where its share price flew.
Retail investors snapped up Fever-Tree, buoyed by Brits who for years had to make do with Schweppes.
But by the end of 2018 the dream had soured, with the analyst community questioning where the next stage of growth would come from.
Yesterday, in the first session after the Bank Holiday weekend, Goldman Sachs said it was time to sell the stock as the investment bank downgraded its outlook.
Falling flat: Yesterday, in the first session after the Bank Holiday weekend, Goldman Sachs said it was time to sell Fever-Tree stock as the investment bank downgraded its outlook
The investment bank warned sales are likely to slow in the US due to weaker demand for spirits.
Goldman expects the company, which makes tonic water, ginger beer and cocktail mixers, to report weaker sales on both sides of the Atlantic.
Fever-Tree’s largest market is the US, which makes up almost a third of group revenues.
The analysts said sales would increase by 15.5 per cent this year – below market forecasts for 17 per cent.
The broker added its gloomier outlook is due to demand for spirits in the US remaining ‘subdued’.
And Fever-Tree is likely to struggle in the UK, too, according to the investment bank.
It has pencilled in sales to increase by 0.25 per cent in 2024 – less than market predictions of 1.9 per cent – due to weaker trading in cocktail bars and softer demand for gin. Shares sank 4.4 per cent, or 52p, to 1128p.
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Smart tag monitoring firm Big Technologies warned its first-half sales are likely to be lower than the year before.
The company, which makes electronic devices used by hospitals and police forces to track people’s movements, said its sales were flat at £18.5million in the four months to the end of April.
The firm has been hurt by a contract in Colombia ending by June once the customer starts working with a new supplier.
Shares dipped 1.8 per cent, or 3p, to 167p yesterday.
The FTSE 100 fell 0.8 per cent, or 63.41 points, to 8254.18 and the FTSE 250 slid 0.3 per cent, or 65.66 points, to 20,705.27.
Ocado soared 9.8 per cent, or 36.6p, to 410.4p to lead the blue-chip index.
The rise was still some way off when the online supermarket’s stock jumped more than 30pc in June last year amid speculation mounted that Ocado could be swooped on by Amazon or another US tech firm.
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It came despite the group warning the investing environment is ‘volatile’. Shares added 3.2 per cent, or 74p, to 2394p.
Persimmon is eyeing up a £1billion takeover of a rival housebuilder.
The blue-chip firm could submit an offer to buy Cala Group, which is owned by Legal and General, this week, Sky News reported. Shares fell 3 per cent, or 44.5p, to 1436.5p.
JD Sports reassured investors that its annual results should be in line with its forecast set out towards the end of March. Shares gained 4.9 per cent, or 6p, to 127.45p.
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