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Andrea Felsted

The Gin and Tonic Market Is Getting Crowded

British cocktail-mixer trailblazer Fevertree is facing headwinds on both sides of the Atlantic. Its plunging shares could attract a bigger beverage company.

Nothing to cheer about.

Nothing to cheer about.

Photographer: Jeff Schear/Getty Images North America

The Fever-Tree gin and tonic has lost its fizz.

Fevertree Drinks Plc on Monday warned on profits, sending its shares down as much as 26%. The pioneer in high-end cocktail mixers said sales expanded by just 10% last year and earnings fell 5% compared with 2018. That’s a stark contrast to previous statements from the maker of Sicilian lemon tonic water and spiced orange ginger ale, which usually upgraded expectations.