Appropriately for a company that specialises in mixers for cocktails and long drinks, Fever-Tree has had a mixed time of it over the past couple of years as cost headwinds have crunched its margins. In similar vein, its recent trading update saw the company slightly miss topline forecasts but beat earnings expectations.
The particular problems for Fever-Tree were glass prices and shipping costs, though both situations have now gone a long way to being resolved. Glass for its bottles, which are a big energy user in the manufacturing process, has now been locked in for a year at a lower price. The other big outlay was transatlantic freight, where costs jumped fourfold to $10,000 per container but have now dipped back down to about $3,000
