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Fevertree Drinks' first-half pretax profit falls 15% on US margin pressure
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Fevertree Drinks' first-half pretax profit falls 15% on US margin pressure
Sep 11, 2025 12:38 AM

Sept 11 (Reuters) - Tonic maker Fevertree Drinks ( FQVTF )

reported a 15% fall in its first-half pretax profit on

Thursday, pressured by sluggish UK sales to bars and restaurants

and lower U.S. margins, partly due to profit-sharing with

partner Molson Coors ( TAP/A ).

A majority of Fevertree products sold in the United States

are currently produced in Britain, after the beverage maker

wound down a major U.S. bottling arrangement ahead of its

partnership with Molson Coors ( TAP/A ) earlier this year.

"While this has exposed the partnership P&L to a tariff

impact, we are jointly working hard to mitigate this impact

ahead of the prospective onshoring of U.S. production in the

medium term," FeverTree said in a statement.

In July, Fevertree said it would equally split costs of the

10% U.S. tariffs on UK imports with brewer Molson Coors ( TAP/A ),

as part of a partnership that began in January.

Improvements in its global supply chain, procurement

processes alongside the prospective onshoring of U.S. production

by Molson Coors ( TAP/A ) over the medium term would allow for margin

recovery over time, the company said.

Fevertree reported a first-half pretax profit of 11.2

million pounds ($15.14 million), compared with 13.2 million

pounds a year earlier.

Still, the company's total adjusted sales inched 2% higher

to 172.2 million pounds, on constant-currency basis, supported

by stronger sales of ginger beers and premium soft drinks.

($1 = 0.7399 pounds)

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