- European drink stocks are dropping after an analyst warned bad weather could mean beverage sales go flat this summer.
- Shares in Carlsberg, Heineken, and Fever-Tree closed more than 2% lower on Friday.
- Jefferies analyst Edward Mundy warned summer sales could falter compared with last year, when they benefited from a heatwave, a FIFA World Cup, and a British royal wedding.
- Watch Carlsberg,Heineken, and Fevertree Drinks trade live.
European drink stocks fell on Friday after an analyst warned bad weather could mean beverage sales go flat this summer.
Shares in Carlsberg, Heineken, and Fevertree Drinks dropped by more than 2% as traders feared rain, wind, and cold could weigh on sales. The beverage firms could struggle to live up to their performance last summer, when they benefited from a heatwave, a FIFA World Cup, and a British royal wedding, said Jefferies analyst Edward Mundy.
Fevertree enjoyed “outstanding” and “exceptional” trading last summer due to those three factors, according to its full-year earnings report. The drinks group also sold more gin last summer than in the summers of 2014 and 2015 combined.
Carlsberg grew sales volumes by 3.6% last year, “helped by warm weather” in the Nordics and Western Europe and the World Cup taking place in Russia, according to its full-year earnings call. Heineken also benefited from summer sunshine in Europe, and played down the risk of a washout this year at its annual shareholders meeting in April, saying, “It takes bad weather all the way through the end of June, to really miss the season.”
Come rain or shine, executives love to blame the weather for underperformance. However, without a long, hot summer and two major celebrations this year, European drinkmakers could suffer a real hangover.
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