Tonic maker Fevertree reiterates annual forecast ahead of key summer season

(Reuters) -British tonic maker Fevertree Drinks, on Thursday, reiterated its forecast for the year, ahead of the key summer trading period as more customers spend on cocktails like mojitos and margaritas.

The company, founded in 2003, said there was strong demand for its mixers for rum, vodka and other spirit drinks in the UK, while it continued to be the biggest contributor to growth in the carbonated mixer category in the United States.

In March, the company said it expected to double its core profit this year, delivering a profit margin of about 15%.

Fevertree's shares gained more than 3% in early trade.

The London-based company, which sells most of its drink mixers in glass bottles, had earlier struggled with rising glass costs in Britain due to energy price hikes following the Russia-Ukraine conflict.

However, the gradual easing of these costs, combined with strong customer demand for its tonic mixers, helped Fevertree reiterate its annual forecasts.

The company witnessed strong growth in Italy, France and Denmark in Europe, and forecast further robust growth at its Australian subsidiary, supporting its global market expansion.

(Reporting by Radhika Anilkumar in Bengaluru; Editing by Nivedita Bhattacharjee and Savio D'Souza)