The value of fever-tree will foam up to £4.5 billion on the back of strong sales gene

UK unquenchable thirst for gin proved a tonic for the elite mixer maker fever-tree, as she reached on Tuesday to a record high of £4.5 bn after smashing profit expectations.

The surge in stock prices means that 13-year-old drinks company was worth almost as much as the Royal mail ahead of a combined stock market value of WH Smith, Debenhams, AA and Saga.

Fever-tree, which produces a tonic water and other carbonated mixers, is growing rapidly, largely due to the rapid rise in popularity of premium gin.

UK gin sales have doubled over the last six years to hit £1.2 bn in the year to the end of September of 2017, at the wine and spirits trade Association, while the website yougov poll showed that gin was the favorite spirit in the UK, with 29% of drinkers vote for their favorite.

On the crest of the wave gene turned fever-tree in the UK fastest growing large companies that make multi-millionaires of founders Charles rolls and Tim Warrilow in the process.

The pair founded fever-tree in 2005, naming it after the colloquial term for the Cinchona tree, the bark of which produces quinine, a key component in the tonic.

Rolls was banking more than £150 million pounds through the sale of shares, since the company’s stock market float in 2014, while Marilou sold shares worth £41m.

They still own 14% of the company’s shares between them, a stake worth almost £600 million, and pocketed payments of more than £630,000 on Tuesday after the group raised its dividend by 40%.

Stock fever tree jumped 15% to an all-time high of £39.87, after net profit in the first six months of the year rose by a third to £34m on sales of 45% above £104м.

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Shares fell back to the end of the day, to give the company a market value of £4.2 billion, more than 30 times more than it was worth, when she was flying four years ago.

Fever-tree said that his performance in the UK during the Christmas period was especially noticeable with the “impressive sales growth rate,” but argued that it still had space for expansion.

Warrilow, said: “while this is a great achievement, remain significant opportunities before us in all of our regions, such as fever-tree continues the evolution of the category mixer”.

Fever-tree also announced the signing of two new distribution mechanisms – one in the US wine and spirits distributor southern Glazer wines and spirits, and the other from Spain, Grupo Damm, Creator of the popular in Barcelona beer Estrella Damm.

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