Fevertree Drinks PLC (LON:FEVR) said the recovery in Europe is likely to lag the UK and US, where trading has gone well recently.
The posh mixers producer said it is trading in line with expectations for the year to 31 December as it looks forward to the easing of restrictions across its markets.
READ: Fevertree deflates despite forecasting revenue growth this year
The off-trade segment has remained strong in the first four months of the year, and the group said “it is clear” that at-home consumption of long mixed drinks is becoming increasingly established, supported by both the retailers and spirit companies.
In the UK, the AIM-listed firm said it is well-positioned to take advantage of the return of the on-trade segment, which accounted for half of total revenues pre-pandemic.
In the 13 weeks ending 18 April, sales in the off-trade segment were 10% higher than the same period last year, despite lapping the effects of stockpiling seen at the beginning of the first lockdown in March 2020.
This performance was ahead of the total mixer category, which Fevertree said it indicates the strength of the brand, the success of the new flavours and formats launched last year, as well as the marketing campaigns.
In the US, the off-trade segment surged 38% in the 12 weeks to 27 March, which was ahead of the wider mixer category.
The on-trade is also slowly recovering, as it has been reopening on a state by state basis, with domestic tourism slowly returning but international tourism and larger events are likely to take longer to return.
Despite the closure of this channel for most of 2020, the firm has secured new national accounts.
It has also launched the Lime and Yuzu Soda, which has received strong initial trade interest, as well as securing its first listing on a US airline, with the Indian Tonic and Club Soda cans now available on all Delta flights.
In Europe, the on-trade remains materially impacted in many markets while the off-trade has seen share gains.
In the rest of the world, Australian on-trade has been open for a few months, with good recovery in suburban areas but city centre demand is taking longer to return.
Shares dipped 1% to 2,540p on Thursday at the opening bell.