Fever-Tree has issued a trading update ahead of its December 31 year end. It has continued to see growth in all of its markets in FY19, with some regions accelerating. However, there has been a slower performance in the UK (off-trade) than the group had expected, given the tough comparators through the late summer but also a slowdown in consumer confidence. As a result, it anticipates full year revenues will be in the range of £266-268m. This is c.3% less than our forecast of £276m, but still 12-13% up on the prior year. It has maintained its #1 off-trade market share in the UK (38% at end Q3), with new premium entrants collectively still only having less than 5%. Schweppes has gained some share, but only from private label. The group’s performance in the UK on-trade (50% of the UK) has been better, with further new accounts added to its leading position. Overall, the UK is projected to grow sales by 2% in FY19. In the USA, the performance has accelerated in 2H in both the off and on-trade channels. The Southern Glazers relationship is working well. They expect to deliver c34% FY19 sales growth (c36% 2H19) which is higher than we were forecasting (prev 30%). The group has signed a west coast bottling partner and this will commence in 1H 2020. In Europe, growth has also accelerated in 2H19 and it expects to deliver FY19 growth of 19% (12% in 1H19; 25% in 2H19). With the slightly reduced sales figure, we trim our FY19E PBT number by 3% to £79.7m. This indicates EBITDA margins will be maintained at c31%. For FY20E we maintain our previous growth rates, so the reduction to key headline figures is similar, at 3% for revenue and PBT.