Tonic maker Fevertree has lowered its annual profit forecast amid worsening cost pressures and industry-wide supply chain snags, sending shares down 30% on track for their biggest-ever one-day percentage loss.
Companies around the world have been battling a surge in prices and uncertainty over commodity supplies because of the Ukraine-Russia war and rising inflation.
Fevertree said it expected full-year operating profit to be in the range of £37.5-45m, well down from its earlier forecast of between £63-66m.
The London-based company said demand from US consumers remains strong, but labour shortages affecting East Coast production meant it had to ramp up UK output and ship drinks across the Atlantic at a time of elevated sea freight rates.
Inventory shortages in the US continue to impact sales, Fevertree said, as it also warned of an expected double-digit increase in glass prices in the second half of the year amid restricted supply.
"We hoped that local bottling partnerships in the US would start to ease inventory pressures, but labour shortages have scuppered those plans, at least for now," said Matt Britzman, an analyst at brokerage Hargreaves Lansdown.
"Aside from soaring costs, Fevertree hasn't been able to fully service the demand that clearly exists," he added.
Global supply bottlenecks at ports and warehouses, partly the result of surging consumer demand, have pushed up shipping prices, delayed orders and increased costs for companies across industries.