(Bloomberg) -- Fevertree Drinks Plc tumbled after the high-end tonic maker said rising costs and logistics issues will impact margins this year, despite a trend for at-home cocktails helping sales.

The shares fell as much as 13%, touching the lowest since March, before paring some of the drop. “Cost headwinds in 2022 will be more significant than we anticipated, and whilst we are employing a range of mitigating actions, margins are expected to remain broadly flat in 2022,” the company said in a statement. 

The comments on costs were echoed by other drinks companies today, with Diageo Plc raising prices on premium Scotch whiskies and tequila to offset higher input costs, and U.K. soft-drinks maker Britvic Plc saying that inflation threatens to erode profitability.

Still, one bright spot was Fevertree’s comments on the trend for at-home cocktail consumption, which the company sees continuing even as pandemic restrictions are lifted. “We expect Off-Trade demand to remain at higher levels than pre-pandemic and are well placed to benefit from this sustained shift in consumer behavior,” it said, referring to sales to retail outlets.

For now, however, margins are the bigger focus.

“We are very concerned about margins,” RBC Europe Ltd. analyst Emma Letheren wrote in a note, reiterating a sector perform rating. “Until Fever-Tree gets a grip on its costs, we find it difficult to be more positive.” 

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