The latest grocery sector snapshot from Kantar shows supermarket sales dropped by 0.5% per cent in the 12 weeks to July 14 – the first overall decline across the grocery market in three years. The big supermarket groups are “nursing a hangover” from last summer’s prolonged hot weather and the beer-fuelled spending spree it inspired (The Times £) – and also reported in The Telegraph and The Daily Mail. Sky News says the industry data hit shares in Tesco, Sainsbury’s and Morrisons.

Fevertree’s saturated UK market shows it needs a US tonic (Financial Times £). The premium mixers company may find domestic growth slows before international revenue takes off, the newspaper’s Lombard column says. The company warned that its previously stellar rate of sales growth was fizzling out (Financial Times £). Pre-tax profits rose to £35m from £33m on revenues up 13% to £117m in the half-year to June – below analysts’ expectations. Fevertree said it would meet management forecasts for the full year. Fevertree’s founders Charles Rolls and Tim Warrillow lost almost £30m after the shares tumbled nearly a tenth on Tuesday (The Telegraph). “Fevertree loses its fizz after its meteoric rise with growth slowing to 5% and shares falling 9.6%” to 2079p (The Daily Mail). The Guardian points out that Fevertree has been a strong stock market performer since is 2014 float – creating a £2.4bn business that has made multimillion-pound fortunes for the founders but the shares have fallen back nearly 50% since their peak last year.

McColl’s will close more shops as profits are nearly wiped out and it continues to be “hobbled” by Palmer & Harvey’s collapse, says (The Daily Mail). The convenience retailer’s pre-tax profits fell to just £200,000 in the first half, overall sales grew by just 0.1%, but sales climbed 0.1% like for like, and it closed or sold 41 stores. McColl’s said it would focus on product availability and carry on shutting underperforming shops.

The government has published a green paper recommending extending the sugar tax to milkshakes. Theresa May, in one of her finance acts as prime minister, went ahead against the wishes of health secretary Matt Hancock (The Times £).

SABMiller has left AB InBev with a lasting hangover (Financial Times £). The $122bn (£98bn) deal, agreed in October 2015, created the world’s most dominant brewer. The report says AB InBev’s stock peaked about three years ago and since then the business has suffered a declining share price, huge debt load, weaker demand for beer in the US and a poor run in emerging market currencies. AB InBev’s sale of its Australian business to Asahi this week prompted the newspaper’s Due Diligence column to ask whether the SAB Miller deal made sense in the first place. Another article in the Financial Times (£) says one bright spot from SABMiller is that AB InBev is now among the top four brewers in Africa which has great potential for beer drinking in future.

The Coca-Cola Company will speed up Costa Coffee’s expansion but warns macro “clouds” are still present (Financial Times £). The fizzy drinks company increased its annual forecast when it presented its second-quarter earnings on Tuesday. This prompted a 5% rally in its shares. Second-quarter organic revenues in North America climbed 3% year on year, helped by sparkling water sales. They increased 4% in Europe, Middle East & Africa. It said it expected organic sales growth to be the same as last year, and constant-currency operating income to rise 11-12%.

The Confederation of British Industry’s industrial trends survey shows Brexit uncertainty and a slowdown in global growth are weighing on British manufacturers. Factory orders fell at the fastest pace in a decade in the three months to April (The Times £).

The International Monetary Fund (IMF) forecast the world economy was set for 3.2% growth this year – its weakest performance since the 2009 recession – subdued by the threat of a no-deal Brexit, escalating trade wars and political uncertainty (The Times £). “IMF warns Boris over No Deal Brexit: Business braces as Johnson heads for Downing Street” (The Daily Mail). The IMF specifically said that countries “should not use tariffs to target bilateral trade balances or as a substitute for dialogue to pressure others for reforms” (The Independent). In another article, The Independent wonders whether the UK’s new prime minister can mend fences with business.

The “glow” has worn off for PZ Cussons brands with a 37.5% tumble in full-year pre-tax profits to £37m on sales down almost 7% to £689m (The Times £). Food brands were most likely to be earmarked for sale, the company said, such as its Greek olive oil division, Minerva, but it is keen to retain its Rafferty’s Garden baby nutrition business. The group wants to focus on brands it believes will accelerate growth. UK profits fell 6.2% to £57.1m. The Daily Mail quotes Russ Mould at AJ Bell, who said the dreaded word “transitional” was being applied to the year but the company was at least taking action.

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