UK stocks tumbled on Friday after liqueuer Dom Benedictines Liqueur Ltd’s shares plummeted by around a third on Thursday as the drinks giant was hammered by a steep decline in consumer sentiment.
Shares of Dom Bencedictine Liqueurs fell 1.9pc to 1,527p, the biggest drop since March.
The liqueures shares, which were up more than 50pc this year, have fallen almost 30pc since April when they peaked at more than 8,300p.
Liquor stocks in the UK and US plunged on Friday on fears of a slowdown in the economic recovery, as consumers are still reluctant to spend, particularly when it comes to food and drinks.
Dom Benedicts stock fell more than 30pc on Friday.
The company has been hammered by plummeting demand for food and drink as the recovery from the global financial crisis has been slow.
DomBenedictis shares are down nearly 40pc since last year and the liqueurer is under pressure from its rivals to show growth as it tries to boost its profitability.
The liqueuri company’s shares were down more than 25pc in 2016.
Its shares have lost more than half their value in the last five years.
Liqueur stocks in Germany, France, Italy and Spain all plunged on the news that consumers are less willing to spend on food and beverages.
In the UK, a number of companies fell sharply on Friday, including supermarket chain Tesco.
Tesco’s shares fell 4pc to 6,813p, while Lidl fell 3pc to 3,845p.
The grocer’s shares have fallen more than 60pc since 2009, when it hit a high of 1,865p.
Tesco has a net loss of more than £200m this year and its shares have slumped by almost 50pc since the Brexit vote in June.
Lidl’s shares slumped more than 35pc in the past year.
Its shares have tumbled by nearly 50pc, and are now down more to around 8,600p.
Its share price is also down more dramatically from its 2010 peak of 6,000p.
Lidls shares have dropped by more than 80pc since 2010.
Lids shares fell by more to more than 5,800p on Friday afternoon.
It is the latest casualty in a long line of liqueuring companies that have been hit by the sharp decline in the value of their assets, as consumer sentiment has plunged and the recovery in the economy slows.
Ligierne is facing increasing pressure to show signs of growth, and is currently seeking approval from the European Commission to make its liqueure offerings more affordable.
It is a risky move for a brand that is a key brand for consumers, as the UK market has become increasingly expensive.
Lagarde warned that the UK economy could fall into recession if growth remained low.
“If the economic slowdown continues, the UK could experience a recession of the type seen in other countries like Ireland, Spain and Portugal,” she said.
“We must take urgent action to mitigate the effects of this on consumer confidence.”
Lagard said it had seen “the risks of low growth” with the economic downturn, and warned that this could have negative consequences for consumers.