On shoring of production will navigate potential tariff issues..Could 650 pence be the floor now with the dilution then buyback to come..The start of a road to recovery of the share price .? |
Good to see, quite a decent thing for FEVR Mgt to do. |
Is this a way for companies to sidestep the threat of Trumps Tariffs?
Will we see other UK co's forming partnerships of this nature? |
 Fever-Tree announces a Strategic Partnership with Molson Coors to drive the next stage of growth in the US
Underpinning the partnership and reflecting its long-term focus and belief in the opportunity, Molson Coors will acquire an 8.5% shareholding in Fevertree Drinks plc. The proceeds of the issue will be returned to shareholders via a share buyback programme of £71.0m, beginning in February 2025.
Fever-Tree, the world's leading supplier of premium carbonated mixers and Molson Coors, one of the world's largest beverage companies, are pleased to announce that they have entered into a long-term strategic partnership for the exclusive sales, distribution and production of the Fever-Tree brand in the US.
Since first entering the US market in 2008, Fever-Tree has consistently delivered very strong growth in the US and has become the number one tonic and ginger beer brand across America. The market leading position that Fever-Tree has built, combined with Molson Coors' expertise, scale and total beverage ambition, provides a transformational platform to drive the brand to the next level in its largest and most dynamic market.
The strategic benefits of the partnership include:
· Strategic Alignment: Fever-Tree and Molson Coors have a shared vision, belief and commitment to driving the brand's expanding opportunity across alcohol and non-alcohol occasions.
· Scale and Platform: Ability to leverage Molson Coors' national network of US distributors and customers across the On- and Off-Trade as well as the scale and strength of their dedicated sales and commercial teams, to maximise Fever-Tree's momentum, brand strength and ability to grow its total addressable market.
· Step Change in Investment: A substantial incremental marketing fund will be deployed across the initial period of the partnership providing the firepower to drive further brand and category awareness.
· Local US production: Partnership will capitalise on Molson Coors' broad supply chain network, procurement strength and expertise to drive operational efficiencies, as well as managing the onshoring of US production.
Equity Investment and Buyback
Underpinning the partnership and reflecting its long-term focus and belief in the opportunity, Molson Coors will acquire an 8.5% shareholding in Fevertree Drinks plc (post-issue) for cash consideration of £71.0m (654.2 pence per share based on the 10-day VWAP).
In addition, Fever-Tree today announces its intention to commence a share buyback programme of £71.0m, beginning in February 2025. Due to the enhanced cash generation of the business under the strategic partnership, we remain mindful of our capital allocation framework and will consider the opportunity for further shareholder returns beyond this initial buyback programme.
Commenting on the new partnership, Tim Warrillow, co-founder and CEO of Fever-Tree, said:
"Today's announcement marks a transformational step for the Fever-Tree brand in the US. Thanks to the superb work of our US team, we have seen Fever-Tree become the number one brand in both the tonic and ginger beer categories, a remarkable achievement which has redefined the US mixer category amongst consumers and customers alike.
But what is so exciting is that as the Fever-Tree brand has grown in the US, so has the opportunity ahead of us, reflecting the increasing number of categories and occasions that our products are relevant to.
With a national network providing significant scale and muscle, alongside its proven track record, supply chain expertise and clearly stated strategic desire to drive the future of their business beyond beer, Molson Coors are the ideal long-term partner to take the Fever-Tree brand to the next level across the US. This partnership will be fuelled by a step change in marketing investment to take advantage of the highly compelling opportunity ahead."
Commenting on the new partnership, Gavin Hattersley, Chief Executive Officer of Molson Coors Beverage Company:
"Our strategic partnership with Fever-Tree in the U.S. is a meaningful step in Molson Coors' journey to becoming a total-beverage company with a winning portfolio of drinks for a wide variety of consumer occasions. We've made progress here, and today we are building on that progress in a significant way with Fever-Tree as the latest and largest non-alc brand to join our portfolio.
The U.S. is our biggest global market by revenue, and the same is true for Fever-Tree, so we believe this partnership provides ample opportunity for our teams to build on the strong success Fever-Tree has achieved to date. Our distributors and customers have been asking for a brand just like Fever-Tree from us, and by leveraging the scale, strong relationships and expertise of our team at Molson Coors. I'm confident in the road ahead for Fever-Tree as part of Molson Coors' growing set of non-alc offerings in the U.S."
Commenting on the new partnership, Michelle St. Jacques, Chief Commercial Officer of Molson Coors Beverage Company, Americas:
"Fever-Tree is the perfect fit for our growing portfolio of non-alc beverages. The quality is unmatched, the variety is fantastic, and the brand has achieved impressive scale in the U.S. and we believe there is more runway ahead.
Fever-Tree sits at the intersection of beer and non-alc and is often available in stores where beer is sold, so it perfectly complements our Beyond Beer and premiumization strategies, playing in both alcohol occasions and non-alc occasions. We're excited to welcome Fever-Tree into our portfolio as we work to reach more consumers and unlock growth in new channels and outlets across the U.S."
There will be live audio webcast on Thursday 30th January 2025 at 9:00am GMT. |
long mooted corporate interest??
Equity Investment and Buyback
Underpinning the partnership and reflecting its long-term focus and belief in the opportunity, Molson Coors will acquire an 8.5% shareholding in Fevertree Drinks plc (post-issue) for cash consideration of £71.0m (654.2 pence per share based on the 10-day VWAP). |
MAJOR SHAREHOLDING
This information was last updated on 30/11/2024.
NAME HOLDING %
Lindsell Train Investment Mgt 16,695,000 14.30
Fundsmith 7,189,823 6.16(now 4.89%)
Directors 6,058,524 5.19
FIL Ltd 5,837,306 5.00
Liontrust Asset Management 5,668,303 4.86
Capital Group 5,618,733 4.81
Charles Rolls 5,085,928 4.36
Nordflint Capital Partners 4,801,604 4.11
Baillie Gifford 3,732,234 3.20 |
the fall was arrested just after i posted on the 14th.
i admit it was starting to develop but a 30p intra day reversal may of stopped that
tiger |
I wonder if the chairman will buy another 45000 shares like he did around this time last year. Paid 9.47 at the time? |
Hi CTDoesn't look like it to me, looks like a nice bowl could be forming. |
Looks like the 500,s are coming |
I still can't see why such a high p.e. |
From today’s Times:
Re Diageo
‘The veteran investor Terry Smith offloaded his fund’s stake in the owner of Guinness and Johnnie Walker whisky over concerns that the development of anti-obesity drugs could reduce demand for alcohol.’ |
Fundsmith go below 5%. Terry puking it up at the bottom? |
still she drifts south |
Just got back from Australia, FT seems to be the mixer of choice and according to bar staff I spoke to, growing |
prices ( trade) going up April
tiger |
Nick Train ‘in pain’ over Diageo bet and fund performance
Presumably FEVR contributing to his ‘pain’. |
Imagine you are selling lemonade for one pound and the prices of ingredients mugs etc go up so much you only make a penny of profit. If you get the cups a penny cheaper and raise prices by a penny your profit is now 3 pence. Your profits have tripled. Now imagine you sell 33 percent more lemonade. Your profits have quadrupled. This is the principle of how this share could work out. |
What's half of market cap got to do with anything? This story is about margins and the cost of bottling etc. PEs will look high if the costs increase. These types of businesses have a few levers to pull to increase earnings. Cut the operating costs, which should happen now they have made progress with the bottling. Increase pricing, which they are doing and increase volume which seem to be doing. What's special about Fevertree though is that the people who buy it aren't that price sensitive. You could increase prices quite aggressively and people would still buy it. It may even be good for the brand. |
CTNot looked at Docs for a while as seemed to be getting way ahead of itself. If this FY profits are only a third of last year that's circa 2.5p eps, so on a fairly hefty PE IMO at 27x. That said if a recovery does play out (which I can't see tbh) the forecast earnings for FY26 are 5.4p, IMO a target price of say 80p (PE 15x), but better risks to rewards out there IMO.Will trump put the boot in with his tariffs?, then there's the issues here in the UK with min wage and NI etc. |
Hi CTHope all is good.Since Covid sales have been growing but yes net profit has been falling, but "has been" being the operative words. Net profit is forecast to double for FY24 with eps growth of 95%, giving a PE of 27x, and falling to a PE of 20x for FY25. A PEG of less than 1 for both FY24 and FY25.Margins are improving and whilst UK sales appear to be saturated it's not too concerning given mitigating growth in the US and ROW. |
ValueHurts
Not in the first half results they were flat.
last full year sales were up 20m to 364m which........ is LESS THAN HALF MARKET CAP
net profit fell £10m giving a p/e of 50+
I do understand that FEVR has never looked a sensible valuation.
The big concern is the UK sales are falling.
Tiger |
fidelity seem to want a tipple |
Sales are growing |
PROFITS ARE FALLING NOT GROWING
TIGER |
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