Fevertree Drinks Share Discussion Threads

[suetballs] 25/1/2020 07:57

Took my loss and moved on.
Suet

[llama1978] 24/1/2020 18:37

Kevin havelock obviously thinks the shares are good value, then again I think he bought quite a few at £29 about a year ago. My belief is that the leadership team are pretty top class and very ambitious so I have a little faith.

[castleford tiger] 24/1/2020 17:19

iam not going to try to guess..........but that's the only way you can make money now. IN MY OPINION

Tiger

[bargainbob] 24/1/2020 13:04

£22 ct at a guess

[castleford tiger] 24/1/2020 13:00

One thing I am pretty sure about the UK market is now full/saturated call it what you like..........

I think new product development is the only avenue now.
They have a good name and there is the general soft drinks market to go for.

This whole sector is "up in the air" with the sugar tax etc.

Rum is coming in strongly but will never be more than 5% of the Gin market.

The year has started very slowly and I am advised by my children that the "low alcohol market" is the drink of choice of the younger generation.

The way out here is a "Bid" but how much will PepsiCo want to pay? ( that my guess)
Tiger

[llama1978] 24/1/2020 10:40

Don’t talk tripe. Count how many bottles of this so called mid-market you see on the supermarket shelf. 50p for the tonic in your g&t is hardly stock broker only material! If you want super high end tonics, you can get it for £3+ for a small bottle. I’ve tried many... fever tree is high mid market. Driving the market. If you drink supermarket gin or Gordons you’ll buy supermarket tonic. Anything anywhere near Hendricks and you’ll want something better.

[blusteradjuster] 24/1/2020 10:02

So Schweppes are using their heft to compete at the high-end whilst also having the mid-market largely to themselves (supermarket brands at the budget end).

There isn't anywhere for FEVR to go.

[wetdream] 24/1/2020 10:00

ONJohn,
If you listen to the podcast, you’ll hear that the on-trade ‘increased competition’ from Schweppes involved GIVING trays of the 1783-stuff away with every bottle of gin bought!

[dround87] 24/1/2020 08:53

And what's wrong with that?

[bamboo2] 24/1/2020 08:40

FT have quite a range of Tonics which sometimes looks a bit bewildering on the supermarket shelf. If buying, you have to be careful to get the right one. Is there a chance it is competing with itself to some extent?

CT would probably know better than me.

[llama1978] 24/1/2020 08:09

Fever is cheaper than other premium brands apart from the pseudo premium Schweppes 1783 which as far as I can tell has failed to inspire. Some other premium brands in supermarket are twice the price per ml.

[onjohn] 24/1/2020 07:40

UK - core under pressure.

Slower growth in the UK is attributable to increased competition from Schweppes. Whilst Fever Tree core loyalists will likely continue to use the pre-eminent premium mixer, the incremental consumer may settle for something less quinine-heavy and lighter on the wallet.

[blusteradjuster] 24/1/2020 06:52

Hpcg,

Uptick for 7077 - bang on the money for me.

Pub prices for G&T are getting ridiculous and becoming a turn-off.

In the supermarkets, other brands are discounting making FEVR look increasingly expensive. Does it really taste that good? Is that such a big deal when drinking at home?

[wetdream] 23/1/2020 23:47

Worth a listen.

[bargainbob] 23/1/2020 21:17

Fancy grabbing TWO FREE Fever-Tree Whisky & Gingers this weekend?? We’ve got over 700 to give away in bars across London to celebrate #ScotchWhiskyWeekend! All you have to do is download a voucher and take it with you between Fri 24th - Sun 26th Jan to claim your two freebies for some fun-filled plans - hxxps://drinkup.london/vouchers/31170/fever-tree-whisky-ginger/

[bargainbob] 23/1/2020 21:17

Fancy grabbing TWO FREE Fever-Tree Whisky & Gingers this weekend?? We’ve got over 700 to give away in bars across London to celebrate #ScotchWhiskyWeekend! All you have to do is download a voucher and take it with you between Fri 24th - Sun 26th Jan to claim your two freebies for some fun-filled plans - hxxps://drinkup.london/vouchers/31170/fever-tree-whisky-ginger/

[bargainbob] 23/1/2020 19:17

Do not forget the ginger beer market , it was the first to empty over the festive period .

[growthpotential] 23/1/2020 18:56

I tried the Schweppes ginger ale in a hungry horse as they had no fever tree one and it was absolutely disgusting so there's definitely a better taste with fever tree as the mixer

[growthpotential] 23/1/2020 18:55

Fever-Tree, the world's leading supplier of premium carbonated mixers, announces that on 21 January 2020, Kevin Havelock, a Non-Executive Director of the Company, bought, in aggregate, 21,579 ordinary shares at a volume weighted average price of 1,483 pence as set out below.

[llama1978] 23/1/2020 18:40

It was valued at about £4bn not so long ago. At 10x profits that’s about 400m bottles once production and distribution is optimised. I think they currently sell 70 million bottles a year (used to say on their website but can’t find it now). They are still basically a U.K. company and infancy everywhere else so it’s entirely possible. So much opportunity but they should speed up and grasp the opportunity in places like Spain, Benelux and Philippines and even the US (where about 3x as much gin is sold in total than the U.K. plus a LOT more whisky and rum!). They just need to crack on and not miss the boat. Strike while the iron is hot and all that guff.

[llama1978] 23/1/2020 18:29

In the U.K. it might be more like 5% of the population spending £40 a year. Which is about 2 500ml bottles a month. Not so much. Of course there are many different sizes but as an approx. Some people probably spend £500 a year. Other people are yet to move on from Schweppes so there is still opportunity. So if we look at the populations of current target markets of North America and Europe plus a few others like Canada and South Africa we’re already at about 1 billion people. If you x5% and x£40 you get £2bn revenue. Of course this is generous to assume same rates but even at 1/4 of that £0.5bn revenue and £250m profit the company will be valued way higher than it currently is if growth was about flat. And that excludes expansion of the company’s product range, they have a big cash pile they could buy some subsidiaries with or invest in new things. And then there are new markets to invest in like China and India and South America. Some people might move onto other tonics but I don’t see it yet and it’s I think 9 years old now, mainstream for about 4. They can of course revitalise branding etc to keep it fresh on shelf if it needs it but taste and quality wise it wins hands down.