Fevertree Drinks Share Discussion Threads

[apad] 04/6/2020 17:11

Appreciate the post, t2grq.

3. is particularly interesting.
I know that they are not rushing in the US - it's 50 different countries!

apad

[trying2getrichquick] 04/6/2020 17:01

Do you know how much was raised by Coca Cola? Any links?

[trying2getrichquick] 04/6/2020 16:52

Exciting times ahead -

Fever-Tree Drinks plc

AGM – 4th June 2020 Shareholder questions

1. Are there plans for new Fever-tree products in the near future, to further strengthen the the current range of tonic and soda waters and to reflect the challenges facing the hiospitality sector?
Innovation remains central to ou strategy. Our innovation pipeline in terms of product development remains exciting with customers across both the On and Off-Trade increasingly receptive to our extended range of products.
We have recently launched a new range of premium flavoured sodas in the UK as well as a Sparkling Pink Grapefruit Soda in the US market. These new products have been very well received and have enjoyed excellent feedback from consumers and the trade alike.
As our global footprint continues to grow, the opportunity remains to extend our flavours and formats to ensure our products reflect the drinking habits and taste profiles for the region.

2. What is the Company view of the Hard Seltzer opportunity?
While we are constantly assessing drinking trends and NPD across the beverage sector, our focus remains on the mixer category at this time.

3. Are there plans to enter some of the largest markets soon, such as China, India & Russia?
We are already in those 3 markets, albeit relatively early stage. Last year saw us appoint our first Regional Director for Asia who is based in Hong Kong and we are continuging to build and enhance our distribution network while working closely with spirits companies on the long- mixed drink opportunity.

4. Have you had to furlough any staff during the current crisis?
We are a small close knit team & we have felt from the start that it is important to provide them with the certainty & security throughout this period and we have not furloughed anyone with all of our team remaining on full pay throughout the last 10 weeks
Where certain teams have has more capacity – most notably our on-trade team – we have deployed to different departments across the business to broaden their knowledge and skill set or launching new projects and initiatives

[andysand] 04/6/2020 14:36

Time to step back now I think. It's been a great ride.

[llama1978] 04/6/2020 13:02

Coca Cola probably realised that their signature mixers are awful and nobody would buy coke as a premium product for a premium spirit! I wouldn’t sell for less than £35 now

[rampmeister] 04/6/2020 11:11

They do appear to be breaking out of long term downward trading channel in which they have been mired since September 2018. Strong buy signal.

RM

[waldof] 04/6/2020 09:09

Bid?
Coca-cola just raised a fortune in bond market..umm

[apad] 04/6/2020 08:58

FEVR more informative than usual and pretty good, but expected.
Brief on the US price cut. we really don't have significant information - still!
Confirms Castleford Tiger's feedback.
Probably already in the price (ish).
apad

[llama1978] 04/6/2020 08:38

I wouldn’t be surprised at all if total consumption in the U.K. was a fair bit up on last year also. If a second more severe wave hits, remortgage your house and buy fever tree shares...

[rampmeister] 04/6/2020 08:31

If Nielsen data is anything to go by, the US will be our main market a lot sooner than previously thought. My top up at 1975p this morning caught the bottom of that early downward spike.

RM

[sogoesit] 04/6/2020 08:21

No new information "information" AGM Statement take down but quick bounce-back this am.

The Statement only really covered April but looked encouraging for USA, quoting Nielsen stats, during the current mess.

Excerpt:

"US

The US market is naturally weighted to the Off-Trade, which typically contributes 70% to the Group's US revenue. Since the start of lockdown, while On-Trade sales have been severely impacted, Off-Trade sales have grown extremely strongly. Nielsen data, which covers just under half of Fever-Tree's Off-Trade sales in the US, reported 98%(2) growth year-on-year for the four weeks to 18(th) April and 96%(2) in the four weeks to the 16(th) May. Whilst this performance reflects the benefit of incremental distribution that was secured over the course of H2 2019, along with increased at-home consumption during lockdown, it also highlights the growing strength of the Fever-Tree brand, supported by the continued trend towards premium, long drinks. In addition, the Group's US pricing and format optimisation has been very well received by distributors and retailers, with implementation beginning to be seen on-shelf between March and June 2020."

[apad] 03/6/2020 19:30

See how you feel tomorrow llama.

Have you got a branch in Jersey, Tiger 😊

GLA

apad

[llama1978] 03/6/2020 19:22

Nothing cheers me up more on a rainy weekend than to sit by the French doors with a few bottles of gin and 8 bottles of fever tree...

[sogoesit] 03/6/2020 11:00

Okaaayyy... so I've tried about 10 gins in the last year.
That means another 790 to go.
Hopefully I get there before dying or die before trying.

[castleford tiger] 03/6/2020 10:41

There was a small increase in April .

We sell the large bottle to RETAIL customers at 1.50 or 8 for 11.00.

So we are a fair bit cheaper than main stream supermarkets.
Our trade price is 8.99 plus vat per case.

We are wholesale but we do have the retail arm that fits with our 800 plus gins.

To be fair we have lost 90% of wholesale ( the pubs and catering outlets) and we just have the off-licence business left.

We are looking forward to a calmer weekend!!

Tiger

[apad] 02/6/2020 17:49

Castleford Tiger, do you have any opinion on pricing?
A pal and I were commenting that £1.90 a bottle looked pricey in the supermarket - a post above mentions £2 a bottle.

Preliminary Results said:
"US pricing initiative announced in January very well received by On and Off-Trade customers with promising results from initial trials and new accounts secured"

'US pricing initiative' meant reducing the price.

apad

ps FEVR advert during Midsomer Murders - wonder what demographic they are aiming for 😊

[castleford tiger] 02/6/2020 17:19

Last weeks numbers in and a new record retail by a fair margin.

We had sunny warm weather and that's the key driver for us.

This weeks started well but we expect an implosion as the weather cools fast.
Give us 2 weeks and bring back the sun.

tiger

[sogoesit] 02/6/2020 16:52

The historic TTM P/E is irrelvant for valuing a growth stock.
A common mistake that people make.
Remember that the stock market is forward looking; commonly thought to be 6-12 months although people will pay for high growth in years ahead.
(Look at Nasdaq stocks for further insight and other AIM stocks, BOO (TTM 70x), FDEV (TTM 39x), GAW (38x) etc.).

EDIT: Also read The Zulu Principle by Jim Slater (and his son, Mark, runs a trust on the principle).

[llama1978] 02/6/2020 16:16

Global growth. It’s still a new brand in most markets.

[vanadiumx] 02/6/2020 15:57

How is the P/E of 42 justifiable? Genuine question.

[llama1978] 02/6/2020 14:34

Sainsbury’s put the price up in the big stores as well, although not that much. Cheaper in Waitrose, can’t say that often!

[juzzer100] 02/6/2020 13:44

FT Naturally Light now £2 a 500ml bottle in Sainsbury's Local. Someone's making a bigger margin!

[deduce101] 02/6/2020 06:12

"Fevertree: Compounder For The Long-Term Investor" May 27, 2020

Arnoud van der Ark

"Summary
Fevertree shows outstanding performance compared to its close peers.

An outsourced business model leads to high profit margins and returns on capital, and has allowed the firm to keep a clean balance sheet.

Network effects form a moat around the company, protecting it from competitors.

Stalling growth has lead to a severe stock price decline and the market pricing in an overly pessimistic future.

The risk/reward profile is attractive as it is skewed to the upside."

[gipps] 01/6/2020 17:55

Just remember ITV are having a hard time no holiday adverts,no air line adverts,no shop clothing adverts maybe Fever have had a really good deal to advertise on there,and they wont be spending any money on promotions at bars,clubs and events will they.