London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
I’m been filling my boots with this today! Never thought I’d see these levels again!
I sold some of my position recently, purely given the share price action of late but think the thesis here remains very strong. It's easy to take a UK-centric view and see the recent competition as a concern but don't forget that the International growth continues unabated. Schweppes can redesign their bottles but the ingredients remain the same and this was always the key USP for Fever Tree, not the packaging. Also, remember that different people own Schweppes in different markets, so it can't make a united effort against FEVR globally.
PREMIUM MIXERS Sales of Fever-Tree are up 74% even as other high-end tonics and mixers-with-a-twist join the market. Competition might stifle further growth but who knows the future? Trading update should be out soon.
Don't forget this is an Aim share and when did any stock on this register need a valid reason to either rise or fall? Ian Cowie (Sunday Times investment column) reported that he sold part of his stake this past weekend, but he still retains a big holding and merely took some profit. No need to panic.
So why is the SP down 3%? Any other news that is driving this?
Sales of Fever-Tree are up 74%even as other high-end tonics and mixers-with-a-twist join the market. http://www.waitrose.com/content/dam/waitrose/Inspiration/About%20Us%20New/Food%20and%20drink%20report%202017/WaitroseFoodAndDrinkReport201718.pdf
judging by the 434k buy at a small premium at lunchtime.
Feeling fairly positive here. Next trading update should be early Nov and the sp is following a similar pattern to that seen in July before the last update; drifting along in a fairly tight range near the 200 day SMA with lowish volume. No recent news or media views that I can find and no recent Broker updates. All adds up to a pause before another rise?? Possible IMO. All the Best. DK
To see complacency that FEVR will remain the leader in its field. Any company can fall out of favour with the consumer or lose market share. You should never assume that there�s no competition. Coke and DC comics made wrong turns and also had a chance to buy their respective rival (Pepsi and Marvel), both declined. I noticed Just Eats decided to buy Hungry House instead of dismissing the competition.
After decades in the business, they are hardly going to get it right within a few weeks. I think it's 10 million pounds down their toilet . So they can pay for a few tv ads with that money and the product bottle hardly looks classy in their bling bottle . So their other tonic is for the poor and their premium tonic for the classy drinker, which is bound to taste c........ is suddenly going to win back their huge market share. I doubt that very much.The proof is in tasting the pudding in this case rather than eating it. I really doubt schweppes can do it after selling a rubbish tasting product for decades and getting away with it. They do not take a pride in their product and are not passionate enough to personally go around the world and picking each ingredient and making a wonderful product. Viva la Fever tree.
Sure, but Unilever's revenue is so widely diversified. Only 10bn EUR came from their 'refreshments' category in 2015 - and that includes teas etc. Their biggest market is personal care items (Dove etc) at 20bn EUR. CC is $40bn+ from almost exclusively cold drinks and thus is the 'big boy' in this sector.
Oh I think you can. As of 2016 Unilever is bigger in terms of global revenue than CC. Stork = Unilever = Revenue �52.713 billion (2016) Schweppes = Coca Cola = Revenue US$41.863 billion (2016)
An optimistic position if I may say so - I'm not sure we can compare the likes of Stork with the behemoth that is Coca Cola - there is no stronger force to have behind a rebrand in this sector. Ultimately I think they will eat up a larger portion of the premium drinks pie with the new rebrand Schweppes 1783 line, there's no two ways about it. They have clearly made a much needed aesthetic improvement with this line (classic Schweppes is visibly very dated in appearance and marketing), which will go a long way in getting sales. The other side is whether they will actually improve the ingredients and flavours of the new line, or will it be the same crap in a different bottle? The benefit is that I think premium mixers market will continue to grow, perhaps even given some help by huge marketing from Coke/Schweppes, and Fever Tree can still continue to grow within that market albeit as a reduced total share as the big boys bite in. Perhaps if Fever Tree can hold its own, then Coke might consider a takeover but at this point it seems unlikely. Clearly it does show that they are interested in gaining exposure to premium mixers, though.
Good luck with that. It's like Stork suddenly deciding they are going to make butter. You just would not trust them to get it right. My suspicion is that CC have seen a way of increasing margin by selling a premium product. Problem is if they launch this new range where they have to compete with FEVR/Fentiman, they run the risk of trashing their own market for the standard Schweppes tonic water, which will then be perceived as an inferior product. As for Britvic, their tonic water is so rank they don't deserve to be in the business at all.
https://uk.finance.yahoo.com/news/coca-cola-pumping-10-million-070000862.html
My favourite outcome would be for Pepsi to sign a distribution deal, take on some Fevertree shares but not buy the company. that would light up to share price and keep us in the stock
That's a good post Phoenix ive always thought that Britvic and Fevertree would work well together at some point with their bottling capabilities otherwise someone like Pepsi would another good match.
in my opinion . We pulled back from £25 and have been hovering around £22 for a while awaiting news. I have been checking out the deals in the drinks news around the world and keeping an eye on fever tree employing new sales positions , so all looking good . Honk Kong was doing really well in the on trade news on blog usage . Their growth was expected to be well ahead of predicted sales from the last news drop a while back and all the snippets of news I have dug up support that . It looks like europe is being conquered completely on and off trade . America and China , Australia etc are the next vast markets to conquer . Fever tree are trying to promote winter festive use of their mixers as well . Tonic is great , but the other mixers are making good headwind as well from the various news snippets . Poor britvic (not) perhaps they should make a bid for fever tree asap to save themselves all that trouble in closing down their factory to reduce their costs . Why fight us , when the clever thing to do would be to buy us
there were further sales rep jobs being advertised for fever tree european operations. They seem to be expanding their team with a good logistic iron fist step by step . Fever tree every where and every drop for drink . Fantastic guys. Now do the same in US and China and we will be huge. I see britvic are suffering as a result and are cutting their costs etc . The way fever tree has been built , our fixed costs are low and can be scaled up with no real expense but with the benefit of the continued economies of scale. This is a marvellously designed company and product. I think fever tree should look at the coconut milk craze and move into that as well. I believe we are going to be very happy with the next profits and a further dividend growth
Having come in at Around £9 and again at £13 and£16 I added a few more at low £21. Whilst Knowledge of FT in foreign markets is not visible to me, I am still seeing us expanding in the UK. At least two smaller public house chains, those that run a local 6-10 pub operation near me, have started selling FT in recent months. I realise that this is not like someone like spoons coming onboard but it is still additional sales. Yes, the UK may be hitting the point where FT is now more likely to be available wherever you go, the overseas possibilities are still endless. So increase in UK SALES TO SLOW, BUT FOREIGN TO RAMP UP. LOOKS A REASONABLE GAMBLE TO ME !
I agree with these comments, in a few years time (if company still standalone by then...) I am pretty sure we will all be looking back and dream about �22-25 entry point :). I live in Sweden and FEVR is sold off trade in supermarkets here as well now, I keep an eye on the shelfs just out of curiosity and they are pretty empty each time I look. I also travel to Germany on a regular basis and same story there. Sweden clearly small country, but it still shows that FEVR has the potential to become a truly global brand...
there seems to be a lot of fast takeovers at the moment and this company has left itself wide open . The pound is also still very weak , so it looks very attractive . The move into Hong Kong and mainland China with tonic and premium dark spirit mixers is looking good from the news reports by various drinks reports and bars etc. The worldwide and European logistics and demand appears to be growing very fast. This share has been with a lack of official news for a while , so for those who don't research are in-depth to find out what is happening in the bars and shops worldwide regarding fever tree demand and use on and off trade , then naturally they will be scared into taking profits when the mm's move the price down . I personally believe from my findings that we are going to see massive growth worldwide excluding UK. I think as from last jump we could go as far as �30 and then drop back to �25 and �27. Personally I am really interested in dark spirit growth in mainland china and china growth full stop with tonic as well. It is noted in research that hong kong like gin and tonic to a far greater degree than mainland china, although the trend for dark spirits in mainland china is slowly changing to gin as well. Huge market in hong kong and china. That is where some huge income could come from over the next few years. Also don't forget the report that europe could now have regular heatwaves . Nice for fever tree . Not so nice if your air conditioning fails
Next update not scheduled but last year it was early November. Takeover rumours are (IMO) just that. No concrete evidence that I can find. Low volume today and sp still below the 20 and 50 day moving average; likely to move up slowly over the next couple of trading days, I think. IMO the drop was due to some people taking their profit; it also seems possible that other companies are "catching up" FEVR. A number of them are now producing "premium" mixers. Maybe the sp rise will slow a little compared to recent months? Guessing really, but I don't see 25 anytime soon. I remain in for the moment and I don't think Christmas makes a huge difference. Hope I am wrong! DK
Hoping for a decent Santa Rally as people buy drinks in bulk for the Christmas period. We've been at 21-22 for a few weeks now after a sustained rising of price, so hoping this is the new resistance level as the SP progress beyond 25
What is the opinion on this stock? Is the drop due to people interested in a takeover goin away? Will this motor before Xmas? When is the next update? I have been holding for about a year and the last month has been the only time I have worried about the price, i expect that the stock is taking a breather before 25 and 30 is touched?