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You're most likely correct, it scared the sh*t out of me this morning but i've held on regardless. My suspicion is they're an acquisition target but in what time frame is unclear. I guess MM's are looking to pull some strings to get a better price.
Potential sale and related manouvering to get shares for cheaper could be a reason. But I think the time is not ready yet or FT and this will happen in more distant future. I may be of course wrong! Maybe another chunky instituional order to be filled and MM are pulling their strings?
I think they just wanted to scare the shits out of the little people to get them out of the stock?
What do you mean by Pre-sale tree shake?
Whats the cause? Broader market seems to be down about 40bps which clearly isnt in keeping with FEVR's 9% fall. I cant think that anything political is affecting the price, nor the incident in Parsons Green, so is this something fundamental to the company? No News that I can see
I would say so, possibly a pre sale tree shake?
Yes crazy overreaction to markets today, did spoil my morning coffee today though, cant believe the drop and have just added a few thousand more
no news and a drop's too violent
The profits are growing dramatically already and haven't reached anywhere near peak for market share worldwide and that excludes normal tonic. If they can hit the hong kong and mainland china markets and others with the dark spirits mixers, as they are trying to do now , the growth and profits will be absolutely huge. So any buyer with better economies of scale and marketing networks will be buying a large income stream now which can be bolted on immediately at no other real costs. Companies need new income streams to bolt on. So if they can save in billions of marketing costs by bolting on income , its a no brainer . If they buy fever tree with a 10 year game plan now and the profits increase with ferver tree to have profits growing to £500 million per year within the ten year period their purchase becomes cheaper within the 10 years to recoup their money within 5 years or less and without having to spend promoting their own products with huge marketing costs to compete against fever tree with their inferior products etc. Its how and why takeovers like this occur . Why else to companies buy other companies .
Fevertree has been tipped for a takeover by analysts etc numerous times . It is growing worldwide rapidly. It is making fantastic profits and growth is worldwide now and their products are first rate . I even had a conversation with a lady who said she loved the fever tree low cal , which to me is amazing as most low cal are disgusting. Also all the supermarkets in different client price bands are selling it at the premium price , so why drop the price. The cost os the infrastructure for a takeover is exceedingly low and very easily to incorporate. A big boy would recoup their money very quickly even if they pay 4 billion . The number of staff are few and the logistics are fantastic. This will be taken over most likely . I am holding till then
Stellar, Not always but the company subject of a takeover bid is usually smaller than the predator. With Fevertrees Market cap so high at the moment, i cannot see who would come in for this one. Saying that you never know. I have a small stake of just 200 shares but do not intend to top up at the moment. BOL
Its also a company that that will be of interest as a takeover target that would be easily integrated into another company as it has very little overhead with bottling outsourced
Yes the growth is huge at the moment and warrants the current price still a bit to go I think before the year is out as December usually very strong too. The company has no debt is highly cash generative ( hard to find companies transparent like this)
Stellar Are you happy this company has a present Market cap of £2.2 billion compared to Britvic who have a Market cap of £1.9 billion with turnover of nearly £1.5 billion.
I don't think £100 Mln plus turnover is niche Fad market
My local Asda has just started stocking Fevertree products. I decided to do a taste test on 500 ml bottles Ginger Beer and Lemonade both priced at £1.70 No doubting I was impressed by the taste and did not get the gassy feeling from other carbonated drinks. My problem is that it is a premium product at a luxury price which most households will find excessive. All the products in their range seem to be retailing at 33-37p per ml I can see the huge potential in this business but at the moment it is in a niche market and not for the masses. Would it not be worthwhile to reduce it's margins which are very high at the moment,to reach a bigger market with its range coming down to no more than 30p per ml. If they really want to take on the big boys and become a global player,then in my opinion which doesn't account for much,this is what they could do. Remember Fads come in and out of fashion. Opinions on this board appreciated.
I see they have just released what they call their "first" book on Cocktails today
I think we are seeing a small retrace after the stonking growth since results, to be expected but unwelcome nonetheless! :)
Noticed that they use Fevertree at Epsom races. Wonder if they use them at all courses in the group?
I have tried it solo and also with a nice dark rum, it is a cracking product. Not too sweet and not too fizzy, has a nice hint of vanilla with it as well. I highly recommend you give it a go! Knocking Coca Cola/Pepsi off might be a challenge, but the void for premium is the cola market is yet to be filled, Fever Tree may fit in their just nicely. Even a small percentage of that market segment would mean huge returns for FEVR.
I may well be a bit late with this - and it's not all that new, but has anyone tried their Cola, either on its own or with dark spirits? If so, what's the verdict?
just these markets alone could make the profits stratospheric . Anybody that can get a chinese market share alone can make massive profits and Fevertree have already done distribution deals with suppliers etc to ensure the logistics are in place. I think that fever tree are going to give us a massive surprise in growth and profit. Also , by pushing into Australia , the season for drinking is the opposite to europe due to their weather being hot at christmas and cold during our summers . This brand is truly becoming a worldwide winner and there seems no sign of it stopping soon. Come on hong kong and china . Show us the money
There was a move into hong kong and china at the beginning of August by fever tree and with just tonic water for the gin demand in hong kong is massive and with a move also into mainland china with gin and tonic growing is going to pay big dividends in income and profit growth . However, with the demand in mainland china consuming 80% approx dark spirits , the fever tree cola only has to make a small dent into that market to see big profits. The demand in spain for gin and tonic is massive now and fever tree are making big jumps into that market . Japan also is being targeted as well as Australia . Every article with tonic mixers seems to always be with the use of fever tree. This combined with the week pound makes fever tree cheaper to buy . I see a massive jump in profits coming at least for the net few years with growth in hong kong and china being a huge payout over time . Here comes the next jump possibly once the holding pattern on the share price is broken for the next move up in my opinion.
I think many people do enjoy the taste, but you are correct in that the rise of Jaegarmeister is due to some excellent marketing and promo making it (in combo with Red Bull or cheap equivalent) a staple and go-to shot for 'millenials' like myself, rather than due to an enjoyment or appreciation for the product itself. Fever Tree on the other hand is, in my eyes, a quality product filling a now very obvious void in the market but which is also backed by some excellent marketing and corporate partnership work. I think the Fever Tree team are doing a stellar job, I am very interested to see what they can pull off in the US and overseas. I used to live and work in Chile in the trade promotion sectors. I know Fever Tree have a Biz Dev Manager/Brand Manager over there and I think Fever Tree really could do well in that type of market, there is a segment which absolutely laps up anything premium, but it is strongly a dark spirits country (brandy), so it shall be a good test of FEVR's penetration into the dark stuff.
I don't mean to be rude either but i believe that the rise of RedBullvwould suggest otherwise