Fevertree Drinks – After last week’s Interims, investors are now looking for a price run from 904p to back over the 1,020p level

15.09.2025

Last Thursday, 11^th September, saw the £1.07bn-capitalised Fevertree Drinks (LON:FEVR) report its Interim results to end-June.

They highlighted the strategic progress with its highly impactful Molson Coors partnership, which commenced in June.

On Friday, 25^th July, the group’s shares hit 1,020p on the back of over 1m shares traded, before easing back to 775p by last Wednesday.

However, following last week’s results news, some 1.68m shares were traded that day, with them closing up 100p.

Then with another 551,000 dealt on Friday, closing 32p better at 904p.

The big question now is - could a fresh wave of investor interest take the shares back over the 1,020p level again?

The Business

The Company's core principle is that if three-quarters of a drink is the mixer, it should be of the highest quality.

Fever-Tree is the world's leading supplier of premium carbonated mixers for alcoholic spirits by retail sales value, with distribution to over 90 countries worldwide.

Based in the UK, the actual brand was launched in 2005 to provide high-quality mixers which could cater to the growing demand for premium spirits, in particular gin, but also increasingly for vodka, rum and whisky.

The Company now sells a range of carbonated mixers to hotels, restaurants, bars and cafes, and off-trade retail channels, including supermarkets and specialty stores.

The Interim Results

For the six months to end-June the Group reported that its total adjusted revenue was £172.2m, a 2% increase at constant currency.

Its US revenue increased by 6% at constant currency to £62.4m, while UK revenue decreased by 6% to £48.1m.

The Europe Fever-Tree brand revenue was £44.0m, a 1% decrease, and its Rest Of The World revenue increased by 17% at constant currency to £16.5m.

Adjusted EBITDA increased by 1% to £18.4m, with a margin of 10.7%.

The company generated first-half earnings of 6.82p per share, and declared an interim dividend of 5.97p, a 2% increase.

Impressively' its cash position was significantly improved to £130.0m, a 97% increase.

The Company is extending its share buyback program by £30m into 2026, reflecting its confidence in its earnings progression.

The Group has made a good start to the second half of the year across its regions, and it remains comfortable with full-year market expectations.

Management Comment

CEO and Co-founder Tim Warrillow stated that:

"The announcement, in January, of our strategic partnership with Molson Coors was a moment of real significance for Fever-Tree, establishing the ideal platform to maximise our brand strength and future potential in what is our biggest growth opportunity.

The transition of the business to Molson Coors is progressing well and despite the complexity of such a transition, it has been particularly encouraging to see the underlying US momentum has been maintained, a real testament to the hard work of both teams as well as the strength of the Fever-Tree brand.

In the UK, the wider On-Trade category continues to face challenges, but our Off-Trade performance has remained robust. Importantly, more than half of the 3.6 million UK households that buy Fever-Tree are now also purchasing products from our broader portfolio such as our Ginger Beer or premium soft drinks, a clear sign that our diversification strategy is resonating with consumers and broadening the occasions in which our brand is enjoyed.

And it is not just the UK, the brand's strength, leadership position and relevance across adult socialising occasions continue to grow across markets, with the broader portfolio delivering strong growth across multiple categories and territories and now representing 45% of Global revenues.

Together with the operational progress we are making and the strong performance we have seen over the summer months, we are well placed for both the second half of the year and to capture the long-term opportunities ahead."

Broker’s Views

There are some 20 analysts following the company.

The consensus average Target Price is 914p, while the lowest aim is for 570p, and the highest being 1,500p.

Three call the shares a Buy, ten say Hold, two rate them to Underperform, while two say Sell the shares – the others make no opinion.

In My View

The brokers views are mixed – and Fevertree is big into mixes – even so I would rate the shares at 904p, as being very capable of continuing to push ahead again, with that 1,020p price being in investor’s sights.