ii view: Fevertree shares show some fizz

AGM trading update to 5 June

• New £30 million share buyback programme

Chief executive Tim Warrillow said:

"We have continued to make good progress against our strategic priorities so far this year. Fevertree is well placed to drive long-term growth across our markets as both a premium mixer and soft drink brand and this year we are significantly increasing marketing investment and innovating to support our growth ambitions.

“Notwithstanding the current uncertainty in the geopolitical backdrop, we are well hedged from a cost perspective and remain confident in achieving market expectations for both adjusted revenue and EBITDA."

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ii round-up:

Fevertree Drinks (LSE:FEVR) today flagged a solid start to the current financial year, with the premium soft drink’s maker still confident of achieving full-year City forecasts.

A new £30 million share buyback adds to an ongoing £30 million programme for 2026, with annual glass costs fully hedged and its partnership with Molson Coors Beverage Co Shs -B- Non-Voting (NYSE:TAP) launching its first national US marketing campaign back in April.

Shares in the AIM company rose 6% having come into this latest news down by a similar amount year-to-date. Spirits and Guinness maker Diageo (LSE:DGE) is down by close to a tenth so far in 2026, while the FTSE All Share index is up by just under 4%.

Coming to the UK stock market in 2014, Fevertree's drinks range today includes tonic waters, sodas, gingers, as well as mixers which are ready to add to the alcohol to make cocktails like Margaritas, Passion Fruit Martinis and Mojitos.

Fevertree’s partnership with Molson Coors has now moved beyond the initial transition period and began leveraging Molson’s network, bringing new account wins and increasing distribution.

Fevertree also flagged the launch of a UK marketing campaign in April, highlighting its relevance as both mixers and premium soft drinks at a wider range of drinking occasions.

Other events year-to-date have included the launch of citrus drinks in Australia with partner Angostura Bitters, as well the further extending of energy hedging policies into 2027 and 2028.

First-half results are scheduled for 10 September.

ii view:

Started in 2005, Fevertree today distributes its drinks to over 95 countries globally. The group sells a range of carbonated mixers to hotels, restaurants, bars and cafes, known as the ‘on trade’, as well as to selected retailers, or ‘off trade.’ The UK accounted for most sales in 2025 at 33%, followed by Europe at 30%, the USA 25% and the rest of the world the balance of 12%.  

For investors, consumer spending, pressured by elevated energy prices and a war in the Middle East, could hamper demand or cause a further switch to cheaper supermarket-own brands. Competition from the likes of Gruppo Campari and its Crodino product is not to be forgotten. Exports to the US remain subject to trade tariffs until partner Molson Corrs begin production in the country itself over the medium term, while costs broadly for drink producers now include the UK government’s Extended Producer Responsibility (EPR) levy in relation to bottle disposal, and related processing costs for local councils.

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More favourably, the partnership with Molson is extending distribution across the group’s major US marketplace. Product innovation is fuelling sales away from tonics, with total non-tonic 2025 revenues of 45% up from 25% in 2019. A broad consumer trend to reduce alcohol intake, and potentially aided by increased soft beverage mixers, warrants consideration, while scope for further geographical expansion exists.

On balance, consumer headwinds and elevated costs for the UK hospitality sector offer plenty of scope for caution. That said, a consensus analyst fair value estimate above 925p per share will likely keep this premium drinks maker on investor radars.

Positives:

• Diversified geographical sales
• Gaining market share

Negatives:

• Battling US trade tariffs
• Potential currency headwinds

The average rating of stock market analysts:

Hold