Fever-Tree will recapture its fizz

The mixer-maker has branched out into new drinks and the shares are now reasonably priced.

An employee opens a bottle of tonic water at the Fevertree Drinks Plc Gin and Tonic bar during the annual Cowes Week sailing regatta near Cowes on the Isle of Wight, U.K. on Tuesday, Aug. 13, 2019. A cool start to summer contributed to U.K. sales rising just 5% in the opening six months of the year, an outcome that disappointed most analysts, particularly in light of the stellar growth rates of recent years. Photographer: Jason Alden/Bloomberg
(Image credit: Jason Alden/Bloomberg via Getty Images)

The anthropologist Joseph Campbell believed that there were common themes to heroic quest stories found in societies around the world. He outlined his idea of The Hero’s Journey, which influenced George Lucas before he wrote the original Star Wars screenplay. 

There’s more than a hint of The Hero’s Journey in Fever-Tree's creation story, which involved treks to the British Library to research recipes and adventures in the African jungle looking for the perfect tonic. Like other heroic quests hunting for and returning with a highly prized elixir, this has captured consumers’ imaginations, with the brand now selling in over 85 countries and the company, listed as Fevertree Drinks (Aim: FEVR), growing revenue 18-fold to a forecast £385m in 2023. The story is not over, though, with the brand now facing a new mix of challenges.

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Bruce Packard
Contributor

Bruce is a self-invested, low-frequency, buy-and-hold investor focused on quality. A former equity analyst, specialising in UK banks, Bruce now writes for MoneyWeek and Sharepad. He also does his own investing, and enjoy beach volleyball in my spare time. Bruce co-hosts the Investors' Roundtable Podcast with Roland Head, Mark Simpson and Maynard Paton.