Fever-Tree shares buoyant after floating

07 November, 2014

Fever-Tree has floated on the London Stock Market today, with the share price currently trading at £1.70 per share, over 25% up on the initial trading price.

If the share price holds its value by close of trading today at 16.30, the company will be worth in the region of £200m, with 60% of the firm’s stocks floated.

Investment company LDC is selling 80% of the 25% equity is bought last year and founders Tim Warillow and Charles Rolls are selling 40% of their majority stake.

The pair, who will hold onto 26% of the company and will retain operational and strategic control, aim to generate £4m in funds for the brand’s expansion.

Since launching in 2005, the mixers brand has rolled out from the UK to more than 50 global markets.

The decision to float the company, Warrillow told DI today, was to raise equity and was the next step in building on its dominance of the premium mixer market worldwide, particularly in the under-exposed US market.

Warrillow told DI: “We've seen the brand has taken hold. It’s doing well in Europe and finding its feet in the US. We’re seeing lots of long-growth potential.

“The management has sold 40% of shares but we are still the major shareholders and will be driving the company.”

Warrilow said the management team had met with British blue chip investors over recent months ahead of the IPO and had secured interest based on the company’s growth story and export potential.

Fever-Tree’s CAGR revenue growth between 2009-2013 was +59%. Its turnover in 2013 stood at £23m, 70% of which came from exports.

The brand saw early success in the UK and Spain in tandem with the boom in premium gin and in recent times growth has also been found across Europe as the G&T boom has spread.

Asked if the slowing of gin growth could have impact on the brand Warrilow said: "I believe the gin category will narrow but it [the renaissance of gin] is a long term trend. It is generational."

Warrillow said future investment and expansion will be in the US, a market which is starting to pick up on the gin and tonic trend. 

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Nick Strangeway

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