However, there are some quality growth companies listed on the Alternative Investment Market (AIM). One of them is Fevertree Drinks (LSE: FEVR), the premium mixers firm.

Yet despite having an upmarket brand and large portfolio that includes tonic waters, ginger ales, and soft drinks, the Fevertree share price is down 70% since late 2021. It’s fallen roughly 15% since the end of February.

Is there a dip-buying opportunity worth assessing here for long-term investors?

Energy shocks

Over the past few years, the company has been hit by pressure on disposable incomes and significant cost inflation. Because its drinks came mainly in swanky glass bottles, it was hit hard when shipping and energy costs related to glass-making went through the roof in 2022.

This helps explain why the stock has fallen sharply since the Iran conflict started at the end of February. It has sparked another energy crisis, which obviously isn’t great for manufacturers or consumers. It’s an ongoing risk.

However, it’s worth pointing out that the company is in a better position this time round. Nowadays, 45% of revenue comes from non-tonic drinks, including more cans. And 2022 led it to adopt energy and raw material hedging, meaning it’s less immediately exposed. 

Positive report

Today (24 March), Fevertree reported its preliminary 2025 results, and the market liked what it saw, sending the stock up 8% to 815p.

Adjusted revenue rose 4% at constant currency to £372.7m, accelerating to 5% in the second half. This included 6% sales growth in the US, its most important market, and 22% growth in its Rest of the World segment. The brand’s seeing strong sales in Australia, New Zealand, and Canada.

Unfortunately, UK revenue dipped 2%, with on-trade (bars, restaurants, hotels, and pubs) falling 9%. Fevertree said higher labour costs, duty increases, and ongoing discretionary spending pressure weighed on spirits volumes, and by extension mixer demand. 

Adjusted EBITDA fell 16% to £45.2m, but this was in line with previous guidance after excluding £2.8m set aside for a packaging tax it’s challenging in court. Profitability was impacted as it moves to a profit-sharing arrangement with beer giant Molson Coors in the US.

The brand is targeting a wider range of adult socialising occasions, both alcoholic and non-alcoholic. Its ginger beer drink is going down a treat, and it returned to TV advertising across several markets.  

The dividend increased by 2%, putting the yield at 2.1%, and a £30m share buyback is ongoing.

One to consider?

At first glance, the stock looks expensive at 29 times forward earnings. However, the Molson Coors partnership is key here, with products now embedded across approximately 400 of its US regional distributors.

The brand is set to receive further US marketing investment in 2026 and beyond. As such, Fevertree sees “a clear pathway to accelerating revenue growth in our largest market“.

And as production moves stateside over the medium term, management says this will “unlock significant incremental US profitability“.

Five years from now, once the Molson Coors partnership is fully operational, Fevertree should be significantly more profitable than today. This makes the stock worth considering, in my view.

The post Down 70%, is Fevertree Drinks a share to consider buying at 815p? appeared first on The Motley Fool UK.

This makes sense, of course. Diageo makes the gin (Tanqueray, Gordon’s, etc) and Fevertree the premium tonics that are often mixed in. The global spirits market has struggled since 2022 due to surging inflation, higher interest rates, and changing alcohol consumption trends. Sales at both firms have suffered.

However, while Diageo languishes at multi-year lows, Fevertree stock has now risen 40% in a little over a year. Can the recovery continue?

Onshoring US production

Fevertree’s supply chain was brutally exposed in 2022 when Russia’s invasion of Ukraine sent European energy prices through the roof. The majority of the firm’s drinks are sold in glass bottles. As a result, the surge in energy-related glass costs shredded the premium brand’s profit margins.

In addition, Fevertree manufactures almost exclusively in the UK. A spike in sea freight rates to gets its mixers across the pond added to the pain. To give an idea of the damage, Fevertree’s gross margin collapsed from 50.5% in 2019 to 32.1% by 2023.

However, as energy costs cooled, the company renegotiated cheaper glass supply contracts for the UK and European markets. And this helped the firm’s gross margin improve to 37.5% in 2024.

Crucially, Fevertree now has a partnership with Molson Coors, giving beer giant the exclusive rights to produce, market, and distribute Fevertree’s drinks across the US. This addresses tariff and supply chain challenges as the products are now ‘Made in the USA’. The brand also gets far wider exposure through Molson Coors’ massive national distribution network.

Decent results

At the end of January, the company delivered a positive trading update for 2025. It expects full-year adjusted revenue and core profit to slightly exceed market expectations. This was for revenue of £372.4m and adjusted earnings before tax, interest, depreciation, and amortisation (EBITDA) of £44.4m.

Similar to Diageo, the results were a mixed bag geographically. Strong growth in Australia, New Zealand, and Canada was offset by sluggish sales in Europe and the UK. Importantly, however, US revenue grew 6% on a constant currency basis to £132m.

In contrast to Diageo, Fevertree’s capturing growth from consumers who are drinking less alcohol. It sells ginger ales, soft drinks, sodas, and various mocktails.

CEO Tim Warrillow commented: “Across all our markets, we are continuing to build momentum as we broaden Fever-Tree beyond tonic, positioning the brand as not only the premium mixer but also premium soft drink of choice.”

The company said it’s “comfortable” with current 2026 market expectations for about £409m in revenue and adjusted EBITDA of £50m.

My take

Trading at around 24 times next year’s earnings, the stock isn’t cheap. And rising inflation from the Iran conflict certainly won’t help consumer spending power.

But the Molson Coors partnership should help grow sales across the US for years to come. North America is by far Fevertree’s biggest market opportunity, and it has a strong brand in both posh cocktail mixers and premium soft drinks.

Margins are also recovering nicely and there’s a forecast 2% dividend yield, as well as a new £30m share buyback. Add all this together, I think the stock’s worth considering.

One grand would buy approximately 110 shares at today’s price.

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As a reminder, London’s junior market is generally for small and medium-sized firms. In theory, then, there’s a greater chance of finding hidden gems in this part of the market.

Here’s an AIM-listed stock that’s worth highlighting while it’s out of favour.

Fevertree

I’m talking about Fevertree Drinks (LSE:FEVR), the maker of premium tonic and other mixers. It crashed in 2022 when soaring freight and glass costs hammered the firm’s profit margins.

At 797p, Fevertree stock remains 70% lower than four years ago, giving the firm a £927m market cap.

Yet I think Fevertree has strong turnaround potential due to a potentially game-changing deal signed with US brewer Molson Coors in January. This will see the latter eventually produce, market, distribute, and sell Fevertree’s range (tonics, ginger beers, cocktail mixers, etc) in the US. 

Effectively, Molson Coors will take over the heavy lifting across the pond, where Fevertree has already been gaining market share. This capital-light and royalty-driven model should significantly boost margins over time, sidestep tariffs, while also helping avoid another 2022 calamity.

As such, I think the stock may prove to be much better value than today’s backwards-looking price-to-earnings (P/E) ratio of 37.7 suggests.

Looking at the forecasts, the company’s earnings per share (EPS) are expected to almost double between 2024 and 2028. When we apply the forecast EPS figure for 2027, for example, the forward P/E ratio drops to a much more reasonable 21.5.

There’s also a 2.1% starting dividend yield and an ongoing share buyback programme.

Weak patches

Unfortunately, the company faces growth challenges in the UK, where bars and restaurants are struggling due to the cost-of-living crisis and higher taxes imposed by the government.

Parts of Europe, where similar pressures exist, could also result in weakness next year. In the first half (H1), sales in Europe were flat year on year at constant currency.

However, an attractive long-term growth opportunity does exist elsewhere around the world, particularly in the US. In H1, US revenue rose 6% at constant currency, with the brand extending its leadership in both tonic water and ginger beer. It’s still early days for the rest of the portfolio.

The prospective onshoring of US production by Molson Coors over the medium term…will not only allow for margin recovery over time but ensure that the Group is best placed to capitalise on the global potential of the brand in years to come.

Fevertree

Solid fundamentals

In October, analysts at Jefferies upgraded the stock to Buy. They argued that the superior growth and margin profile of Fevertree’s portfolio versus beer will act as a strong incentive for Molson Coors’ distributors to push the brand. 

Jefferies put a 1,100p price target on the stock, which is 38% above the current 797p. While that doesn’t guarantee anything, the average analyst price target still sits around 17% above today’s level.

Summing up, Fevertree has a strong brand, cash-rich balance sheet, and is poised to rebuild margins through the Molson Coors partnership. On this basis, I think its shares are worth exploring further as a potential buying opportunity.

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Throughout 2025, both the S&P 500 and FTSE 100 have gone on to reach new record highs. That’s despite growing economic challenges and concerns alongside stubborn inflation. And consequently, some analysts have been warning of a potential correction or even crash.

When that might happen remains a mystery. But as always, it’s the intelligent investors who are preparing and exploring the best stocks to buy if a catastrophe does strike. And looking at the latest insights from institutional experts, three UK stocks have been highlighted as potential winners.

1. Resilient consumer goods

First up is Reckitt Benckiser (LSE:RKT), recommended by BoA Securities.

The firm’s vast and diversified portfolio of essential brands, including Dettol, Strepsils, Durex, and Finish, enjoy the benefit of continuous demand even during economic downturns.

As such, historically, the business has proven to be quite resilient during periods of volatility, maintaining stable revenue streams. And it’s one of the reasons why, despite increasingly sluggish consumer spending, management’s reaffirmed its full-year guidance of steady growth alongside growing dividends.

This strong defensive profile can be a massive advantage for shareholders during volatility. However, it’s important to recognise there are still risks to consider.

Even with its bullish stance, BoA’s highlighted ongoing legal risks surrounding the health risks of its Enfamil baby formula. And while this story’s still unfolding, an unfavourable verdict could adversely impact its reputation and, in turn, share price.

2. Strategic positioning in beverages

A top pick from the analyst team at Jefferies is Fevertree Drinks (LSE:FEVR) – a global leading supplier of premium mixers for alcoholic drinks.

The company’s encountered numerous operational challenges in recent years. And inflation has hardly helped matters, hampering demand alongside difficulties within its supply chain. Yet following its recent partnership with Molson Coors, experts are bullish that the broken supply chain links are getting steadily fixed, significantly de-risking its operations in the US.

At the same time, sales momentum seems to be picking up, particularly in Asia and Europe, with increasing evidence of stronger brand loyalty and an expanding cocktail culture.

There’s no denying that the group’s recovery remains fragile, resulting in notable execution risk. Simultaneously, stubborn inflation could continue to handicap profit margins in an increasingly competitive market.

However, there’s also no denying the firm’s operational progress, potentially positioning the business for a robust comeback if the stock market decides to throw a tantrum.

The bottom line

Both of these stocks seem like strong contenders, with Reckitt potentially suitable for investors looking to protect their portfolio before a downturn, and Fevertree for those seeking to capitalise on the eventual recovery.

The businesses are obviously not immune to disruption, and it’s critical to balance the risks with potential rewards. Yet, I believe they merit closer inspection from investors today.

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But Fevertree shares have sprung back to life on Thursday (11 September) on news of strong drink mixer sales Stateside. The Alternative Investment Market (AIM) company was dealing 12.2% higher on the day, at 870p per share.

I do love a good recovery story. So I’m considering adding some of Fevertree shares to my portfolio. What should I do?

Strength in the States

Fevertree’s stunning sales growth of yesteryear is now a distant memory as the business battles a tough economic backcloth. However, strong first-half US sales announced today have ignited hopes of a turnaround, and underlined the potential long-term benefits of the firm’s tie-up with Molson Coors.

Adjusted sales to US customers rose 4% in the six months to June, data showed today. The US is the company’s single largest market and responsible for 36% of group sales.

Encouragingly, growth was seen across both on-trade and retail categories, Fevertree said. And in the latter channel, it noted that sales of its “‘core four’ mixers (tonic, ginger beer, ginger ale and club soda)” grew 16%, which was “more than five times” the broader category.

Trouble elsewhere

Fevertree’s outperformance can be explained by its excellent brand power and the quality of its products. This bodes well for its Molson Coors link-up, which began in June and will see the US company produce, sell, and distribute Fever-Tree drinks and mixers in the States.

But the US isn’t the be-all-and-end-all for the London company. The UK and Mainland Europe are also important markets, where the company sources 28% and 26% of total sales, respectively. And trading in these places remain under severe pressure.

First-half adjusted sales dropped 6% in Fevertree’s home market, thanks chiefly to on-trade weakness where rising costs are pushing spirits and mixer prices skywards. Troubles in Germany also meant combined sales in other European countries dipped 1% on an adjusted basis.

These problems outside the US meant group adjusted sales growth was trimmed to 2%.

A fragile price recovery

On balance, I’m not convinced Thursday’s news merits the sort of reaction that’s driven Fevertree shares through the roof.

They’ve reminded the market of the company’s enormous brand power and its earnings potential Stateside. They also underline the benefits of the company’s diversification into other product categories.

Yet, today’s interims also again reveal its growth struggles in other core markets. Economic conditions there are tough and tipped to remain so. And in the UK, it faces severe structural problems in the critical off-trade segment.

Following Fevertree’s share price spike today, the company trades on a forward price-to-earnings (P/E) ratio of 34.2 times. This is exceedingly high in my opinion given those challenges. And when factoring in other threats, like the potential impact of the booming weight-loss drug market on its drinks, I think it looks downright expensive.

For this reason, I’m happy to look for other UK shares to buy.

The post Fevertree Drinks’ share price soars 12% on strong US sales! Time to buy in? appeared first on The Motley Fool UK.

This means the posh tonic maker’s comeback is gathering steam, with the shares now 26% higher this year. Longer-term shareholders are still suffering though, as Fevertree remains 78% off a peak reached in 2018.

Earnings release

Fevertree released its interim results today, and they were a bit mixed (no pun intended). Group revenue edged up 2% at constant currency to £171m, but came in flat on a reported basis. Hardly the Fevertree growth story of yesteryear.

Pre-tax profit fell 15% to £11.2m, due to exceptional costs related to its strategic distribution and manufacturing deal with US brewer Molson Coors (owner of Carling).

As the majority of Fevertree’s products for the US are currently produced in the UK, this partnership is exposed to tariffs. However, production is set to move stateside in the medium term.

Zooming in on the geographies, UK sales fell 6% as higher duty, wages and business rates were “driving pricing pressure” in pubs, bars, and restaurants. With more tax rises seemingly inevitable, and employer regulation about to increase, the growth outlook for the UK market remains very gloomy.

Fortunately, Fevertree is a global brand nowadays, and its Rest of the World sales grew by 10% (17% at constant currency). In Australia, it outpaced the wider market with sales up 12%, driven by sodas and ginger beer.

The key growth market long term though is the US, where sales rose 6% to £62.4m. The company managed to extend its market-leading position in both tonic water and ginger beer. It’s very encouraging that the brand is still growing in a very tough US drinks market.

Taking the longer view

Based on current forecasts, the stock is trading at around 30 times next year’s forecast earnings. At first glance, that’s quite a punchy valuation, especially given the risks associated with the relentless pressure on consumer spending.

Yet I think patient shareholders might be rewarded here. As Fevertree points out, the Molson Coors deal is expected to bring “operational capabilities and economies of scale that will unlock significant incremental US profitability over the medium term“. Especially once US production is brought onshore and ramped-up marketing initiatives drive brand awareness and (hopefully) sales growth.

The strategic partnership with Molson Coors in the US will allow the Group to leverage the expertise, scale and total beverage ambition of Molson Coors to deliver against an ever-broadening opportunity for Fever-Tree in our key growth market. 

Fevertree.

Meanwhile, the balance sheet is in great shape, with the cash position rising 97% in the period to £130m. This was down to the January deal with Molson Coors, which took an 8.5% stake in the premium drinks mixer deal.

Flush with cash, the firm upped the interim dividend 2% to just under 6p, while extending its £100m share buyback programme by £30m to run through 2026.

Finally, Fevertree says it has made a good start to the second half. Its ginger beers and sodas are tapping into the broader trend of younger people drinking less alcohol.

With US profit margins set to expand over the medium term, I think the stock is worth considering today at 850p.

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What’s next?

Large language models like ChatGPT hadn’t been invented at the turn of the century, but could their electronic intelligence have predicted such a rise? Sadly, I’ll never find out.

But the next best thing might be to see whether it can pick out one of the smaller firms on the London Stock Exchange today that will follow in Greggs’ footsteps over the next few years. And as 25 years is more or less when I expect to retire, I wouldn’t mind owning a few stocks that go up around nine times in value until then. 

Here is what I asked:

“What stock on the London Stock Exchange could be the next Greggs?

Criteria:

– Listed on the London Stock Exchange

– Small with potential to grow like Greggs has done in 21st century (the shares up around 10 times)

– Possibility of being a well-loved name, company and brand

– Chance of doing a clothing collaboration with Primark (optional)”

The results

ChatGPT fired back with a list of five names that could fit the bill. I’ll include the following table as it seemed wrong not to share the chatbot’s eagerness to meet my joke criterion about Primark.

Overall, I’d say the list was quite impressive. When recommending stock picks, language models often serve up easy, obvious answers. This list though does give me some food for thought (pun sort of intended) – with the exception of With Nothing Underneath, which is not listed on any stock exchange.

The name that intrigues me most is drinks mixer producer Fevertree, a brand I know as well as anyone who goes anywhere these days that has a gin menu. While I’m somewhat crestfallen at the low potential for a Primark collab, the stock ticks many of the other boxes I am looking for. 

A buy?

With all its products manufactured in Somerset, Fevertree matches the profile of a ‘British success story’. After IPOing in 2014 and fuelled by a recent gin craze, the shares flew up over 20 times and the market cap surged past £1bn. 

All good stuff, but have I missed the boat here? The shares have struggled since, down 72% from their all-time high, notably suffering from rising energy costs that have made producing glass much more expensive. With Fevertree’s premium branding requiring glass bottles for its mixers, this increased supply cost is not an easy one to fix. 

Changing consumption habits are a further cause for concern. Gen Z are well known to be drinking less which takes the shine off the long-term outlook for the shares. All in all, an intriguing suggestion, ChatGPT, but not one I feel is right for me.

The post I asked ChatGPT to tell me what UK stock could be the next Greggs appeared first on The Motley Fool UK.

Limitless digital labour

Salesforce (NYSE: CRM) is a global leader in cloud-based customer relationship management (CRM) software. While the firm is already a $262bn giant, it’s the growth opportunity in agentic artificial intelligence (AI) that’s really exciting here.

AI agents are systems that don’t just respond to user commands, but can autonomously plan and complete tasks to achieve specific goals. In other words, a form of digital labour, built to automate tasks like customer support, sales follow-ups, and marketing.

CEO Marc Benioff says AI agents are “very different than anything that’s ever happened.” And the company’s Agentforce platform, launched in 2024, already has more than 4,000 paid customers and $100m in annual recurring revenue.

By the end of 2025, Salesforce aims to deploy 1bn AI agents to its clients. What I like here is that it already has a massive customer base to work with (Salesforce led all CRM vendors with a 20.7% market share in 2024). Agentforce customers include SharkNinja, Indeed, and PepsiCo.

Furthermore, the firm generated free cash flow of $6.3bn from revenue of $9.8bn in its fiscal Q1 2026. Therefore, it’s very profitable and has the wherewithal to really invest in this massive market opportunity.

The share price is down 18% year to date, which might reflect the fact that many businesses have paused investments due to ongoing uncertainty around global trade. So there’s a risk of a sharp economic downturn later this year.

Taking a longer view, however, I’m bullish on the AI market opportunity. The stock has a forward price-to-earnings (P/E) ratio of 24, which isn’t expensive for a world-class software firm.

Large US market opportunity

Turning to premium mixer firm Fevertree Drinks (LSE: FEVR) now, which is much smaller with a £1.1bn market cap. The share price is up 32% in 2025, but still down 53% over five years.

The reason for the decline relates to 2022, when profits and margins started falling dramatically as the firm battled surging glass and transatlantic shipping costs. However, there was a 540 basis point improvement in gross margins last year.

The business is more resilient than ever, with a clear pathway to continued margin improvement in the years ahead.

CEO Tim Warrillow.

Fevertree has signed an important strategic partnership with Molson Coors, the second-largest US brewer. This will allow it to benefit from Molson Coors’ US production expertise and extensive network of distributors and customers across both on and off-trade.

The US is already Fevertree’s largest market, where it leads the premium mixer category in both ginger beer and tonic water.

One near-term risk here though is another spike in inflation and a possible recession, which could further dampen consumer spending.

According to Hargreaves Lansdown, the stock’s forward P/E ratio is 35.8 versus a 10-year average of 44.2. So, while that certainly isn’t cheap, there is at least a discount here.

Through the Molson Coors partnership, Fevertree is set to gain further share in the massive US market over the next few years. I think the stock is worth considering at 888p.

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This means the share price is up 16% so far this month, but still down 71% since late 2021.

Should I invest? Let’s look at some details.

Recovering profits

Fevertree’s profitable growth came to a shuddering halt in 2022 when the business was hit by surging glass and transatlantic freight costs. Its gross margin fell sharply, causing the share price to plummet.

However, there are signs that things are getting back on track. Group revenue rose 3% at constant currency to £368.5m last year, while core Fever-Tree brand revenue growth accelerated 7% in the second half of the year.

This resulted in full-year brand revenue growth of 4% as the firm capitalised on growing demand for non-alcoholic drinks.

In the key US market, Fevertree recorded impressive constant currency revenue growth of 12%, with the brand outpacing all of its competitors. And it extended its market-leading share in both the tonic and ginger beer categories.

However, UK sales fell 3% due to subdued consumer spending, while there was also softness in Europe. The rest-of-the-world region did much better, growing 22% on a constant currency basis, but it remains a small part of the overall business (around 8% of sales).

Even more encouraging, the company’s gross margin improved by 540 basis points to 37.5%, largely due to lower glass and freight costs. This resulted in adjusted EBITDA of £50.7m, a 66% increase. Normalised earnings per share surged 82% to 28.01p.

The stock currently carries a 2.1% dividend yield.

Potential game-changing deal

In January, Fevertree signed a strategic partnership with Molson Coors, the North American drinks firm that owns beer labels like Carling, Staropramen, and Coors Light.

This grants Molson Coors exclusive rights to sell, distribute, and produce the brand in the US. As part of the deal, Molson Coors acquired an 8.5% stake for £71m, along with the US trading entity for $23.9m.

Fevertree plans to use the proceeds to increase its share buyback programme by £29m, adding to the £71m announced in February.

The company will benefit from Molson Coors’ massive distribution network, with significantly more marketing investment going into the brand. Meanwhile, Molson Coors will manage the on-shoring of US production, reducing exposure to volatile transatlantic freight costs.

The company will recognise a guaranteed share of profits through royalty fees between 2026 and 2030. And from 2027 onwards, management expects a “sustained uplift in group revenue and EBITDA growth” as it fully realises the benefits of the partnership.

My move

The Molson Coors deal could eventually prove to be a gamechanger for Fevertree’s profitability. If so, the stock today may prove to be a bargain, despite trading at 31 times forward earnings.

However, I’m mindful that consumer spending remains weak in the UK and Europe, while the US could still enter a recession. These are risks to growth here.

Meanwhile, management has warned that 2025 will be a “transition” year, with low single-digit revenue growth and a short-term impact on margins.

I’m not ready to invest in Fevertree yet, but I’m going to keep the stock on my radar. I reckon it has big turnaround potential.

The post Up 16% in March but still down 71% since 2021! Is it time I bought this UK stock? appeared first on The Motley Fool UK.

I’m very ambivalent about the announcement that caused the stock to surge. However, news that a director has been buying a lot of shares since then has caught my attention. 

US expansion

The reason Fevertree shares have been climbing is because US beverage giant Molson Coors has made an $88m investment for 8.5% of the business. And there are some obvious benefits for the UK firm. 

The company has been looking to expand across the Atlantic, and Molson Coors has a huge distribution network. So access to this – plus marketing support – could be a big benefit. 

On top of this, Fevertree’s balance sheet is in pretty good shape. As a result, the company intends to return cash raised in the $88m investment to shareholders via share buybacks. 

This, however, is where I start to get mixed feelings. The firm has just sold 8.5% of its shares at £6.93 per share and plans to use the cash to launch a buyback at around £7.78.

This makes the move risky for Fevertree – selling things at one price and then buying them at a higher one is a way of losing money. Investors need to hope the distribution benefits are worth it. 

They could well be – and growth in the US could give overall sales a huge boost. But the immediate winner is Molson Coors, which now owns a lot of shares worth 25% more than it paid for them.

Insider buying

Since the Molson Coors deal, however, something else has happened. Fevertree’s Chief Financial Officer Andrew Branchflower has bought 31,688 shares in the business. 

The average price on this transaction is £7.85 – roughly where the stock is now – making the overall investment worth almost £250,000. That’s a serious investment by a company insider. 

Branchflower isn’t new to the firm either – he’s been with the business for over a decade. And that makes me think that he’s taking the new partnership with Molson Coors very seriously. 

The people that spend all their time working at a company will almost always have a better view than those that don’t. So when they start using their own money to buy shares, it’s worth paying attention.

I wouldn’t buy shares in any business just because someone else is doing so. And that’s true whether the person in question is Warren Buffett, a company director, or anyone else. 

I do, however, think this is something for investors who are interested in the stock to pay attention to. It might even be a sign the market is underestimating the firm’s prospects, even after a 25% gain.

Should I buy?

Fevertree’s latest deal involves selling shares at one price before buying them back at a higher one. That means there’s a risk it could end up looking silly if things don’t pan out as expected.

There’s a lot more to the deal than this and if things go well, it could look like a brilliant move. And management putting its money where its mouth is definitely makes me want to take a closer look.

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