Fevertree is well positioned to maintain and grow its market leading position Fevertree has several competitive advantages which look robust and sustainable
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his is the concluding part of the series on how to find and analyse growth stocks. It is focused on identifying competitive strengths and weaknesses as well as valuation. As a reminder, in part one we looked at how to identify quality growth companies, while in part two we narrowed the UK share universe down to around 30 interesting growth stock candidates. From that list we chose to look at beverages group Fevertree Drinks (FEVR:AIM). In a fast-changing world, staying ahead of the competition is an important part of delivering sustainable profit growth for shareholders. THIS IS FINAL article in a three-part series looking at how to find and analyse growth stocks. We look at the valuation and competitive strengths and weaknesses of our chosen UK-listed company.
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| SHARES | 30 June 2022
In this article we discuss the competitive landscape in which Fevertree operates to identify strengths and weaknesses. Finally, we look at the valuation of the shares. As we have previously highlighted, paying the wrong price can be very costly while finding undervalued growth can be richly rewarding. FIRST-MOVER ADVANTAGE Fevertree has built a formidable market position in premium mixers across several markets within a relatively short space of time. Earlier in 2022, it was voted the world’s number one best-selling premium mixer brand as well as the top trending mixer for the eighth consecutive year according to Drinks International. Exploiting its first-mover advantage the company has driven growth in premium mixer drinks. This has allowed the firm to build strong relationships with spirits companies as well as drinks distributors. Helping spirits brands grow sales of higher
