The Cocktail Revolution: 10X Stock Growth

The Rise of a New Era in Cocktail Culture

As we move into the “ber” months—September, October, November, and December—the world is preparing for football games, tailgates, and the festive spirit of the season. With these changes come seasonal beverages, often crafted with warming spirits that bring comfort and joy.

A decade ago, mixers were often overlooked in the world of cocktails. Spirits took center stage, while mixers played a supporting role. However, this dynamic has shifted dramatically, thanks to companies like Fevertree Drinks PLC (FEVR.L). This London-based firm has redefined the cocktail landscape by using natural ingredients, elegant packaging, and an air of connoisseurship, elevating mixers from background players to costars.

This transformation aligns with the growing trend of "drink less, but better." Millennials and Gen Z are increasingly selective about their drinks, favoring higher-quality products with lower alcohol content or even none at all. This shift has sparked a revolution in cocktail culture, where mixers now take the spotlight, and Fevertree has emerged as a leader in this movement.

Strong Performance and U.S. Expansion

On Thursday, Fevertree released its interim earnings report for fiscal year 2025. CEO Tim Warrillow highlighted three global trends shaping the brand’s future: premiumization, moderation, and the rise of longer, lighter drinks. Each of these trends supports the demand for Fevertree’s diverse portfolio, which includes tonics, ginger beer, and sodas.

The real highlight from the report was the company's expansion into the U.S. market. Fevertree’s partnership with Molson Coors Beverage Co. (TAP) has transitioned from a theoretical growth strategy to an operational reality. The integration into Molson’s 400 distributors is well underway, and early results have been promising.

While Fevertree’s first-half results were not flawless, analysts focused on the company's newfound U.S. growth engine and its margin resilience, which bode well for future profit growth. Shares surged as much as 11% following the results, with several major financial institutions highlighting the U.S. momentum. Since then, shares have increased nearly 20%.

A Strategic Move for Investors

For those interested in investing, Fevertree has become a standout recommendation. After my new Apogee system signaled a "Buy" alert, I recommended the company to readers at my elite-trading service. Fevertree passed through all of Apogee’s 10X Factors, indicating significant potential for gains.

Over the past week, I’ve detailed more about my Apogee trading system and revealed other companies it has identified. For more information, you can check out my free broadcast.

Smart Money Roundup

In the latest edition of Smart Money, several key topics were covered:

• Why Settling for “Tiny Catches” Dooms Investors: The Tanners Creek Super Tournament, known for its challenging conditions and small catches, serves as a metaphor for investors who settle for mediocre returns.
• What Sandy Koufax’s Perfect Game Taught Me About Investing: As a Dodgers fan, I found inspiration in Sandy Koufax’s perfect game. My new stock-picking system, Apogee, seeks out potential 1,000% winners, and Fevertree is one such example.
• Oracle Delivered Big… but This Stealth AI Stock Could Deliver Even Bigger: Oracle, a tech giant, has positioned itself as a strong AI play. I also shared a free Apogee stock pick that fits into one of my four key AI categories.
• Broadcom’s $10 Billion Mic-Drop: A Turning Point in AI Investing: Broadcom’s recent deal signals a shift in AI hardware, with hyperscalers moving beyond Nvidia’s GPUs toward specialized XPUs.

A Growth Story Worth Toasting

Fevertree’s recent earnings momentum highlights the strength of its cultural moat. CEO Warrillow emphasized the brand’s presence in social occasions like barbecues, sports events, and dinner parties. This cultural embedding makes the brand resilient, as competitors struggle to replicate its unique positioning.

While the path ahead may not be linear, with factors like weather affecting European demand and complex execution with Molson, the strategic direction is clear. Fevertree is becoming a structurally stronger, globally diversified, cash-generative brand.

I expect Fevertree to flourish over the coming years. To stay updated on this exciting company, join me at The Speculator today.

Fevertree is my most recent Apogee recommendation, but it is far from the last. All of my recommendations at The Speculator will now come from this breakthrough trading system, with my final vetting, of course. Apogee and I always work together, ensuring each new recommendation has the opportunity to reach 1,000% gains, just like Fevertree.