By Darren Atwater | Sunday 26 January 2020
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Chris Bailey's article Has Fevertree (FEVR) completely lost its fizz? by Chris Bailey (spoiler alert: it's the top non-Tom story) made me think about the wider drinks industry.
Chris mentions that Diageo (DGE) is alledgedly a suitor for Fevertree (spoiler!) and if I were it, I'd take it.
Right now, you can assume some other gin hipsters are planning their new tonic - and the company that looses market share won't be Schweppes, it'll be the little guy that's no longer the darling.
In the craft beer world, I think there is going to be a reckoning soon as these hundreds of small breweries cannot grow without cannibalising each other.
Camden, Brixton, London Fields, Beavertown, amongst others have all been invested into by the multinationals. Surely, they'll all be absorbed into the Borg itself, even if they get to keep a unique corporate identity. And check out those brand names: the breweries that get purchased are the ones with local names.
Am I suggesting it's a buy for the likes of InBev (ABI:Euronext) or Heinkeken (HEIA:Amsterdam)? No, the multinationals are losing market share as people discover better beer.
No, I'm saying we get a watch an industry implode - and how often do we get advance warning of that?
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