MIDAS SHARE TIPS UPDATE: Food Treatt worth keeping despite soggy showing that does not reflect recent progress

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Once beer was divided into ale, lager, bitter and stout.

Now, there are craft beers flavoured with anything from honey to jalapeno chilli.

The range of soft drinks has ballooned as well, not just in terms of flavour, but also calorie content and nutritional additives.

Natural flavour specialist Treatt is behind many of these innovations, working with big food and drink firms to titivate the consumer’s palate. 

Craft beers: Natural flavour specialist Treatt is behind many of the changes in taste, working with big food and drink firms to titivate the consumer’s palate

Recommended by Midas a year ago at 158½p, the shares are now 152p – a soggy performance that does not reflect either Treatt’s recent progress or its prospects.

Interim results last week showed a 5 per cent increase in interim profits to £2.9million but analysts expect full year profits to September to rise 10 per cent to £7.4million with a 15 per cent hike in the dividend to 4.4p.

There is also the prospect of drinks reflecting flavours such as Grandma’s Garden – mint, apples and elderflower – or Silk Road, full of spice.

Midas verdict: Treatt shares have disappointed so far, but chief executive Daemmon Reeve is optimistic and City brokers echo his confidence. A long-term hold.