Partner Article

Soft drinks firm toasting sweet success

Fizzy drinks firm Nichols – behind the iconic Vimto brand - reported flat revenues of £55.2m in the six months to June 30, but a bubbling 9% boost to pre-tax profits of £9m and net cash of £31.2m compared with £23.6m this time last year.

From the company’s headquarters in Newton-le-Willows on Merseyside, chairman John Nichols said: “I am very pleased to report another strong performance in the first half of the year, despite a subdued UK soft drinks market.

“As a result of our ongoing strategy of focusing on profit, rather than volume growth, particularly in the highly promotional UK market, we have again delivered increased revenue per case, higher margins and good profit growth in our UK business, although group sales were flat year-on-year.”

The group signed an exclusive licence in April to add Extreme Sports and Energy to its brand portfolio. It targets 18- to 34-year-old sports enthusiasts.

Mr Nichols said during the second half of the year the group will introduce further new products, enter new international markets and continue to invest in its existing core brands.

Another factor supporting the firm’s success is Vimto’s popularity in overseas markets, especially Gulf states such as Saudi Arabia, Kuwait, Yemen, Bahrain and the UAE.

John Nichols commented: “I think there are parts of the Middle East where Vimto is better known than parts of Britain. They like the flavour, and being non-alcoholic obviously helps.”

Over the past couple of decades the drink has increasingly become associated with the holy month of Ramadan, which now makes up more than 50% of the cordial’s entire sales.

This was posted in Bdaily's Members' News section by Simon Malia .