Nichols soft drinks reports strong sales growth

By Mike Stones

- Last updated on GMT

Vimto-maker Nichols has outperformed the market
Vimto-maker Nichols has outperformed the market
Soft drinks firm Nichols has outperformed the market with total sales up by 9% to £108M for the year ended 31 December 2012, according to its pre-close trading statement.

"This performance is ahead of the UK soft drinks market and has been achieved against last year’s strong comparatives (18% uplift on 2010), a challenging UK economy and record wet weather,”​ claimed a company statement.

A.C. Nielsen statistics reveal the UK market increased in value by 3.2% for the year to December 8 2012 with underlying volume down 0.6%.

The UK business increased sales by 10% compared with the previous year and export sales rose by 8%.

Promotional activity

“Despite another year of significant cost inflation and high levels of promotional activity, we expect, as a minimum, to maintain our operating margins,” said the firm. “This has been achieved by a combination of good cost control and ongoing productivity improvements,”​ it claimed.

Damian McNeela, analyst with Panmure Gordon said the results reflected further growth in its core Vimto brand along with its recently in-licensed brands such as Levi Roots and Weight Watchers.

Related topics: Business News, Beverages

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