Vimto maker Nichols’ promotion strategy pays off

By Rod Addy contact

- Last updated on GMT

Related tags: Middle east, Promotion

Nichols grew Vimto dilute sales by 11% in 2013
Nichols grew Vimto dilute sales by 11% in 2013
Vimto drinks brand owner Nichols’ strategy of throttling back on promotions paid dividends in the second half of 2013, according to Shore Capital analyst Phil Carroll.

In a pre-close trading statement covering the year to December 31, the company said it expected its group revenue to have risen to £110M, 2% up on 2012, driven by a good summer.

Carroll said the firm had opted for high levels of promotional activity in 2012 to help drive sales in the face of historically poor weather and low consumer confidence.

‘Successfully executed’

“This strategy appears to have been successfully executed with the proof being in the margin performance,”​ he said. He predicted the group would reveal pre-tax profit of £22.2M for the full-year, up on £20.5M in 2012.

UK sales gained momentum in the second half of the year, up 2% on 2012 to £86.8M, the company said. It also claimed to have grown its still drinks market share, with Vimto dilute sales up 11%. However, promotions dragged Vimto carbonate sales down by 6%.

Africa and the Middle East delivered strong growth, Nichols said. The group aims to announce preliminary results on March 13.

Related topics: Drinks

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