Nichols, the diversified drinks group, is reporting further progress in the first half of the year following positive trading in the UK.
Andrew Milne, chief executive officer of Nichols, noted trading momentum in the UK packaged business reflected further market share gains in squash and carbonates, driven by increased marketing investment, growth from innovation, and gains in distribution.
Milne said he is confident the launch of Nichols’ biggest ever UK promotional campaign towards the end of the period will support the continued growth of the Vimto brand over the summer.
“Whilst mindful of continued pressure on consumer spending, despite levels of inflation stabilising, our diversified business model and the enduring strength of the Vimto brand have enabled us to deliver a strong performance,” Milne added. “As a result, we now expect full-year profitability to be slightly ahead of current market expectations and we remain confident that Nichols is well placed to deliver its strategic growth ambitions.”
Nichols highlighted how the UK packaged market demonstrated strong market share growth in the UK driven by both the squash and carbonate categories. The Vimto brand achieved its highest ever UK annual retail sales value of £109m (Nielsen IQ RMS data for the squash, flavoured carbonates, RTD stills, flavoured water, and energy categories YTD to 15.06.24 for the GB Total Coverage market), reflecting increased marketing investment and growth from innovation and distribution gains.
Internationally, the packaged market showed a fall in revenues of -6.9% to £20.0m (H1 2023: £21.5m) across the Middle East during the key Ramadan trading period. Nichols commenced phased can production in Senegal, enabling it to better serve this key market in West Africa by bringing production closer to the end-consumer. Benefits are expected to be delivered in the second half.
