The maker of Vimto is celebrating record sales in the Middle East after capitalizing on its success as the “drink of choice” for those observing Ramadan.
It was the 100th year the UK soft drink was available during Ramadan since it expanded into global markets, including India, a century ago.
The company claims to sell 25 million units of Vimto Cordial during the Muslim holy month.
On its website, Vimto says Vimto Cordial was first introduced to the Middle East in 1927 by the Aujan family, adding: “Vimto's Vimto has been synonymous with Ramadan for almost a century and has become a family tradition and a legacy traced in Khaleeji heritage. Vimto Cordial is the unique and irreplaceable drink of choice on the Ramadan Iftar table, which is prepared and consumed by families of all generations.”
Nichols, the owners of Vimto and Slush Puppie, said its sales in the region outpaced global revenue growth of 3.5% to reach £170.7 million, while its pre-tax profit rose 75. 3% to £24.3 million. On an adjusted basis, pre-tax profit increased 8.7%.
Last year, revenue in the Middle East was £13.0m, up from £11.8m the previous year, although still well below the UK, where the company earned £83m .9 million last year.
Shares in Nichols, maker of Vimto, rose on Wednesday (Chris Bull/Alamy/PA)
Following the Covid-19 pandemic, Nichols changed its business structure. He now runs a packaging business and an out-of-home division, and is focusing on the former.
The parcel business managed to grow its revenue by 6.1% last year, with an increase of 13% in the UK.
Revenue from the out-of-home business fell 3.4% after the company left behind some of its unprofitable accounts.
Chief executive Andrew Milne said: “2023 was a year of strong progress and execution for Nichols, as the parcels business delivered another year of growth underpinned by the Vimto brand, and the benefits of the newly optimized OOH (out of home) business. They were delivered ahead of schedule.
“The group delivered very strong performance in international markets, driven by strong market penetration in new and existing territories in Africa and the Middle East.
“Innovation remains a key growth driver and we have an exciting pipeline of new products planned for 2024.”
Shares rose 4.5% Wednesday morning.
The high sugar level and strong flavor work as a welcome boost of energy after a day without eating or drinking.
Muslims around the world will begin observing the holy month of Ramadan in March, a period of deep spiritual reflection and fasting that takes place each year.
The festival begins with the sighting of the crescent moon, which usually appears one night after the new moon. In 2024, Ramadan will begin on Sunday, March 10. One of the five pillars of Islam, along with faith, prayer, charity and pilgrimage, Ramadan commemorates the first revelation of the Quran to the Prophet Muhammad, a sacred moment honored with abstinence between sunrise and sunset.
During the month of Ramadan, Muslims around the world will fast and pray, before breaking their fast at sunset with family and friends.
