UK/MIDDLE EAST: Vimto to profit from Coca-Cola Co, Aujan deal
Nichols' Vimto will be lifted by Coca-Cola Co, Aujan tie-up
Coca-Cola's agreement to acquire 50% of Aujan Industries' beverage business for US$980m is expected to provide more firepower to Vimto. Aujan already holds the rights to the brand across the Middle East, where it has become a popular choice during the Ramadan religious festival.
Vimto accounts for 20% of Aujan's net sales and is one of three brands highlighted as potential growth engines for the Coca-Cola/Aujan partnership. "All three brands should benefit from increased investment and distribution in the Middle East & North Africa region over the medium-term," said analysts at Panmure Gordon & Co today (15 December). Aujan plans to double net sales in its beverage unit within five years.
Vimto owner, UK-based Nichols, has already benefited from the drink's reach in the Middle East. In 2010, the region was Nichols' largest export market, accounting for GBP9.1m (US$14m) in net sales, equivalent to 11% of the UK company's annual sales, Panmure analysts said.
In the first half of 2011, to the end of June, Nichols' international sales increased by 13% in value. In August, Nichols' finance director, Tim Croston, told just-drinks that "there is about two-and-a-half times as much Vimto consumed overseas as there is in the UK".
- Focus - Edrington's FY Performance by Brand
- Where Beer is Brewed Can Leave a Bad Taste
- Pernod relies on Indian whiskey to crack Africa
- Analysis - Storm clouds lift over Diageo Towers
- NPD: The Clear Soft Drink Trend is Back
- Comment - Diageo CFO to North America? Do the Math
- Diageo CFO Mahlan to head up N America
- Former Bacardi exec takes De Kuyper CEO role
- Diageo sells "non-core" Gleneagles
- Diageo lining up Gleneagles sale - report
- Global liqueurs insights - market forecasts, product innovation and consumer trends research
- The IWSR Company Profile 2014 – Remy Cointreau
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review
- Edrington Group in Spirits (World)
- Global Tequila insights - market forecasts, product innovation and consumer trends research