Analysis - Nichols finds early success with stills focus
Vimto dilute sales increased over the year
Back in May, Nichols chairman John Nichols warned that a shift in his firm's focus from carbonates to stills would stymie any chance of full-year growth. It seems his pessimism was misplaced.
In a trading statement today (10 January) Nichols, which owns the Vimto brand, posted a 2% full-year 2013 sales jump, driving expectations of FY profits growth compared to last year.
Along with a solid performance in the UK (FY sales up 2%, H2 sales up 5%), today's statement seems to have proved the wisdom of Nichols' new strategy, made because of increased promotions pressure on carbonates from rivals in the UK. The proof was in the news that, although Vimto's carbonate sales fell by 6%, sales of Vimto's dilutable juice jumped by 11%.
Analyst Sahill Shan at N+1 Singer Equity Research dug even deeper into the numbers, revealing that, in the second-half of last year, Vimto dilutable juice sales accelerated to a 15% increase.
As Shan points out, last year's hot Summer in the UK undoubtedly helped sales. However, considering that stills such as Vimto concentrate provide much higher margins than carbonated variants, Nichols' new direction looks like it is off to a good start.
Carbonated Soft Drinks in United Kingdom industry profile provides top-line qualitative and quantitative summary information including: market size (value and volume 2009-13, and forecast to 2018). Th...
UK soft drinks maker Nichols has said it expects to post a sales jump for 2014 as a new Vimto campaign drove increases for its core brand....
- Boom time for soft drinks in West Europe?
- Protein interest offers drinks opportunities - NPD
- Patron's lesson for the broader spirits sector
- Inchdairnie and the quiet whisky revolution
- Britvic's H1 Performance by Region - Focus
- Diageo names Javier Ferran as new chairman
- Analysts clash over AB InBev SAB Brexit impact
- Pernod switches Travel Retail Europe op's director
- SABMiller issues currency alert as Africa weakens
- Purity Vodka appoints new CEO
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Global travel retail insights - market forecasts, product innovation and consumer trends
- Global RTD insights - market forecasts, product innovation and consumer trends
- Keurig Green Mountain in Hot Drinks (World)
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends