The maker of Vimto is celebrating record sales in the Middle East, capitalizing on its status as the “drink of choice” for Ramadan observers. This year marks the 100th year that the UK soft drink has been available during Ramadan since its expansion to global markets, including India, a century ago. The company reports selling 25 million units of Vimto Cordial during the Muslim holy month.
Vimto Cordial was first introduced to the Middle East in 1927 by the Aujan family, according to Vimto’s website. Over nearly a century, Vimto has become synonymous with Ramadan, ingrained in the Khaleeji heritage as a family tradition and legacy. Vimto Cordial is considered Ramadan’s unique and irreplaceable drink of choice on the Iftar table, prepared and consumed by families across generations.
Nichols, the owners of Vimto and Slush Puppie, reported that sales in the Middle East exceeded global revenue growth, reaching £170.7 million, with pre-tax profit rising by 75.3% to £24.3 million. Adjusted pre-tax profit was up by 8.7%.
In the previous year, revenue in the Middle East amounted to £13.0 million, up from £11.8 million, although significantly lower than the £83.9 million generated in the UK during the same period.
After the Covid-19 pandemic, Nichols restructured its business into a packaged business and an out-of-home division, with a focus on the former. The packaged business saw revenue grow by 6.1% last year, with a notable 13% increase in the UK.
However, revenue in the out-of-home business declined by 3.4% as the company discontinued some unprofitable accounts. Chief Executive Andrew Milne noted, “2023 was a year of strong progress and execution for Nichols, as the packaged business delivered another year of growth underpinned by the Vimto brand, and benefits from the newly streamlined OOH (out-of-home) business were delivered earlier than anticipated.”
Milne also highlighted the company’s strong performance in international markets, particularly in Africa and the Middle East, driven by robust market penetration. He emphasized innovation as a critical growth driver, mentioning an exciting pipeline of new products planned for 2024.
The positive performance led to a 4.5% increase in shares on Wednesday morning.