Vimto maker Nichols has made “considerable progress” toward its growth strategy in the first half of 2025, with solid volume growth in UK products backed by rapid expansion in Africa.
Achieving volume growth in all three of its routes to market – UK packaged products, international packaged and out of home – Nichols posted a rise in group revenues of 1.8% to £85.5m in the half year to 30 June 2025.
Keeping prices down in a strategic move to drive market share, Nichols won 5% volume growth in its UK packaged products, which grew 3.7% in total revenues to £47m.
Adjusted profits, before tax and exceptional items, were in line with expectations at £14.6m, up 0.8% year on year.
And while international packaged suffered a £500k dent in revenues in the half, in part because of an early Ramadan shifting sales into late 2024, the business has enjoyed significant growth in Africa of 16.9% to £13.7m.
Given Vimto is in the middle of shifting to selling higher-margin concentrates to the region, rather than finished products, underlying growth was even stronger, with some analysts reporting a 29% like-for-like jump once the shift was taken into account.
Nichols CEO Andrew Milne told The Grocer the team was “really pleased” with progress towards the group’s strategic growth plan implemented in late 2024, adding the second half would likely be even stronger.
“We’re the number two squash brand in the UK, and that strength is meaning we are winning some new distribution points across numerous retailers, driving the core, and that [growth] is then complemented with innovation.”
New releases such as Vimto Wonderfuel, a fortified squash with higher fruit content, and double-concentrated SKUs were “really driving” sales. The £1 price-marked pack for its energy drinks have likewise helped drive sales through wholesalers for independent retailers.
“This year, we have decided not to drive price,” Milne added.
“We knew we were launching quite a few pieces of innovation, and wanted to focus on market share. So, we’ve not been putting price [increases] through and have been working with customers to make sure they are offering really good value for our consumers in what is a tough market.”
Nichols holds about 12%-13% of the UK’s squash market, with ambitions to grow that share year on year.
The company’s expansion in Africa has been aided by a shift in production from Valencia to Senegal, to which Nichols can ship Vimto concentrate for finishing in the local market.
According to Milne, this has made it significantly easier to push for growth through its network of African partners.
“It means we can get to market quicker, and doesn’t tie up the cashflow of our distributors – and there are obviously sustainability benefits,” he said.
Nichols has supported the move with local marketing hires and assigned spending.
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