Soft drink celebrates record sales after becoming ‘Ramadan beverage of choice’

The soft drinks business first started selling during Ramadan in India a century ago

The maker of Vimto is celebrating record sales in the Middle East after building on its success as the “drink of choice” for those observing Ramadan.

It was the 100th year that the UK soft drink has been available during Ramadan since it was expanded to global markets, including India, a century ago.

The company says it sells 25 million units of Vimto Cordial during the Muslim holy month.

Vimto advert shows energy-boosting popularity in Middle East during Ramadan

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 nearly a century and has become a family tradition and legacy routed in the Khaleeji heritage. Vimto Cordial is Ramadan’s unique and irreplaceable drink of choice on the Iftar table which is prepared and consumed by families across all generations.”

Nichols, the owners of Vimto and Slush Puppie, said its sales in the region outpaced the 3.5% global revenue growth to reach £170.7 million, while its pre-tax profit rose 75.3% to £24.3 million. On an adjusted basis pre-tax profit was up 8.7%.

Last year revenue in the Middle East was £13.0 million, up from £11.8 million a year earlier, though still a lot lower than the UK, where the company made £83.9 million last year.

Shares in Vimto-maker Nichols rose on Wednesday (Chris Bull/Alamy/PA)

After the Covid-19 pandemic Nichols changed its business structure. It now runs a packaged business and an out-of-home division, and is focusing on the former.

The packaged business managed to grow revenue 6.1% last year, with a 13% rise in the UK.

Revenue in the out-of-home business dropped 3.4% after the company left some of its unprofitable accounts behind.

Chief executive Andrew Milne said: “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.

“The group delivered a very strong performance in international markets, driven by strong market penetration across existing and new territories in Africa and the Middle East.

“Innovation remained a critical growth driver and we have an exciting pipeline of new products planned for 2024.”

Shares rose 4.5% on Wednesday morning.

The high sugar level and the strong flavour works as a welcome energy boost after a day of no food or drink

Muslims around the globe will begin observing the holy month of Ramadan in March, a period of deep spiritual reflection and fasting that takes place every year.

The festival begins with the sighting of the crescent moon, which usually appears one night after a new moon. In 2024, Ramadan will begin on Sunday 10 March. One of the five pillars of Islam - along with faith, prayer, charity, and the pilgrimage - Ramadan commemorates the Quran first being revealed to the Prophet Muhammad, a sacred moment honoured with abstinence between sunrise and sunset.

The month of Ramadan will see Muslims all over the world fasting and praying, before breaking their fast at sundown alongside family and friends.