World Update

Vimto claim they are a victim of the war in Yemen

Nicole Morley

Vimto claim they are a victim of the war in Yemen
Vimto claim their sales have become a victim of the Yemeni civil war (Picture: Getty)

Vimto claim they are a victim of the war in Yemen.

The company who make the purple drink say their profits are dwindling after a blockade due to the nation’s bloody civil war and a slowing economy in Saudi Arabia.

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Due to an escalation of hostilities in the Arab nation, Vimto’s supply route to its Yemeni distributor has been compromised and no shipments are possible at all this month.

The firm have adjusted their pre-tax profit for 2017 and it is now expected to be in line with last year.

Nichols believes the conflict, coupled with ‘slowing in the Saudi economy’, will mean sales across the region are ‘likely to be less than previously anticipated’.

Management now expects ‘low single digit percentage profit growth in 2018’ in comparison to the current year.

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The distribution route of the purple fruit drink has been blocked (Picture: Getty)

Consumers in the Middle East tend to be big Vimto drinkers as the drink has become popular with Muslims, who often enjoy the sugary fruit drink before fasting for Ramadan.

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Nichols, which sells in more than 85 countries, owns brands such as Levi Roots soft drinks, Feel Good and Sunkist.

The firm continue to sell well in the UK, where Vimto sales are up over 9% year on year, which is well ahead of the market.

The group said that the strong performance helped it mitigate rising costs linked to the weak pound following the vote to Brexit.

The firm also said that it is well prepared for the introduction of the Sugar Levy, with the Vimto and Feel Good brands portfolio already below the levy’s threshold.

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