In the UK, the Vimto brand continues to outperform the market with reported sales up by 3.4% compared to the first quarter of 2016. This compares favourably to the total soft drinks market growth of 1.2% in the same period (Nielsen: ytd to 25 March 2017).
In our international markets, sales to Africa have maintained the growth momentum from 2016 and as anticipated, the first quarter has been a busy period for sales of Vimto concentrate to the Middle East ahead of Ramadan which begins at the end of May.
Board update
The recruitment process for a Non-Executive Director to replace John Longworth, who steps down from the Board today, is well under way and we expect to give a further update at the time of our 2017 interim results announcement on 20 July 2017.
Outlook
We anticipate the UK soft drinks market will remain challenging throughout 2017 with the addition of currency related input cost inflation to an already price competitive environment.
Against that backdrop, we are pleased with the Group’s trading performance for the first quarter and currently expect full year earnings to be in line with market expectations.