Directors at botanical drinks brewers Fentimans have raised a glass to a “robust” rise in turnover to top £42m, driven by growing export sales.
The Hexham firm, known for its glass bottled mixers with flavours including Sparkling Raspberry, Rose Lemonade and Ginger Beer, was relaunched more than 20 years ago by founder Eldon Robson, who found and recreated a traditional ginger beer recipe owned by his family. The company now makes and sells more than 40 soft drinks, mixers, syrups, craft beers and pre-mixed alcoholic drinks to the hospitality trade and retailers, including major supermarkets and the likes of Fenwick.
Fentimans has now posted accounts for 2022 showing turnover rose from £39.9m to £42.2m, although operating profit dropped from £1.6m to £608,536. Profit for the year also fell significantly, from £1.367m to £257,968. Total comprehensive income came in at £101,928, a marked drop on the previous year’s £1.35m.
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Despite the drop in profits, the company said it was pleased to report another year of progress and profitability for the group, amid continued global uncertainty throughout 2022. It said its UK channel saw a reduction in retail sales and that on-trade closures enforced by Covid restrictions at the start of the year, coupled with the conflict in Ukraine and the resulting cost-of-living crisis, impacted demand throughout the year.
Fentimans’ export channel went “from strength to strength” and saw gross sales rise by 9% to £19m, despite substantial revenue loss with distributors in Ukraine and Russia. The company said the group continues to focus on investing into key international markets alongside a strong network of distribution partners. Meanwhile, the group’s US business grew gross sales by 7% to £4.7m, saying it continues to be well placed for accelerated growth in the US.
Following publication of the results, Danny Tobin, CFO, Fentimans, said: “From a business perspective, the conflict in Ukraine added to turbulence and elevation of costs across our supply chains. Plus, the resultant cost of living pressure certainly impacted demand across the year.
"Despite this, Fentimans delivered revenue growth for the second year running. In addition, we’re pleased to say our Fentimans Ginger Beer remains the UK’s number one premium ginger beer. One contributing factor to strong performance has been a change in consumer habits amidst the difficult economic backdrop; many opt for fewer trips out but look for a more elevated, luxury experience, a trend that our premium offering has been able to assist with. As the on trade re-opened, the business did see an inevitable reduction in retail sales.
“However, this was balanced by the achievement of new national grocery listings of our still wellness drinks, Good & Fruity, plus the new mixers can pack range, leading to robust performance. We’re pleased this has continued into 2023, as Fentimans starts the year as the fastest growing mixer brand in the retail channel.
“Looking overseas, despite lost sales in Ukraine and Russia, Fentimans export channel continues to go from strength to strength with a 9% increase in revenue. The group’s US business demonstrated further progress with a 7% increase in revenue year on year.
“2022 was a year of extreme global market conditions but it is reassuring to witness these challenges being absorbed by our business model, and Fentimans continuing to trade well. The board would like to thank all stakeholders and especially our employees who have helped us step up and ensure a platform for sustainable growth in 2023 and beyond.”
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