Broadland Drinks' full year results reflects "strong brand performance"
Broadland Drinks has reported an 11.9% increase in sales revenue to £79 million with pre-tax profit up from £2 million in 2018 to £2.9 million for the year ending March 31, 2020.
The Company continues to invest in its own brands and it recently extended the small format brand Minivino into cans as well as introducing a range of Three Mills Botanicals.
It also launched two new brands: No Ordinary, aimed at consumers looking to explore less well known wine regions or grape varieties; and La Fiesta, which was launched in January 2020. The core brands Three Mills, Minivino, Proudly Vegan and Waipapa Bay continue to show strong growth with increased distribution through key retailers in both the UK and USA, the company said.
Broadland Drinks Chief Executive, Mark Lansley, said: “As part of our focus on innovation and brand building we changed the company’s name to Broadland Drinks from Broadland Wineries, with the aim of extending our portfolio of products and repositioning ourselves in the broader drinks marketplace.
“The first initiative of the year was to invest in a canning line initially offering line extensions to our existing brands – Minivino, Three Mills and La Fiesta - and then creating a number of innovative new drinks which are in the pipeline for 2021. The line capacity also means that we can offer key retailers medium and short runs for own-label cans, encouraging easy trial and innovation.”
Broadland faced challenges earlier this year when the UK Government announced a significant change to the legislation on Post Duty Point Dilution (PDPD), which took effect on April 1, 2020. Broadland reformulated its products to mitigate the change and introduced new products such as the Three Mills Botanicals and the La Fiesta range of drinks.
The company said this legislative change will also shape the finances of the company going forward, as the shift backwards in the duty point will reduce bank borrowings and stock holding value, positively affecting cashflow and the working capital cycle. This may also result in a lower turnover in future years, as customers are able to take product under bond or on deferment account.
Finally, Broadland said it has dealt with the impact of the Covid-19 pandemic by supporting its on-trade customers and working closely with off-trade customers and suppliers to ensure that stock availability is maintained. Sales are above budget for the first three months (April-June) of the financial year, with exposure to the on-trade offset by retail demand.
Lansley said: “The Company’s existing long-term growth strategy should continue to deliver growth and I am cautiously optimistic for the future.”