East Imperial sales grow by 23.3%
Premium mixer producer East Imperial saw revenue rise by 23.3% in the first six months of 2022, driven by triple-digit gains in the US.
Ultra-premium mixer brand East Imperial was founded in New Zealand and Singapore in 2012.
East Imperial’s revenue reached £1.28 million (US$1.48m) for H1, reflecting the return of key on-trade markets and normalised trading in the US and Europe.
Profit for the period declined by 14.1% to £224,000 (US$259,000). The firm’s net cash position improved, sitting at £1.5m (US$1.7m) because of the capital raise of £3.4m (US$3.93m) in January 2022.
The company saw its US sales skyrocket by 132% as it continued its expansion in the market.
Sales in Asia Pacific declined by 10.5%, due to New Zealand maintaining heavy Covid restrictions during the summer. New Zealand is now returning to pre-Covid levels in the on-trade, East Imperial noted.
The company said the Asia Pacific region is the ‘cornerstone’ of its brand story, with a strong performance expected in the second half of 2022.
Anthony Burt, CEO of East Imperial, said: “I’m very pleased to be reporting double-digit revenue growth for the half, as well as a significantly improved net cash position.
“Our revenue growth was driven by a very strong performance in the US and Europe as these markets return to normal trading patterns.
“While the impact of Covid has lasted longer in Asia Pacific we are starting to see signs of recovery in our business there and we expect to see the return to growth in the second half.”
US expansion plans
In the US, a key market for East Imperial, the company agreed a distribution deal with Republic National Distributing Company to bring the brand to 12 states.
In addition, East Imperial is in ‘advanced talks’ with a bottling partner in the States that could lead to ‘significant cost savings’.
“Significant expansion in the US market remains an absolute priority for us, and we are seeing sales growth and market share gains in [the] US on-trade due to our laser focus on luxury,” Burt noted.
“Establishing powerful US distribution networks in our core US and China markets are significant strategic milestones that will put East Imperial in a strong position to expand in the future.”
The firm partnered with distributor Wen Hua Hang Wine Spirits Company to supply East Imperial’s range across Mainland China and Macau.
The company also released its low-calorie Light Tonic in the second quarter to meet demand for lower-sugar options.
East Imperial said the last six months of the year is traditionally the stronger half for the business, usually in the vicinity of 80% greater.
The company said it would ‘remain focused on margin improvement opportunities in the medium term while focusing on driving significant top-line growth’.
Burt said East Imperial is confident in its goal to become the “only ultra-premium choice for mixers in our markets”.
East Imperial Grapefruit Soda secured a Master medal in our Tonic & Mixer Masters earlier this year.
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