East Imperial FY sales rise by 15.5%

Mixer producer East Imperial saw sales increase by 15.5% in 2022, boosted by double-digit gains in the US.

New Zealand-based brand East Imperial released its unaudited financial results for the 2022 full year, with revenue reaching approximately £3.2 million (US$3.8m), in line with expectations.

For the first half of 2022, East Imperial saw revenue grow by 23.3% to £1.28m (US$1.48m), driven by a 132% increase in the US.

The ultra-premium mixer producer said full-year sales increased across all markets with around 230,000 cases sold.

Tony Burt, CEO of East Imperial, said: “The double-digit revenue growth we experienced over the year is testament to excellent customer demand for our product in key markets as well as the strong operational foundations we have put in place.”

Burt called 2022 a “transformational year” for its US business, which is a key market for the firm.

In the States, case sales soared by 68%, with sales in Southern California up by 71%.

The company benefited from its distribution agreement with Republic National Distributing Company, and its new bottling partner The Lion Brewery, which enabled the firm to make ‘significant’ cost savings.

In the company’s home market of New Zealand, East Imperial experienced ‘record sales and a strong performance’ in the off-trade during the last quarter of 2022. This market is well placed for ‘accelerated growth’ in 2023, the firm added.

In the ‘well-established’ Asia Pacific region, East Imperial’s sales were in line with the board’s expectations because of the Covid-19 lockdowns in the first half of 2022, when sales fell by 10.5%. The group saw a ‘strong’ return to growth in the last six months of the year.

East Imperial said it was ‘well placed’ to meet consumer demand in China as the market reopens, after signing a distribution agreement with Wen Hua Hang Wine Spirits Company in August 2022.

Furthermore, the company secured a distribution deal in Vietnam with SUTL Group in December 2022, marking an ‘important milestone’ for East Imperial.

2023 outlook

Looking ahead to 2023, the company said that ‘while market conditions will continue to have an impact on margins, the pressure has eased in the last quarter due to a softening of freight charges’.

The firm’s margins have continued to improve in 2023.

East Imperial remains ‘laser-focused on margin improvement opportunities in the medium term’, with initiatives planned to significantly cut manufacturing costs.

Burt added: “This positive momentum is continuing into 2023, as we continue to benefit from the ongoing shift towards premiumisation across the beverage industry, and we remain confident in our strategy of aiming to be the only ultra-premium choice for mixers in our markets.

“After three years of Covid restrictions we feel that the shackles have been fully lifted and the path is now clear for us to resume an even greater growth trajectory.”

Mixer producer Fever-Tree recently saw revenue rise by double-digits last year.