Sales of Buckfast jumped by 11.8% last year, despite the fortified wine brand facing an “unprecedented” duty increase and pressures from the rising cost of living.
Newly filed accounts for the tonic wine maker J Chandler & Co showed the company’s sales rose from £49.9m to £55.7m in the year to 31 March 2024.
The accounts said the increase came despite “challenging business conditions”, most notably the 44% duty increase on all domestic sales, as well as customers facing cost of living pressures.
“Given the tough economic conditions, the management team has focused on the continuation of an adaptable, proactive and flexible approach to mitigate potential disruption and grow the business,” the accounts stated.
Gross profit margin also increased from 16.5% to 19.8%, which resulted in operating profits rising to £6.7m from £5.3m.
However, J Chandler warned its current financial year would “continue to be challenging”, due to the headwinds relating to the full-year effects of the duty increase and pressures on input costs and household disposable income.
As a result of the strong financial performance last year, dividends paid to the ownership rose to almost £2m from £1.1m the previous year.
According to The Grocer’s Britain’s Biggest Alcohol Brands 2024, Buckfast’s sales growth was heavily driven by price increases with volumes affected by the rise in per unit cost.
The report found that retail sales were up 12.7% in the year to 20 April 2024 despite a 3.2% slip in volume [NIQ week ending 20 April 2024].
Buckfast sought to expand its appeal in early 2024 with the launch of a new canned RTD in Original (15% abv) and Lemonade (5% abv) to move beyond its core tonic wine offer.
J Chandler did not respond to a request for comment.
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