Family-owned cider maker Thatchers has reported record-breaking sales, surpassing the £200m mark for the first time in its 120-year history.
The Somerset-based business, established in 1904, recorded sales of £203.9m for the year ending 31 August, 2024, as reported by City AM.
This is a significant increase from the previous financial year’s turnover of £175.2m. Since 2018, when it posted a turnover of £99.2m, Thatchers has more than doubled its sales.
Recent filings with Companies House reveal that the firm’s pre-tax profit marginally increased from £15.6m to £15.8m over the year.
Despite absorbing input costs and investing in new production facilities, brands, and personnel, the company’s operating profit only rose by 3.4 per cent to £15.6m.
The business, currently managed by the fourth generation of the Thatchers family and chaired by Martin Thatcher, continues to face rising costs.
A statement approved by the board read: “The cost-of-living crisis has continued to impact consumers and an ongoing trend towards premiumisation has seen budget brands decline, while quality, trusted brands like Thatchers are growing in value and volume, with Thatchers outperforming the category every quarter.”
However, the company acknowledged that its success has not fully shielded it from recent economic challenges.
“Like many companies, Thatchers has been affected by inflationary cost pressures such as rising raw material costs, increasing wage bills and additional taxes.
“This has led to significantly reduced margins, however, mindful of the cost-of-living crisis, Thatchers has worked hard to limit the impact on customers, and where possible absorbed a significant proportion of those costs.
“Additionally, the predicted increase in cider sales due with the ‘summer of sort’ was offset by poor weather conditions, with both on and off trade markets feeling the impact.
“The cider market saw a lot of change this year, with some producers moving products into the lower ABV [alcohol by volume] tier to maximise on the change in duty, and others running aggressive promotional pricing campaigns.
“Thatchers took the decision to simply remain focussed on producing great quality cider.”
During the year, the company grew its market share by 1.7 per cent, taking its total to 17.2 per cent.
It also invested £14m in the 12 months in its cider production facilities and the completion of its automated warehouse system, up from £7m.
The company has also committed to spend £24m during its current financial year on products such as a new canning line.
During the year dividends of £7m were paid out, the same as in 2023 and 2022, while the average number of people employed by Thatchers increased from 253 to 261.
Thatchers wins legal battle with Aldi
The verdict arrives a month after the Court of Appeal ruled that Aldi had violated Thatchers’ trademark with its cloudy lemon cider product. Thatchers initiated a legal dispute against the German supermarket chain in 2022, alleging that Aldi had breached its trademark by producing and selling a cloudy lemon cider similar to Thatchers’ own product.
Aldi’s Taurus cloudy lemon cider hit the market in May 2022. Thatchers contended that Aldi’s product was strikingly similar to its own lemon cider, pointing out that the colour scheme of yellows and greens and the creamy yellow backdrop could mislead consumers.
However, in January 2024, High Court judge Melissa Clarke ruled in favour of Aldi, determining that it had not infringed on Thatchers’ trademark.
In her judgement, she observed that there was no likelihood of confusion between the brands, it bore a low degree of similarity to the trademark, and Aldi’s usage did not unjustly exploit the trademark.
Thatchers subsequently appealed this decision, which was taken to the Court of Appeal in mid-December and won.