Vimto maker says profits could be hit by Middle East sugar tax

Shares plunge after Nichols issues warning about 50% tax brought in this month

Shares in the Vimto maker Nichols tumbled 16% after it warned profits could be hard hit next year by a tax on sugary soft drinks in Saudi Arabia and the United Arab Emirates.

The Middle East is an important market for Nichols because growing numbers of Muslims break their Ramadan fast with a glass of Vimto. The 50% tax on the retail price of non-carbonated sugary drinks was brought in at the start of December.