Irn Bru owner reports profits rise
AG Barr, the soft drinks company, has reported strong full year results despite poor weather last summer and increasing competition in the soft drinks market. The Irn-Bru-owner has posted pre-tax profits of £20.8m, a 27.4% increase.
The company has attributed its positive performance to the stregthen of its core carbonate brands, including Iru-Bru, as well as its still brands.
Irn-Bru and Diet Irn-Bru saw a 3% increase in their revenue, while their market share reportedly grew across all regions in the UK. Its turnover rose by 4.6% to £148.4m, compared to the previous year.
Roger White, AG Barr chief executive, says: “Sales in the first seven weeks of the new financial year are 3% ahead of the same period last year.”
The drinks company says it is seeing increased competition due to a widening of the types of products being launched in the soft drinks market. It has responded with the acquisition of Vitsmart functional water and Taut sports drinks brands, as well as purchasing the franchising rights to distribute Rockstar energy drink in the UK.
During the 2007/08 financial year the total soft drinks market grew in value by 3%, however its volume dropped by 2%, according to Nielsen Scantrack in the 12 months to January 26 2008.
