UK: Irn-Bru, Rockstar boost AG Barr in H1
Soft drinks group AG Barr has said that growth from its core Irn-Bru brand and a new partnership with Rockstar Energy boosted sales in its first half.
Revenue rose 5.8% to GBP82.4m (US$153.3m) for the six months ended 26 July, AG Barr announced today (23 September). Pre-tax profit rose by nearly 10% to GBP11.1m.
The Scottish drinks firm said the results kept it on-track to meet full-year expectations, "assuming [that] market conditions do not significantly weaken".
Its flagship Irn-bru drink saw sales rise nearly 6% during the period, while a new partnership with energy drink maker Rockstar Energy also lifted the performance. Underlying sales growth excluding Rockstar, as well as new brands Taut and Vitsmart, was 3.6%, Barr said.
Value growth on the UK soft drinks market for the same period was 2.7%, the group claimed, citing Nielsen figures.
Price increases helped the firm to offset rising costs, particularly in packaging, it said, adding: "Whilst the impact of these cost increases is inescapable, we have seen the continued benefits of our prior year restructuring and ongoing cost control initiatives which have helped to maintain our margins."
Turmoil in financial markets has not jeopardised the GBP59.8m takeover of exotic juice maker, Groupe Rubicon, agreed in August, Barr said. The deal has been backed by the Royal Bank of Scotland.
Barr said trading in the second half "has continued to be ahead of the prior year, but the sustained period of very poor weather through August has had a negative impact on the total market with increased levels of competitor promotional activity becoming evident".
The top ten stories published on just-drinks this week:...
The chairman of AG Barr has confirmed his intention to stand down later this year....
Hansen Beverage Company has signed a three-year deal for its Monster Energy Drink brand to sponsor US festival Fiesta Atlanta....
Hansen Natural has reported a net loss of US$23.4m for 2008, due to charges related to switching distribution of its Monster Energy drink to Coca-Cola Enterprises and The Coca-Cola Co....
[UPDATED 25/02/2009] PepsiCo has altered some of its plans to re-invest the US$1.2bn in cost-savings from its restructuring programme in a bid to provide greater value for consumers during the economi...
The Pepsi Bottling Group said that while near-term economic difficulty would hurt drinks sales, the company would position itself to capitalise once the economy improves....
The top ten stories published on just-drinks this week....
PepsiCo has signed a multiyear distribution deal with Rockstar Energy Drink....
- Why Scotch must drop the 'malts good, blends bad'
- Pernod's mood darkens over India - Analysis
- Heineken Q1 2017 by region - results data
- Remy Cointreau Fiscal-2017 sales - results data
- Soft drinks is losing the recycling game
- Diageo to cut 105 jobs in Scotland, 50 in Italy
- Scotch sales set to soar, despite recent struggles
- TWE's Beringer Main & Vine Dry Rosé - NPD
- Edrington shifts innovation to US in shake-up
- Pernod Ricard posts solid YTD sales jump - results
- Global Champagne and sparkling wine insights - market forecasts, product innovation and consumer trends
- Global Scotch insights - market forecasts, product innovation and consumer trends
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Myanmar - ISA Country Report
- Emerging Drinks Industry Trends