AG Barr Outperforms UK Soft Drinks Market

 Breaking News
  • Nestlé Inaugurates New Nescafé Dolce Gusto Production in Vietnam Nestlé has inaugurated a new Nescafé Dolce Gusto capsule production line in Dong Nai Province, Vietnam. The site will process an expected 2,500 tons of coffee per year (equivalent to 130 million capsules), using high quality coffee beans from Vietnam. This volume is expected to increase in the coming years. The investment reflects Nestlé’s clear focus on high-growth, [...]...
  • Pink Lemonade Yogurt? Arla Brings Indulgence to New Markets Arla Foods is to expand its successful Finnish brand, Ihana, into new markets with the premium yogurt range being launched in Denmark and the UK. Meaning ‘wonderful’ in Finnish, Ihana was launched through an extensive brand launch in 2016 in Finland with an iconic new design. Indulgence is one of the few areas in growth within [...]...
  • Process Components Announces Kemutec Expansion into Netherlands Process Components has announced the expansion of subsidiary company Kemutec in Europe, with the long-established manufacturing brand opening a new office in the Netherlands. The move forms a key part of its global strategy to extend its global territories, significantly grow its revenues and create new jobs. Kemutec has more than three decades’ worth of heritage in [...]...
  • Packaging Automation Supports the Reduction in Plastic Packaging Waste With the launch of the UK Plastics Pact to address the impact plastic waste is having on the environment, retailers and manufacturers are more conscious of single use and non-recyclable plastics and want to cater for the green consumer. The industry is turning to various kinds of eco-friendly packaging with the aim of reducing plastic [...]...
  • Glanbia Cheese Joint Venture to Build New €130 Million Mozzarella Cheese Facility Glanbia Cheese, the joint venture business between Glanbia plc and Leprino Foods, plans to build a new, world-class mozzarella cheese manufacturing facility in Portlaoise, County Laois, Ireland. A site for the new facility has been identified at the recently established Togher National Industrial Estate in Portlaoise. A total of €130 million will be invested in [...]...

AG Barr Outperforms UK Soft Drinks Market

AG Barr Outperforms UK Soft Drinks Market
March 22
12:32 2013

AG Barr has grown revenue and volume well ahead of the UK soft drinks market in both the carbonates and still segments during the 52 weeks to 26 January 2013. Sales increased by 6.6% to £237.6 million and underlying pre-tax profits rose by 4.3% to £35.0 million. Exceptional items amounted to £3.2 million, primarily relating to professional and legal fees in connection with the proposed all-share merger with Britvic.

Raw material cost inflation and volatility continued to be a feature in 2012 which, coupled with the increased cost of promotion, impacted on margins. However, this was partially mitigated by AG Barr’s cost control and pricing actions.

The overall the UK soft drinks market experienced carbonates growth of 3.8% in value but was in marginal decline in volume terms, whilst the still segment grew value by 1.9% with volume declining 1.0%. During the 52 weeks to 26 January 2013, AG Barr grew carbonates revenue by 7.1% and volume by 6.0%. Stills also performed well relative to the market, growing revenue by 4.3% and volume by 4.1%. The soft drinks producer’s performance was driven by consistent growth across the portfolio, with carbonates particularly benefiting from the double digit growth in the Barr range and the significant growth in the Rockstar brand. Stills continue to grow steadily as AG Barr further developed its exotic brands Rubicon and KA.

Roger White, chief executive of AG Barr, comments: “AG Barr has delivered a robust financial performance and continued to grow well ahead of the UK soft drinks market in the period. This once more proves the resilience of our operating model and the potential of our brands. Across the year, market conditions have remained difficult, specifically impacted by poor summer weather and further cost of goods inflation. Despite the added distraction of the merger discussions with Britvic plc, the business has remained focused and delivered all of the ‘business as usual’ operating plans across the year.”

Following referral of the proposed merger between AG Barr and Britvic to the Competition Commission, both companies are working with the Competition Commission during its investigation with a view to seeking clearance for the deal.

“While we await the Competition Commission’s findings, we will continue to build and develop our plans to ensure the long term success of AG Barr as a standalone business,” he adds. “We remain confident in our future prospects both as a standalone business and combined with Britvic plc.”

About Author



Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 5, 2018Int'l Food Products and Processing Technologies Exhibition (WorldFood Istanbul)
  • September 15, 2018iba
  • September 25, 2018PPMA Show 2018
  • September 27, 2018Int'l Fruit Show (eurofruit)
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here