IRN-BRU maker AG Barr has suffered a post-Commonwealth Games hangover as group sales narrowed in the 15 weeks to May 9.

Cumbernauld-based Barr cited tough comparisons with the same period last year, when sales surged in the build-up to Glasgow 2014, as revenues dropped by 1.1 per cent. That came as the total soft drinks market achieved value growth of 0.7 per cent, according to market analyst Nielsen.

However Barr, which had been one of the Games' biggest sponsors, dismissed the decline as a matter of "timing", stating that its latest sales update reflects a return to a more normal sales phasing.

The soft drinks giant has prepared another busy summer of marketing activity behind its key brands. Now headline sponsor of the Football League in England, whose play-offs recently attracted huge global television audiences, it expects a return to sales growth in the second half of the year.

And it signalled its confidence of meeting its expectations for the full year, in spite of challenging conditions in the UK grocery market.

Speaking after the company's annual general meeting in

Glasgow, the 111th in the company's history and its 50th since listing on the stock exchange, chief executive Roger White said: "It's

a timing issue for us. A lot of our programmes, whether they were marketing or consumer offers or trade-driven activity were pointed towards the period between March and the Games, because that's when we were doing a lot of our marketing and a lot of our brand activity.

"This year that is not the case - it is much more normal phasing of our activity pointing towards the summer."

Barr said its latest update did not include contributions from the now divested Orangina and Findlays water cooler brands, although there was a £3 million sales contribution from Funkin, the cocktail mixer business it acquired for £21m in February.

Funkin continues to be run by the same management team, with Mr White stating Barr's aim is to support its continuing growth while adding insight where it can.

All resolutions proposed at Barr's AGM in Glasgow were carried. In the question and answer session that followed, one shareholder asked Mr White to comment on the seismic shifts now being seen in the UK grocery market, which has seen the major supermarkets struggle in the face of the competition from discounters such as Aldi and Lidl.

Mr White acknowledged the "dynamism" in the market but noted that, with a third of its sales generated in supermarkets, the sector did not account for the majority of its business.

And he emphasised the firm's determination to continue investing more of its money into building its brands than cutting prices - in spite of observing "some relatively aggressive price promotions from our competitors" in recent years.

Asked later if Barr was being pressed by customers to be more aggressive on pricing in light of the challenges in the grocery sector, Mr White replied that it as always been a competitive arena.

He said: "We have just got to make sure that we are giving decent value to consumers and building long-term relationships with consumers and customers."

Barr said yesterday that it has signed development agreements to build further warehousing at its Milton Keynes production and distribution centre, which includes the acquisition of an additional 1.54 acres of land. It has also acquired a further 3.86 acres

adjacent to the site to give it scope for further expansion. Barr said the total cost of the development is £11m, which includes £4m for the land for future expansion.

Broker Investec said it expects a stronger second half revenue performance from Barr. It made no change to its pre-tax profit forecast of £44.9m, and retained its buy recommendation. Shares in AG Barr closed down 8p at 615p.