By Ian McConnell
IRN-BRU manufacturer AG Barr has revealed a “positive impact” on its soft-drinks sales volumes and mix as coronavirus lockdown restrictions have eased, with a shift back towards “drink now”, and hospitality and leisure sector sales.
The group, based at Cumbernauld near Glasgow and led by Roger White, flagged “relatively strong trading” by its Barr Soft Drinks business since the start of its new financial year on January 25. It said trading momentum had been supported by the launch of new products such as Rubicon RAW Energy. And it described current trading as “encouraging”.
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AG Barr declared its Funkin cocktail ingredients business was already beginning to see the benefits of the reopening of the hospitality sector. It also flagged continuing growth in consumers drinking Funkin cocktails at home.
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In a trading statement coinciding with its annual meeting yesterday, AG Barr said: “Whilst there remains some uncertainty in the short term as pandemic-related restrictions ease, we believe we are well placed to drive the growth of the business and remain confident in the company’s prospects for the full year.”
Declaring its balance sheet “remains strong”, AG Barr reiterated its commitment to restart dividend payments this financial year, noting it would provide a further update in early August.
AG Barr said: “Despite lockdown restrictions being in place across much of the first quarter, Barr Soft Drinks’ trading has been relatively strong since the start of the new financial year."
It flagged planned investment in its brands through “exciting consumer engagement and marketing activity”.
AG Barr’s shares dipped by 8p to 522p yesterday.
The company said: "As lockdown restrictions have eased we have seen a positive impact on both our sales volume and mix, with a shift back towards "drink now", hospitality and leisure. Our soft drinks trading momentum has been supported by encouraging new product launches – Rubicon RAW Energy in particular achieving promising initial customer listings and consumer feedback."
It added: "While the pace and extent of the reopening of the hospitality sector varies by region, our Funkin business is already beginning to see the benefits, delivering on-trade sales that provide optimism for the sector's recovery. Across the take-home channel, the strong performance of our Funkin ready to drink cocktails during 2020 is continuing, with an increase in both customer listings and new consumers enjoying Funkin cocktails at home."
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