SHARES in Irn-Bru maker AG Barr dipped more than two per cent in early trading after it warned that “further regulatory intervention is on the horizon” for the soft drinks industry.
The Cumbernauld-based firm controversially changed the secret recipe of its flagship Irn-Bru early last year before the introduction of a sugar tax on soft drinks producers.
Irn-Bru maker AG Barr expects to report higher profit, shrugging off the new sugar tax, but warned that it expects continued uncertainty due to Brexit and further regulatory intervention.
The Scottish soft drinks company expects to post full-year profit ahead of the previous year and in line with expectations.
And it told the City this morning that it expects further regulation to be levied on the sector.
Mulling the outlook, the company said: “Looking ahead, the current political and economic uncertainty in the UK looks set to continue. For the soft drinks industry, further regulatory intervention is on the horizon and consumer dynamics continue to evolve."
Barr said it traded positively throughout 2018, stating that it expects to report revenue of around £277 million for the year ended January 26, up five per cent on the previous year.
But it noted that the impact of the Soft Drinks Industry Levy has been evident across the industry, with “value growth significantly outstripping volume” since its introduction.
Barr said it expects to return to a "more value-led trading strategy in 2019.”
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