Scorching summer paves way for even brighter future for AG Barr

AG Barr have thanked Mr Sunshine for their performance over the summer after posting pre-tax profits of £16.6m.

The company, which makes well-known soft drinks like Irn Bru, said the improved summer weather boosted sales, with an increased profit of 12.3% on sales for the same period last year.

But, things could have looked a lot sunnier for the company’s future, if a merger with drinks firm, Britvic had gone ahead. The company estimated the failed merger cost them a total of nearly £5m.

That’s after the deal was referred to the competition commission, leading to the deal falling through, despite being given the green light.

The company said the soft drinks market “benefited from the excellent summer weather, however competition remains intense,” adding price promotion in the category had continued to “accelerate,” with the largest brands increasing the depth and quantum of price promotion.

First-half sales of the company’s brands increased by 5.8%, 1.3% ahead of the total soft drinks market. And the growth rate in the second quarter was more than double that of the first thanks to the weather.

The focus for the firm over the past six months had been the completion of its new Magna Park facility in Milton Keynes, which was now in commercial production.

Category: Bar & Pub, Brand News, News