AG Barr puts fizz into sales figures

The Cumbernauld-based business – which also makes St Clements, Tizer and Rubicon fruit drinks – said like-for-like sales rose by more than 10 per cent for the second year running, helping it deliver pre-tax profits of £31.6m in the year to January 29.

But AG Barr said the industry faced challenges over the year ahead, with soaring input costs and consumer caution adding to tough sales comparatives.

AG Barr said it outperformed a “buoyant” soft drinks market by focusing on its core brands, Irn-Bru and Rubicon.

While Scotland remains the historical heartland for Irn-Bru sales, AG Barr made further progress in increasing demand elsewhere across the UK.

It said sales in the north of England rose 10 per cent thanks to marketing and sponsorship efforts, specifically surrounding rugby league. Total Irn-Bru sales rose 4 per cent, according to the group.

An ongoing association with cricket and new launches helped Rubicon sales soar 22.5 per cent in the year.

The group said sales of Rubicon have now nearly doubled since it bought the brand in August 2008.

However, AG Barr said product developments were reined in as cautious consumers have tended to stick with established brands they “know and trust”.

Roger White, chief executive of AG Barr, gave an upbeat outlook for the business in 2011 despite general headwinds and confirmed sales in the first eight weeks so far since the end of January were ahead year-on-year.

He said: “The soft drinks sector will face tough comparative trading across 2011, as well as further cost volatility and general economic uncertainty.

“However, we face these challenging conditions with good momentum.”