Sales success for AG Barr as it sees consumers crossing to the Rubicon

Soft drinks maker AG Barr said strong demand for its exotic juice brands Rubicon and KA boosted annual profits, but it warned this year will be challenging as household income comes under pressure.

The group said strong sales across its core brands and a capital investment programme should boost further growth.

AG Barr said its core brands all performed well, but grew particularly strongly in the north of England.

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Marketing and brand development activities in the north of England delivered growth of 13.0 per cent over the year, as its core brands became more firmly established with consumers in what it described as an important area of geographical focus.

The 13 per cent growth in the north compares with growth of just 3.4 per cent in its native Scotland and overall growth in England and Wales of 8.4 per cent.

The group’s Irn Bru brand is benefiting from television and outdoor advertising, as well as its sponsorship with Rugby League and its continued association with Rugby League on Sky Television.

The group’s pre-tax profits rose six per cent to £33.6m for the year to January 28. Revenues also rose six per cent to £237.0m.

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The company has launched into the ice cream market for the first time with a new range of tropical flavours under its Rubicon brand.

It has started selling mango, passion fruit and lychee flavoured ice cream tubs and push-up lollies under ambitious plans to grow the tropical drink label, which uses England cricketer Graeme Swann as a brand ambassador.

A spokesman for the group said the move into the frozen market is designed to tap into a growing demand for more exotic ice cream flavours.

The group said: “We believe this will further support the long-term development of the brand by delivering a new way for consumers to enjoy the delicious exotic flavours and taste of the Rubicon brand.”

The group, which also makes Tizer and St Clements juice, said sales of its Jamaica-inspired KA range grew by two-thirds after it launched still flavours in addition to its fizzy ranges.

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