The corporate behind Irn-Bru and vitality drink Rockstar has revealed that costs for its drinks have gone up because of inflation.
Bosses at AG Barr mentioned they’ve seen rising prices for uncooked supplies, together with packaging and vitality payments, resulting in cost-cutting measures, including that they’ve “adjusted our pricing with prospects the place acceptable”.
The feedback got here as the corporate reported that income are prone to be forward of expectations set out in an improve introduced in November.
Within the 12 months to the tip of January gross sales are anticipated to be £267 million – up 17.5% in contrast with the earlier yr – beating the pre-pandemic interval, when gross sales hit £255.7 million.
Bosses mentioned this was regardless of the current buying and selling restrictions because of the Omicron variant of Covid-19 which noticed pubs, bars and eating places closed.
The corporate mentioned: “Whereas Authorities restrictions have impacted client behaviour throughout the yr, each our Barr Mushy Drinks and Funkin enterprise models have traded effectively, significantly through the intervals when restrictions had been eased.”
Inflation stays problematic for the model and the corporate mentioned it is going to “search alternatives throughout the approaching yr to offset the affect on our enterprise”.
Chief govt Roger White mentioned: “Now we have remained totally operational all year long, producing high-quality merchandise and offering sturdy enterprise help to all of our prospects.
“Now we have delivered a wonderful monetary efficiency towards a unstable backdrop, while on the similar time delivering on our strategic priorities.”