European soft drink company Britvic has announced a 'strong start' to 2017, with a Q1 increase in revenue of 4.3% (£351 million) and 3.9% volume growth, compared to last year.
Chief executive Simon Litherland commented: "Encouragingly all our key markets have delivered revenue growth.
"Whilst the external environment remains uncertain, we are confident that the strong execution of our marketing and innovation plans combined with disciplined revenue management and our cost saving initiatives will deliver full year results in line with market expectations."
Revenues from Great Britain increased by 2.2% compared to 2015, the company said. Although the grocery channel remained flat, a focus on convenience and food service outlets like Subway helped growth. Carbonates such as Pepsi Max and 7Up continued to grow, with revenue increasing 5.5%, outperforming the market.
Conversely, still drinks revenue fell by 3.8%. However, the company said that while the brands Robinsons and Fruit Shoot continued to decline, there were signs of improvement.
In France, revenue grew by 6.3% underpinned by the branded portfolio which was led by drinks Fruit Shoot and Pressade. Private label sales continued their decline.
Ireland had a similar growth spurt, with revenues increasing 6.4% and brands like Counterpoint doing particularly well. However, Ballygowan water's strong growth had a negative effect on the average retail price.
But it was Britvic's international division which enjoyed the strongest resurgence since 2015. Revenue grew 19.8%, compared to a 13.8% drop in Q1 last year.
Most of this increase came from Fruit Shoot sales in the US and increasing revenue in export markets, such as the Benelux area.
Supply chain achievements in Q1 included the PET line in Leeds becoming fully operational and the commission of three can lines in Rugby in the UK.
Britvic said its early January acquisition of Brazilian company Bela Ischia should be completed by March, further strengthening its position in the country.
Sales there experienced a 7.9% increase, but inflation drove the ARP up by 17.1% and saw volumes decline.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. Click subscribe to sign up for ESM: The European Supermarket Magazine.
