A.G. Barr, the maker of popular Scottish beverage Irn-Bru, has said that sales of its soft drinks and cocktail mixes have been strong since the start of the year, meaning the business is now on track to meet its annual targets.
In a statement to coincide with its AGM, the company said it was also planning to invest more in products and marketing after 'encouraging' trading in recent months as pubs, restaurants and bars were allowed to reopen.
'Despite lockdown restrictions being in place across much of the first quarter, Barr Soft Drinks trading has been relatively strong since the start of the new financial year,' the company said.
'As lockdown restrictions have eased we have seen a positive impact on both our sales volume and mix, with a shift back towards 'drink now', hospitality and leisure.'
New Product Launches
A.G. Barr said its new launches, particularly Rubicon RAW Energy, had been performing well, 'achieving promising initial customer listings and consumer feedback'. In addition, demand for its cocktail brand Funkin remained firm after a solid 2020, when people were drinking more at home.
The company also reiterated that it plans to recommence dividend payments this year.
While A.G. Barr warned of some lingering uncertainty in the short term, it was confident of the current year after profits slumped in 2020. It had previously said 2021 would 'not be an entirely normal' year ahead.
'Whilst there remains some uncertainty in the short term as pandemic related restrictions ease, we believe we are well placed to drive the growth of the business and remain confident in the company's prospects for the full year,' the company added.
News by Reuters, edited by ESM. For more A-Brands news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
