AG Barr, the maker of the iconic Scottish soft drink Irn-Bru, said on Tuesday that it had increased its prices due to soaring inflation in Britain.
Consumer prices are rising at the fastest rate in almost 30 years, stoked by global supply chain problems and increases in the price of raw materials, forcing companies to increasingly pass higher costs on to customers.
"We have initiated several cost control actions to reduce the impact of these rising costs and have adjusted our pricing with customers where appropriate," AG Barr said in a statement.
The company, which also makes the Rubicon and Sun Exotic brands of fruit drinks, said it would seek opportunities to offset the impact of inflation on its business.
Its shares rose 2.7 per cent on Tuesday as it raised its revenue outlook, outperforming the wider FTSE 350 index.
Cost pressures for British consumers look likely to intensify over the next few months, although some business surveys show tentative signs that input cost pressures for companies may have peaked.
British grocery inflation rose to 3.8 per cent in the four weeks to Jan. 23, with the prices of savoury snacks, crisps and beef rising the most, market researcher Kantar said on Tuesday, underlining the growing cost-of-living squeeze facing many households.
The headline gauge of annual consumer price inflation hit 5.4 per cent in December and the Bank of England thinks it will peak at around 6 per cent in April.
