Skip to content
Search
AI Powered
Latest Stories

Irn-bru maker fears second-half margins to be hit by inflation

Irn-bru maker fears second-half margins to be hit by inflation
REUTERS/Russell Cheyne/File Photo
REUTERS

Irn-bru maker A.G. Barr flagged a hit to its second-half margins today (27), hurt by reduced consumer confidence and increase in costs, after reporting a rise in first-half profit due to continued demand for drinks during summer and a recovery in demand for its out-of-home products.

The drinks maker is now navigating a rise in input costs and lower consumer spending amid a rising inflationary environment in the UK, which it expects to continue through the year.


Chief executive officer of A.G. Barr Roger White reflected on the rising inflationary environment within the UK and said, "We anticipate in the coming months that the current economic environment will impact consumer purchasing behaviour, however, we currently remain confident that our strategy and actions will allow us to deliver a full-year profit performance ahead of the prior year."

The Irn-Bru maker said trading was boosted by the warm summer weather and revenue in the first six months to July 31, 2022, fizzed upwards by 17% compared to the same period in 2021. The company took in £157.9m in the first six months of 2022 compared to £135.3m for the first half of the previous year.

In the interim results, AG Barr reported a rise in first-half profit but as a consequence of the inflationary environment, the company took a hit to its second-half margins. The Scottish company is initiating mitigating actions that management hope will still return an improved profit for the full year.

More for you

Carlsberg Zero
Competition watchdog begins Carlsberg, Britvic merger probe
Competition watchdog begins Carlsberg, Britvic merger probe

Carlsberg shifts marketing focus as drinkers choose cheaper beer

Brewer Carlsberg is shifting some of its marketing focus to cheaper brands, it said on Thursday (31), as consumers in major markets bought cheaper beer and in reduced quantities.

The maker of Kronenbourg 1664, Tuborg and Somersby said beer sales volumes fell by 1.3 per cent in the third quarter, noting declines in China, France and the United Kingdom. Premium sales fell 0.5 per cent in the quarter."In Western Europe, there's no doubt that the average consumer is holding back," CEO Jacob Aarup-Andersen told Reuters.

Keep ReadingShow less
sustainability, zero waste store, refil lzone
Photo: iStock
Photo: iStock

Consumers value ethics though 'sustainability needs to be competitively priced'

Consumers now want a greater commitment from retailers in cutting food waste, refilling stations, sustainable packaging, and partnering with social purpose organisations, states a recent research, which also highlights that a good majority (69 per cent) of younger consumers are more likely to shop with what they see as socially responsible retailers though price sensitivity still plays a crucial role.

According to the findings, published in Vypr’s Consumer Horizon Report, reducing food waste is the most important factor for the majority of UK consumers (29 per cent), especially for Gen Z women aged 18-24 (38 per cent). More than a third (37 per cent) of men aged 18-24 said they needed food storage advice. A similar number of women aged 18-24 (33 per cent) want meal kits with the exact amount of ingredients included for them to cut down on food waste.

Keep ReadingShow less
Sugro-Wn-News.png
Sugro UK
Sugro UK

Sugro UK unveils new B2B digital enhancements to empower members, retailers

Sugro UK, the number one buying and marketing buying group*, in partnership with b2b.store, is thrilled to announce a further expansion of its existing E-Loyalty scheme programme, which has proven to be very popular with its members and retailers, by introducing E-Loyalty Extra Compliance and Execution scheme as well as E-Coupons.

The E-Loyalty Extra is aimed to boost compliance and execution at retail store level to drive new product launches, core range compliance, some exciting fixture trials with its supply partners and more! It will be available to all member owned and member affiliated retail stores within the group.

Keep ReadingShow less
Paulig acquires Panesar Foods

iStock image

Paulig acquires Panesar Foods

Expanding its footprint in the World Foods category, Paulig has acquired Panesar Foods, a prominent UK-based producer of sauces and condiments.

Founded in 1992 and headquartered in Tipton, Panesar Foods is a family-owned business with three production facilities, employing 308 staff and achieving a turnover of £59 million in the 2023 fiscal year.

Keep ReadingShow less
Mary Glindon

Mary Glindon

Labour MP cautions proposed vaping tax could hinder smoking cessation efforts

Labour MP Mary Glindon has cautioned that a new excise tax on vaping could discourage smokers from switching to less harmful alternatives.

Glindon, who also chairs the All-Party Parliamentary Group for Responsible Vaping, said the chancellor’s proposed tax, which will add £2.20 per 10ml of vaping liquid when it goes into effect on October 1, 2026, will “hurt working people”, who rely on vapes to quit smoking.

Keep ReadingShow less