THE boss of soft drinks giant AG Barr has declared it is too early to assess the impact of the sugar tax introduced at the start of April, while stating that the firm remains open to making further acquisitions.

AG Barr controversially altered the recipe of its famous Irn-Bru brand earlier this year before the Soft Drinks Industry Levy- a tax on producers designed to tackle growing rates of obesity and diabetes - became law.

Although the firm insisted it did not make the change because of the tax, the move ensured the brand was not liable for the levy. Since April 6 the tax has been applied to drinks containing at least five grams of sugar per 100 millilitres.

However, Barr’s move met with opposition from hardcore fans, with a “Hands off our Irn-Bru” petition attracting thousands of signatures.

Asked after the company’s annual general meeting (AGM) in Glasgow whether the firm has seen any impact from the sugar tax, chief executive Roger White said: “We’ve been through, in the last six or eight weeks, the implementation of that, the changes in the marketplace as a consequence in terms of pricing and positioning, and how deal structuring works.

“I think it is too early really to pronounce that we are through that. But certainly we’re living it, it’s part of the way the industry operates, how the retail environment operates and consumers are adapting to it. As the year goes on we’ll see what the implications for the market [will be].”

He added: “There are lots of different opinions about things, but the facts will out [when] the market data comes through.”

Mr White said the company has dealt with a recent manufacturing fault which saw it recall thousands of glass bottles. It came amid fears the caps could pop off unexpectedly and lead to injury. All of the stock affected will have been recalled by today (Thursday).

“There is absolutely nothing wrong with the liquid; we just wanted to make sure that the condition of the product [was unaffected] and that we didn’t have any leaking caps or any caps that were popping off,” Mr White said.

AG Barr did not issue a trading statement to coincide with yesterday’s AGM, but Mr White said the momentum built up in the second half of 2017 has carried into this year. Barr reported a 4.2 per cent increase in statutory profits to £44.9 million in 2017, as turnover climbed 8% to £277.7m.

Mr White said: “We’re very pleased to see the development work we have done, in terms of innovation that’s landed in the market. We’re very happy with that continuing good performance and we have got some new and interesting things in the process of being launched and coming up over the summer.”

Mr White pointed to the continuing development of Irn-Bru with the Xtra sugar-free variety, and Rubicon, its fruit-juice brand, through Rubicon Spring. The firm is about to introduce a new range of Rubicon “street drinks” which he said is attracting good feedback from customers. He also highlighted the prospects for Barr’s distribution deals with Italian soft drinks manufacturer San Benedetto and Bundaberg Brewed Drinks of Australia.

Mr White said the company remains open to acquisitions if “the right thing comes at the right time at the right price”.

“We remain a cash generative business,” he said. “We are delighted we have cash on the balance sheet so, as and when opportunities present themselves, then at least we are well funded and in a good position.”

He also refused to rule out a move into the alcohol market, whether by acquiring a business or developing a product itself.

All resolutions were passed at the AGM. One shareholder asked the board whether it had any concerns over the liquidity of its shares in the context of its ongoing buyback. Finance director Stuart Lorimer said Barr share have “good liquidity” and that the re-purchase programme offers “added value”. Mr White said the shares are “tightly held” but said there has been significant trading between institutional investors, “so liquidity has not been a problem over time."