IT is little more than a year ago that AG Barr controversially changed the recipe for Irn-Bru.
Hardcore fans of Scotland’s other national drink were so enraged they raised a petition in protest, and in their darkest moments bosses may well have questioned whether it was the right course of action.
The move was made to ensure the famous fizzy stuff escaped exposure to the sugar tax and, while some fundamentalists remain unhappy with the change, it has proven to be the correct strategy. Barr’s latest results show that it lifted underlying profits and revenue last year, despite having to adapt to the sugar tax and the challenges brought by the Beast from the East and shortages of carbon dioxide.
Admittedly, there has been some margin erosion, which has come as a result of Barr competing more aggressively on promotions as it seeded its new Irn-Bru to the market. Chief executive Roger White said this was not a typical Barr strategy but predicted the firm would return to growing the value of its sales ahead of volume in the current year.
Meanwhile, Brexit is not about to throw Barr of course either. While Mr White said the firm would prefer to see an end to the protracted uncertainty, he feels Barr’s fortunes are much closer linked to the vagaries of the weather and promotional activity in the marketplace.
As he previously warned, though, further regulation is coming down the track, be it the introduction of a deposit return scheme or a tax on single use plastics which contain less than 30 per cent of recycled content.
Life is anything but dull in the world of Irn-Bru.
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