AG Barr share price fizzes on Snapple deal

 
Sarah Spickernell
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The contract will last for ten years (Source: Getty)
A.G. Barr Snapple-d up a bargain this morning, sending shares up on the London Stock Exchange.
The Scottish drinks manufacturer, which makes soft drinks brands including Irn-Bru and Rubicon, secured a 10-year contract with Snapple to have exclusive rights to sale and distribution of the brand in the UK and a collection of other EU territories, starting from January 2015.
Share price rose 1.66 per cent to 624p in morning trading following the news.
The two companies will also work in partnership to identify further expansion opportunities in European markets where Snapple is currently not available.
A.G. Barr reported a strong performance in its interim results for the six months to 27 July, with net income rising to £14.3m, compared to £13.1m this time last year.
Pre-tax profit rose 14.6 per cent to £19m from £16.6m in 2013, and underlying earnings per share jumped 13.1 per cent to 12.8 pence.
“A.G. Barr has continued to outperform the soft drinks market and we are pleased to report continued strong growth in both sales and profit in the period,” the report said.
Growth was balanced across all core brands, which the company put down to a combination of innovation and marketing activities.
"We have delivered strong, balanced growth across our core brands in the year to date, with volume growth well ahead of the total market,” said chief executive Roger White.

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