Irn Bru maker AG Barr posted a 10 per cent jump in annual profits yesterday thanks to strong demand for its water brand Strathmore, and despite warning of increasing competition taking a toll on the drinks market.
Chief executive Roger White said increasing supermarket price wars and the heavy promotional environment meant the soft drinks market was experiencing “a period of price deflation that was likely to make it more difficult for businesses to deliver top line growth”.
He said consumer tastes had also changed with water-based drinks overtaking fizzy beverages to become the biggest selling category.
Despite this, AG Barr said all its core brands outperformed expectations, helping to lift total turnover by 2.7 per cent to £260.9m in the year to 25 January on profits of £41.9m.
It has proposed a total dividend for the year of 12.12p per share, up 10 per cent on last year.