The company behind Irn-Bru has revealed it is increasing its prices after its packaging, ingredients and energy-linked commodity costs jumped, as it raised its sales and profit estimates.
AG Barr said owing to rising costs, which includes fruit and wages, it had put up prices “where appropriate” and signalled further price increases as it pointed to the UK’s inflation rate rising above 5%, the highest in decades.
Sales of the Scottish fizzy drink, made to a secret recipe, are likely to have been boosted in part by it becoming the talk of the recent climate summit Cop26 in Glasgow.
The drink made global headlines when the US congresswoman Alexandria Ocasio-Cortez posted an Instagram video of herself praising Irn-Bru, after being handed a can by the Scottish first minister, Nicola Sturgeon, on her arrival in Glasgow.
Irn-Bru is often referred to as Scotland’s other national drink – after whisky – and AG Barr was the exclusive soft drink and water supplier at two convention centres in Glasgow used during Cop26.
The company, which also makes Rubicon drinks and Funkin cocktail mixers, said it made revenues of £267m in the year to 30 January, up 17.5% on the previous year and ahead of its own expectations – despite the spread of the Omicron Covid variant and restrictions on socialising. Sales are also higher than its pre-pandemic performance of £255.7m.
As a result, AG Barr expects its full-year profit before tax and one-off items to be slightly higher than its November estimate of £41m.
The company said: “While government restrictions have impacted consumer behaviour across the year, both our Barr Soft Drinks and Funkin business units have traded well, particularly during the periods when restrictions were eased.”
Its chief executive, Roger White, said: “We have remained fully operational throughout the year, producing high-quality products and providing strong business support to all of our customers.
“We have delivered an excellent financial performance against a volatile backdrop, while at the same time delivering on our strategic priorities.”
