Irn-Bru owner puts up drink prices due to inflation
AG Barr said that, despite the increases and added costs, profits are likely to be ahead of expectations.
The company behind Irn-Bru has revealed that prices for its drinks have gone up due to inflation.
Bosses at AG Barr said they have seen rising costs for raw materials, including packaging and energy bills, leading to cost-cutting measures, adding that they have “adjusted our pricing with customers where appropriate”.
The comments came as the company reported that profits are likely to be ahead of expectations set out in an upgrade announced in November.
In the 12 months to the end of January sales are expected to be £267 million – up 17.5% compared with the previous year – beating the pre-pandemic period, when sales hit £255.7 million.
Bosses said this was despite the recent trading restrictions due to the Omicron variant of Covid-19 which saw pubs, bars and restaurants closed.
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.”
Inflation remains problematic for the brand and the company said it will “seek opportunities across the coming year to offset the impact on our business”.
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, whilst at the same time delivering on our strategic priorities.”