Fizzy drinks sales fall flat for Britvic

By Anita Awbi

- Last updated on GMT

Related tags Soft drinks Coca-cola Carbon dioxide Britvic

Soft drinks firm Britvic has announced a 7.3 per cent drop in
half-year carbonates sales as a slump in the fizzy drinks market
impacts revenue and share price.

But Britain's second largest soft drinks manufacturer said Tuesday it can still deliver full-year earnings in line with expectations - despite falling sales in the sector which provides half the company's revenue.

Overall, like-for-like branded revenue for the 24 weeks to March 19 was down 3.4 per cent, with the stills sector showing minimal growth of 1.3 per cent.

The maker of Tango and Robinsons said that consumers switching to "better for you products"​ will continue to push decline in the full-sugar carbonates sector, encouraging the firm to change focus and concentrate on the stills market.

It does not have a presence in the strengthening bottled waters, yoghurt drinks and fruit juice sectors, however.

Britvic's healthier alternatives to Pepsi and 7Up, produced under licence in the UK for PepsiCo, target the low- or no-sugar market and mixed-juice drink sector instead.

But CEO Paul Moody maintains confidence in the company's performance, citing new product launches and an efficiency programme as the key drivers of growth needed to pep up full-year results.

"We are concentrating on reducing costs, with a full year target of at least £10m, improving our cash position and reducing working capital,"​ he said in a statement.

Britvic cited a late Easter and rising energy and raw materials costs as negative factors, but the firm will drive revenue through "core brand activity, new product launches and increasing average realised price"​ to overcome these issues.

Last month it announced a £136m loss in share value, acknowledging the market for sugary drinks is in decline - causing some analysts to express concern for the industry's future as the healthy eating trend gains momentum across Europe.

And global bottled water consumption is expected to overtake fizzy soft drinks for the first time within five years, according to a recent report by Zenith International - piling the pressure on fizzy drinks firms to adapt to survive.

Related topics Manufacturers

Related news

Show more