AG Barr the maker of Irn Bru has warned that profits are to collapse this year due to poor weather and that customers are walking away from their sugar reduced drinks range.
The company has said sales are to fall by 10% with profits down by 20%.
AG Barr said the problem “has been exacerbated by some specific brand challenges, particularly in Rockstar energy and Rubicon juice drinks, as well as disappointing spring and early summer weather, most notably in Scotland and the North of England, and compounded further as we approach the half-year when the prior year comparative weather was at its peak.”
AG Barr chief executive Roger White said, “Weather comparatives and trading, particularly in the impulse on-the-go market, have been even tougher than expected which, along with some brand-specific challenges, have led to a short-term impact on our financial performance.
“We are focused on returning to growth and will continue to take the actions we believe necessary to succeed in the dynamic environment within which we operate.”
In the 26 weeks to 27 July sales are now expected to be around £123m, down 10% compared to last year.