Irn-Bru Maker Warns Brexit and Bad Weather Will Hurt Sales
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03 Aug 2016 --- AG Barr, the maker of Irn-Bru, said the UK's vote to leave the EU and subsequent drop in value of sterling will impact input costs next year and has also said that June and July's poor weather will lead to a fall in full-year sales.
In a trading statement for the six months to end of June, the Scottish-based drinks company said like-for-like sales would drop 2.9 percent to £125m ($167m) in the period.
However, it said it was in line to meet profit targets for the year, should the weather improve.
The group said: "The balance of the summer will remain an important trading period, however assuming market conditions improve and our robust second half plans deliver, we expect to meet our profit expectations for the full year.”
Highlights in the six months, according to AG Barr, include a redesign of IRrn-Bru; reformulation across its portfolio of drinks which also includes Robinsons; and new launches across its Rubicon brand.
Commenting on the UK's decision to exit the EU, AG Barr said: "The decision of the United Kingdom to leave the European Union has resulted in a degree of economic uncertainty and a weakening of Sterling. The impact of weaker Sterling will not have a significant impact in 2016, but it is anticipated input costs will increase in2017, providing management time to adjust plans accordingly."
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