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Beverage company boosted by the hot weather

Category: Scotland Success Stories — Gary Cain on August 2, 2013

Scottish drinks firm AG Barr has reported a rise in profits, which it is putting down to the sustained warm weather.

The Cumbernauld-based company saw second-quarter growth of nearly 10 percent. With the warm weather continuing into the start of the third quarter too, the picture is looking good for the near future.

According to the firm, which is perhaps best known for producing Irn Bru, its core brands have sold particularly well. It is thought that the hot weather experienced in the country since June has led shoppers to spend more on soft drinks to cool down.

In a trading update which revealed growth ahead of the industry average, a statement from AG Barr said:

“Our core brands continue to respond positively to further investment and development.

“The soft drinks market has benefited from the recent excellent weather conditions experienced across the UK.”

Such has been the impact of the increased sales, the firm is now expecting a five percent increase in its revenue for the half year compared to 2012. This would see turnover of over £127 million.

After recently opening a new canning facility south of the border in Milton Keynes, the firm is now expected to ramp its output. The boost to production comes only a few months after AG Barr ruled out a renewed bid for one of its main competitors, Britvic.

Seeing as not every business can rely on the weather to provide a much-needed boost, many are turning to factoring and invoice discounting in order to spark growth.

'Disclaimer: The information contained in these articles is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.

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