Irn-Bru firm AG Barr has shaken off the impact of the looming “sugar tax” to report higher sales and profits.
Barr changed the recipe of Scotland’s iconic “other national drink”, as well as other products in its portfolio, in order to conform with a UK crackdown on sugary beverages.
Speaking just after Barr posted a 4.2% rise in statutory pre-tax profits to £44.9million for the year to January 27, on an 8% rise in revenues to £277.7million, chief executive Roger White said it was “so far so good” for the firm’s reduced sugar range.
He added: “Ninety-nine percent of our portfolio will be outside the scope of the new levy”.
The new tax on sugary drinks, due to come into force next month, is aimed at tackling soaring obesity rates. It affects products with more than an ounce of sugars per pint.
Mr White hailed a “huge effort” by every department at Cumbernauld-based Barr to cut sugar content across the range – in some cases by as much as 70% – and “deliver what we think is a good result”.
Recent sales figures suggested the healthier drinks were going down well but it was too early to gauge the overall impact of the changes, he said, adding: “We don’t want to say too much too soon.”
Reactions in the market have been mixed, with some Irn-Bru fans launching an online campaign to save the old recipe.
Mr White said: “There are always going to be some people who are anti change.”