Home-made cocktails are a growing market for Irn-Bru firm AG Barr.
In a trading update for the 27 weeks to August 1, the company behind Scotland’s iconic “other national drink” said its cocktail mixer business, Funkin, had capitalised on increased demand during the pandemic lockdowns, through both traditional retail and direct to consumer channels.
No.1 in its market
Funkin is now the UK’s No.1 ready-to-drink cocktail brand, Cumbernauld-based Barr said, adding: “Our ‘at home’ cocktail sales have continued to grow across the first half of the year, supported by a continued strong rate of sale and an increasing level of brand distribution.
“We will accelerate our investment in H2 as we continue our strategy to further develop Funkin as a consumer brand.”
Barr will report interim results in September but first half revenue is expected to come in at around £134m, up about 18% on the 26 weeks to 25 July 2020 . On a like-for-like 26-week basis, revenue is expected to be up around 13%. Pre-tax profits are predicted to be “slightly ahead” of last year’s £37.4m.
The company said H1 2020-21 trading had been strong across both its business units, Barr Soft Drinks and Funkin, with the performance driven by a combination of brand-led initiatives and “market factors”.
It added it had also benefited from recovery in “on-the-go” consumption, while “at home” sales had remained strong throughout the Covid-19 pandemic.
Recent new product launches are “performing well”, attracting “positive” consumer feedback and “encouraging” customer listings, the firm added. Barr also said its energy sub-category continued to outperform the total soft drinks market and it was focused on “innovation in this area”.
Chief executive Roger White said: “We are pleased with the performance of the business in the year so far. There is good momentum behind our core brands and we have re-entered the growing big can energy category with our Rubicon RAW Energy range.
“We plan to increase our brand investment in the second half of the year, building on our progress to date. While uncertainty remains, we are confident in delivering our plans across the balance of the year and meeting our recently revised full-year profit expectations.”
