“Indescribably fruity and fizzy” – that was the boss’s answer when asked to describe the taste of Irn-Bru, the iconic Scottish soft drink made by AG Barr.
Roger White, Barr’s chief executive, was speaking after the company posted its latest annual accounts.
It also announced a changing of the guard in terms of Barr family involvement in the business.
We delivered an excellent financial performance and made significant progress across our strategic objectives.”
Roger White, chief executive, AG Barr
Robin Barr, who has been with the company for 62 years, will not seek re-election at its annual general meeting in May.
His daughter, Julie Barr, will relinquish her company secretarial duties and – subject to shareholder approval – will join the board as a non-executive director. Like her father before her, she will be the only member of the Barr family in the top management team.
Mr Barr, 85, is the great-grandson of Robert Barr, who launched the business in 1875.
The octogenarian has served on the board for 58 years, including 31 as chairman.
According to Cumbernauld-based AG Barr, he “epitomises all that is great in UK corporate leadership, having provided a great source of experience, guidance and leadership over almost six decades”.
Ms Barr has been with the company for 19 years and is a qualified corporate lawyer.
The great ‘taste debate’
Barr has gained a strong reputation for its Irn-Bru marketing campaigns over the years.
One of the latest is focused on the great “taste debate” – what exactly does the drink taste of?
Mr White wasted no time in delivering his verdict of “indescribably fruity and fizzy”.
Annual sales up more than 18%
Barr – whose other soft drink/water and mixer brands include Rubicon, Simply Fruity, Sun Exotic, San Benedetto, Moma, Boost and Funkin – reported a 18.2% jump in revenue, to £317.6 million for the year to January 29 2023. Adjusted pre-tax profits rose 13.3% to £43.5m.
Mr White said revenue growth was driven both by price and sales volume increases.
Barr has pushed up prices amid rocketing inflation but is also absorbing some of its increased input costs, he told The Press and Journal.
And in the London-listed company’s results statement, he said: “”Over the past 12 months we delivered an excellent financial performance and made significant progress across our strategic objectives, an achievement only made possible by our committed and hardworking teams.
“Our strategy to build and develop a multi-beverage portfolio capable of significant long-term growth is progressing well. We are now in an investment phase, designed to capitalise on the strategic growth opportunities ahead.
‘Short-term impact’ on margins likely
“We do anticipate a short-term impact on operating margins, as a result of the combination of this investment, ongoing inflationary cost pressures, and the initial dilutive impact from the (recent) Boost acquisition.
“This growth and investment phase will support the rebuilding of our operating margin over the medium term and the creation of a stronger and more sustainable business.”
Despite the positive figures, shares in the company slid more than 6% to £5.09.
Conversation