Irn-Bru maker sees share price plummet as sales lose their fizz

The firm said it expected sales to drop by 10 per cent and profits by up to 20 per cent as they struggle against a strong year in 2018.

It cited poor weather and “challenges” facing some of its brands, particularly its Rockstar energy and Rubicon juice drinks.

Barr’s share price was down by more than 28 per cent, at 623p, by 16:30.

In a pre-close update, the company said trading so far this year had been below its expectations.

The firm said a combination of poorer weather and lack of a favourable backdrop facilitated in part by its preparations for the sugar-tax levy last year have hit expectations this year.

Sales for the 26 weeks to July 27 are now expected to be about £123 million.

The company reduced sugar content in Irn-bru in a move that beat the levy but which has been suggested may have had an impact on how some customers view the famous brand.

It added: “This has been exacerbated by some specific brand challenges, particularly in Rockstar energy and Rubicon juice drinks, as well as disappointing spring and early summer weather, most notably in Scotland and the north of England, and compounded further as we approach the half year when the prior year comparative weather was at its peak.”

AG Barr chief executive Roger White said Irn-bru is performing robustly and the firm expects a strong second half.

He said: “To get the context … last year was an unprecedented year for soft drinks because of a number of factors: the Soft Drinks Industry Levy implementation, competitor pricing and promotional dynamics, weather – which was exceptional last year – and the CO2 crisis.”

Mr White added that those issues added up to “probably give us a more significant competitive advantage in the market than even we appreciated”.

He said: “The last year’s comparative trading when you take account this year, particularly in Scotland and the north of England [where] the weather has been markedly poorer than the prior year, and when you take account of those other factors … we have had a tougher comparative year than we were anticipating and as a consequence we have seen a challenging particularly latter half to this first half, and that’s why we have put the guidance update out.”