Britvic sales sparkle as consumers make low-sugar switch

Soft drinks producer Britvic has reported a 5% spike in pre-tax profit to £145.8m for the year ended 30 September 2018.

Revenues of £1.5b for the period were also up 5% year-on-year.

The positive business performance came despite a July warning by Britvic that a shortage of carbon dioxide was preventing the company from capitalising on the UK heatwave. Sales of its carbonates product lines were up 4.9%.

Meanwhile, the company has also benefited from a growing consumer trend of switching away from higher-sugar drinks to low and no added sugar alternatives, which is in part due to the introduction of the Soft Drinks Industry Levy (SDIL).

The company said in a statement: "With 99% of our owned brands in Great Britain now below or exempt from the SDIL (90% of total portfolio including PepsiCo brands), we remain confident in our long-standing health strategy and our approach to the levy. We believe that the changes in consumer trends towards low/no added sugar offer us further opportunities for growth."

Revenues from the company's stills product lines increased by 4.2%, driven by Robinsons and J2O and thanks to the introduction of new premium ranges, including Robinsons Creations and Robinsons Cordials.

Get The Caterer every week on your smartphone, tablet, or even in good old-fashioned hard copy (or all three!).