Western and Central Africa
Eastern and Southern Africa
Eastern Europe and Central Asia
Thursday, 01 Dec. 2016
Britvic plc Preliminary Results – 30 November 2016
Britvic plc announces another year of strong results for the 53 weeks ended 2 October 2016.
Our carbonates portfolio, which includes both PepsiCo brands and our owned brands, enjoyed
another successful year. Our continued focus on no and low sugar resulted in Pepsi Max, 7UP and
Tango all delivering growth. Whilst the value of the cola category declined by 1.4%, Pepsi grew its
retail market value* by 6.7%, adding over £26m of retail value from Max, with its new Cherry variant
leading this growth. 7UP Free outperformed the fruit carbonates category with double digit retail
value* growth, and Tango delivered its best performance in over 10 years.
We have been more challenged in stills this year although the second half of the year reflected
encouraging signs of improvement. Robinsons declined year on year following our decision to remove
added sugar from the range and due to very competitive own label pricing in the dilutes category. J2O
had a weak Christmas and our limited-edition flavours performed poorly this year. J20 Spritz, a lower
sugar sparkling variant introduced last year is performing well and offers good future growth potential.
Fruit Shoot gained share in a declining category. We continue to evolve the brand, reducing
sweetness and adding vitamins to the core brand and Fruit Shoot Hydro, our flavoured kids water, is
Over the last three years we have invested in our marketing and innovation capability and this is now
starting to bear fruit. The contribution from innovation* continues to grow and represented 4% of our
2016 revenue. Recent successes in GB include J20 Spritz and Robinsons Squash’d; we are
particularly pleased with the early performance of the Drench and Purdey’s brands which we have
improved, repositioned and relaunched with new variants. Our innovation pipeline is strong; 2017 will
include new adult offerings such as the relaunch and extension of R Whites lemonade and the
introduction of adult premium brands, including our ‘zero proof’ Thomas and Evans and our premium
mixers range from the London Essence Company.
We have made good progress broadening our channel presence, winning new accounts such as
Subway and G1, the leading hospitality group in Scotland, and retaining major contracts such as KFC
and Fullers. A key element of our revenue management strategy has been to grow our higher margin
immediate refreshment portfolio which includes pack sizes such as 500/600ml PET and 330ml cans.
As a result we have taken share and grown more retail market value in this category than any other
manufacturer, with Pepsi Max, Drench and Ballygowan leading this success. Further opportunity in
this segment remains as we still under-index versus our overall market share.
The tragic terrorist events of the last year, combined with social and economic pressures, have had
an impact on consumer confidence and behaviour in France. In addition, syrup sales are particularly
weather sensitive and the weather this summer did not match the previous year affecting sales. In
contrast Fruit Shoot performed well, aided by the introduction of a 1.5 litre sharing pack. Our juice
brand Pressade also continued to grow strongly, with its focus on organic and locally sourced fruit
proving popular with consumers. Next year we are introducing a high juice version of Fruit Shoot and
a new range of premium syrups under the Moulin de Valdonne brand, addressing the consumer
demands for naturalness and a premium treat.
2016 has been a successful year for our Irish business unit. We leveraged our number one position in
“no added sugar”, in which we enjoy over 30% share, to outperform the market. Ballygowan water
contributed more growth to the Irish soft drinks market than any other brand. We successfully
extended the brand through the launch of Sparklingly Fruity.
MiWadi led the squash category back into growth and this year MiWadi 0% sugar became the first
soft drink brand to receive approval from Diabetes Ireland. It was a successful year for our business
out of home as we used the breadth of our portfolio to successfully take share in both convenience
and through our licensed wholesaling arm, Counterpoint.
To further increase our reach into the Licensed channel, we are today announcing the acquisition,
subject to competition approval, of East Coast Suppliers Ltd, a licensed wholesaler with a strong
presence in Dublin. Through this acquisition, our business will become the number two wholesaler,
providing a direct route to market for our growing adult premium soft drinks portfolio.