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Britvic announces more business expansion in GB, France and Ireland

  • Britvic announces more business expansion in GB, France and Ireland

    by Market Insider

    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. 

    GB 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 growing strongly. 

    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.


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