Scottish soft drinks group AG Barr has reported a slowdown in third quarter sales, though it insists it is on course to hit full year trading targets.
The Irn-Bru maker said that revenues for the 18 weeks to 30 November decreased by 0.6% on a like-for-like basis.
AG Barr stated: “As we anticipated, our revenue performance in the third quarter slowed somewhat from the very strong growth in the first half. This was driven by lower promotional activity, wholesaler destocking and a very competitive price driven trading environment in a soft drinks market which was in revenue decline.”
Adjusted for the loss of its UK contract to sell Orangina (following Japanese company Suntory 2013 acquisition of Ribena and Lucozade), year to date revenues have grown by 3.5% against a total soft drinks market which has increased by 0.4%, according to Nielsen.
The drinks maker recently acquired the UK licence for the Snapple brand, which it will commence management of in January 2015.
It said it continues to control costs “tightly” across the business and expects that, assuming current market conditions continue, it will deliver full year performance expectations and further growth in the 2015 financial year.
The company stated: “The soft drinks market remains dynamic and competitive as we approach the key festive trading period. We have a strong trading plan to drive growth despite the tough year on year comparatives and competitive environment in which we operate.”