Red Bull has posted doubled-digit annual sales and volume growth in the UK and Ireland as the UK government mulls legislation to curb energy drink sales to children.
The market leader in energy drinks grew revenues by 11.7% to £271.8m in the year to 31 December 2017 – a jump primarily driven by a 12% hike in sales volumes.
The strong sales growth also translated to its bottom line, with pre-tax profits up 9.6% to £23m and profits as a percentage of turnover remaining stable at 6.8%.
Red Bull described its 2017 performance in the UK as “very successful in a highly competitive market place.”
It said “successful trade and marketing activities” helped maintain growth momentum through the year to “widen the gap between Red Bull and the competition in market share value”.
The accounts stated management remains confident of delivering a “strong result” in 2018, despite the additional pressure of the introduction of the UK soft drinks levy in April 2018.
Red Bull is also in the regulatory firing line over a proposed ban on the sale of energy drinks to under-18s due to concerns about sugar and caffeine.
The company has responded to these new regulatory pressures by unveiling sugar-free versions of each of its SKUs in early 2018 and its first diversification away from energy drinks after the launch of a range of organic drinks – Simply Cola, Bitter Lemon, Ginger Ale and Tonic Water – only one of which contains caffeine.
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