Fever-Tree and AG Barr enjoy rising sales of soft drinks
The two brands both saw improvements in annual revenue despite a slump in consumer confidence in the UK.
Soft drinks makers Fever-Tree and AG Barr both reported rising sales on Tuesday, defying a slump in consumer confidence across the UK.
Fever-Tree said it was boosted by a 9% rise in US sales after American beer maker Molson Coors bought a stake in the company, giving it exclusive rights to market its drinks in the US.
The London-listed firm makes mixers for cocktails like tonic and soda water, as well as a range of soft drinks like ginger ale.
Sales in the UK fell slightly, which Fever-Tree blamed on “low consumer sentiment”, but the uptick in the US helped boost overall revenue by 3% to £364 million.
“However, the UK economy started to show signs of improvement towards the end of the year, reflected in a much stronger second-half performance for the brand, giving us confidence of returning to growth as we go into 2025,” it said.
Meanwhile AG Barr, which makes Irn-Bru, said revenue rose 5% in the year to January 2025.
It said that was partly down to “a stand-out performance” by its Rubicon brand, which saw double-digit revenue growth.
AG Barr said: “This has been achieved despite the much-publicised economic headwinds and the financial pressures on consumers, which have continued to influence the markets in which we operate.
“We have navigated these challenges effectively across the year to deliver a strong set of results.”
Fears over inflation drove consumer confidence to an 11-month low in February, according to a recent survey by the British Retail Consortium.
Experts have predicted that confidence may rise again this year but that consumers are gearing up for more price increases in the coming months.
Zoe Gillespie, investment manager at RBC Brewin Dolphin, said the growth came “despite a challenging economic backdrop, and many of its brands are growing ahead of the market”.
“AG Barr has a lot of qualities as a business and continues to invest in its operations – while the drinks market is highly competitive, the company should remain in a strong position when others may struggle.”
Fever-Tree shares jumped 7% while AG Barr’s stock was up 1% on Tuesday morning.
