Drinks company AG Barr (BAG) has had to struggle with price deflation, the imminent sugar tax and the devaluation of sterling. It has responded admirably, not least with its announcement that by Autumn 2017 90 per cent of its brands will contain less than 5g of sugar per 100ml, the threshold for the proposed levy. It has also restructured, reducing its employee base by around 100. This cost £3.3m, but is expected to generate annual savings of £3m.
Revenues fell slightly over the year, with top lines weaker at the carbonates and still drinks divisions. Carbonates shrank from £190m in 2016 to £188m in the reported period, as a result of both retailers' range reductions and discounted competitors for its Rockstar energy drinks. At least the cocktail mixers business, Funkin, delivered good growth over the year, with revenues up 27 per cent, ahead of the launch of its first branded consumer retail product this spring.