AG Barr has enjoyed a positive start to 2014 reporting a boost in both pre-tax profit and turnover from the same period 12 months ago.
The company reported that its growth had outstripped the entire UK soft drinks market and was driven by some of its key brands. AG Barr reported a 11 per cent increase in pre-tax profit to £18.4 million, while turnover was also up 5.4 per cent from £128.7 million last year to £135.7 million.
It is now building for the future with the company highlighting the strong growth of Strathmore Water. The bottled water had enjoyed a really strong performance during the year and was coupled with AG Barr's 'Born to support' campaign for the Glasgow 2014 Commonwealth Games. The company added that the warm summer also contributed to a boost in sales.
AG Barr is now aiming to build on its growth by securing a ten-year licence deal with Snapple Beverage Corp to distribute its brand across the UK and some markets in the European Union (EU). Snapple produces a range of iced tea beverages and fruit juice and has previously only been available in the US. However, under this new deal AG Barr will bring it to British shores.
Snapple Beverage Corp, a subsidiary of Dr Pepper Snapple Group (DPSG), stated that the deal with the Cumbernauld-based firm will begin in January 2015. The Scottish firm did not put a value on the deal but will gain exclusive rights to sell and market Snapple in the UK and parts of the EU where it is not currently available.
Roger White, AG Barr chief executive, said: "We are very excited about our new partnership with DPSG. Snapple is an authentic, high quality brand that is very successful in the United States and we strongly believe in the significant potential of Snapple in Europe."