Barr foresees a substantial drop in profits

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The British soft drink manufacturer A.G. Barr foresees a substantial drop in profits due to the introduction of the soft drink tax in the United Kingdom. The effect of the levy on sugary drinks on the company’s sales was considerably greater than anticipated.

Sales in the first half of the year fell by 10 percent to £ 123 million, equivalent to 136 million euros. The bottler of drinks that are popular in England, such as Rubicon and Rockstar, is counting on a 20 percent lower profit this year than a year earlier.

The United Kingdom introduced a levy on soft drinks in 2018, depending on how much sugar the drinks contain. The energy drink Rockstar and the soft drink with tropical fruit flavors Rubicon contain a lot of sugar. According to A.G. Barr switched many consumers to cheaper drinks. The company announced that it would reverse previous price reductions.


By: Maurice Eisma

Maurice Esma, a co-founder of EconomicInform is a freelance journalist with the expertise in international finance and corporate rights. The author can be reached by email [email protected]

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