Irn-Bru maker AG Barr reports delivery 'challenges'

AG Barr's products include Irn-Bru, Rubicon and Funkin cocktails

Irn-Bru maker AG Barr has revealed difficulties with its drinks deliveries due to road haulage and supply chain issues.

In a stock market update, the company reported that it had seen "increased challenges" across the UK road haulage fleet in recent weeks.

Barr said these were "associated in part with the Covid-19 pandemic".

The Cumbernauld-based firm added that this had "impacted customer deliveries and inbound materials".

It also reported "risks associated with the wider labour pool and the current Covid-19 pandemic response".

Barr said it was closely monitoring the issues but believed "the commitment and capability of our workforce and supply base will stand us in good stead in these uncertain times".

The warnings came as the company reported strong sales in the six months to 1 August, with growth returning following the reopening of pubs, bars and restaurants.

Cocktail sales climb

It said there had been a heavy shift to at-home drinking of their products, but more customers were now buying drinks on-the-go and in the hospitality sector following the easing of lockdown restrictions.

Its pre-mixed cocktail brand Funkin saw some of the strongest growth over the period. At-home cocktail sales rose by 114.3% to £10.2m, while and bar sales soared nearly 230% following reopenings.

Total sales rose by 19.5% from a year ago, to £135.3m, while pre-tax profits were also up nearly four-fold from £5.1m to £24.4m.

In its interim results statement, the company said trading had been strong across both of its business units, Barr Soft Drinks and Funkin.

It added: "This performance has been driven by a combination of brand-led initiatives and market factors, some long-term and structural and others more one-off, resulting in an unusually high profit performance in the first half."