Britvic’s performance suffers as a result of product recall

SOFT drinks manufacturer Britvic – which has operations in Rugby and Solihull – has seen its performance suffer as a result of a well-publicised product recall.

In a quarter three interim management statement, the firm said the product recall of Robinsons Fruit Shoot and Fruit Shoot Hydro because of concerns over the design of a new sports-cap, had an impact on the group Q3 revenue growth of around 2%.

Earlier this month Britvic said it is likely to take a hit of between £15m to £25m due to the recall.

Chief executive Paul Moody said: “The third-quarter has been extremely challenging for Britvic. The weak consumer environment and very disappointing weather at a key time for soft drink sales have had a marked impact on our performance. The decision to recall Fruit Shoot resulted in a further negative impact towards the end of the quarter.

“These events caused us to re-set our expectations for the full year and our guidance remains unchanged.

“In the foreseeable future, our resources will be fully focused on re-establishing Fruit Shoot in the market as soon as possible. Our other key priorities are to drive an improved performance from the strong brands across the group, ensure that we build and realise the value of our emerging US Fruit Shoot business and underpin the profitability of the company, with a strong emphasis on cash generation and rigorous cost management.”

UK Q3 revenue declined by 6.9% and revenue in Ireland dipped by 11.1%.

There was better news from France where revenue grew by 4.3% and the group reported strong sales to the US, which was unaffected by the recall.