Sales of bottled water overtook those of cola drinks for the first time ever last year, according to AG Barr — which not only produces Irn Bru and Rubicon but also Strathmore water.
“You might see cola for sale in every single outlet,” said chief executive Roger White. “That does not necessarily mean everyone is drinking it.”
Growing worries over health and sugar content in traditional soft drinks have boosted water sales with Strathmore seeing a 20% rise last year.
Price competition by supermarkets also means the cost of soft drinks have remained flat at best although smaller brands have been depressed.
“A period of deflation for soft drinks will make it difficult for many businesses to continue to deliver top-line growth,” said Rogers.
“That’s when strong brands continue to flourish against those lacking anything distinctive.”
Barr’s profit rose 10% to £41.9 million in the year to January despite sales being up just 2.7% at £261 million.
The dividend for the year goes up 10% to 12.12p a share.
Last month Barr took over Funkin — a supplier of cocktail ingredients to bars and restaurants — for a maximum of £21 million.
Its fruit purées, mixers and syrups provide what White calls a “small but significant step” into a new high growth area of the drinks market.
