Monday 14 October 2019

Britvic to merge Irish and British operations as part of bid to save €35m

SOFT drinks maker Britvic will merge its Irish and British operations and close a warehouse in the North and as part of a new strategy announced with its interim results.

 

The proposals aim to deliver annual savings of £30m (€35m) as it creates a combined British and Irish business unit under a single leadership team. The group will also close two factories in England.

The company has also reached an agreement with Narang Group for the national sales and distribution of Fruit Shoot in India, commencing mid-2014.

"We intend to change our operating model to generate stronger performance in our core markets and accelerate the increasingly attractive international opportunities," said chief executive Simon Litherland, who took over earlier this year.

The board proposed an interim dividend per share of 5.4 pence, ahead of last year by 1.9pc.

A merger between Britvic, which produces PepsiCo Inc brands such as Pepsi, Mountain Dew Energy and 7UP in Britain and Ireland as well as products such as Robinsons squash and Tango, and A.G. Barr, maker of orange fizzy drink Irn-Bru, was agreed last November but has since been referred to Britain's anti-trust watchdog.

The Competition Commission is expected to announce its final decision by July and the board will then decide whether to go ahead with the deal, said chairman Gerald Corbett.

Reuters

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