AG Barr is navigating a dynamic beverage landscape, as evidenced by its recent performance. While Irn-Bru experienced “modest growth” in the latter half of the year after stagnating in the first, the company saw positive results from its Rubicon and Boost brands. This helped to balance out a decline in the Funkin ready-to-drink cocktail range.
Euan Sutherland, AG Barr’s chief executive, remarked, “Our top and bottom-line performance for full-year 2025-26 is in line with expectations, and importantly we have laid strong foundations for future growth.”
He added, “We enter 2026-27 with good momentum in our core brands and from the introduction of exciting new products.”
Betting on the non-drinkers
For some of us, Dry January has just come to an end, writes Business Correspondent David Henderson.
However, AG Barr is making a £50m commitment to the non-alcoholic beverage segment, suggesting that this trend may extend far beyond January.
The company notes a growing preference among consumers for reduced alcohol consumption, with Fentimans and Frobisher carving out significant spaces in the adult soft drink market.
Fentimans, known for its ginger beer and specialty colas, aligns well with the “mindful drinking” movement.
Established for fifty years, Frobishers has historically produced apple juice but has recently broadened its offerings to include a variety of sparkling drinks and cordials.
Both brands attribute their growth to shifts in consumer drinking habits.
Many people are increasingly opting for non-alcoholic beverages over traditional pints or glasses of wine.
The rate of non-drinkers in Scotland has seen a rise, climbing from 11% in 2003 to 20% in 2024.
Current statistics indicate that overall alcohol consumption in Scotland is at its lowest in over two decades.
AG Barr already owns a portfolio of successful soft drink brands, including Rubicon and Bundaberg, and these latest acquisitions broaden their capacity to capitalize on this evolving trend.
Key Takeaways
- Irn-Bru achieved modest growth in the last six months.
- Positive performance from Rubicon and Boost offset losses in Funkin.
- AG Barr is investing £50m in the non-alcoholic beverage segment.
- Fentimans and Frobisher are benefiting from the shift toward mindful drinking.
- The percentage of non-drinkers has increased in Scotland, reflecting changing consumer preferences.
FAQ
What factors are contributing to the decline in alcohol consumption?
Shifts in consumer preferences toward mindful drinking and a growing number of non-drinkers are major factors.
What brands does AG Barr own?
AG Barr owns several soft drink brands, including Irn-Bru, Rubicon, and Bundaberg, among others.
How has the alcohol consumption trend changed in Scotland?
Alcohol consumption in Scotland is currently at its lowest level in over twenty years, with an increasing proportion of non-drinkers.
As AG Barr adapts to these evolving trends in consumption, its strategic acquisitions aim to strengthen its position in the non-alcoholic beverage market. This approach reflects a broader shift in consumer behavior that could redefine the beverage landscape in the years ahead.
