BUSINESS STOCKMARKET: No frills flights flatten fizz sales

Britvic, whose brands include Tango and J20, reported a  steep fall of 43% in pre-tax profits for the full year to £36.5m.

The group had not anticipated the speed of the trend to healthier drinks but is trying to adapt as quickly as possible. Volumes fell 3.3%, pushed down by a continuing fall in sales of fizzy drinks.

Paul Moody, Britvic’s chief executive, reckons UK fizzy drink sales have fallen by about 2% over the past three months compared with the same period in the previous year. Revenues fell 2.6% to £677.7m. 

Britvic blames the boom in cheap air fares which requires passengers to pay for food and drinks. The weakness showed through in Britvic’s international business which supplies airlines – sales revenues fell 4.9% to £23.5m.

Profits were also hit by a raft of exceptional costs. 

The growth points lie in brands such as Fruitshoot H2O, a flavoured water brand aimed at children, and Robinsons squash, which have both seen an increase in sales figures.

© db January 2007