Irn-Bru maker AG Barr is considering building a “second phase” of its new Milton Keynes production and warehousing site, after announcing an 8% autumn sales hike.
The new £44 million plant, which includes a canning line, has been hailed as a major part of the company’s success during the 18-week period to the end of November. Volumes increased by 6.4% compared to the same period last year.
Commissioning of the new base continues to “progress well”, Barr said, with logistics transferred on time.
Bosses are now considering a new round of investment at the 12.7-acre site, around 50 miles north of London.
The company had previously announced that it hoped to install bottling facilities for PET plastics once the initial works had been completed.
A spokeswoman for the company was not in a position to give any more details on ongoing discussions.
Barr, which lost out in a reverse takeover bid for Britvic earlier this year, has always insisted the development was about future growth and flexibility, and would not impact on its Cumbernauld base.
The group also used its interim management statement to highlight how it was performing well ahead of the market.
“Year-to-date revenue as at December 1 has increased by 6.7%, with volume up 5.1%,” Barr said.
“Over a comparable period the market, as measured by Nielsen, increased in value by 4.1% and volume by 3.1%.”
The firm which owns the Forfar-based Strathmore water brand, as well as labels like Rubicon, Tizer, Orangina and energy drink Rockstar said it was prepared to “execute” a festive strategy in the coming weeks, which it expects to be “highly competitive”.
Investec analyst Nicola Mallard said she had held back on upgrading stock in AG Barr, despite the company’s encouraging performance, only because of the impending tough Christmas trading period.
“The group is focusing a little more on driving volumes given the competitive nature of the market and also the greater availability of product now from Milton Keynes but, importantly, not at the expense of margins,” Ms Mallard said.
Earlier this year the Competition Commission said it could find no reason to prohibit a £1.4 billion deal between Barr and Britvic, following an investigation lasting several months.
But the delay saw Britvic back away from a plan which would have created Europe’s largest soft drinks firm, after the group behind J2O and Pepsi’s UK licence significantly improved its own performance.
Barr chief executive Roger White has since indicated he is open to other possible deals where his company can add value.