AG Barr, the maker of Irn-Bru, has reported a significant impact on revenue due to supply chain disruptions during the critical summer trading period. The company disclosed that the issues led to an estimated £10 million loss in sales during the first half of its financial year.
In a trading update covering the 26 weeks ending August 1, AG Barr revealed that revenue increased by approximately 8 percent to £246 million. However, this growth was tempered by difficulties related to stock availability, primarily stemming from internal supply chain challenges. The company also cited constraints involving third-party manufacturing, which contributed to a limited supply of 500ml cans.
The announcement led to a decline in AG Barr’s share price, which dropped 35p, or 5.4 percent, closing at 610p. The company did not provide additional details on the specific causes behind the supply chain issues or outline immediate plans to address them.
AG Barr’s performance during a key sales period is notable, given the importance of sustained product availability to meet consumer demand. The combined impact of internal and external manufacturing bottlenecks underscores ongoing vulnerabilities in the beverage supply chain.
