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Daily Record
Daily Record
Lifestyle
Simon Neville & Sophie Law

Irn-Bru warning as deliveries 'suffering' due to HGV driver shortage crisis

Irn-Bru could be the next product to be hit by shortages as the lorry driver crisis takes hold.

Scottish makers AG Barr has revealed it is struggling to make deliveries of the fizzy drink due to the HGV and supply chain issues currently impacting the UK.

The company said it continues to "monitor closely" the situation and is hopeful the issues can be resolved soon.

Updating the stock market, bosses said: "In recent weeks we have seen increased challenges across the UK road haulage fleet, associated in part with the Covid-19 pandemic, impacting customer deliveries and inbound materials.

"In addition, the risks associated with the wider labour pool and the current Covid-19 pandemic response are areas we continue to monitor closely."

It comes after AG Barr issued a warning last week over Irn-Bru production caused by the carbon-dioxide shortfall.

A delivery lorry is loaded with Irn Bru at AG Barr's Irn Bru factory in Cumbernauld (PA)

Creators of the iconic drink have warned about “unprecedented circumstances” as the price of natural gas in the UK soars by 250% since January and 70% since August.

Last week the staggering rise in cost led to the closure of two fertiliser plants. The natural gas is used to create the bubbles in fizzy drinks such as Irn-Bru.

AG Barr warned that it could be impacted if the situation across Europe continues.

The firm say it has invested in additional storage of carbon dioxide but the “unprecedented” challenges could have an impact on production.

The warnings came as the company revealed sales remain strong despite the pandemic, with growth returning following the reopening of pubs, bars and restaurants.

Bosses said there had been a heavy shift to at-home drinking of their products but with restrictions easing more customers are buying drinks on-the-go and in the hospitality sector.

AG Barr issued a warning last week over Irn-Bru production caused by the carbon-dioxide shortfall. (PA)

Its pre-mixed cocktail brand Funkin saw some of the strongest growth in the six months to August 1 compared with a year ago, they added.

At-home cocktail sales rose 114.3% to £10.2 million and bar sales soared 229.5% following reopenings.

In the six-month period, total sales rose 19.5% to £135.3 million compared with the same period a year ago.

Pre-tax profits were also up nearly four-fold from £5.1 million to £24.4 million - due to a £7 million writedown on its Strathmore water brand recorded in results last year.

Chief executive, Roger White, said: "AG Barr is a growth-focused business operating in resilient and growing market categories, with dynamic brands, great people and a strong financial position.

"Our positive first-half performance reflects these fundamentals as well as the encouraging performance of recent innovation launches in both soft drinks and cocktails."

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