AG Barr has said supply chain problems constrained sales growth during the first half of 2026 and cost the company around £10 million in revenue.
The Irn-Bru and Rubicon maker said disruption to deliveries and reduced product availability on shelves affected customer service during the peak summer months. It said the issues have now been resolved, with stock availability and customer service normalising during the second half of the year.
AG Barr said the disruption was partly linked to internal issues connected with its “capability and capacity change programme”. It also pointed to external problems involving manufacturing by a third party.
The Cumbernauld-based company said most of its operational change programme at the site had been completed. It added that an upgrade at its Milton Keynes manufacturing facility remained on track.
“With the majority of our Cumbernauld operational change programme having been completed, and with our Milton Keynes manufacturing upgrade firmly on track, we are confident that we have a strong, stable and more efficient supply chain for the second half and beyond,” the company said.
Despite the supply constraints, AG Barr reported an 8.5% increase in total revenue to £247.4 million for the six months to August 1. Adjusted pre-tax profit rose 2.6% to £36.1 million compared with the same period a year earlier.
The company said revenue growth was boosted by its recent acquisitions of the Fentimans and Frobishers drinks brands. It also said the successful integration of the acquired brands helped offset investment in its operations and cost inflation linked to the Middle East.
AG Barr said that cost inflation had not been “fully passed on to customers”.
Chief executive Euan Sutherland said the company had made progress against its strategic priorities during the first half of the year, with continued momentum across its brands and strong execution against its growth plans.
“Despite supply constraints impacting customer service in the peak summer months, our core brand portfolio performed well in the market, supported by successful rebrands, innovation and marketing,” he said.
Sutherland added that the acquisitions had expanded AG Barr’s addressable market, while investment in manufacturing capabilities was strengthening the business over the long term.
The company’s comments indicate that the supply chain disruption had a material effect on product availability and estimated revenue, but that AG Barr considers the operational issues to have been addressed. Its reported revenue and adjusted profit nevertheless increased during the six-month period, supported in part by the newly acquired brands.
