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Packaging News
Britvic feels PET pain over “unprecedented” cost hikes
Soft drinks group Britvic has said that the soaring cost of PET in its bottles will hit profits this year.
In a trading statement this morning (24 February), the group, which makes brands such as Robinson’s and 7UP, said that input cost rises for materials such as PET, steel and sugar had been “unprecedented” in recent weeks.
It has revised its outlook for input cost inflation this year to 9%-11% and said that its French business would be particularly hard hit.
In today’s statement, chief executive Paul Moody said: “Since our last update to the market we have witnessed a rapid and unprecedented uplift in the cost of key raw materials.
“This has been driven by a shortage of supply to the market, where, for example, we have seen prices for PET, derived from oil, surge by around 20% in the last month alone.
“We do, however, remain confident about the medium to long-term outlook for the business, and we look forward to providing more details on the latter at the annual investor seminar on 23rd March 2011.”
Despite its difficulties with soaring raw materials costs – which have hit much of the packaging sector hard in recent months – Britvic said that trading was “resiliant” in the UK and France. Volumes in the UK market rose 2.9% year-on-year in the four weeks to 22 January.
Tel:886-2-28941823 Fax:886-2-28941837 E-mail:viya@packsourcing.com
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