Britvic announced today that it has reached an agreement with PepsiCo for the production, distribution, marketing and sales of the US firm’s carbonated soft drinks, including Pepsi, 7UP and Mountain Dew, in Britain for a further 20 years.
The deal extends the existing partnership that began in 1987 but also gives Britvic responsibility for the Rockstar energy drink that PepsiCo acquired earlier this year for $3.85bn. Britvic will take on the brand from 1 November this year. The sale and distribution of Rockstar in the UK, Ireland and some continental European countries was previously handled by A.G. Barr
Paul Graham, Managing Director of Britvic GB, said: “Over the past 34 years we’ve built an exceptional relationship with PepsiCo, harnessing the power of their brands and using our expertise to grow and develop them into firm favourites in the UK soft drinks category.
“The renewal of this partnership echoes the trust that has been built over this period and the confidence that PepsiCo has in Britvic to lead these brands for the next two decades. Adding Rockstar to the portfolio represents an additional feather in the cap of our incredible production, sales and marketing teams.”
Britvic also announced today its intent for all plastic bottles used for its drinks sold in Britain to be made from 100% recycled plastic (rPET) by the end of 2022 – three years earlier than originally planned, and ahead of the previous target of 50%. This will cover the entire portfolio of Britvic-owned and PepsiCo brands.
Graham said: “We want to be a net positive contributor to the people and the world around us. We’re committed to minimising waste and using resources in a sustainable way in all parts of our business and manufacturing. Accelerating this move to 100% recycled plastic is the right next step for Britvic to help reduce our impact on the planet.”
Meanwhile, Britvic stated today that it expects its annual adjusted EBIT to be slightly ahead of current market expectations, after benefitting from the reopening of the hospitality sector and increased consumption of its drinks at home.
However, the group also highlighted that the economic outlook for 2021 remains uncertain with fresh lockdown restrictions and lower capacity in the hospitality sector due to social-distancing measures likely to continue to have an impact on its performance.
