TIDMBVIC
RNS Number : 5356C
Britvic plc
20 October 2020
Britvic plc
("Britvic" or the "Company")
Legal Entity Identifier: 635400L3NVMYD4BVCI53
20 October 2020
BRITVIC PLC ("BRITVIC") ANNOUNCES NEW AND EXCLUSIVE PEPSICO
BOTTLING AGREEMENT
-- New 20-year franchise bottling agreement for PepsiCo carbonated brands in Great Britain
-- All plastic bottles in GB to be made entirely from recycled PET by the end of 2022
-- FY20 performance - trading anticipated to be slightly ahead of market consensus
Britvic today announces it has reached agreement with PepsiCo
for a new and exclusive 20-year franchise bottling agreement for
the production, distribution, marketing and sales of its carbonated
soft drink brands - including Pepsi, 7UP and Mountain Dew - in
Great Britain. The new agreement extends the relationship, which
commenced in 1987, to 31 December 2040 and includes the Rockstar
energy brand, for which Britvic will take responsibility from 1
November this year.
Britvic also announces today its intent for all plastic bottles
in GB 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 GB portfolio
of Britvic-owned and PepsiCo brands, and demonstrates both
companies' commitment to sustainability and to a healthier
planet.
Commenting on this renewal, Simon Litherland, Chief Executive
Officer Britvic, said:
"I am delighted that we have formally extended our relationship
with PepsiCo in Great Britain for a further 20 years. The powerful
combination of the Britvic-owned and PepsiCo portfolio offers
customers and consumers a broad range of great-tasting, trusted
brands for any occasion. We are excited to add Rockstar to our
offering and look forward to working together to grow the
brand.
The announcement of our intent to move to 100% recycled PET in
GB by 2022 is a significant moment for Britvic and our partnership
with PepsiCo, demonstrating our joint commitment to protecting the
planet today and for future generations. Both Britvic and PepsiCo
have sustainability at the heart of their business strategies, and
we will continue to work together to deliver on our shared ambition
to protect the environment and offer healthier choices in the years
ahead."
Silviu Popovici, CEO PepsiCo Europe said:
"We are very pleased to announce this new and enhanced exclusive
bottling appointment with Britvic in Great Britain, as well as
further strengthening our portfolio with the exciting addition of
Rockstar. This decision was based on our history of sustained
strong performance in the market, backed by Britvic's ongoing
commitment to significantly invest behind our brands.
More importantly, our shared values have led to sustainability
forming an integral part of this new agreement, which includes our
latest mutual commitment to ensure that all of our bottles are made
from 100% recycled PET by the end of 2022. This is in support of
PepsiCo & Britvic's vision of creating a circular economy on
plastic and building a world where plastics need never become
waste. We very much look forward to the next chapter of our
strengthened relationship with Britvic."
Trading Update and Outlook
Following better than expected trading across the peak summer
period, Britvic's adjusted EBIT for the full year 2020 is
anticipated to be slightly ahead of current market consensus.
Trading has benefited from both the limited re-opening of the UK
hospitality sector since early July and continued strong trading in
the at-home channel across its markets. The year-end adjusted net
debt balance is expected to be approximately GBP40m to GBP50m lower
than last year, reflecting disciplined cash management.
Looking forward, the economic outlook for 2021 remains
uncertain. The re-introduction of further lockdown restrictions and
the impact of social distancing measures on capacity in the
hospitality sector will, undoubtedly, continue to have an impact on
Britvic's performance in 2021. However, Britvic is confident in its
long-term prospects and anticipates rebuilding investment in 2021
behind its long-term growth drivers, including innovation and
marketing, as well as its commitment to sustainability through its
strategic priority of "Healthier People, Healthier Planet". Britvic
is well-positioned to lead the long-term recovery of the category
with a portfolio of market-leading, trusted brands, a track record
of operational agility and a dedicated and committed team.
Further detail will be communicated in the Preliminary results
announcement on the 26 November 2020.
For further information please contact:
Investors:
Joanne Wilson (Chief Financial Officer) +44 (0) 7881 751550
Steve Nightingale (Director of Investor Relations) +44 (0) 7808
097784
Media:
Stephanie Macduff-Duncan (Head of Corporate Communications) +44
(0) 7808 097680
Stephen Malthouse (Headland) +44 (0) 7734 956201
Notes to editors
About Britvic
Britvic is one of the leading branded soft drinks businesses in
Europe. The company combines its own leading brand portfolio
including Fruit Shoot, Robinsons, Tango, J2O, London Essence,
Teisseire and MiWadi with PepsiCo brands such as Pepsi, 7UP and
Lipton Ice Tea which Britvic produces and sells in GB and Ireland
under exclusive PepsiCo agreements.
Britvic is the largest supplier of branded still soft drinks in
Great Britain ("GB") and the number two supplier of branded
carbonated soft drinks in GB. Britvic is an industry leader in the
island of Ireland with brands such as MiWadi and Ballygowan, in
France with brands such as Teisseire, Pressade and Moulin de
Valdonne and in Brazil with Maguary, Bela Ischia and Dafruta.
Britvic is growing its reach into other territories through
franchising, export and licensing. Britvic's management team has
successfully developed the business through a clear strategy of
organic growth and international expansion based on creating and
building scale brands. Britvic is listed on the London Stock
Exchange under the code BVIC and is a constituent of the FTSE250
index.
Cautionary note regarding forward-looking statements
This announcement includes statements that are forward-looking
in nature. Forward-looking statements involve known and unknown
risks, uncertainties and other factors including as a consequence
of the Covid-19 pandemic, which may cause the actual results,
performance or achievements of the group to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements. Except as required by
the Listing Rules and applicable law, Britvic undertakes no
obligation to update or change any forward-looking statements to
reflect events occurring after the date such statements are
published.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
AGRQKLFFBBLXFBQ
(END) Dow Jones Newswires
October 20, 2020 02:00 ET (06:00 GMT)
Britvic (LSE:BVIC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Britvic (LSE:BVIC)
Historical Stock Chart
From Apr 2023 to Apr 2024
