AG Barr Plc Non-alcoholic Beverages Article 2022

AG Barr Plc
- A manufacturer, distributor and marketer of non-alcoholic beverages
- Comprises a wide range of carbonated drinks, juices, still drinks, energy drinks and packaged
water
- Three reportable segments: Carbonates; Still Drinks and Water; and Other
- Manufactures and markets soft drinks
- portfolio comprises carbonated soft drinks, fruit drinks, juices, energy drinks and cocktails
- also offers packaged water, sugar free flavored water and sugar free squashes
- Brand Names: IRN-BRU, Barr Originals, KA, D&B, St. Clements, Simply, Sun Exotica, Rubicon,
Strathmore, St Clements Sparkling, Snapple, Rockstar, Primer Spremitura, Le Joli, Big Wille,
Bundaberg and Tizer
- various third-party brands including Rockstar and Snapple, through partnerships.
- Distributes Rockstar energy drinks in the UK and Ireland / Snapple fruit juices and iced teas in
the UK and EU territories
- Is headquartered in Cumbernauld, North Lanarkshire, the UK.
Revenues, Operating Margin and Net Margin
- Rvenues of (British Pounds) GBP255.7 million for the fiscal year ended January 2020 (FY2020), a
decrease of 8.4% over FY2019
- In FY2020, the company’s operating margin was 14.9%, compared to an operating margin of
16.2% in FY2019.
- In FY2020, the company recorded a net margin of 11.7%, compared to a net margin of 12.8% in
FY2019

Investor Area
We are a UK based branded multi beverage business focused on growth and creating long-term
shareholder value
○ Long established business (140+ years)
○ Conventionally governed, listed in 1965
○ Ambitious and value driven with strong consumer focus
○ UK-wide with significant growth potential
- Building a differentiated portfolio of great tasting soft drinks brands that people love
- Democratising cocktails with an unrelenting desire to make great tasting cocktails available to all
Strategic Priorities
Our overarching purpose is to create value, with values - for our shareholders, consumers, customers and
for society as a whole
o Connecting with consumers Consumer insight drives our business. Consumers’ needs and
preferences are changing and we ensure that we take the time to listen, to understand them
and to offer everyone a choice of great tasting, high quality products
o Building trust Building and maintaining long-lasting trust and successful relationships is central
to our business and always has been. Our responsible behaviour over the last 140 years has
created a firm foundation, but one we want to build upon further. Being a trusted business that
acts with integrity is fundamental to our stakeholder relationships - from our consumers and
customers to our suppliers and communities. Equally, as the world around us changes, with
climate change in particular becoming increasingly more pressing, our strategic choices are
more than ever informed and supported by our desire to do the right thing and to play our part
in addressing the key issues facing society.
o Building brands We are brand owners and builders, offering a diverse and differentiated
portfolio of products that people love. With our own powerful brands, complementary franchise
partner brands and a strong track record of bringing successful innovation to market, we seek to
build brand awareness, equity and product distribution such that we outperform the market.
o Driving efficiency We continually strive for greater efficiency across our business, investing for
growth while also ensuring strong financial controls are in place. As our business develops, we
are committed to driving continuous improvement across our processes and technology. As an

asset backed business we drive operational improvements, flexibility and efficiency through our
expansionary capital investment programme, equipping us with some of the industry’s most
advanced operational capability.
Investment Case
o Ambitious with clear and consistent value driven strategy
o Brand owner and builder with differentiated portfolio
o Strong customer and consumer focus
o Asset-backed, simple and effective business model
o Disciplined capital allocation
o Growth potential within key markets
o A responsible business
o Long-term strong financial performance
Ambitious with clear and consistent value driven strategy
1. Successful selection and integration of acquisitions
 Acquisition -----Strathmore ------Consolidation of manufacturing operations
 Acquisition ----- Rubicon
2. Business Process Redesign implementation (new ERP system)
3. RTM development and manufacturing investment
4. Organisational capability development------ Britvic merger discussions
5. Supply Chain investment & rationalisation
6. Business re-org & Cumbernauld manufacturing investment
7. MK manufacturing investment
8. Margin Development
9. Minority investment in zero proof spirits brand STRYKK
10. Business re-engineering programme ------------------Currently 2019 and 2020
Brand owner and builder with differentiated portfolio

 National core brands complemented by regional brands with well established consumer
strongholds across the UK ○ Portfolio developing through brand extension, flavour development
and innovation
 c.98% of portfolio now lower or no sugar - exempt from UK Soft Drinks Industry Levy
 Opportunities to grow further through increased geographical and channel distribution points
1. Well established strong core brands in the UK such as IRN-BRU, RUBICON, FUNKIN, BARR,
STRATHMORE
2. Complementary long-term partnership brands such as SAN BENEDETTO, BUNDABERG, SNAPPLE
Strong customer and consumer focus
1. Understanding consumers’ attitudes and behaviours to drive category strategy and consumer
and trade engagement programmes
2. Broad-based consumer and trade engagement programmes such as ........
3. Well balanced market coverage meeting consumers’ needs across a range of drinking occasions
Asset-backed, simple and effective business model
An approach that delivers sustainable growth, in an expandable category and maximises available
margins
Disciplined capital allocation
1. Partnerships and acquisition
○ Value driven, growth orientated and ambitious M&A track record and approach
○ Strong balance sheet provides optionality
○ Well funded business with supportive bank syndicate
2. Funkin Case Study
Growth potential within key markets
1. Soft drink --- Barr Soft Drink

2. Cocktails ---- Cocktails providing significant growth opportunities for both the GB on trade and
take-home markets
3. Emerging sectors --- Minority investment in Elegantly Spirited Limited (ESL) and consumer
perspective
4. Digital ------- consumers will continue to shop online after COVID and Significant opportunities to
leverage consumer digital dynamics
A Responsible Business
1. We act with integrity
Safety & well-being
Employee engagement
Responsible policies and practices
Long-term goals- Zero work related accidents 2022 : 80% employee engagement
2. We respect the environment
Carbon reduction
Packaging Waste & water
Sustainable sourcing
Long-term goals -Never again send non hazardous waste to landfill
2022 : IRN-BRU and Rubicon in 100% recycled PET
2023 : Full portfolio in 100% recycled PET
2025 : 15% Improvement in water usage efficiency (baseline 2015) 40% Reduction in greenhouse gas
emissions (baseline 2015)
3. We support healthy living
Calorie reduction
Responsible advertising & marketing

Labelling Inspiring active lifestyles
Long-term goals - To continue to advertise responsibly, offer a wide range of pack sizes to assist with
portion control and, by providing clear nutritional information on all of our products, enable our
consumers to make informed choices
4. We give back
Community engagement
Charity partnership
Employee volunteering
Long-term goals -To support our corporate charity partnership with Mental Health UK improving the
lives of those with mental health challenges by donating £150,000 over 3 years and raising awareness
across our own teams
No Time To Waste environmental sustainability programme ------ Ambition to be net zero by 2040
Long-term strong financial performance
 Long-term operating margin improvement
Tables and charts are provided in Investors Presentation file
2020 Annual Report
Our Business