Pepsi sales under pressure, warns Britvic

Drinks group Britvic warned sales of Tango and Pepsi were under pressure today as consumers continued their drive for healthier lifestyles.

Shares in Britvic slumped by about 20% – wiping £100m (€146m) off its value - after the company warned its profits would be near the bottom end of hopes.

Britvic, which is the second-largest fizzy drinks firm in the UK behind Coca-Cola, said there had been a “weakening in the total soft drinks market in the UK” since Christmas.

In a statement, it said: “The consumer trend towards ‘better for you’ is accelerating and as a consequence sales in the carbonates category, except those with no added sugar, have slowed.”

The company makes Pepsi under contract, as well as Robinsons and Tango.

It told investors that revenues increased by 1% and operating profit pre-exceptionals rose by 5%, for the 12 weeks to December 25. However, it warned of a deteriorating trend since then and said it was working on new products for launch.

Pennine Spring, a naturally-flavoured still or carbonated water, and Fruit Juice H2O, a flavoured water marketed at children, are both being launched in spring while still water brand Drench has just been launched.