British soft drinks maker Britvic has said that it expects its annual adjusted operating profit to be slightly ahead of market expectations, helped by the reopening of the hospitality sector and as more people consumed its drinks at home.
The company also said that it has reached a 20-year agreement with PepsiCo for the production, distribution, marketing and sales of the US-based firm's carbonated soft drinks, including Pepsi, 7UP and Mountain Dew, in Great Britain.
The agreement extends a partnership that began in 1987 and will also give Britvic responsibility for the Rockstar energy drink, which PepsiCo acquired earlier this year in a $3.85 billion deal.
Shares in Britvic were up 3.2% at 775 pence in early trade on Tuesday October 20.
However, the company said that fresh lockdown restrictions and lower capacity in the hospitality sector due to social-distancing measures will continue to have an impact on its performance in 2021.
Analysts expect Britvic to report an adjusted operating profit of £160.9 million for fiscal 2020, according to a company-compiled consensus.
100%-Recycled Plastic Bottle Plan
The company, the brands of which include Tango, J2O, Fruit Shoot and Teisseire, also said that it intends to make all of its plastic bottles from 100%-recycled plastic by the end of 2022.
News by Reuters, edited by Donna Ahern, Checkout.
