How a £20 Million Marketing Boost Fueled Britvic's Revenue Surge

Britvic's Impressive Revenue Growth

Britvic has reported a 8.5% increase in sales in Great Britain, reaching £1.29 billion for the year ending September 30, 2024. This growth was significantly supported by a £20 million increase in marketing investment, totaling £87.2 million for the financial year.

The rebrand of Pepsi, which rolled out in the UK in spring, was backed by significant marketing spend by Britvic.

Key Marketing Initiatives

The marketing strategy included:

• A brand refresh for Pepsi
• A renewed push for Tango
• The television debut for Plenish

This aggressive marketing approach was crucial in driving brand awareness and trials, according to Britvic GB managing director Paul Graham.

Focus on Breakthrough Brands

While major brands like Pepsi and Tango received the largest shares of advertising and promotional spend, breakthrough brands like Plenish saw the most significant percentage increase in marketing support. Plenish's revenue has skyrocketed by over 100% year-on-year, establishing it as the number three brand in the plant-based milk category.

Future Outlook

Looking ahead, Britvic plans to maintain its investment levels, focusing on core brands while continuing to innovate with emerging products. Despite a recent increase in the soft drinks levy, Graham noted that the impact on Britvic would be minimal, as less than 5% of its products exceed the sugar content threshold.

Financial Performance Highlights

• Group revenues increased by 8.6% to £1.9 billion.
• Adjusted EBIT rose 14.9% to £250.9 million.
• Pre-tax profits grew by 10.5% to £173.2 million.

CEO Simon Litherland expressed confidence in the company's performance and anticipates completing the acquisition by Carlsberg in early 2025.