Suppliers of major drinks brands such as Smirnoff and Budweiser have hit back at claims that they are neglecting and, in some cases, endangering small businesses by extending payment times across their supply chains. Both Diageo and Anheuser-Busch InBev have been named this week on the Forum of Private Business’ (FPB) ‘late payment hall of shame' over claims they have extended the time taken to pay some smaller suppliers. Phil Orford, chief executive of the FPB, said that the lobby group was calling on both manufacturers to sign up to the UK Government’s Prompt Payment Code in a bid to ensure greater sustainability in the supply chain.
A cocktail of higher taxes and recession is damaging wine sector growth in the UK and is threatening more job losses across the industry, figures from the Wine & Spirit Trade Association (WSTA) show.
Beer sales across the UK may look to be in freefall, but local, independent breweries have seen revenues rise by an average 20% in the last year, according to a new report.
Britvic is relaunching J2O, the UK's leading adult soft drink, after minimal sales growth in the face of tough competition from Schweppes and the decline of the pub trade. The rebrand, which is being rolled out in May, will include fresh packaging and the addition of several flavours, including a kiwi fruit variant. Britvic intends to reposition the brand to achieve greater standout from competitors. Design agency JKR has worked with J2O since the brand's launch in 1998. Bartle Bogle Hegarty handles its creative work and Elvis Communications its direct activity.
South African wine brand Arniston Bay is launching a sparkling rosé wine in the UK, as it looks to build on sales growth in 2008.
Bartle Bogle Hegarty has been appointed to the global advertising account for Coca-Cola's Sprite brand following a pitch. The agency pitched against another Coca-Cola rostered agency, Wieden & Kennedy, which handles the flagship Coke brand. BBH joined the roster when it was awarded the creative assignment on Coca-Cola's Vitaminwater last month. Sprite's UK sales increased by 6.7% to £56.2m in 2008, according to Nielsen. Its rival 7-Up posted sales of £29.6, an increase of 6.5%.
C&C Group, the Irish cider maker behind Magners, has announced that more than 100 jobs will be axed in a bid to cut costs. Up to 120 staff will go as a result of the move, with the majority of cuts expected to come at the company’s Clonmel cider factory and Dublin head offices.
Pepsi, has signed a deal with Rockstar Energy Drink to distribute the caffeinated beverage through its bottlers, which include Pepsi Bottling Group Incand PepsiAmericas Inc. Terms were not disclosed for the deal, which expands Pepsi's portfolio of energy drinks that already includes Amp, No Fear and certain Starbucks bottled drinks. Sales of energy drinks, which often appeal to younger adults, have far outpaced other soft drink categories in recent years. According to Beverage Digest, energy drink sales rose 7.9 percent in the first 9 months of 2008.
Dutch brewing company Heineken has reported a net profit of GBP1.8m for 2008, a 74% decline compared to GBP817m for 2007.
