Robinsons Fruit Shoot recall to cost Britvic £25m

 

The maker of Robinsons Fruit Shoot today warned the profit impact of recalling packs with a new cap design is set to rise to up to £25 million.

Britvic recalled all bottles of the children's drink and spin-off Fruit Shoot Hydro featuring the new design earlier this month as a precautionary measure.

Britvic today admitted it failed to speedily resolve the problem and it will take six weeks to resume production with a new type of cap, while it will take up to six months to fully satisfy previous levels of demand.

As a result, it predicts the episode will wipe between £15 million and £25 million from profits over this financial year and next, in a dramatic increase of its previous estimate of up to £5 million in the year to October.

Shares fell 11 per cent today.

The problems struck after Britvic introduced an easy to open sports cap but found a small number may become fully or partially detached.

It has decided to use an alternative sports cap, which is already in use on the market, in the short-term.

Britvic's website claims Fruit Shoot is the number one selling "children's fast-moving consumer goods brand", worth £96 million.

Fruit Shoot Hydro, a fruit-flavoured mineral water that is free of sugar and artificial colours and flavourings aimed at children aimed seven to 11, was launched last year in a £2.5 million marketing campaign.

The recall does not apply to the Fruit Shoot My-5 and other Robinsons products were not affected.

The Chelmsford-based company, which employs 3,500 staff worldwide, said its poor run of trading continued in recent weeks as weak consumer sentiment and the dire weather hits sales.

The group, which also makes Tango and J20 and owns the licence to make Pepsi and 7Up, warned that its results for the current financial year would be at the bottom end of City expectations, even before the impact of Fruit Shoot recall.

Wayne Brown, an analyst at Canaccord Genuity, cut his forecast for underlying earnings for the current year to £150.9 million from £182 million. That would represent a 19 per cent fall on the previous year.

He also thinks the firm will reduce dividend payments to shareholders.

PA

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
ebooks
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Software Development Manager

£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...

Ashdown Group: Product Manager - (Product Marketing, Financial Services)

£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...

Recruitment Genius: Compliance Assistant

£13000 per annum: Recruitment Genius: This Pension Specialist was established ...

Ashdown Group: Market Research Executive

£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...

Day In a Page

As in 1942, Germany must show restraint over Greece

As in 1942, Germany must show restraint over Greece

Mussolini tried to warn his ally of the danger of bringing the country to its knees. So should we, says Patrick Cockburn
Britain's widening poverty gap should be causing outrage at the start of the election campaign

The short stroll that should be our walk of shame

Courting the global elite has failed to benefit Britain, as the vast disparity in wealth on display in the capital shows
Homeless Veterans appeal: The rise of the working poor: when having a job cannot prevent poverty

Homeless Veterans appeal

The rise of the working poor: when having a job cannot prevent poverty
Prince Charles the saviour of the nation? A new book highlights concerns about how political he will be when he eventually becomes king

Prince Charles the saviour of the nation?

A new book highlights concerns about how political he will be when he eventually becomes king
How books can defeat Isis: Patrick Cockburn was able to update his agenda-setting 'The Rise of Islamic State' while under attack in Baghdad

How books can defeat Isis

Patrick Cockburn was able to update his agenda-setting 'The Rise of Islamic State' while under attack in Baghdad
Judith Hackitt: The myths of elf 'n' safety

Judith Hackitt: The myths of elf 'n' safety

She may be in charge of minimising our risks of injury, but the chair of the Health and Safety Executive still wants children to be able to hurt themselves
The open loathing between Barack Obama and Benjamin Netanyahu just got worse

The open loathing between Obama and Netanyahu just got worse

The Israeli PM's relationship with the Obama has always been chilly, but going over the President's head on Iran will do him no favours, says Rupert Cornwell
French chefs get 'le huff' as nation slips down global cuisine rankings

French chefs get 'le huff' as nation slips down global cuisine rankings

Fury at British best restaurants survey sees French magazine produce a rival list
Star choreographer Matthew Bourne gives young carers a chance to perform at Sadler's Wells

Young carers to make dance debut

What happened when superstar choreographer Matthew Bourne encouraged 27 teenage carers to think about themselves for once?
Design Council's 70th anniversary: Four of the most intriguing prototypes from Ones to Watch

Design Council's 70th anniversary

Four of the most intriguing prototypes from Ones to Watch
Dame Harriet Walter: The actress on learning what it is to age, plastic surgery, and her unease at being honoured by the establishment

Dame Harriet Walter interview

The actress on learning what it is to age, plastic surgery, and her unease at being honoured by the establishment
Art should not be a slave to the ideas driving it

Art should not be a slave to the ideas driving it

Critics of Tom Stoppard's new play seem to agree that cerebral can never trump character, says DJ Taylor
Bill Granger recipes: Our chef's winter salads will make you feel energised through February

Bill Granger's winter salads

Salads aren't just a bit on the side, says our chef - their crunch, colour and natural goodness are perfect for a midwinter pick-me-up
England vs Wales: Cool head George Ford ready to put out dragon fire

George Ford: Cool head ready to put out dragon fire

No 10’s calmness under pressure will be key for England in Cardiff
Michael Calvin: Time for Old Firm to put aside bigotry and forge new links

Michael Calvin's Last Word

Time for Old Firm to put aside bigotry and forge new links