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 year of political gossip, levity and intrigue from the sharpest pen in Westminster
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

Selby Jennings: Oil Operations

Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...

The Jenrick Group: Night Shift Operations Manager

£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...

SThree: Trainee Recruitment Consultant - LONDON

£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...

Day In a Page

Isis in Iraq: Yazidi girls killing themselves to escape rape and imprisonment by militants

'Jilan killed herself in the bathroom. She cut her wrists and hanged herself'

Yazidi girls killing themselves to escape rape and imprisonment
Ed Balls interview: 'If I think about the deficit when I'm playing the piano, it all goes wrong'

Ed Balls interview

'If I think about the deficit when I'm playing the piano, it all goes wrong'
He's behind you, dude!

US stars in UK panto

From David Hasselhoff to Jerry Hall
Grace Dent's Christmas Quiz: What are you – a festive curmudgeon or top of the tree?

Grace Dent's Christmas Quiz

What are you – a festive curmudgeon or top of the tree?
Nasa planning to build cloud cities in airships above Venus

Nasa planning to build cloud cities in airships above Venus

Planet’s surface is inhospitable to humans but 30 miles above it is almost perfect
Surrounded by high-rise flats is a little house filled with Lebanon’s history - clocks, rifles, frogmen’s uniforms and colonial helmets

Clocks, rifles, swords, frogmen’s uniforms

Surrounded by high-rise flats is a little house filled with Lebanon’s history
Return to Gaza: Four months on, the wounds left by Israel's bombardment have not yet healed

Four months after the bombardment, Gaza’s wounds are yet to heal

Kim Sengupta is reunited with a man whose plight mirrors the suffering of the Palestinian people
Gastric surgery: Is it really the answer to the UK's obesity epidemic?

Is gastric surgery really the answer to the UK's obesity epidemic?

Critics argue that it’s crazy to operate on healthy people just to stop them eating
Homeless Veterans appeal: Christmas charity auction Part 2 - now LIVE

Homeless Veterans appeal: Christmas charity auction

Bid on original art, or trips of a lifetime to Africa or the 'Corrie' set, and help Homeless Veterans
Pantomime rings the changes to welcome autistic theatre-goers

Autism-friendly theatre

Pantomime leads the pack in quest to welcome all
The week Hollywood got scared and had to grow up a bit

The week Hollywood got scared and had to grow up a bit

Sony suffered a chorus of disapproval after it withdrew 'The Interview', but it's not too late for it to take a stand, says Joan Smith
From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?

Panto dames: before and after

From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?
Thirties murder mystery novel is surprise runaway Christmas hit

Thirties murder mystery novel is surprise runaway Christmas hit

Booksellers say readers are turning away from dark modern thrillers and back to the golden age of crime writing
Anne-Marie Huby: 'Charities deserve the best,' says founder of JustGiving

Anne-Marie Huby: 'Charities deserve the best'

Ten million of us have used the JustGiving website to donate to good causes. Its co-founder says that being dynamic is as important as being kind
The botanist who hunts for giant trees at Kew Gardens

The man who hunts giants

A Kew Gardens botanist has found 25 new large tree species - and he's sure there are more out there