BRITISH SOFT drinks group Britvic said yesterday that its operating profit in Ireland in the current financial year would be below expectations due to weak consumer demand.
The company also announced that it would seek €20 million in cost savings from its Irish business, €6 million more than was announced at the time of its acquisition of CC's soft drinks brands a year ago.
The synergies are expected to be achieved by September 2011. It was originally intended to save €14 million by the end of 2009.
In a trading update released yesterday to coincide with a seminar with analysts in Dublin, Britvic said trading here had been tougher than predicted, although sales in Britain and international markets were ahead of forecasts.
"Conditions have been more difficult in Ireland and the consequent impact on consumer behaviour and the soft drinks market are adversely affecting Britvic Ireland's performance," the company said.
It is understood that the synergies will be derived from the introduction of a new IT system and other measures. The company is also considering manufacturing its Robinsons drink in Dublin, rather than importing the product for the Irish market.
Britvic has already announced plans to close a manufacturing plant in Cork.
The soft drinks company said it would issue a 52-week trading update on October 16th.
Britvic last year paid €250 million to acquire CC's portfolio of soft drinks brands, including Club, Ballygowan water, Cidona, MiWadi, and Energise Sport, as well as the rights to the Pepsi and 7 Up brands here.
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