Raw materials rise shakes Britvic
Britvic shares lost some fizz today, tumbling 10% after the company warned that price rises in recent weeks of its most basic raw materials are "unprecedented".
The company behind Tango, Robinsons and J20 says the sugar in the drinks and the steel in the cans are getting much more expensive.
Its costs are likely to rise by between 9% and 11% this year, so it seems likely a tin of Pepsi will jump in price.
Polyethylene terephthalate, the resin needed for plastic bottles, is also soaring. Paul Moody, the chief executive, said: "Since our last update we have witnessed a rapid and unprecedented uplift in the cost of key raw materials.
"This has been driven by a shortage of supply to the market, where, for example we have seen prices for PET, derived from oil, surge by around 20% in the last month alone."
The shares lost 42.5p to 375.5p, leaving the company valued at £901 million.
Britvic still thinks revenues will grow this year. The Chelmsford-based group owns the rights to sell Pepsi products in the UK. It is the second-biggest soft-drinks maker in the UK after Coca-Cola.
