Britvic drinks recall could cost up to £25M

By Mike Stones

- Last updated on GMT

Britvic's drinks recall could cost up to £25M
Britvic's drinks recall could cost up to £25M

Related tags: Robinsons

Britvic has raised the estimated cost of recalling its Robinsons Fruit Shoot and Fruit Shoot Hydro drinks to £15–£25M from its earlier estimate of up to £5M.

The firm also confirmed that poor weather has dampened demand for its drinks.

City analyst Damian McNeela at Panmure Gordon said: “While Britvic cannot control the weather, we believe the issue surrounding the product recall was avoidable.”

Unable to quickly resolve the problems with the drinks cap on two drinks products, Britvic had decided to re-supply the market with a different, proven sports cap.

Up to six months

Britvic expects re-supply to start in six weeks but it will take up to six months to reach historic levels in the UK and France.

The financial impact of the recall will be spread across this financial year and next year, said the firm.

Panmure reacted to the news by downgrading its earnings forecast by 25% in this financial year and cutting its price target from 350p to 250p.

It also moved its recommendation from ‘Hold’ to ‘Sell’.

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1 comment

REDRESS

Posted by Mrs Joy Obinna-Obiabaka,

Good day, I am compelled to register my displesure concerning one of your drinks, ROBINSONS FRUIT SHOOT. I bought some of the drinks from Iceland Bangor four days ago and discovered some slimey particles in two of the bottles accidentally. Obviously my kids could have consumed similar impurities in the other bottles unknowningly. I am very distressed by the perceived health implication of the consumption of the contaminated drinks to my kids and therefore seek appropriate explanation for the anomaly.

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