Irn-Bru producer warns of supply issues to stores
Irn-Bru producer AG Barr warned of possible shortages of cans and bottles in shops due to a shortage of HGV drivers.
The lorry driver crisis in the UK has seen shortages of some products in stores, and has also contributed to the ongoing fuel problems seen up and down the nation.
Bosses at AG Barr warned that the increasing challenges could impact deliveries to stores in an update issued to shareholders.
The company said said: “In recent weeks we have seen increased challenges across the UK road haulage fleet, associated in part with the pandemic, impacting customer deliveries and inbound materials.
“In addition, the risks associated with the wider labour pool and the current pandemic response are areas we continue to monitor closely.”
Chief executive Roger White also said it was having to absorb rising production costs due to problems sourcing aluminium cans.
He said: “There is a tightness with drivers and we’ve had disruption too with materials, particularly aluminium cans.
“Inflation is all around us at the moment — materials, wages, supply among other things — so we have to be careful how we manage this.
“We have accounted for this and that’s why we recognise that operating margins are likely to be impacted in the second half of the year.”