Annual report and accounts 2023 - Flipbook - Page 70
A.G. BARR p.l.c. Annual Report and Accounts 2023
Risk management continued
Movement:
No change
Risk
Impact
Controls and mitigating actions
Failure to
maintain customer
relationships or take
account of changing
market dynamics
Failure to maintain
appropriate customer
relationships or a reduction
in the customer base could
have an adverse impact
on the Group’s sales and
operating profits.
The Group offers a broad range of brands that it
manufactures and distributes through a variety of trade
channels and customers. Performance is monitored closely
by the Board and Executive Committee by trade channel
and customer as appropriate. This includes monitoring of
metrics which review brand equity strength, financial and
operational performance.
Increased
Decreased
Net risk
impact
Net risk
likelihood
Net risk
rating
Low
Moderate
Moderate
Low
Moderate
Moderate
The Group focuses on delivering high quality products
and invests heavily in building brand equity. We work closely
in partnership with our customers on an ongoing basis.
Members of the senior management team meet with key
customers throughout the year.
During the early part of the year we continued to engage
with customers in relation to control measures put in place
to minimise Covid-related risks for our respective employees
and the wider public.
Consumer rejection
of reformulated
products
68
Consumers may decide
to purchase and consume
alternative brands or spend
less on soft drinks.
Our extensive innovation and reformulation programme was
completed prior to the introduction of the Soft Drinks Industry
Levy in April 2018. 98% of our current Barr Soft Drinks
portfolio produced by volume contains less than 5g of total
sugars per 100ml. Since April 2022, 98% of our Barr Soft
Drinks portfolio has been exempt from the new regulations
applicable to High Fat, Sugar and Salt (‘HFSS’) products.
We recognise that the risk of consumer rejection of the
enhanced sweeteners used in our reformulated products
remains. We continue to closely monitor consumer
acceptance levels and brand performance across our total
portfolio and take appropriate mitigating actions.
New
Movement
