Cumbernauld-based Irn-Bru maker A.G. Barr said late on Tuesday it received “notice of termination of its sale and distribution contract with Rockstar Inc.”
PepsiCo Inc announced in March it agreed to buy Rockstar Energy Beverages for about $3.85 billion.
“As a consequence the contract will terminate on 23 August 2020 but it is anticipated that the group will continue to manufacture, sell and distribute Rockstar energy drinks, which contributed approximately 8% of the group’s sales volumes in the prior financial year, up to 1 November 2020,” said Barr.
“In accordance with the terms of the contract, a one-off compensation payment will be paid to the group, to be calculated post the contract termination date.”
Barr also gave a COVID-19 trading update, saying: “As previously announced, trading continues to be adversely impacted by the COVID-19 lock-down measures introduced on 23 March 2020, with trends affecting our major retail, impulse and hospitality channels continuing as previously indicated.
“At the current time it remains difficult to predict how the balance of the financial year will evolve, with the easing of lock-down restrictions and resulting impact on consumer purchasing patterns.
“Further information on the Rockstar contract termination, and details on the group’s first half performance, will be included in the group’s scheduled trading update on 28 July 2020 …
“The company’s Annual General Meeting will be held at its head office on 25 June 2020 at 09:30 am.
“In light of Government restrictions in response to the Coronavirus (COVID-19) outbreak in the United Kingdom, and as previously communicated to shareholders, attendance in person will not be permitted at the AGM.”