Britvic PLC extends relationship with PepsiCo by 20 years
All plastic bottles in the UK will be made from 100% recycled plastic by the end of 2022, three years earlier than originally planned
(OTCQX:BTVCY) () said it has signed a new and exclusive 20-year franchise bottling agreement for the production, distribution, marketing and sales of its carbonated soft drink brands with .
The relationship, which commenced in 1987, is now extended until 2040 and includes brands such as Pepsi, 7UP, Mountain Dew and Rockstar.
WATCH: Britvic sees acceleration in at-home channel sales lead by Pepsi-MAX in its carbonates portfolio
The FTSE 250-listed soft drink company also said adjusted earnings (EBIT) for the full year 2020 are anticipated to be slightly ahead of current market consensus following better than expected trading across the peak summer period.
The group noted that trading has benefited from both the limited re-opening of the UK hospitality sector since early July and continued strong trading in the at-home channel across its markets.
Britvic’s year-end adjusted net debt balance is expected to be £40mln-£50mln lower than last year, reflecting disciplined cash management, the company said.
The firm said the outlook for 2021 remains uncertain and restrictions in the hospitality sector will continue to have an impact on its performance.
Britvic also announced that all plastic bottles sold in the UK will be made from 100% recycled plastic (rPET) by the end of 2022 – three years earlier than originally planned, and ahead of the previous target of 50%. This will cover the entire portfolio of Britvic-owned and brands.
Shares jumped 5% to 789p early on Tuesday.
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Read More: Britvic PLC extends relationship with PepsiCo by 20 years