About us and our industry

A.G.Barr p.l.c. has expanded to become the UK’s leading independent branded carbonated

soft drinks manufacturer.

In 1830 Mr Robert Barr of Falkirk started a cork

cutting business servicing the local trade. This

venture flourished for a while until the innovation

of more modern bottle closures caused a decline in

the need of cork. This prompted his son, also named Robert, to

set himself up as an "aerated water manufacturer" in Falkirk in 1875, supplying to a

local population of 40,000. Twelve years later, in 1887, his son Robert Fulton Barr, started a

soft drinks' business on his own account in Parkhead, Glasgow. Although the Glasgow base

was an offshoot of the Falkirk establishment, it had a much larger population (peaking at

1,250,000) to supply. It was this business that was subsequently taken over by brother

Andrew G. Barr, who gave his name to the present company.

In 1904 A.G.Barr & Co. Ltd finally came into existence. In the

meantime the original Robert Barr enterprise continued to thrive

and expand. In 1901 along with the Glasgow business, the famous

Iron Brew (as it was then spelt) was launched. The two streams of

the Barr family business continued separately until 1959, when

A.G.Barr & Co. Ltd purchased the older company, forming one

family business.

By 1963 Barr had seven branches in Scotland and had started

implementing the move south of the border by buying Hollows of

Bradford nine years earlier. This was followed in 1965 with the

purchase of Frucose Ltd of Sunderland. Also in 1965 A.G.Barr &

Co.Ltd became a public company, quoted on the London Stock

Exchange.

Two years later, with the acquisition of Stotherts Limited of Atherton A.G.Barr expanded into

the canned drinks market. With the purchase of Tizer Limited in 1972 A.G.Barr substantially

increased their share of the UK market.

The 1980’s brought further growth for the business with the acquisition in 1983 of Globe Soft

Drinks of Edinburgh, and in 1988 Mandora St Clements of Mansfield.

Today the company manufactures an extensive range of products including IRN-BRU, Tizer,

D’N’B and Orangina which is bottled for the UK under licence from Schweppes International

ltd the brands owner.

The History Of Barr Soft Drinks

A.G.Barr was the first British soft drinks

manufacturer to use the stay-on ring pull on cans

and the first to show material identification symbols

to assist recycling.

Barr are still the biggest users of 750ml returnable

glass bottles complete with tamper evident caps -

another first in the soft drinks industry.

The Barr plant at Atherton, near Manchester, has

one of the most efficient canning lines in the world,

filling 1400 cans per minute. State-of-the-art syrup

rooms and high tech distribution warehouses help to

keep Barr Soft Drinks at the forefront of the soft

drinks industry.

In 1996 the company opened a new plant at Cumbernauld.

Production at the 3 existing units in Scotland then ceased.

The new plant has a floor space of 122,000 sq. ft on a 22

acre site.

The first line to become operational was the PET line in

February 1996, and, at up to 30,000 bottles per hour,

increased the Barr capacity in Scotland three-fold.

The new returnable glass bottle line, which was the first to

be installed in the UK for many years, runs at 24,000

bottles per hour and incorporates the latest energy saving

technology.

The plant was officially opened on 29th August 1996 by

three times former world motor racing champion, Jackie Stewart OBE.

1996 also saw Barr acquire a 40% stake in Findlays Spring Natural

Mineral Water. The water flows naturally out of a fault in the rock

structure at the foot of the Lammermuir Hills near Dunbar in

Scotland. Findlays Spring is available in a range of pack sizes and

is also available as Refreshment on Tap for the workplace in 19

litre cooler units. December 2001 saw the acquisition of the

remaining 60% shareholding of Findlays Ltd which has thus

become a wholly owned subsidiary. 2004 saw the relaunch of

Findlays with a new label design and brand communication.

For more information click on www.findlays-spring.com

In 2005, work commenced on a £17m warehouse at the

Cumbernauld site. Designed to deliver better customer service

through closer team work, it is

the biggest investment in the future of the business for 10

years. With 125,000 sq.ft. of warehousing, the striking

hi-bay warehouse towers 110 feet into the air.

The development is scheduled to open in 2006.

Barr now operates out of four manufacturing plants,

Cumbernauld, Atherton, Mansfield and Pitcox near

Dunbar.

Barr is continuing to grow not only in the UK but also in the export market, supplying soft

drinks to such diverse areas of the world as Poland, Russia, Canada, Spain, United Arab

Emirates, and Australia.

Barr Soft Drinks can be contacted on www.agbarr.co.uk

Barr's IRN-BRU, was created in Glasgow in 1901. At the time it was

just one of many mixed flavour drinks called Iron Brew, each

manufacturer compiling his own recipe for an invigorating and

refreshing beverage.

During World War II the soft drinks' industry was rationalised, which

meant that Barr could no longer produce under its pre-war trade

names. Like the rest of the companies in the industry Barr's became

a numbered production unit. This meant producing only the soft

drinks specified by the government and selling them at fixed prices.

Iron Brew was not recognised as a "standard drink" and therefore

disappeared from the grocery shop shelves for the duration of the

war.

After the war, as the industry was getting ready to reintroduce its

own products again, a disturbing proposal was put forward by the Government that food

labelling regulations would be amended to ensure that the names on all foods would be in

future literally true.

In the soft drinks industry this would have

meant the demise of American Cream Soda

as a name, since it didn't come from

America and did not contain Cream.

Ginger Ale could no longer be called

Ginger Ale because it was not an Ale.

Similarly, the name Iron Brew would have

had to be changed since, although by law it had

to contain 0.125mg of iron per fluid ounce, the drink

was not actually brewed.

It was due to these proposals that Barr’s came up with the idea of registering the phonetic

equivalent of the general name "Iron Brew" as its own trade name. Thus in 1946 the

name "IRN-BRU" came into being.

Before the war Barr’s Iron Brew had captured the taste buds of Scotland and, after the

wartime restrictions were lifted, Barr's were quick to recapture the market. From the

beginning IRN-BRU was heavily advertised. The adventures of "Ba-Bru and Sandy"

which ran from the 1930's were featured in many Scottish newspapers including "The

Bulletin". This ran until the mid

1970's when the campaigns "Made in

Scotland from Girders" and "Your

Other National Drink" were

developed.

Campaigns have evolved, for example

the use of distinctive 48 sheet poster

advertisements shot in black and

white.

The History Of IRN-BRU

Although other companies have tried to copy Barr's IRN-BRU the essence which makes it so

popular remains a closely guarded secret. Whilst Chairman Robin Barr is now the only

family board member to know the secret of the IRN-BRU recipe there will always be at any

one time two board members who will know the recipe. The name of one of these board

members will remain secret.

A new design for IRN-BRU was introduced across the

entire range in March, 1993 giving IRN-BRU a more

contemporary look, as well as making it more visible

in store. The new look made use of many of the

traditional elements of the IRN-BRU design using

them in a new way; for example, the increased amount

of blue on the cans contrasts with the orange to give a

vibrant, eye-catching effect.

IRN-BRU unleashed its web site in 1996. The site is

not only an on-line advert

but strives to be a

bold, multi-dimensional and totally interactive web

experience. The site is continually being updated.

IRN-BRU can be contacted on

www.irn-bru.co.uk

2001 saw IRN-BRU celebrate its 100th birthday.

Co-incidentally, the year saw standard IRN-BRU

confirmed as the biggest selling grocery brand in

Scotland.

To maximise customer satisfaction, IRN-BRU

introduced newly designed packs to improve stand-

out on shelf. The bolder design also has clearer

differentiation between standard and diet variants.

IRN-BRU has for a number of years been the number one soft drink

and the number one grocery brand in Scotland - outselling other major brands in snacks

and confectionery.

An interesting fact – most fruit drinks have only one flavour – IRN-BRU has 32!

IT’S PHENOMENAL!

IRN-BRU UNVEILS BIGGEST EVER MARKETING DRIVE IN SCOTLAND

AND THE NORTH EAST OF ENGLAND

Scotland’s number one soft drink took over the nation in ‘Phenomenal style’ on Monday, 4th

October 2004 as Barr Soft Drinks unveiled the identity of its biggest ever marketing

campaign for IRN-BRU.

A closely guarded secret, the extensive new television,

radio, print, outdoor and online drive – which represented

a £5 million company investment – aimed to remind Scots

of their passion for the delicious, indescribable taste of

Phenomenal IRN-BRU.

Television audiences enjoyed viewing the two

advertisements which introduced the extremely catchy

and instantly memorable ‘Phenomenal tune’.

Created by the award-winning Leith Agency, the two

adverts contain IRN-BRU’s distinctive humour and

maverick spirit, showing viewers that, no matter how

extraordinary real life becomes, nothing is more

Phenomenal than an IRN-BRU.

Barr Commercial Director, Jonathan Kemp said ‘Phenomenal

is the one word that sums up everything that IRN-BRU means

to Scottish consumers. The campaign is all about celebrating

IRN-BRU and the unique passion that consumers have for its

great, indescribable taste. In our research we’re continually

told that nothing else compares to IRN-BRU, so we’re turning

the spotlight firmly on this Phenomenal product and the

Phenomenal place it has

in the hearts and minds

of the Scottish nation.’

The brand is currently working on increasing its share of the English soft drinks market up

to that enjoyed in its homeland. IRN-BRU is packaged in cans, glass and PET bottles.

1980 saw the introduction of Low Calorie IRN-BRU, this changed in 1991 to Diet IRN-BRU.

In 2005 Diet IRN-BRU was launched as a brand in its own right.

With the number of dieters in the UK having doubled in the past 18 years, consumers are

looking for alternatives in the soft drinks market to meet their dietary needs.

Diet IRN-BRU does just that.

The clean cut design oozes sophistication and style with its silver packaging.

Targeting the 20-40 year old female consumer and the 30-40 year male consumer a new

advertising campaign in keeping with the brands maverick edge was launched.

Featuring Raoul our swarthy lothario with the incredibly funny chat up lines and

the instantly recognisable ‘Oh Yeah’ theme tune recorded by Yello, the

commercial helped to increase sales of Diet IRN-BRU during 2005 to become

the fastest selling other flavoured diet carbonate.

With its guilt-free taste that incorporates the unique and top secret blend of the

32 flavours of regular IRN-BRU, taste tests have shown that 42% of regular

IRN-BRU consumers confused IRN-BRU with Diet

IRN-BRU.

2006 and another commercial featuring Raoul hit the

T.V. screens. Set in a nightclub, Raoul uses many of his famous

phrases such as ‘Oh Yeah’ and ‘Hello Laydeez’ to great effect!

Diet IRN-BRU

March 2006 saw a brand new initiative with the launch of a refreshing new energy

drink, IRN-BRU 32. The target audience for this great tasting drink is 18 years

upwards and it is the most important new product launch for the company since

Diet IRN-BRU 26 years ago.

IRN-BRU 32 is a refreshing energy drink based on IRN-BRU’s 32 secret

ingredients but with a twist.

The famous recipe has now been joined by caffeine and taurine to give

IRN-BRU 32 the added sensory benefit of ‘Pure Mental Stimulation’; a

delicious lift designed for those who need a boost when their energy is

flagging.

With the strap line Wakey Wakey the new commercial features Derek the Cuckoo.

Research recently conducted revealed that consumers desired an energy drink that not only

stimulated the senses but also tasted fantastic. Barr supported the launch with a

nationwide promotional campaign.

IRN-BRU 32

IRN-BRU is produced in two varieties - as a full sugar product and as a diet drink.

The composition of each is marked on their labels or containers. As you can see from their

ingredients panels, the basic raw materials are the same for both, but the sugar in standard

IRN-BRU is replaced by the artificial sweeteners Aspartame and Acesulfame K in

Diet IRN-BRU.

The first stage in the production of IRN-BRU is to add together and mix the raw materials.

These include the special flavourings which give IRN-BRU its unique taste. The raw

materials, once mixed, form a highly concentrated syrup. The syrup is then fed down the

line to be diluted with carbonated water. The final product is then transferred into a

tank on the filling machine which feeds it into cans or PET or glass bottles. Before

being filled, all the containers are appropriately cleaned. The cans or bottles, once

filled, go through either a seaming machine or a capper or crowner which seals

the top of each container, before they are (if bottles) labelled and finally packed

into cases.

Before IRN-BRU is delivered to the shops it goes through quality control tests

which check the level of Brix, Acidity, Carbonation and Average Fill. It also

goes through Micro-biological checks. Brix is measured using a refractometer,

which identifies the total soluble solids (e.g. sugar) content of the product.

Acidity is measured by titration and carbonation is measured by using a

Reeves pressure gauge. Finally, the product is tasted by a panel of tasters

before it is despatched from the factory.

Bottles and cans carry material identification symbols which denote the

material that the pack is made of so that it can be recycled, if disposed of

properly.

IRN-BRU is also the biggest brand sold in

750ml returnable glass bottles in the UK.

The returnable bottles move to and from

the shops in re-usable plastic crates,

and, on return to our factory, are

transferred to a production line to be

washed and sterilised before re-filling.

During this process they go through several washes at

various temperatures, which clean the bottles inside

and out so that they are ready to repeat the process of

being filled. This returnable bottle cycle means that

valuable raw materials and energy are not used for

merely a single trip, but rather the 10 trips or more

which a returnable bottle can make.

We hope you enjoy drinking IRN-BRU as much as we

enjoy making it.

How IRN-BRU Is Made

Tizer, renowned for the "taste which defies description",

was the brain child of the Manchester man, Fred Pickup

and was, for many years, the mainstay of his soft drinks

business. In 1906 Fred, with his brother, Thomas, started

working in their Uncle's soft drinks business, and a year later they moved to the Portsmouth

area where they started up on their own, selling half gallon jars of brewed Gingerbeer and

Sarsaparilla. After a year of indifferent trading, they moved to Bristol, where they began

trading in half gallon jars of "Table Waters".

Thomas Pickup remained in Bristol trading under the name

'Pickup's of Bristol'. Fred decided to keep going and in 1910

he bought a small firm in Pudsey, Yorkshire which he re-

named, 'F. Pickup'. Business went well, and two years later

he opened a factory in Bradford, the following

year another in Leeds.

In 1919 Fred Pickup introduced his customers to carbonated soft drinks.

His unhappiness with the stone bottles led him to experiment, and in 1920 he

produced his drinks in pint glass bottles both at Bradford and Leeds. These

proved a great success, and in 1922 he decided to set up in Manchester. It

was there, in 1924 that Tizer was launched.

The name Tizer was coined from the word 'Appetizer' and proved to be a very

successful brand name. Tizer's popularity began to grow in the late 1920's

and demand for the brand continued to such a point that, during the 20's and

30's factories were rebuilt or newly opened in Leeds, Sheffield, Liverpool,

Blackburn, Bristol, London, Leicester, Nuneaton, Glasgow and Southampton,

all controlled from the Manchester headquarters and all very much

dependent on the Tizer brand.

After the death of Fred Pickup, Tizer eventually came under the control of

Armour Trust, a financial organisation, however, they held it for only 13

months before selling it to A.G. Barr & Co. Ltd in 1972 for £2.5million.

On incorporating Tizer into the Barr Group, the then chairman Mr. Robert Barr insisted that

the product be brought back to its original pre-war formula. This was not an easy task, it

took six months of research and detailed work by a team of chemists to blend the essences

as they were to the original formulation. The biggest problem was that one essence - which

became known as Essence X - was no longer available, as the manufacturer had ceased to

trade. After extensive research Barr are satisfied that Tizer today is as close as is humanly

possible to the Tizer which was such a firm favourite between the wars.

Tizer

In 1988, reflecting the increasing demand for low-calorie drinks, Sugar Free Tizer was

introduced, (later to be renamed Diet Tizer) which removed the sugar content of the drink.

The whole range was redesigned in 1993 to reflect a more modern upbeat image.

The vibrant packaging was completed by the use of red PET bottles, making the drink very

noticeable on the supermarket shelf. New advertising complemented the launch, giving the

brand a quality and innovative feel. Barr utilised TV, satellite and cinema to bring the

relaunch to the attention of the public.

Feeling that the brand was again ready for an update, a radical new design

change was introduced in October 1996. The image chosen was a HEAD! A RED

HEAD, a HEAD receiving refreshment followed by the strap line Refresh your

HEAD, which is exactly what Tizer does.

In another move to differentiate Tizer from the competition, Barr introduced a

500ml PET version of the famous pre-war glass bottle that is intrinsically

associated with Tizer.

Barr launched the first interactive television sponsorship campaign during

1997, through the sponsorship of the Chart Show on ITV. Continuing the

association with music, Tizer sponsored the MTV Europe Music Awards and

an amusing bus side campaign ran through October 1997. Hundreds of

humorous idents were produced for the brand during its sponsorship of

CD:UK between 1999 and 2003.

2003 saw Tizer relaunched with redesigned

packaging, website and advertising campaign.

Tizer has repositioned itself as a prime contender in

the youth soft drinks market.

Two quirky adverts containing fictitious ‘Red’

characters fighting back under the banner ‘Itz a Red

Thing’ were produced. The Tizer website

www.tizer.co.uk hosts competitions, reveals gossip

and uses lots of interaction.

OranginaOrangina - one of the most popular orange soft drinks in the world, was developed in France

in 1936 by Dr. Trigo and Leon Beton, in the familiar bulby bottle.

The artist Bernard Villemont drew his first advertising poster for Orangina in 1953,

introducing what has remained its graphic symbol: the orange peel or swirl.

By 1957 the first 50 million bottles of Orangina had been sold. In 1972 the concept of

"shaking" the bulby bottle to mix the pieces of orange was developed and this has been the

basis of Orangina's advertising.

In 1984 Orangina joined the Pernod Ricard Group which helped accelerate its growth in

France and overseas.

In 1986 Orangina celebrated its 50th anniversary and in 1987 was successfully launched

in the UK where it has established itself as one of the largest orange carbonated

brands. Orangina has now been launched in over 55 countries world-wide including

Vietnam and Saudi Arabia.

Orangina is lightly carbonated and has a unique taste derived from a

subtle blend of natural orange and other juices and real orange pieces.

In 1995 Barr were awarded the franchise by Orangina International to

manufacture, distribute and sell this famous orange carbonate in Great

Britain.

In 2001 Orangina launched a new variant Orangina Rouge.

The unique recipe combines the beautiful and rich citrus flavours of blood

oranges with that of classic oranges and the spicy mix of guarana.

Cadbury Schweppes completed the full acquisition of Orangina from the

previous owner Pernod Ricard in October 2004. The Orangina brand

continues to be bottled and sold in Great Britain by Barr under licence.

Russia Barr started selling to Russia in 1994 through direct exports. With the fall ofcommunism Russia fast became a major importer of FMCGs, including softdrinks, and our first exports were as a result of participation at an‘exploratory’ exhibition in Moscow. However, increasingly high import tariffsand certain forms of ‘invisible’ tariffs, such as bureaucratic customsprocedures, soon made it very difficult to continue shipping finished goodsfrom the UK. Hence, it was important to find another ‘route to market’.With Barr’s experience of franchising overseas, a market entry strategybased on this form of co-operation appeared to be the ideal solution. In1996, with the help of UK government bodies including Scottish TradeInternational, Barr found a potential partner with extensive experience inthe sale and distribution of soft drinks. A Business Plan was put togetherfor the building of a new soft drinks factory for the production, sale anddistribution of IRN-BRU. The plan was eventually accepted by an American

investment house, the new plant was completed in July1998, and the first soft drinks were produced that samemonth. Thus in July 1998 Barr, through a franchisearrangement, launched its main brand IRN-BRU in thevolatile but potentially vast Russian market. At the beginning of August1998 the Russian economy collapsed. However brand buildingcontinued and in 1999 a critically acclaimed advertising campaign forIRN-BRU was launched which appealed to all age groups ensuringmaximum ‘affinity’ with and exposure to the brand and encouragingincreased trial and brand loyalty from a larger target market. By theend of 2000, despite on-going adverse market conditions, IRN-BRU waswidely recognised as one of Russia’s most successful productintroductions.In early 2002 Barr entered into a new agreement with Pepsi BottlingGroup (PBG) under which PBG manufacture and distribute IRN-BRU

across Russia. Thanks to our partnership with PBG and continuing investment in marketingactivity, IRN-BRU is now firmly established as one of the leading brands in the country. The brand is produced in 250ml glass, 330ml cans, 600ml, 1.25L and 2L PET.SpainBarr have been exporting IRN-BRU to Spain for the past 30 years with the emphasis onsales to tourist areas such as the Costas, the Balearic Islands, and the Canary Islands. Wework with two local bottlers in Spain, one in Mallorca and one in Zaragoza, with productionin 330ml cans, 500ml and 2L PET. With Spain still a very popular tourist destination for theBritish, sales of IRN-BRU have remained buoyant. Research has shown that the brand isalso very popular among Spanish consumers and we continue to develop distributionchannels in order to target the important local market.OtherIRN-BRU and various other Barr brands are also manufactured under licence in Canada andAustralia. Finished product exports (e.g. Cans and PET bottles) of IRN-BRU and otherbrands are made to Holland, Germany, Greece, Cyprus as well as parts of Africa and Asia.

Export

Refillable Bottles The BSDA (British Soft Drinks Association) supports the use of refillable glass

bottles for soft drinks, a traditional pack of the soft drinks industry. However,

the use of such bottles is declining. To encourage the return of the glass

bottle a deposit is charged and redeemed on return.

Non-refillable GlassNot all glass bottles used for soft drinks are intended to be returned to

the manufacturer for refilling. Non-refillable glass bottles are

designed to be used only once and are lighter in weight. These bottles

can also be returned to the glass industry for re-use through the

Bottle Bank scheme.

Aluminium CansThe recycling of aluminium cans is organised by the Aluminium Can

Recycling Association with which the BSDA maintains close contact.

There are aluminium can recovery centres, with groups registered as

aluminium can recyclers and most local authorities have registered

aluminium can recycling programmes.

Steel CansThe recycling of steel cans is monitored and promoted by the Steel Can Recycling

Information Bureau (SCRIB) with which the BSDA maintains close contact. SCRIB

encourages two complementary steel can collection systems: magnetic

extraction, operated by local authorities and the Save-a-Can scheme which

collects both steel and aluminium cans for recycling, operated by British

Steel Tinplate. Magnetic extraction separates steel cans from the

household waste stream and plants have been set up around the

country to prepare used steel cans for recycling.

Plastic Bottles The BSDA has been instrumental in initiating the collection of used

plastic soft drinks bottles in the UK by its activity and involvement

in Sheffield, which was the first of the Friends of the Earth's

designated Recycling Cities.

PET is a unique plastic material which is predominantly used

for soft drinks packaging. It is available in a variety of pack

sizes from 250ml right up to 3 litres.

Packaging and the Environment

The story of the soft drink begins over 2000 years ago when the Greeks discovered natural

springs, popular for the purity of the water which was thought to help cure the Herculean

hangover. Spa water, which strictly speaking contains mineral salts was first appreciated by

the Romans for its health giving properties, although they did tend to bathe in it rather than

drink it.

Natural springs and Spa water were not, however, the sole precursors of the soft drink as

we know it. They were joined latterly by small beers and fruit flavoured drinks.

Small beer was introduced in the Middle Ages when it was discovered that water supplies

were frequently contaminated. It was made quite simply by boiling water flavoured with

common herbs or leaves and then leaving it to ferment. The alcohol content in this type of

concoction was negligible but, as its primary purpose was to provide a wholesome

substitute for water, this was of no importance.

Descendants of these drinks are visible today in products such as Dandelion and Burdock.

The third source of the soft drink, the fruit flavoured drink precedes our concept of soft

drinks by approximately a century. There appeared in Tudor times, (the sixteenth century) a

drink known as Water Imperial, which seems to have been a sweetened drink containing

cream of tartar and flavoured with lemons. However, it was not until Charles II's reign

(1658) when the tavern was being challenged by refreshment houses that fruit flavoured

drinks really found a market. Lemonade was the first on the scene, home-made with

lemons, sugar or honey and diluted with still water. It was followed, in the early part of the

eighteenth century by orangeade.

British sailors or "Limeys" as they were often referred to, were so called because of their

compulsory diet of grog (sugared water and rum) mixed with lime juice. This was used to

combat the fatal scurvy which afflicted the sailors. Lime was chosen in preference to lemon

juice because it was found to last longer, containing as it does a natural preservative. Even

so, some early attempts to preserve it, such as boiling the juice and mixing it with sugar,

destroyed the vital but then unknown vitamin C.

The early development of today's soft drink was, according to these three predecessors,

purely for medicinal purposes.

In the 1760's Dr Joseph Priestley, first discovered how to artificially carbonate water with

gas which he called "fixed air". Antoine Lavoiser later identified the gas as Carbon Dioxide.

In 1792 Schweppes introduced artificially carbonated water

to London. The origins of adding flavour to soda water

remain obscure: the earliest known reference to effervescent

lemonade appears in 1833 although it is thought unlikely to

have been the first occasion that flavour was added.

By the 1860's Brandy and soda was the recognised drink for

gentlemen, while Shandygaff (a mix of beer and ginger beer)

was available for healthier thirsts.

The History of Soft Drinks

Just before World War I an Australian company started

exporting fruit squashes and concentrates to Britain,

and shortly after the war lemon was joined by orange,

then pineapple and grapefruit. Also during this period

American cola drinks began to be imported, although

they only really took off when the American troops

arrived in the 1940's.

Speciality drinks were by no

means all imported. Scotland's

other national drink: Iron Brew

(as it was then spelt) was first

produced in 1901 and Tizer, the

invention of a Manchester man,

was successfully promoted as a

children's drink from 1924

onwards.

During the second World War the soft drinks industry was

rationalised: competition was effectively eliminated, and a multitude

of businesses compulsorily closed. The rest traded not under their pre-war names but as

numbered production units and selling standard products at fixed prices. In 1947 came the

de-control of the industry and the winding up of the Wartime Association.

The 1960's saw the start of low-calorie soft drinks, stimulated by new artificial sweeteners.

The industry has since continued to grow in all areas; returnable glass bottles became more

refined. Cans were introduced in the mid 1960’s and in the late 1970’s plastic bottles came

into use. Soft drinks can also be found on draught in leisure and licensed outlets.

Packaging has become more inventive and new regulations were introduced to govern

labelling. Spa and mineral waters have made a come-back after nearly two centuries of

being ignored.

All manufacturers of branded FMCG products utilise advertising in one form or another, the

methods and reasons varying only subtly from one to another. The over-riding reason being

to create a high 'top of mind' awareness for a particular brand, be it a chocolate bar or a

soft drink.

In the FMCG (Fast Moving Consumer Goods) sector, product 'benefits' in any category are

extremely similar (drinks, chocolate, chewing gum). In addition the value of the product and

therefore the perceived 'risk' of purchase is also low. The choice of one brand over another

is therefore not carefully analysed and considered.

The choices are typically made on impulse, the majority of consumers tending to prefer a

quick, 'easy' decision, which is aided by a number of factors

(i) Habitual brands - tried and tested.

(ii) Visibility/Import in store.

(iii) 'Top of Mind' awareness

(familiarity with brand name and brand proposition).

The building of this top of mind awareness is therefore of primary importance in the sector.

The other main objective of advertising is communication - giving

your brand a unique selling point, i.e. IRN-BRU's unique taste and

personality. Although media is proliferating with more TV stations,

Radio Stations, as well as new media, (Internet, CD-ROM), it is

now more important than ever for FMCG brands to advertise if

they are to see continued success, for a number of reasons :

(i) Even an established brand needs to top up the

consumer franchise

- new consumers are born every minute!

(ii) Major brands need to maintain a distance between themselves and own label

'copies'.

Advertising is the primary method of doing this by communicating a personality

and brand proposition.

(iii) In addition to own label copies, every FMCG sector has a greater abundance of

competitive brands than ever before, that are all trying to communicate their own

propositions to the end consumer.

Why Advertise Our Brands

IRN-BRU AND ADVERTISING

IRN-BRU's advertising objectives are as unique as the product itself, being quite different in

two countries as closely tied as England and Scotland.

In Scotland advertising needs to consolidate IRN-BRU's position as the number one soft

drink, by being 'seen' as being a major advertised brand and maintaining a high level

of awareness.

This of course is in the context of major competitive presence from brands seeking to

knock IRN-BRU off its number one spot.

In England, IRN-BRU has become widely known over the last few years, but there is more of

a 'communication' job to do in order to translate the fact that IRN-BRU is Phenomenal, it is

unique and a great tasting soft drink, with its own quirky and humourous style.

ADVERTISING EFFECTAdvertising can be effective in a number of ways and therefore needs to be measured in a

number of ways. We undertake studies into the effectiveness of IRN-BRU advertising

throughout the year involving measurement of changes in :

Salience How 'prominent' is the brand ?

- Is it a leading brand ?

- Does it stand out ?

- Is it different ?

Communication How effectively has the brand's proposition been communicated,

'what's so special about this brand' ?

e.g. Kit-Kat - Have a break, have a Kit-Kat

Milky Way - you can eat between meals, without losing your appetite.

Consideration How actively do consumers consider buying your product?

For example, advertising IRN-BRU has different effects in England than

Scotland.

Sales Effect Predictably the ultimate measurement, taken from hard data rather than

consumer research group samples

As well as our internal sales data we use a 'continuous market research'

company who audit sales in a sample of outlets throughout the country.

We can therefore see how successful we are in Garages, Off Licences,

Grocers, or geographically.

In addition to actual sales we receive information on

- Distribution - %age of stores stocking

- Forward Stocks - How much actually on shelf.

- Rate of Sale - How much is sold in an

average outlet stocking

the product.

All research results are analysed and used in the decision-making

process for developing future advertising campaigns to ensure we reach

the targeted audience with an effective message.

THE SOFT DRINKS MARKETAN OVERVIEW

DATA TO 4th NOVEMBER 2006

CARBONATES FLAVOUR SPLIT % SHARE

47%

26%

6%

6%

15%LEMONADE

COLA

OTHERS

SPORTS & ENERGY

MIXERS

Source : ACNielsen Scantrack 52 w/e 04.11.06 (volume)

TOTAL CARBONATESCOMPANY SHARES - ALL OUTLETS

Source : ACNielsen Scantrack 52 w/e 04.11.06 (volume exc Mixers)

46.3%

14.3%

3.8%

26.1%

9.4%

BARR

BRITVIC

CCE

OTHERS

OWN LABEL

OTHER FLAVOURED CARBONATESCOMPANY SHARES - ALL OUTLETS

Source : ACNielsen Scantrack 52 w/e 04.11.06 (volume)

10.7

31.9

12.811.2

33.4

BARRBRITVIC

CCE

OTHERS

OWN LABEL

BARR PORTFOLIO

%

73.5%

3.2%

17.9%

OTHER FLAVOURS

COLA

LEMONADE

WATER

STILL DRINKS

Source : Barr Internal 26 w/e Oct 2006 (volume)

BRAND SHARES - OTHER FLAVOURSVOLUME - ALL OUTLETS

Source : ACNielsen Scantrack 52 w/e 04.11.06

10.2

8.6

6.7

8.2

6.4

3.34.0 4.4

3.0

1.0 0.8 0.90.2

10.7

8.9

7.46.6 7.0

3.93.2 2.9 2.7

1.30.7 0.6 0.2

0

2

4

6

8

10

12

IRN BRU

FANTA ORANGE

SPRITE

FANTA OTHER

DR PEPP

7UP

TANGO ORANGE

TANGO OTHER

LILT

VIMTO

ORANGINA

TIZER

BARRS D&B

52 WE 05.11.05 52 WE 04.11.06

SHARE OF OTHER

FLAVOURS

THE CONSUMER

Source : ACNielsen Scantrack and TNS Worldpanel

The Total Soft Drinks market is worth £5.8bn per year and is growing.

People in Britain consume 7.1bn litres of soft drinks each year and 46% of this is carbonates.

91% of all GB households bought carbonates in the past year.

On average, they each made 25 purchases, totalling an average of £53.01 each.