British soft drink producer Brittvik (LON:BVIC) saw the stock gather during trading Tuesday.
The franchise bottling agreement covers the production, distribution, marketing and sales of PepsiCo carbonated soft drink brands, including Pepsi, 7UP and Mountain Dew in the UK.
The agreement represents an extension of the existing partnership, which began in 1987 and has been extended until at least 2040, and also includes PepsiCo’s Rockstar Energy brand.
The company also announced that by the end of 2022 it intends to make all the plastic bottles in the UK from recycled plastic. This was three years before initially planned. The change covers Britique and PepsiCo brands across the UK portfolio, marking a notable step towards a prominent family name that seriously embraces sustainability and adopts a circular economy.
Speaking about the announcement, Brittvik CEO Simon Litherland said:
“We are pleased to have officially expanded our relationship with PepsiCo in the UK for another 20 years. The strong combination of Britique ownership and PepsiCo’s portfolio will provide our customers and consumers with a wide range of great taste brands for every opportunity. We are excited to offer Rockstar and look forward to working together to grow our brand.”
“The announcement of the intention to move to 100% recycled PET in GB by 2022 is a key moment for Britvic and Pepsico’s partnership, demonstrating our joint commitment to protecting the planet for today and for future generations. Both Britvic and Pepsico have sustainability at the heart of our business strategy. We will continue to work together to realize our shared ambitions to protect the environment and provide healthier choices in the coming years.”
The company added that more than expected trading over the peak summer period is projected to mean that full-year EBIT is “slightly ahead” of current market consensus, meaning that it will benefit from trading from reopening UK hospitality after early July.
Following the update, Brivic shares increased by 6.80% or 51.00p to 801.50pa Share 20/10/20 13:40 BST. This current price is below the consensus price target of 880.91p and below the 6-month high of 866.00p.
Currently, analysts have a consensus “buy” rating for stocks, a 54.23% “outperform” rating from the market beat community, and an AP/E ratio of 12.55 below the consumer defense average of 13.91.
