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A consumer stock poised to fizz again

Recent acquisitions could recharge this iconic beverage business’s bottom line
August 31, 2023

Change at the top of a company can be pivotal. That may be especially true when it comes to a company which, in the words of analysts at Shore Capital, has been led by “one of the most effective, distinguished, and decent CEOs in the British food and drink scene for a generation”.

Tip style
Growth
Risk rating
Medium
Timescale
Long Term
Bull points
  • Defensive brands
  • M&A potential
  • Net cash position
  • Attractive valuation
Bear points
  • Lacklustre recent growth
  • Margin pressure

This is the situation Cumbernauld-based AG Barr (BAG) finds itself in, after it confirmed last month that boss Roger White will depart in the next 12 months. White has led the business for two decades, making this a significant moment for the Scottish drinks company. Given his success – marked by the shares’ 11 per cent average annual total return during White’s tenure – it seems safe to assume that a successor will build upon the operating culture the incumbent has honed, rather than rip up the rule book. 

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