Britvic steps up U.S. Fruit Shoot roll-out as profits rise

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By Neil Maidment

LONDON, May 21 (Reuters) - British soft drink maker Britvic (Munich: B6S.MU - news) said its Fruit Shoot drink was now available across the United States, a milestone in its drive to create international brands.

The company, which also makes drinks such as Tango, as well as PepsiCo (NYSE: PEP - news) brands Pepsi and 7UP in Britain and Ireland (Other OTC: IRLD - news) , reported a 14 percent rise in first-half operating profit, broadly in line with an average analyst forecast.

It currently makes 70 percent of revenue in Britain, but hopes to franchise brands such as Fruit Shoot and Robinsons squash in developed and emerging markets in coming years.

Britvic (LSE: BVIC.L - news) raised its interim dividend by 13 percent to 6.1 pence. Its shares were up 4.7 percent to 727.5p at 0842 GMT.

Britvic signed a 15-year manufacturing and distribution deal with PepsiCo Americas Beverages (PAB (Shenzhen: 000001.SZ - news) ) in November to roll out Fruit Shoot to 41 U.S. States and on Wednesday said more deals with PAB and independent bottlers had now secured full coverage.

The push, which will focus initially on the single serve, rather than multi-pack market, is part of a wider international expansion that saw Fruit Shoot launched in Spain last year, with entry into India slated for July. The company also exports to over 50 countries globally.

Chief Executive Simon Litherland told Reuters there were plenty of opportunities for expansion in Latin America, South Africa and Asia, although much hinged on finding manufacturing and distribution partners, as it sticks to an asset-light expansion strategy where investment is funded by cost cuts across factories and resources in its home market.

In the U.S. the firm now has a 15-20 percent share of the "single-serve kids" category and has deals with retailers such as 7-Eleven and Costco. Fruit Shoot is also now the number one children's brand in France, the firm said, and had been growing in the Netherlands, Belgium and Australia.

Litherland said it was trialling an offering in the more lucrative multi-pack market for Fruit Shoot in a couple of U.S. States, although a full roll-out would not come this year.

Reporting its first-half results, Britvic said operating profit for the 28 weeks to April 13 had risen to 59 million pounds, slightly ahead of a consensus forecast of 57.7 million, and it remained on track to post operating profit of between 148 million and 156 million pounds for the full-year.

Revenue in the period rose 4.7 percent to 670.7 million pounds ($1.13 billion), with volumes up 3.9 percent and average prices up 0.8 percent. Demand for Pepsi and Tango led the growth in Britain, with price hikes boosting its stills arm. ($1 = 0.5935 British Pounds) (Editing by Sarah Young and Tom Pfeiffer)