Forest of Dean key employer Suntory Beverage and Food GB&I saw growth of 4.9% in the latest year while profit climbed by £8.4m.

After Tokyo-based holding company Lucozade Ribena Suntory (LRS) bought the Lucozade and Ribena brands from Glaxo Smith Kline in September 2013 for £1.35bn, the latest results seem to underline a smart move that is resisting economic headwinds.

Staff at the Royal Forest Factory in Coleford will be buoyed by the headlines which show that sales revenue at the soft drinks supplier grew 4.9%, to £542.9m in the year to December 31, 2023, while profit before tax fizzed up by £8.4m to £109.2m. 

LRS reports that it outperformed on all key metrics with the sole exception of gross profit margin, which fell from 49.8% in 2022 to 48.2% in 2023.

Daniel Lander, finance director, Suntory Beverage and Food GB&I, said the good news could be attributed to "a continued focus on our long-term revenue strategy, targeted cost saving and inflation mitigation."

Despite industrial action over pay at the supplier's Coleford factory in February, which was then followed by a shutdown in production after the tragic death of a worker  at the site in April, global demand for soft drinks has been on the march – and bearing up against inflationary pressures.

A statement from the board said: "The company has a continued focus on the long-term revenue strategy and inflation mitigation to ensure the company continues meeting the changes in consumer needs. The company continued with its efforts to build and focus on strengthening key customer and supplier relationships, operational efficiency at its manufacturing site in Coleford, brand positioning and new marketing activities including distribution and brand development."

It added: "These results and activities have been accomplished against tough economic circumstances as a result of unprecedented inflation."

In a recent interview with the website TalkingRetail, Matt Gouldsmith, channel director for wholesale at Suntory Beverage and Food GB&I, said that economic strains pushed customers toward value "but not at the cost of enjoyment, as seen in the 4.7% increase in 'treat for today' purchases".

A top-ten of UK drinks bought for instant use, compiled by PlanforProfit identifed Red Bull 250ml
 as the number one seller, followed by Monster Original 500ml, with Coca-Cola 500ml and 300ml taking third and fourth spots. Oasis came fifth with a Summer Fruit 500ml option and Dr Pepper, in the same measure, came sixth. Lucozade Orange 500ml held seventh spot, before Lipton Peach Ice Tea 500ml and Volvic Water one-litre. Lucozade also bagged 10th position though, with Sport Orange 500ml. In the take-home market, Lucozade held third position with its 900ml Orange product.

The degree to which this success is attributable to product placement and sponsor deals will be one for the marketing department to consider, but Lucozade's marketing profile certainly hit the back of the net across media this year with the signing for an undisclosed sum in May of star England and Real Madrid midfielder Jude Bellingham, just ahead of the Euros.

Mr Bellingham stands alongside such legends as heavyweight boxing champion Anthony Joshua and dynamic England rugby fly-half Marcus Smith in his association with the drink. Mr Joshua swung by to jest with staff at Coleford last year, but Mr Bellingham is yet to be seen.

Articulating credible enthusiam for the deal, Mr Bellingham said: "If you've played sport at any level in the UK, you know that Lucozade Sport is the go-to drink associated with sporting performance. My brother and I used to watch our dad play football and I always remember him having one in his hand. So to now be working with such an iconic brand is massive for me - I'm looking forward to Bringing the Energy with them this summer and beyond!"

Despite cost of living pressures, there is an "increased appetite from shoppers to buy into the soft drinks category," Mr Lander said. LRS's brand positioning, distribution strategy and "gemba-focused mindset" was key to meeting customer needs, he added.

While he added that in 2024, after these figures, had been "incredibly difficult", the challenges faced by LRS "shouldn't distract from" its achievements.

He added: "Operational efficiency at our manufacturing site in Coleford remains an absolute priority so we can deliver improved service to our customers."