AG Barr, the company behind Scottish soft drink Irn-Bru, said it is substantially reducing the amount of sugar in its products, in advance of a British tax on sugar-sweetened fizzy drinks.

The company, which also reported a 7 per cent rise in annual profits yesterday, said such reformulation would help to minimise the financial impact of the levy, which was proposed this month and will be based on a drink’s sugar content.

The tax would add to the challenges faced by AG Barr and its rivals such as Britvic and Coca-Cola, which are already grappling with increasingly calorie-conscious consumers.AG Barr has already reduced the average calorie content of its portfolio of products by 8.8 per cent in four years, it said.

Its statutory pre-tax profit rose to £41.3 million for the year to January 30th from £38.6 million a year earlier. – (Reuters)