Robinsons Fruit Shoot recall costs hit Britvic sharesContinue reading the main story
Shares in drinks manufacturer Britvic slumped 13.4% after the company said delays in designing a new cap for its recently-recalled Robinsons Fruit drinks could cost it up to £25m.
The company said it had been unable to "speedily resolve" the issue, and would use an existing cap in the meantime.
It would be six months before demand could be met in full, it added.
Last week, Britvic announced the recall of some Fruit Shoot drinks in the UK due to a "packaging safety issue".
All Fruit Shoot and Fruit Shoot Hydro drinks are being recalled, but not Fruit Shoot My-5. No other Robinsons products are affected.
"It is difficult to be precise as to the full financial implications given the developing situation," Britvic said.
"We believe this will now have an impact on the group profit before tax in the region of £15m to £25m across the current and next financial year."
Customers have been advised to return the bottles to where they bought them in order to get a refund.
According to the Britvic website, the Robinsons Fruit Shoot brand is worth £96m.
Britvic reported in May that trading had been hit by poor weather. On Wednesday it added that trading had not improved in recent weeks, and it now expected full-year profits to be at the bottom end of expectations, even before taking into account the costs of the Fruit Shoot recall.