By Sinchita Mitra

(Reuters) – The chief executive of IrnBru, a Scottish soft drink maker, said Tuesday that prices will remain the same for six months. However future increases in inflation are possible.

A.G. Barr, which is responsible for the bright orange IrnBru drink, increased prices last month after the price of inflation reached a record high. Many businesses have passed on the increased costs to their customers.

Roger White, chief executive of A.G. Barr said that while prices might need to rise further, the current levels will be sufficient for six months.

Price does play a part. White spoke about possible future inflation increases and said that he wouldn’t rule out the possibility.

According to him, the group is focusing on cost cutting measures such as using lower packaging and closer proximity to retailers.

After A.G. Barr reported an 18% increase in its annual profits and stated that it will now pay dividends to shareholders after having paused them during pandemic.

White explained that the company has seen a greater consumption of food at home during the pandemic. However, there has been “slightly reversal” as more restaurants and pubs re-opened.

White stated that A.G. Barr will not fulfill any orders from Moscow Brewing Company (its Russian franchisee) due to the Ukraine crisis. However, he said it had not ended the contract.

A.G. Barr shares were 2.4% higher as of 1056 GMT at the London Stock Exchange.

A.G. Barr stated that sales during the first weeks of the financial year were up significantly compared to the previous year, and was in line with the expectations.

($1 = 0.7639 pounds)