Smoothie maker Innocent has seen the negative effects of its European expansion take hold as it reported a considerable loss last year.
The drinks company saw sales in the UK fall by 17 per cent to £105 million, making a £9.1m loss following a pre-tax profit of £10.1m in 2007.
Innocent, which sold a minority stake to Coca-Cola in April this year, had enjoyed years of aggressive growth since its inception 10 years ago.
Group revenues fell by seven per cent in 2008, with an operating loss of £1.1m excluding one-off items.
But the company reported stronger signs that 2009 had been a better year, with sales in the UK rising by 20 per cent.
Founder Richard Reed told The Telegraph that Innocent is also enjoying its largest-ever share of the UK market and has moved to become the number-one smoothie brand in Europe. He said the company was "comfortable" with last year's operating loss.
Innocent's water brand, This Water, saw sales grow by 57 per cent while its vegetable pots had been successful and the product was on track to exceed £8m of revenues in 2009.
International sales also rose by 82 per cent to £19.6m following the £30m Coca-Cola investment.
A one-off £5.5m accounting charge has been attributed to the Coca-Cola deal - which is said to be “progressing well” - while the bottom line was also hit by £1.4m of unrealised foreign exchange losses that have since swung back as sterling has strengthened.
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