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Soft drinks company Fentimans is targeting growth in the US after a transformational year saw it set up a new subsidiary across the pond.

The Hexham-based firm has posted accounts for 2019, which detail how it has reset its operational base in the US, moving away from a distributor model and setting up a new wholly-owned trading subsidiary.

It said the new US operation in Pittsburgh will provide Fentimans with a clear focus and strategy, giving access to both the on and off trade in the world’s largest consumer market.

The move led to exceptional restructuring costs of £5.14m during the year, ultimately impacting the firm’s bottom line for 2019, converting last year’s overall income for the year of just under £1m to a loss of £4.23m.

Fentimans, which employs 65 people, said 2019 was another year of positive growth with revenues up 2.5% to £41.4m, and an increase in export sales and º£½ÇÊÓƵ sales, set against a backdrop of challenging conditions driven by Brexit uncertainty, poor weather over the summer months and a full year impact of the soft drinks industry levy.

Export sales were £15.9m, accounting for 38% of sales, a 1.6% increase over the previous year, while º£½ÇÊÓƵ sales were 3.3% ahead of 2018.

It said that its top line growth helped the group achieve the small underlying operating profit, before the US exceptional item, of £9,000.

In his report accompanying the accounts, Fentimans’ founder Eldon Robson said: “Whilst this period of transition in the US resulted in significant international transition costs as we restructured our US operational model, Fentimans now has a clear focus and strategy in the US market, controlled and managed within the group. It should be noted that despite the above challenges Fentiman grew market share in the º£½ÇÊÓƵ in 2019, recognising we outperformed our key competitors.