Irn-Bru maker A.G. Barr has announced that it plans to cut 195 jobs as part of a proposed business reorganisation and integrate the popular Boost energy drink brand with its broader soft drinks unit.
The company also said the reorganisation would result in the closure of its Moston, Wednesbury and Dagenham operations in England that offered direct-to-store service to independent retailers under the 'Barr Direct' model.
Route To Market
'Following a comprehensive review of Barr Soft Drinks' sales and distribution operations we are today announcing a proposal to change the route to market strategy in the important symbols and independent retail channel,' the company said in a statement.
'The current direct to store delivery model, supported by telesales, would move to an enlarged and enhanced field sales operation with brands directly supplied through existing wholesale channels.'
On the integration of Boost into the Barr Soft Drinks division, the group said that it was prompted by a manufacturing in-sourcing programme that was initiated in December 2022, which led to margins improving.
The integration would 'result in a reduction in duplicated activities and access to the wider Barr Soft Drinks sales channels and organisation', it noted, adding that expects that the brand would be fully integrated by the end of the year, subject to consultation.
New Chief Executive
The announcement comes a month after the company said former Saga Plc boss Euan Sutherland, a veteran in the consumer goods industry, would take over as CEO from May 1.
Last month, the Irn-Bru maker forecast an about 14% rise in annual profit at £49.5 million (€57.82 million), slightly ahead of market view, partly helped by strength in its specialty coffee business and price hikes.
The Boost brand was acquired in a £32 million (€37.44 million) deal in late 2022 and was run as a standalone business.
Additional reporting by ESM
