AG Barr, the company behind Irn Bru, has announced a restructuring plan aimed at overhauling its sales and distribution for soft drinks. This strategic shift involves discontinuing some of its current operations and could lead to the elimination of 195 positions.
Specifically, the company intends to transition from its existing direct-to-store delivery model, which relies on telesales, to a more expansive field sales approach. This new strategy will utilize existing wholesale channels for distributing its brands directly.
The restructuring will see the closure of facilities in Moston, Wednesbury, and Dagenham by the end of June, affecting up to 160 jobs, although there are plans to introduce new field sales positions.
AG Barr’s recent acquisition of Boost Drinks is expected to be fully integrated into its Barr Soft Drinks division. This integration aims to streamline operations, reduce redundancy, and expand sales channels, potentially closing Boost’s Leeds office and impacting 35 employees.
AG Barr has committed to supporting impacted employees throughout this transition.
Danni Hewson, from AJ Bell, noted that while the company’s move to streamline operations and adapt its business model makes sense, it does result in significant job losses. She added that despite AG Barr successfully passing on price increases to consumers, thereby boosting profits, the competitive nature of the market necessitates a reevaluation of its direct-to-store model.
