Irn Bru maker AG Barr is planning to cut 195 jobs and shut down several facilities as part of a reorganisation of its soft drinks sales and distribution operations.
The company, based in Cumbernauld in Scotland, said the changes would affect Barr Direct and the Barr Soft Drinks division.
“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,” the company said in a stock exchange update. Up to 160 employees could be affected, but the company expects to create additional field sales roles.
The proposed changes, which are subject to consultation, could lead to the closure of operations in Moston, Wednesbury and Dagenham by the end of June. In addition, following the acquisition of Boost Drinks in December 2022, AG Barr is now proposing to fully integrate Boost into Barr Soft Drinks, which could result in fewer duplicated activities and access to wider sales channels. This integration is expected to be completed by the end of the year, subject to consultation.
The plan affects 35 employees and could result in the closure of Boost’s Leeds office, reports Insider.co.uk.
AG Barr has pledged to provide as much support as possible to those affected during this process.
Danni Hewson, AJ Bell’s head of financial analysis, remarked: “Streamlining the business makes sense, but it comes with a price – almost two hundred jobs are set to go as the drinks maker looks to close several sites and integrate 2022 acquisition Boost Drinks more neatly into the organisation.”
“The business has been able to pass on increased prices to consumers, lifting profits above expectations, but it’s a competitive market and what worked in the past might not be fit for the future as its direct to store model is facing the chop.”
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Original artice – https://business-live.co.uk/all-about/yorkshire-humber
