THE Scottish firm behind the much-loved soft drink Irn Bru has announced it will close its office in England, leading to 29 jobs being lost.
AG Barr announced it had made the “difficult decision” to close its Hexham-based office, with its operations at the Northumberland site being wound down over the summer.
The firm said it had sought to integrate the Hexham-based botanical brewery and fizzy drinks brand Fentimans after it acquired the business for £38 million in February.
In a statement, AG Barr confirmed that 29 workers would be made redundant, with seven Fentimans staff being kept on with the firm.
“Following a thorough consultation process, we have taken the difficult decision to close our Hexham office, with a phased wind-down taking place over the summer,” an AG Barr spokesperson said.
“This was not a decision taken lightly, but one that will ensure the long-term integration and continued growth and success of the Fentimans brand within the AG Barr Group.”
The spokesperson added that the welfare of its affected colleagues was their number one priority.
They added: “We have conducted individual consultations with every team member and provided comprehensive support, including identifying internal opportunities across the wider business, providing dedicated outplacement services, and offering enhanced redundancy packages.
“We are pleased to see that many affected colleagues have already secured new roles.”
Cumbernauld-based AG Barr unveiled the acquisition of Fentimans in February, along with the juice business Frobishers, based in Devon, for a combined total of £51m.
AG Barr said at the time it made the expansion after reporting a “strong” financial year, with increases in sales and profitability, which it said had put it on track for double-digit growth in underlying pre-tax profits for the year to January 31.
Annual revenues rose to around £437m, up 4% on the previous year, and earnings were also helped by ongoing cost savings and investment in its supply chain.
It added the brands to its existing stable, led by Irn-Bru and also including Rubicon, energy drink Boost, and the Funkin cocktails range.
The firm said the acquired brands operate in the adult soft drinks market, “which is benefitting from the consumer trend of reduced alcohol consumption”.
“These acquisitions reflect the execution of further meaningful and targeted mergers and acquisitions to elevate growth through broadening the brand portfolio while providing opportunities for cost synergies,” the company added.
