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(Alliance News) - AG Barr PLC on Thursday said it will cut 195 jobs, as it restructures the business.
The Glasgow, Scotland-based maker of soft drinks such as Irn-Bru, Rubicon and Funkin updated shareholders on its business reorganisation.
Following a comprehensive review of Barr Soft Drinks' sales and distribution operations, the company said it is proposing a change to its market strategy.
"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," it said.
AG Barr noted that proposals with impact up to 160 employees, however it is expected that additional field sales roles will be created to support the new route to market.
It could also result in the closure of its direct operations at Moston, Wednesbury and Dagenham and could be completed by the end of June.
Following the acquisition of Boost Drinks in December 2022, AG Barr began a manufacturing in-sourcing programme of Boost's products to the Barr Soft Drinks division, delivering margin improvement as a consequence.
"The group is now announcing a proposal to fully integrate the Boost business into Barr Soft Drinks which would result in a reduction in duplicated activities and access to the wider Barr Soft Drinks sales channels and organisation," AG Barr said.
The proposal impacts 35 employees and would lead to the closure of the Boost Leeds office. It is expected to be completed by the end of the year
"The proposals are subject to full and proper consultation with impacted employees over the coming months. The company will do everything possible to support those affected throughout the process," it added.
Shares in AG Barr are up 2.1% to 537.85 pence each in London on Thursday afternoon.
By Sophie Rose, Alliance News senior reporter
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