AG Barr considers selling Strathmore

AG Barr is now exploring the sale of its Strathmore mineral water brand instead of discontinuing it, as it previously considered.

The drinks supplier has entered into exclusive discussions with a third party regarding a potential disposal of the Strathmore business.

The company said: “These discussions are at an early stage and there can be no certainty that a transaction will ultimately occur. Further announcements will be made as and when appropriate.”

In AG Barr’s full year results for the 12 months ended 25 January 2025, it revealed an intention to discontinue Strathmore later this financial year.

If it goes ahead with phasing out the brand, it could lead to the closure of its small manufacturing site in Forfar, Scotland.

At the time of the announcement in March, AG Barr said the move was part of its strategic programme, focused on both top line growth and margin enhancement.

Strathmore is currently available in still and sparkling varieties and sold in 330, 500 or 750ml glass and PET bottles. Its Scottish spring water is drawn from beneath the Vale of Strathmore.

The firm is also planning to simplify its Barr Soft Drinks division, which includes brands such as Irn-Bru and Rubicon and the Funkin ready to drink cocktails businesses, into a unified AG Barr operation.

In the last financial year, the company’s revenue increased by 5.1% to £420.4m, driven by strong growth in soft drinks, which were up 6.4%. This was led by a standout performance from Rubicon and continued strong growth from Irn-Bru, with distribution gains and successful new product launches playing a key role.