AG Barr to discontinue Strathmore water brand

Drinks firm AG Barr is intending to discontinue its Strathmore mineral water brand later this financial year.

Subject to employee consultation, the decision could lead to the closure of the brand’s small manufacturing site in Forfar, Scotland.

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.

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

It 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.

The drinks giant announced these measures as it reported its financial performance for the year ended 25 January 2025. 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.

AG Barr’s strategic programme to rebuild operating margin is ahead of plan, with adjusted operating margin up 130 basis points to 13.6%. 

As trading is in line with expectations, the business expects to deliver another year of revenue growth and margin improvement in 2025/2026.

Chief executive Euan Sutherland said: “2024/25 was a successful year for the company.

“Looking forward, we have a refreshed strategy centred on growth and are committed to our long-term financial targets. I am confident that successful execution of our plans will see another year of positive progress towards our long-term goals.”