Proposed factory closure puts Strathmore Water jobs at risk

The company announced the proposed closure of the distribution site after revealing its annual results for the year ending January 25, 2025.

The proposed closure of West High Street premises will see 23 jobs subject to redundancy.

It comes after the Cumbernauld-based drinks group – whose brands include Irn-Bru, Rubicon, Boost and Funkin – reported a 15.8% increase in adjusted profit before tax to £58.5m. This was driven by strong 6.4% growth in soft drinks including a “standout performance” from Rubicon.

AG Barr also stated its position of £63.9m net cash in the bank.

The company acquired the Strathmore Spring water business for £15.5 million in 2006 from Constellation Brands of the US. At that time the company had 80 staff.

The number of employees has reduced since then, and following the Covid pandemic, 13 jobs were lost in August 2020, taking staff down to 18.

A spokesperson from the company said the move had been prompted by the brand’s recent performance in the market.

They said: “We have announced a proposal with our Strathmore Water colleagues in Forfar which could see the closure of the site and 23 roles becoming redundant. The Strathmore brand has struggled to compete in recent years, and we believe we have now reached a point where the Forfar site is no longer sustainable.”

The spokesperson added: “The proposals are subject to consultation, and we intend to fully support our employees through this period of change.”

Chief executive Euan Sutherland said: “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.”

Responding to the news, Angus North and Mearns MSP Mairi Gougeon expressed concern for staff and the future of the Forfar site.

Ms Gougeon said it is a “significant blow to Forfar”, particularly in light of AG Barr’s published financial report.

She also said that, the decision to consider the Forfar site "no longer sustainable" is deeply troubling.

Ms Gougeon said: "To hear that such a highly regarded employer as Strathmore Water is potentially facing closure, especially when the parent company is reporting strong financial performance, is difficult to understand.

"I have already taken action and written to AG Barr, Angus Council, and the Minister for Employment and Investment, Tom Arthur MSP, to understand the full implications of this announcement and to ensure that all available support is offered to the affected workforce.

"We need to explore all possibilities to minimise the impact of this potential closure on the local economy and the community.

"I will be working closely with Angus Council and other stakeholders to understand what options may be available for the site going forward."

North East Scottish Conservative MSP Tess White has also called for the Scottish Government to take action to try to prevent the closure.

She said: “Strathmore mineral water has been synonymous with Forfar since the 1960s. If bottled water has a top-shelf brand, this would be it.

“I am urging John Swinney to instruct ministers to meet AG Barr ahead of the employee consultation on closure. The firm looks to be in good health financially.

"Bosses must ensure there will be an opportunity to keep local staff in work, and to keep the name of Strathmore Springs alive."