Irn-Bru maker AG Barr has announced proposals that could result in 37 job losses at Fentimans following its £38m takeover of the soft drinks brand
Staff at a popular soft drinks company have been told there will be job cuts following a takeover by the manufacturer of Irn-Bru.
The new proprietors of Fentimans soft drinks have revealed plans for job cuts at its existing North East headquarters. The Hexham-based company was snapped up earlier this month by Irn-Bru manufacturer AG Barr in a £38m transaction.
However, the new owners have now unveiled proposals for the business that could lead to 37 redundancies, representing the bulk of its workforce. It’s believed that Fentimans’ Northumberland site would shut down under the plans.
The proposals would sever Fentimans’ ties with Hexham, stretching back to the early 1990s. The firm was initially housed in premises tucked behind the market town’s high street before relocating to an industrial park on the outskirts in 2015.
AG Barr confirmed deals to acquire Fentimans alongside South West soft drinks manufacturer Frobishers for a combined £50m. At the time, the firm’s chief executive Euan Sutherland described the acquisitions as “in line with our strategy of enhancing our organic growth with mergers and acquisitions.”
Confirming the redundancy proposals, an AG Barr spokesperson stated: “We acquired Fentimans for the opportunity to invest in and grow the brand for the long term. As part of that process, we have reviewed how best to integrate the business to ensure it is set up for sustainable future success.”, reports Chronicle Live.
“Yesterday we shared with colleagues a proposal which, if adopted, may result in 37 redundancies. This proposal is subject to a formal consultation process, and no final decisions have been made. We recognise that this is an unsettling time for those affected and our priority is to provide our colleagues with our full support throughout this process.
“We are fully committed to the Fentimans brand, its heritage, and its future growth. Our intention is to help strengthen the brand and create a sustainable platform for long-term investment and greater success as part of the AG Barr portfolio.”
Fentimans traces its roots back to Yorkshire in 1905, when it was established by iron puddler Thomas Fentiman. The business shuttered in the 1960s before being brought back to life by Eldon Robson, a descendant of the founder, after he discovered an original recipe for one of its fizzy drinks.
The company has expanded considerably in recent years, achieving a turnover of approximately £40m, with a substantial chunk generated from export sales across the globe. The brand has built its reputation on distinctive flavours including Rose Lemonade, Curiosity Cola, Mandarin and Seville Orange Jigger and Raspberry Lemonade.
