AG Barr has revealed that it is in discussions with a potential buyer for its Strathmore bottled water brand.
The drinks group, which owns Irn-Bru and Rubicon, revealed in March that it planned to discontinue Strathmore as part of a wider restructuring aimed at simplifying its operations and boosting profits. The water brand was said to have “struggled to compete” in recent years with its small manufacturing facility in Forfar, Scotland “no longer sustainable”.
However, AG Barr issued a short stock exchange filing yesterday, which said: “The company is pleased to announce that it has now entered into exclusive discussions with a third party regarding a potential disposal of the Strathmore business.
“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.”
No mention was made of who the potential buyer may be.
AG Barr first acquired Strathmore from Constellation Brands for £15m back in May 2006.
The company’s restructuring plan will also see AG Barr integrate its Funkin cocktail unit, acquired a decade ago, into its wider drinks operation.
Analysts noted that the efficiency drive will support AG Barr’s strategy to rebuild margins, which have been under pressure in recent years due to a series of trading challenges and cost hikes.
The group’s revenues rose 5.1% to £420.4m over the year to 25 January 2025, while adjusted pre-tax profits grew 15.8% to £58.5m. The performance was driven by Rubicon and continued growth from Irn-Bru, with distribution gains and new product launches playing a key role.
