Irn-Bru maker to axe 90 jobs as shoppers cut back on sugary drinks

IRN-BRU maker AG Barr has announced plans to slash 90 jobs.

Total revenues fell 4 per cent to £125.6million for the six months ending in July as customers reacted to ‘negative media coverage’ about sugary soft drinks.

The Cumbernauld-based firm said it would axe about 90 positions – 10 per cent of its workforce – as part of a restructure. The overhaul will cost about £4million and impact commercial, supply chain and central operations.

Chief executive Roger White said the company had delivered a strong first-half performance despite a challenging trading environment.

He added: ‘Lower and no-sugar products performed better as consumers respond to the significant weight of negative media coverage pointed towards added sugar products.’

Pre-tax profits rose 24 per cent to £21.1million over the period, boosted by a move to close the

‘Uncertain situation set to remain’

defined benefit pension scheme. Revenues were down 2.8 per cent on a like-for-like basis.

AG Barr said Irn-Bru Xtra, a sugar-free version of Scotland’s favourite soft drink, was performing well and would make a ‘material contribution’ to the business.

The company also said it was on track to deliver a rise in full-year pre-tax profits as it banks on strong trading over Christmas.

Meanwhile, department store chain House of Fraser reported flat sales over the six months to July 30 and a 2 per cent drop in sales over the eight weeks to September 24.

Chief executive Nigel Oddy said: ‘We expect this uncertain economic situation to remain for some time.’

However, the group is ‘cautiously optimistic’ of bouncing back over the festive season.

House of Fraser, which grew from a single store in Glasgow, blamed the decline partly on low consumer confidence.