AG Barr to change direct to store delivery model and fully integrate Boost business

AG Barr, the branded multi-beverage business with a portfolio of market-leading UK brands, including IRN-BRU, Rubicon, FUNKIN and Boost, has on Thursday announced a business reorganisation, which would see it change its delivery model to independent retailers.

The group has also announced plans to fully integrate the Boost business, which it acquired in December 2022, into Barr Soft Drinks.

The move is expected to affect a total of around 200 jobs.

Following a comprehensive review of Barr Soft Drinks’ sales and distribution operations, the company announced a proposal to change the route to market strategy in the important symbols and independent retail channel.

The current direct to store delivery model, supported by telesales, would move to an enlarged and enhanced field sales operation with brands directly supplied through existing wholesale channels, AG Barr said.

The proposal would impact up to 160 employees, however it is expected that additional field sales roles will be created to support the new route to market, the company added.

The proposals could result in the closure of the company’s direct operations at Moston, Wednesbury and Dagenham and could be completed by the end of June.

Following the acquisition of Boost Drinks, the group commenced a manufacturing in-sourcing programme of Boost’s products to the Barr Soft Drinks division, delivering margin improvement as a consequence.

The group has now announced a proposal to fully integrate the Boost business into Barr Soft Drinks which would result in a reduction in duplicated activities and access to the wider Barr Soft Drinks sales channels and organisation.

The proposal is set to affect 35 employees, and would see the closure of the Boost Leeds office. It is anticipated that the integration would be completed by the end of the year.

The proposals are subject to consultation with impacted employees over the coming months.