The brand - which is distributed across the UK - comes from a 50-year filtration process through the sandstone layers of the Vale of Strathmore, after which it is named. It comes in both still and sparkling varieties.
AG Barr acquired the brand in 2006, but says the decision to scrap it is part of the company’s efforts to simplify its structure and boost profits.
The move could mean the closure of a small manufacturing site in Forfar, Scotland, subject to employee consultation, with around 24 jobs reported to be affected.
The announcement was made in AG Barr’s 2024/2025 results this morning, where the company saw revenue increase 5.1%, driven by Rubion and IRN-BRU.
The strategy of simplifying structure appears to be working for AG Barr. Adjusted Profit Before Tax was £58.5m, representing growth of 15.8%. An organisational simplification has been integrating the Barr Soft Drinks and Funkin businesses into an AG Barr operation, streamlining activities and fostering synergies.
It is now predicting another year of revenue growth and margin improvement.
“This year has marked another period of sales growth,” said Mark Ellen OBE, chair of AG Barr. “This has been achieved despite the much-publicised economic headwinds and financial pressures on consumers, which have continued to influence the markets in which we operate. We have navigated these challenges effectively across the year to deliver a strong set of results.
“We have continued to invest in our brands, people and capital asset base and made significant progress with our margin rebuild plans. This puts us in a strong position to deliver sustained growth in the future.”
While the Strathmore closure will create some financial implications, that has not deterred analysts.
“Despite forthcoming UK government-imposed costs headwinds [such as the Extended Producer Responsibility scheme for packaging] of around £4.5m, and the impact from the closure of the Strathmore water activities, we leave our FY26F forecasts unchanged," said Darren Shirley, Equity Research Analyst - Consumer, at Shore Capital Partners.
“We welcome AG Barr’s building track record of consistent attractive growth in recent years.”
