AG Barr reveals plans to close Leeds office of energy drink brand Boost

AG Barr said it is changing how it sells its products to independent retailers and convenience stores following a review. It will shift from its current telesales-supported model of delivering directly to store, towards a field sales operation through its existing wholesale channels. As a result, it plans to close Barr Soft Drinks direct sales operations at its sites in Moston, Greater Manchester; Wednesbury near Birmingham; and Dagenham, Greater London.

The move will affect up to 160 jobs, and is expected to be completed by the end of June. The company also expects to create a number of new field sales roles, it said.

The drinks firm said it also plans cuts as part of a shake-up at Boost, the energy drinks business it bought in December 2022 for up to £32m. AG Barr said it plans to integrate Boost into its Barr Soft Drinks operation by the end of the year, in a move which will affect 35 workers and lead to the closure of Boost’s Leeds office.

“The proposals are subject to full and proper consultation with impacted employees over the coming months,” AG Barr added.

“The company will do everything possible to support those affected throughout the process.”

The Scottish firm saw its shares rise after it confirmed the deal to buy Boost in late 2022. At the time, it was revealed that the deal involved an initial £20m fee, with potential for a further £12m depending on future sales and revenues.

AG Barr acquired Boost, which was founded in 2001, from the company’s founder Simon Gray, and his wife Alison.

In December 2022, AG Barr told shareholders it believed there was “significant potential” for further growth and development within Boost’s product range.

At the time, Roger White, AG Barr chief executive, said: “Today’s announcement is further evidence of our strategy to continue to grow the business through targeted acquisitions, with a particular focus on developing within high growth and functional categories.”

Speaking in 2022, Simon Gray, the founder and chief executive of Boost Drinks said: "I'm hugely excited to embark on the next phase of Boost’s growth with AG Barr.”

Boost primarily operates in the high growth functional beverage category, including energy, sport and protein.

Last month, AG Barr revealed that the former boss of Saga and Co-operative Group will replace long-standing chief executive Mr White at the helm when he retires later this year. Euan Sutherland will take on the top job from May 1, following Mr White’s previously announced move to step down at the end of April after 21 years in the role.

The announcement came as the firm upgraded its full-year profit outlook thanks to a sales increase of around 7.6 per cent over 2023 and a strong performance in the final six months.