Soft drinks giant AG Barr is looking to offload Strathmore water just one month after announcing it was scrapping the brand completely, as part of a wider restructure designed to boost profits and simplify the company’s structure.

In an announcement to the London Stock Exchange this morning (30 April), the maker of Irn-Bru, Rubicon and Funkin said it is now in early talks with a potential buyer for the bottled spring water brand.

AG Barr’s previous update outlined the company’s intention to discontinue the brand before the end of this financial year. At the time, it said the potential disposal could lead to the closure of the company’s Scottish manufacturing facility.

Today’s announcement said it was “pleased to announce that it has now entered into exclusive discussions with a third party regarding a potential disposal of the Strathmore business”. 

While it remains unclear who the potential buyer may be, AG Barr was careful to add the discussions remain at an early stage, meaning “there can be no certainty that a transaction will ultimately occur”.

AG Barr first acquired Strathmore – then known as the Strathmore Mineral Water Company – from Constellation Brands for £15m, back in May 2006. 

In its latest set of annual results, reported on 25 March, the company reported a 5.1% rise in revenue to £420.4m for the year to 25 January, with pre-tax profits rising by 15.8% to £58.5m.

AJ Bell investment director Russ Mould said at the time that despite these record annual profits, profit margins remained low “after a torrid series of challenges and cost pressures” over the past five years.

AG Barr has said further announcements will be made as and when appropriate.