Around 100 workers in Mansfield must be choking on their Irn Bru after AG Barr, maker of the bright orange drink, said it was closing its factory there in early 2011.
As part of the same restructuring, Barr is investing £8m-£10m in its Cumbernauld site in Scotland to increase capacity there.
The news has lifted Barr's shares by 1p to 865p. Analyst Greg Feehely at house broker Altium Securities said:
These proposals are a continuation of the consolidation of the Scottish distribution and manufacturing network which has in our view helped drive the margin expansion that the group has achieved over the past few years.
Whilst short term forecasts will not be impacted by these proposals we feel that the long term return profile for the group should be enhanced. This announcement highlights that the group is highly flexible to the changing demands of the macro environment and management remain forward thinking with the aim of driving long term returns.
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