Staff at the Strathmore Water plant in Forfar have been informed the site is set to close.
The announcement puts 23 jobs at risk.
Owner AG Barr said it intends to discontinue the Strathmore brand this year.
The Irn-Bru producer said Strathmore has “struggled to compete in recent years”.
The closure of the West High Street site is subject to consultation with employees.
Statement on Strathmore Water closure plan
AG Barr acquired the Strathmore Spring water business for £15.5 million in 2006 from Constellation Brands of the US. At that time the company had 80 staff.
Employee numbers have dwindled over the years. After the impact of the Covid pandemic, 13 job losses were made in August 2020, taking staff numbers down to 18.
A spokesperson from AG Barr said: “We have announced a proposal with our Strathmore Water colleagues in Forfar which could see the closure of the site and 23 roles becoming redundant.
“The Strathmore brand has struggled to compete in recent years, and we believe we have now reached a point where the Forfar site is no longer sustainable.
“The proposals are subject to consultation, and we intend to fully support our employees through this period of change.”
Call for ministers to meet with AG Barr
Strathmore Water is sourced from Scotland’s largest underground aquifer, at the Vale of Strathmore, near Glamis Castle.
North East Scottish Conservative MSP Tess White has called for the Scottish Government to take action to try to prevent the closure.
She said: “Strathmore mineral water has been synonymous with Forfar since the 1960s.
“If bottled water has a top-shelf brand, this would be it.
“I am urging John Swinney to instruct ministers to meet AG Barr ahead of the employee consultation on closure. The firm looks to be in good health financially.
“Bosses must ensure there will be an opportunity to keep local staff in work, and to keep the name of Strathmore Springs alive.
“Shutting down such a well-loved and historic product will leave a bad taste in the mouth.”
Angus North and Mearns SNP MSP Mairi Gougeon added: “This news is incredibly disappointing for Forfar and the wider Angus area.
“To hear that such a highly regarded employer as Strathmore Water is potentially facing closure, especially when the parent company is reporting strong financial performance, is difficult to understand.
“I have already taken action and written to AG Barr, Angus Council, and the minister for employment and investment, Tom Arthur MSP, to understand the full implications of this announcement and to ensure that all available support is offered to the affected workforce.
“We need to explore all possibilities to minimise the impact of this potential closure.”
AG Barr focus on ‘improving margins’
The Cumbernauld company, which also makes the drinks Rubicon, Boost and Funkin, saw its sales increase by £20m in the last year.
The update to the stock market reported sales of £420.4m for the financial year ending January 25 2025.
Pre-tax profit was £53.2m compared to £51.3m in the previous 12 months.
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