Day-to-day control of AG Barr passed to a non-family member in 2004, when Roger White was appointed chief executive. Now Robin Barr is being succeeded as chairman by Ronnie Hanna, currently chairman of oil and gas company Bowleven, who has already sat on the AG Barr board for five years as a non-executive director.
Yet, Robin Barr, who still owns almost 6.5% of the publicly listed company, will remain as a non-executive director. He will also pay a monthly visit to the Blending Room at AG Barr’s plant in Cumbernauld near Glasgow, to concoct a new batch of concentrate for the company’s most famous beverage, Irn-Bru.
The fourth generation of the family to work in the business, Robin Barr still guards the secret Irn-Bru recipe jealously. “I’m not ready to pass that on just yet,” he told The Scotsman. “I’ll keep coming in every three weeks or so to mix the ingredients which form the Irn-Bru essence.
“I put it together in an 8,000-litre vat, and it’s then shipped to all the factories to make up the drink. No one else is allowed to do it. I’ve never been able to take holidays of more than a fortnight.”
Barr didn’t say whether there are any plans to modify the recipe by replacing two controversial colourants, E110 (Sunset Yellow) and E124 (Ponceau 4R), which some research has linked with hyperactivity in children. The colourants give Irn-Bru its distinctive orange hue, which seems to add plausibility to one of the brand’s historic advertising slogans: ‘Made in Scotland from girders’.
Also described as ‘Scotland’s other national drink’, Irn-Bru out-sold Coca-Cola on the Scottish market for decades, though Coke now claims a narrow lead.
The Barr soft drinks business was founded in 1875 by Robert Barr, great-grandfather of Robin. Robert Barr was later joined by his son Robert Fulton Barr, and then by another son, Andrew Greig Barr, to whom the company owes the ‘AG’ in its name.
The company’s flagship beverage was launched in 1901 as Iron Brew, and became a national favourite in the early years of the 20th century thanks to its winning flavour and shrewd marketing. The drink was endorsed by a succession of sporting heroes such as all-round athlete Donald Dinnie and champion caber tosser and wrestler Alex Munro.
The brand name was phoneticised as Irn-Bru to avoid potential trade description problems, after Robin Barr’s father Robert became chairman in 1947. Under his leadership, AG Barr was floated on the stock exchange in 1965, and expanded outside Scotland by buying England’s popular Tizer brand for £2.5m in 1972.
Robin Barr took over as chairman in 1978, and continued the process of expansion and beverage diversification. In 2006, Strathmore Spring Water was acquired and the energy drink Irn-Bru 32 was launched. Last year, the company also took over Taut sports drinks, Vitsmart functional water and Rubicon juice drinks.
Meanwhile, Irn-Bru has grown into a true international brand, sold in many European countries, including Russia, and as far afield as North America and Australia. The brand is particularly known in the UK for its irreverent ads, which delight fans as much as they enrage some critics.
Commenting on his decision to step down as chairman, Robin Barr said: “Now is the right time. The business is in excellent shape, with a strong and stable executive team. I have great confidence in handing over to Ronnie Hanna, who will provide the leadership, experience and drive to maintain the positive momentum in the business despite the current difficult economic times.”
Hanna said: “I look forward to taking up the role of non-executive chairman of this iconic Scottish company. I would like to pay tribute to Robin, who has overseen the substantial development of the business during his 31 years as chairman.”
Jonathan Warburton, chairman of the Warburtons bakery business, will also join the AG Barr board as an independent non-executive director. Barr was expected to announce 2008 profits of about £22.7m at the end of March – up 9% on 2007.
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