The new owner of Fentimans has set out plans for the UK mixers firm that could lead to job cuts.

AG Barr, the UK soft-drinks group behind brands including Irn-Bru and Funkin', said the "proposal ... may result in 37 redundancies" at Fentimans, which is based in north-east England.

The plan is "subject to a formal consultation and no final decisions have been made", an AG Barr spokesperson said.

The spokesperson added: “We acquired Fentimans for the opportunity to invest in and grow the brand for the long term. As part of that process, we have reviewed how best to integrate the business to ensure it is set up for sustainable future success.

"We are fully committed to the Fentimans brand, its heritage and its future growth. Our intention is to help strengthen the brand and create a sustainable platform for long-term investment and greater success as part of the AG Barr portfolio.”

AG Barr paid £38m ($52m) for Fentimans and another £13m for UK juices business Frobishers in a pair of acquisitions announced earlier this month. The group said it wanted to tap into the  “attractive” market for adult soft drinks.

Fentimans specialises in “botanically brewed” mixers and soft drinks.

The latest filings on Companies House show that Fentimans generated turnover of £35.7m in 2024, down from just under £39m the previous year.

It returned to profit, posting earnings of £1m compared with a loss of just over £514,000 in 2023.

Meanwhile, AG Barr reported revenue growth of around 4% to £437m for the year to the end of January.

In its trading update, the group also said its “adjusted operating margin” had risen to 14.7%, an increase of 110 basis points year on year, driven by “ongoing efficiency initiatives and supply chain investment”.