Irn-Bru Maker AG Barr Expands Portfolio with Acquisition of Two Rival Brands in £50m Deal
In a significant strategic move, AG Barr, the renowned maker of Irn-Bru, has acquired two competing soft drink brands, Fentimans and Frobishers, for over £50 million. This acquisition underscores AG Barr’s commitment to enhancing its product lineup in response to evolving consumer preferences.
Key Details of the Acquisition
– Fentimans Purchase: AG Barr purchased the Hexham-based botanical brewery and fizzy drinks brand Fentimans for approximately £38 million. This acquisition was financed through a blend of cash and debt.
– Frobishers Acquisition: The company also secured the Devon-based juice business Frobishers for £13 million at the conclusion of its financial year in January.
– Market Trends: Both brands are aligned with the increasing consumer shift towards adult soft drinks, as people opt for non-alcoholic alternatives.
Financial Performance of AG Barr
– AG Barr reported a robust financial year with notable growth:
– Annual Revenues: Approximately £437 million, reflecting a 4% increase year-over-year.
– Profitability: The company anticipates a double-digit surge in annual profits.
– Established in Falkirk in 1875, AG Barr is now based in Cumbernauld and produces other popular drinks, including Rubicon, Funkin, and Boost. The company has expanded into healthier product categories such as plant-based milks and low-calorie drinks.
Focus on Adult Soft Drinks Market
– AG Barr aims to capitalize on the rising demand for upscale non-alcoholic options as traditional alcohol consumption declines.
– The company stated, Both brands operate in the adult soft drinks market, which is benefitting from the consumer trend of reduced alcohol consumption.
– The acquisitions reflect AG Barr’s strategy to broaden its brand portfolio while uncovering opportunities for cost synergies.
Insights from Leadership
Euan Sutherland, CEO of AG Barr, commented on the company’s performance: Our top and bottom-line performance for full-year 2025-26 is in line with expectations, and importantly we have laid strong foundations for future growth. We enter 2026-27 with good momentum in our core brands and from the introduction of exciting new products.
Betting on Changing Drinking Habits
With these acquisitions, AG Barr is making a bold £50 million wager that the trend toward mindful drinking will persist. Recent data indicates a noticeable rise in non-drinkers, particularly in Scotland, where their numbers increased from 11% in 2003 to 20% in 2024. This shift is supported by evidence that overall alcohol consumption in Scotland has dipped to its lowest levels in over two decades.
– Market Growth: Fentimans, with its range of ginger beers and unique colas, has successfully aligned itself with the mindful drinking trend. Frobishers, known for its quality apple juice, has diversified into a variety of sparkling drinks and cordials over the years.
As AG Barr continues to enhance its brand portfolio with these strategic acquisitions, it positions itself to thrive in the evolving beverage landscape.