Scottish beverage manufacturer AG Barr, renowned for producing the iconic Irn-Bru, has significantly expanded its portfolio by acquiring two premium soft drink rivals in transactions valued at more than £50 million. The company announced the strategic purchases of Hexham-based Fentimans and Devon juice brand Frobishers, highlighting a move to capitalise on the burgeoning adult soft drinks sector.
Strategic Acquisitions to Drive Growth
AG Barr revealed the deals ahead of its full-year trading update scheduled for next month, reporting a robust financial performance for the year with notable increases in both sales and profitability. The acquisitions are part of the company's targeted merger and acquisition strategy aimed at elevating growth through portfolio diversification and cost synergies.
Financial Details of the Transactions
The company informed shareholders that it completed a £38 million deal to purchase Fentimans on Monday, financed through a mix of cash and debt. Additionally, AG Barr closed a £13 million acquisition of Exeter-based Frobishers at the end of its financial year in January, bringing the total investment to over £50 million.
Targeting the Adult Soft Drinks Market
In a statement released on Tuesday, AG Barr emphasised that both Fentimans and Frobishers operate in the attractive adult soft drinks market, which is benefiting from a consumer trend towards reduced alcohol consumption. The company stated, "These acquisitions reflect the execution of further meaningful and targeted M&A to elevate growth through broadening the brand portfolio while providing opportunities for cost synergies."
Strong Financial Foundations and Future Outlook
Euan Sutherland, chief executive of AG Barr, confirmed that the company's top and bottom-line performance for the full-year 2025-26 aligned with expectations, and the business has established strong foundations for future growth. Sutherland remarked, "We enter FY26/27 with good momentum in our core brands and from the introduction of exciting new products. In-line with our strategy of enhancing our organic growth with M&A, we are delighted to announce the acquisitions of Fentimans and Frobishers."
The move positions AG Barr to leverage the premium positioning of Fentimans, known for its botanical beverages, and Frobishers, recognised for its high-quality juices, to tap into evolving consumer preferences for sophisticated non-alcoholic options. This expansion underscores the company's commitment to innovation and market leadership in the competitive soft drinks industry.
