AG Barr, the maker of Irn-Bru, is expanding into the burgeoning market for adult soft drinks through its recent acquisitions of UK companies Fentimans and Frobishers Juices.
This strategic move was announced on February 3, alongside a financial trading update for the company’s fiscal year ending in January.
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“Both brands operate in the attractive adult soft drinks market, which is benefiting from the consumer trend towards reduced alcohol consumption,” stated AG Barr, owner of Funkin.
“These acquisitions underscore our strategy for targeted mergers and acquisitions aimed at enhancing growth by broadening our brand portfolio and creating opportunities for cost efficiencies.”
AG Barr invested £38 million ($52 million) to acquire Fentimans, completing the transaction yesterday, while Frobishers was acquired for £13 million, finalizing “towards” the end of the financial year.
Fentimans, a family-owned business located in northeast England, specializes in “botanically brewed” mixers and soft drinks. Frobishers, based in Devon, was previously sold to Cobell, a UK juices company, in 2009, and subsequently acquired by ingredient giant Symrise eight years later.
According to the latest accounts registered with Companies House, Fentimans reported a turnover of £35.7 million in 2024, a decline from nearly £39 million the previous year. The firm achieved a profit of £1 million, a notable rebound from a loss of just over £514,000 in 2023.
In its fiscal year ending January, AG Barr noted a revenue increase of approximately 4%, reaching £437 million.
The trading update also highlighted AG Barr’s “adjusted operating margin,” reported at 14.7%, which is an increase of 110 basis points compared to the previous year. The company attributed this improvement to “ongoing efficiency initiatives and supply chain investments.”
AG Barr’s shares experienced a 6.21% rise, reaching 690.3p at 12:32 GMT. The company plans to publish its full annual results on March 31.
CEO Euan Sutherland remarked: “Our overall performance for FY25/26 aligns with our expectations, and we have established a solid foundation for future growth. We enter FY26/27 with positive momentum in our core brands and the introduction of exciting new products.”
Key Takeaways
- AG Barr acquires Fentimans and Frobishers Juices to enter the adult soft drinks market.
- The company invested £38 million for Fentimans and £13 million for Frobishers.
- Fentimans reported a turnover of £35.7 million for 2024, marking a decrease from the previous year.
- AG Barr’s revenue grew by approximately 4% to £437 million for the fiscal year ending in January.
- The adjusted operating margin rose to 14.7%, an increase attributed to efficiency initiatives.
FAQ
What are the recent acquisitions made by AG Barr?
AG Barr recently acquired Fentimans and Frobishers Juices to expand its portfolio in the adult soft drinks market.
How much did AG Barr spend on these acquisitions?
AG Barr spent £38 million on Fentimans and £13 million on Frobishers Juices.
What was Fentimans’ turnover in 2024?
Fentimans reported a turnover of £35.7 million in 2024.
What has AG Barr said about its future growth?
AG Barr’s CEO stated that the company has set a solid foundation for future growth with good momentum in core brands and new product introductions.
When will AG Barr report its full annual results?
AG Barr is scheduled to report its full annual results on March 31.
This acquisition strategy positions AG Barr to capitalize on the growing interest in adult soft drinks, paving the way for future expansion and enhanced market presence.
