The drinks merchant behind Irn-Bru anticipates a significant increase in profits for the current financial year, following cost reductions and the acquisition of two competing soft drink brands.
AG Barr, which owns brands such as Boost, Funkin Cocktails, and Rubicon, announced that it had finalized a near-£38 million acquisition of Fentimans, financed through a mix of cash and debt.
The integration of the Hexham-based company, renowned for its premium “Botanically Brewed” beverages, mixers, and tonics, is expected to be completed within the year.
Additionally, AG Barr plans to integrate its newly acquired Devon-based juice company, Frobishers, purchased for £13 million.
Following this news, shares increased by 6 percent to reach 691p on Tuesday morning.
Euan Sutherland, the chief executive, stated, “We enter the 2026 financial year with strong momentum in our core brands and through the launch of exciting new products.
“In line with our strategy to bolster organic growth through mergers and acquisitions, we are thrilled to announce the acquisitions of Fentimans and Frobishers.”
In a trading update released on Tuesday, AG Barr reported a revenue increase of nearly four percent, reaching £437 million, alongside a 110 basis point rise in its operating margin due to ongoing cost efficiencies. This sets the stage for double-digit profit growth when the company reveals its full-year results.
Soft drink sales boost offsets cocktail decline
The company noted that modest sales growth of Irn-Bru in the latter half of the year helped surpass a stagnant first half, while the performances of Rubicon and Boost mitigated a decline in Funkin cocktails.
The FTSE 250 group is anticipated to present a comprehensive performance update for the year ending January 31 on March 31.
These latest acquisitions signify the continuation of AG Barr’s M&A strategy, following the purchase of The Turmeric Co from its founder, former Wales international Hal Robson-Kanu.
In June 2025, AG Barr acquired a majority stake in the London-based company established by the retired football player in 2018, though the financial details of the transaction remain undisclosed.
The business specializes in producing turmeric shots designed to aid recovery and alleviate muscle soreness after intense training sessions.
It has formed partnerships with various organizations, including Leicester Tigers, Brentford FC, British Gymnastics, Everton, and Sale Sharks.
Key Takeaways
- AG Barr anticipates strong profit growth following cost-saving measures and recent acquisitions.
- The company acquired Fentimans for around £38 million and Frobishers for £13 million.
- Irn-Bru’s sales showed modest growth, offsetting prior stagnation.
- Shares climbed 6 percent amid positive market reactions.
- AG Barr aims to enhance organic growth through strategic mergers and acquisitions.
FAQ
What brands does AG Barr own?
AG Barr owns several brands, including Irn-Bru, Boost, Funkin Cocktails, and Rubicon.
What recent acquisitions did AG Barr make?
AG Barr acquired Fentimans and Frobishers to expand its product offerings.
How much did AG Barr’s revenue grow?
The company reported a nearly four percent increase in revenue, reaching £437 million.
What is AG Barr’s plan for the acquired companies?
AG Barr plans to integrate Fentimans and Frobishers into its existing operations within the year.
In summary, AG Barr’s strategic acquisitions and cost management have positioned the company for significant profit growth in the upcoming year. As the firm continues to expand its portfolio, it remains focused on enhancing its core brands and pursuing further opportunities in the beverage market.
