As the adult soft drinks market continues to thrive, AG Barr is making strategic moves to expand its brand portfolio. The acquisition of Fentimans and Frobishers Juices reflects a growing demand for non-alcoholic beverages that cater to evolving consumer preferences.
Irn-Bru manufacturer AG Barr has acquired Fentimans and Frobishers Juices as the adult soft drinks sector benefits from consumers switching from alcohol.
The company is paying £38m for Fentimans, known for its botanical brewing process, and £13m for Frobishers Juices, a premium natural fruit juices and soft drinks brand.
AG Barr stated that these acquisitions expand their brand offerings and present opportunities for cost efficiencies.
In a trading update, the company mentioned it is entering the new financial year with “good momentum,” attributed to brand innovation and operational investments. They anticipate that the integration of the new acquisitions will commence generating efficiencies in the latter half of FY26/27.
A projected revenue growth of approximately 4% is expected, amounting to around £437m for the year ending in January, up from £420m in FY24/25.
The company has an extensive brand activity pipeline that will include redesigns of IRN-BRU and Rubicon, along with additional innovative product launches.
Euan Sutherland, the chief executive, commented: “We are pleased to report a strong year that highlights the delivery of our strategic priorities.
“Our top and bottom line performance for FY25/26 aligns with expectations, and importantly, 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. In line with our strategy of complementing organic growth through mergers and acquisitions, we are delighted to announce the acquisitions of Fentimans and Frobishers.
“The synergies arising from these acquisitions are anticipated to produce meaningful growth over the medium term. Our activities remain focused on enhancing efficiency, margin, and increasing shareholder returns.”
Key Takeaways
- AG Barr has acquired Fentimans for £38m and Frobishers Juices for £13m.
- The acquisitions aim to enhance AG Barr’s brand portfolio and deliver cost synergies.
- The company anticipates a 4% revenue growth for FY24/25.
- Integration efficiencies from the new acquisitions are expected in FY26/27.
- Product innovation will include redesigns and new launches for key brands.
FAQ
What are the benefits of AG Barr’s recent acquisitions?
The acquisitions are expected to broaden AG Barr’s brand offerings and create cost efficiencies.
How much is AG Barr expecting to grow in revenue?
AG Barr projects approximately 4% revenue growth, aiming for around £437m.
When will integration efficiencies from the acquisitions be realized?
AG Barr expects to see efficiencies starting in the second half of FY26/27.
In conclusion, AG Barr’s strategic acquisitions of Fentimans and Frobishers Juices highlight its commitment to adapting to market trends and strengthening its position in the soft drinks industry. With future innovations on the horizon, the company seems well-prepared to capitalize on the growing demand for non-alcoholic beverages.
