Irn-Bru maker AG Barr buys two rival brands in £50m deal

The makers of Irn-Bru have bought two rival soft drinks brands Fentimans and Frobishers in a deal worth more than £50m.

AG Barr purchased the Hexham-based botanical brewery and fizzy drinks brand Fentimans for about £38m, in a move funded through a combination of cash and debt.

It also closed a deal at the end of its financial year to January to buy Devon-based juice business Frobishers for £13m.

The company said the two brands both reflect the consumer's move away from alcoholic beverages to "adult soft drinks".

The acquisitions come as Barr, whose other main brands include Rubicon, Funkin and Boost, reported a "strong" financial year, with increases in sales and profitability.

It said it was set for a double-digit hike in annual profits as annual revenues rose to about £437m - a 4% increase on the previous year.

AG Barr was set up in Falkirk in 1875, with the soft drink manufacturer now based in Cumbernauld.

The brand is also known for soft drinks such as Rio and Snapple but has been expanding into new categories such as plant-based milks, health shots and low-calorie drinks to keep up with consumer demand for healthier products.

AG Barr is looking to capitalise on the growth of upmarket non-alcoholic alternatives amid falling alcohol sales, with Fentimans and Frobishers fitting that category.

"Both brands operate in the adult soft drinks market, which is benefitting from the consumer trend of reduced alcohol consumption," the company said.

"These acquisitions reflect the execution of further meaningful and targeted mergers and acquisitions to elevate growth through broadening the brand portfolio while providing opportunities for cost synergies."

The firm said Irn-Bru had "modest growth" in the final six months of the year after failing to grow in the first half, while "a good performance" from Rubicon and Boost helped to offset a decline for the Funkin ready-to-drink cocktail range.

Euan Sutherland, chief executive of AG Barr, said: "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."

For some of us, Dry January has just come to an end, writes Business Correspondent David Henderson.

But with these acquisitions, AG Barr has placed a £50m bet that this trend may last much longer.

It says consumers are choosing to drink less alcohol and Fentimans and Frobisher have made their mark in the adult soft drinks market.

With its ginger beer and fancy colas, Fentimans taps into the growing "mindful drinking" trend.

For half a century, Frobishers has produced apple juice. Lately, it's offered a wider range of sparkling drinks and cordials.

Both owe their growth to changes in drinking habits.

Many of us, it seems, are swapping a traditional pint or glass or wine for a soft drink.

The proportion of non-drinkers in Scotland has increased, rising from 11% in 2003 to 20% in 2024.

And recent data suggests that overall Scots are drinking less alcohol, with consumption now at its lowest level for more than two decades.

Barr already own a range of other soft drinks brands, including Rubicon and Bundaberg.

These latest acquisitions give them even more scope to profit from a growing trend.