AG Barr, the Cumbernauld-based manufacturer best known for Irn-Bru, has executed a significant expansion of its portfolio with the dual acquisition of soft drinks rivals Fentimans and Frobishers. The deals, valued collectively at over £50 million, signal a strategic pivot to dominate the high-growth "adult soft drinks" category.
The company confirmed the completion of a £38 million deal to acquire Hexham-based botanical brewer Fentimans on Monday, funded through a combination of cash and debt. This follows the acquisition of Exeter-based premium juice business Frobishers for £13 million at the close of its financial year in January.
Strategic Rationale: Capitalising on Alcohol Moderation
AG Barr explicitly linked the acquisitions to shifting consumer behaviours, specifically the trend toward reduced alcohol consumption, which has driven demand for sophisticated non-alcoholic alternatives.
In a statement to shareholders, the company noted: "Both brands operate in the attractive Adult Soft Drinks market, which is benefiting from the consumer trend of reduced alcohol consumption. 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."
The move allows AG Barr to diversify beyond its core carbonated soft drinks (CSD) base into premium botanical mixers and fruit juices, categories that command higher price points in both on-trade and off-trade channels.
Double-Digit Profit Growth
The announcement accompanied a robust full-year trading update. AG Barr reported that it is on track for a double-digit hike in underlying pre-tax profits for the year ending January 31.
Key Financial Metrics:
Annual Revenue: Rose to approx. £437m (up 4% year-on-year).
Profitability: Expected double-digit growth in pre-tax profits.
Euan Sutherland, CEO of AG Barr, framed the acquisitions as a key pillar of the company's growth strategy for the upcoming fiscal year.
"We enter FY26/27 with good momentum in our core brands and from the introduction of exciting new products," Sutherland said. "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 synergies associated with these acquisitions are expected to drive meaningful accretion over the medium term."
Sutherland added that the activity is underpinned by a "consistent focus on efficiency, margin and growing shareholder returns."
AG Barr Acquires Fentimans and Frobishers in £51M Premium Soft Drinks Push
News
February 3, 2026
Related news
.jpg)
The Marzetti Company Acquires Bachan’s for $400M to Expand Premium Sauce Portfolio
FoodChain ID Acquires Brazil’s Sbcert to Bolster Livestock Traceability and Certification Services
The Tofoo Co Acquires German Seitan Pioneer Topas to Accelerate European Expansion
