Irn-Bru maker shares jump after snapping up soft drinks rivals for £50m
The drinks merchant behind Irn-Bru is forecasting a major boost to profit for the latest financial year after the firm stripped back costs and snapped up a pair of its soft drink rivals.
AG Barr, which owns brands such as Boost, Funkin Cocktails and Rubicon, told markets it had sealed a near-£38m deal to buy Fentimans on Monday, funded through a combination of cash and debt.
The integration of the Hexham-based business – which specialises in premium “Botanically Brewed” soft drinks, mixers, and tonics – is set to be completed in the next year.
The drinks business will also begin the integration of Devon-based juice business Frobishers, which it bought for £13m.
Shares rose 6 per cent to 691p on Tuesday morning.
Euan Sutherland, chief executive, said: “We enter the 2026 financial year with good momentum in our core brands and from the introduction of exciting new products.
“In-line with our strategy of enhancing our organic growth with M&A, we are delighted to announce the acquisitions of Fentimans and Frobishers.”
AG Barr said in a trading update on Tuesday that its revenue had grown by nearly four per cent to £437m whilst its operating margin had increased by 110 basis points driven by “benefits from on-going cost efficiency”. This paved the way for double-digit profit growth when it delivers full-year results.
Soft drink sales boost offsets cocktail decline
The firm said modest growth in Irn-Bru sales in the second half helped beat a flat first-half, whilst Rubicon and Boost’s performance helped offset a decline in Funkin cocktails.
The FTSE 250 group is expected to provide a full update to shareholders on its performance in the year to 31 January on 31 March.
The two new deals mark the continuation of AG Barr’s M&A strategy after the firm acquired The Turmeric Co from its founder, former Wales international Hal Robson-Kanu.
The firm took a majority stake in the London-based business, which was established by the retired football player in 2018, for an undisclosed sum in June 2025.
Robson-Kanu’s company produces turmeric shots which aim to help improve recovery by reusing muscle soreness following consecutive training sessions.
The business has formal partnerships with the likes of Leicester Tigers, Brentford FC, British Gymnastics, Everton and Sale Sharks.