The acquisition will take the producer of drinks brands including IRN-BRU, Rubicon and Funkin into the oat-based and plant milk sectors by purchasing the Moma brand, which was founded by Tom Mercer in 2006.
Roger White, chief executive officer of AG Barr, said: “I’m delighted that AG Barr is venturing into healthy oat-based products with such a great brand and an experienced team, led by Tom. Plant-based 'milk' is a fast-growing category, in particular, and MOMA’s oat milk is a premium quality product with huge potential. This exciting investment is a positive indication of AG Barr’s growth ambitions.”
MOMA, which is based in Deptford, London, has quickly established itself as a modern, challenger brand in the porridge market, using the finest quality, British jumbo oats. Most recently the company has diversified into the plant-based milk sector, and claims to be the UK’s third largest oat milk brand. MOMA also produces a range of low sugar granola and bircher muesli-branded products.
'100% focused on oats'
Tom Mercer, founder and chief executive officer of MOMA Foods Limited, said: “I’m hugely excited to embark on the next phase of MOMA’s growth with AG Barr. I believe that together we can harness the passion that is integral to MOMA and grow into a significantly bigger brand. We’re 100% focused on crafting oats into the tastiest food and drink products we can, and I’m looking forward to the next leg of our journey.”
The transaction is not expected to have a material impact on the AG Barr profits for the current financial year ending 30 January 2022.
In June it was revealed that former Dairy Crest chief executive Mark Allen is to join drinks manufacturer AG Barr as an independent non-executive director and chairman designate, with effect from 1 July 2021.
In a trading update released on 29 November, AG Barr reported sales growth ahead of expectations across its Barr Soft Drinks and Funkin business units. The company stated its performance in 'on-the-go' and hospitality sectors remained particularly strong and recent product launches had exceeded our expectations. It predicted revenue and pre-tax profit for the current full-year would also exceed market forecasts.