AG Barr bets £51m on shift to soft drinks with Fentimans, Frobishers deals

(Sharecast News) - AG Barr said it had bought soft drinks maker Fentimans and premium juice brand Frobishers for a combined £51m as it looked to cash in on the fall in alcohol consumption by consumers. The Irn-Bru owner bought Fentimans for £38m and Frobishers for £13m.

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

"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."

Integration of both brands was expected to take place during the current fiscal year, with associated efficiencies beginning to come through from the second half.

AG Barr added that full-year results were expected to be in line with expectations as revenue jumped 4% to £437m with double-digit profit growth.

Reporting by Frank Prenesti for Sharecast.com