>
Irn Bru-maker AG Barr acquires remaining stake in oat milk and porridge brand Moma Foods as plant-based product rise continues
- AG Barr acquired a 61.8% stake in Moma Foods at the end of last year
- The FTSE 250 company acquired energy drink supplier Boost earlier this month
- Plant-based dairy products are especially popular among Gen Z and millennials
<!–
<!–
<!–<!–
<!–
<!–
<!–
AG Barr has agreed to acquire the remaining stake it does not have in oat milk producer Moma Foods for £3.4m.
The Scottish soft drink company became majority shareholder of South London-based Moma, which also sells porridge, muesli and bircher muesli, when it bought a 61.8 per cent stake late last year.
At the time, it also entered into an agreement whereby the two parties could exchange the remaining shares in three tranches over the next three years, ultimately AG Barr full ownership.
Acquisition: AG Barr became majority shareholder of Moma, which sells porridge, muesli and bircher muesli, when it bought a 61.8 percent stake late last year
Known for making Irn Bru and Tizer, the FTSE 250 company’s latest deal comes amid a rise in the popularity of plant-based milk alternatives, including soy, almond and coconut.
They are especially loved by Gen Z and millennials, many of whom gravitate towards such products for environmental reasons, as well as those who are lactose intolerant and vegan.
Cow’s milk remains by far the most popular milk among consumers, but research published this summer by the Kantar Group found that around one in three Britons had consumed plant-based milk in the past three months.
Moma was founded in 2006 by Tom Mercer, who, while working as a management consultant at Bain & Company, was appalled by the lack of healthy breakfast meals on the go.
He launched his first stall, converted from an old filing cabinet, sold to commuters at Waterloo East Station and then gradually opened more locations at other London rail destinations.
The company now sells its products at all major UK supermarkets, including Tesco, Sainsbury’s and Waitrose; in Selfridges department stores; pubs operated by JD Wetherspoon and onboard budget airline flights.
AG Barr chief executive Roger White commented: “We are pleased to bring forward the planned full ownership of the Moma business.
“This allows us to fully support the Moma business and brand, enabling us to capitalize on the increased growth potential earlier than allowed under the original acquisition structure. The completion of the acquisition is a further positive indication of AG Barr’s growth ambitions.”
AG Barr’s latest move comes two weeks after it pre-announced the £20m acquisition of energy drink supplier Boost, with up to an additional £12m depending on the division’s sales and earnings performance over the next two years.
Headquartered in Leeds, Boost was founded in 2001 by Simon Gray and his wife Alison and scored £42.1m in sales last year and a pre-tax profit of £1.9m.
Following the announcement of the Moma transaction, AG Barr Shares were 0.2 percent lower at 516p during the late morning on Tuesday.