AG Barr acquires 60% of the capital of MOMA Foods

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AG Barr has announced plans to acquire a plant-based dairy business within the next three years after acquiring an initial 60% stake in the business.

The makers of Irn Bru have agreed to the three-year freehold plan with MOMA Foods.

MOMA was founded by Tom Mercer in 2006 and has established itself as a modern challenger brand in the porridge market.

More recently, MOMA has branched out into the high growth plant milk sector and is now the UK’s third-largest oat milk brand.

It also produces a line of branded low-sugar granola and bircher muesli products.

The transaction is not expected to have a significant impact on the Group’s profits for the current fiscal year ended January 30, 2022.

Tom Mercer, Founder and CEO of MOMA Foods, said: “I am extremely excited to embark on MOMA’s next phase of growth with AG Barr. I believe that together we can harness the passion that is so integral to MOMA and become a much bigger brand. We are 100% focused on turning oats into the tastiest food and drink possible, and I look forward to the next leg of our journey.

Roger White, Managing Director of AG Barr, commented: “I am delighted that AG Barr is embarking on healthy oat products with such a great brand and an experienced team, led by Tom. Plant-based milk is a fast growing product. category, in particular, and MOMA’s oat milk is a premium product with enormous potential. This exciting investment is a positive indication of AG Barr’s growth ambitions.

In August, AG Barr announced that its first half revenue was 18% higher than a year earlier, reaching £ 134million.

The latest business update from the Cumbernauld-based soft drink group reported strong trading across its various business units. This explained that brand-led initiatives and market factors resulted in a “short-term increase” in operating margins.

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