AG Barr acquires full ownership of Moma foods

AG Barr has agreed to acquire the remaining stake it does not own in oat milk producer Moma Foods for £3.4m.

The Scottish soft drinks firm became majority owner of south London-based Moma, which also sells porridge, granola and bircher muesli, when it bought a 61.8 percent stake late last year.

At that time, he also reached an agreement whereby the two parties could exchange the remaining shares in three tranches over the next three years, eventually giving AG Barr full ownership.

Known for making Irn Bru and Tizer, the FTSE 250 firm’s latest deal comes amid a rise in popularity of plant-based milk alternatives such as soy, almond and coconut.

They are particularly appreciated among Generation Z and millennials, many of whom are drawn to these products for environmental reasons, as well as those who are lactose intolerant and vegan.

Cow’s milk remains by far the most popular milk with consumers, but research published over the summer by the Kantar Group found that around one in three Britons had drunk plant-based milk in the previous three months.

Moma was founded in 2006 by Tom Mercer, who was dismayed by the absence of healthy on-the-go breakfasts while working as a management consultant at Bain & Company.

He launched his first stall, converted from an old filing cabinet, selling to commuters at Waterloo East Station, then gradually opening more locations at other London rail destinations.

The company now sells its products in all major UK grocery stores, including Tesco, Sainsbury’s and Waitrose; at Selfridges department store; pubs operated by JD Wetherspoon and on board budget airline flights.

Roger White, Chief Executive Officer of AG Barr, commented: ‘We are delighted to present the planned full ownership of the Moma business.

“This allows us to fully support the Moma business and brand, so that we can take advantage of the increased growth potential sooner than allowed in the original acquisition structure. The completion of the acquisition is another positive indication of AG Barr’s growth ambitions.

AG Barr’s latest move comes a fortnight after it announced the acquisition of energy drink supplier Boost for £20m up front, with up to a further £12m depending on the division’s revenue and profit in the coming months. next two years.

Based in Leeds, Boost was founded by Simon Gray and his wife Alison in 2001 and had £42.1m in turnover and pre-tax profit of £1.9m last year.

Following the announcement of the Moma transaction, A.G. Barr Stock they were down 0.2 percent at 516p during Tuesday morning.