Euan Sutherland

These targeted moves, announced alongside a resilient trading update for the financial year ended 31 January 2026, signal a decisive shift into the premium “adult soft drinks” sector. This market segment is currently experiencing a surge in demand as consumers increasingly pivot toward reduced alcohol consumption.

The acquisition of Frobishers was completed toward the end of the financial period for £13 million, funded entirely from the group’s net cash position. This was followed on 2 February 2026 by the £38m purchase of Fentimans, known for its traditional botanical brewing process. The Fentimans deal was financed through a combination of existing cash and debt.

Chief executive officer Euan Sutherland said: “Our top and bottom line performance for FY25/26 is in line with expectations, and importantly we have laid strong foundations for future growth. We enter FY26/27 with good momentum in our core brands and from the introduction of exciting new products.

“In-line with our strategy of enhancing our organic growth with M&A, we are delighted to announce the acquisitions of Fentimans and Frobishers.

“The synergies associated with these acquisitions are expected to drive meaningful accretion over the medium term. Underpinning all our activity is our consistent focus on efficiency, margin and growing shareholder returns.”

This expansion comes as AG Barr reports a strong financial performance, with revenue rising approximately 4% to £437m. Despite external cost pressures, the group achieved an impressive 110 basis point increase in adjusted operating margin to 14.7%.

Russ Mould, investment director at AJ Bell, highlighted that the company is negotiating these deals from a position of financial strength, aided by a robust balance sheet and successful internal efficiency initiatives. Mr Mould said: “Dry January may be over but people’s thirst for posh soft drinks when they are not boozing is a longer-term trend and one which AG Barr is looking to tap into with its latest deals.

“Barr may be best known for Scotland’s favourite fizzy beverage – Irn-Bru – but it has a much broader portfolio of drinks brands which have been further augmented through the acquisition of premium juice outfit Frobishers and fancy cola and ginger beer maker Fentimans.”