A.G. Barr, the owner of the Irn-Bru and Rubicon soft drink brands, is expanding into the fast-growing plant-based milk alternatives market by acquiring a majority stake in Moma Foods.
Moma was founded by Tom Mercer in 2006 as a challenger brand in the porridge market. More recently, the firm has diversified into the plant-based milk sector and is now the third-largest oat milk brand in the UK. Moma also produces a range of granola and bircher muesli branded products. Its products are sold in supermarkets, health food stores and independent cafés and restaurants.
Recent research showed that oat milk has become the plant-based milk of choice after sales of the non-dairy substitute almost doubled between 2019-20.
A.G. Barr has taken an initial 60% stake in Moma with an agreed path to full ownership over the next three years.
Roger White, CEO of AG Barr, commented: “I’m delighted that A.G. Barr is venturing into healthy oat-based products with such a great brand and an experienced team, led by Tom. Plant-based milk is a fast-growing category, in particular, and Moma’s oat milk is a premium quality product with huge potential. This exciting investment is a positive indication of A.G. Barr’s growth ambitions.”
Mercer added: “I’m hugely excited to embark on the next phase of Moma’s growth with A.G. Barr. I believe that together we can harness the passion that is integral to Moma and grow into a significantly bigger brand.”
At the end of last month, A.G. Barr announced that its full-year revenue and pre-tax profit would now come in ahead of forecasts after better-than-expected trading in recent months across both its Barr Soft Drinks and Funkin business units.
