AG Barr has announced plans to acquire a plant based milk business over the next three years after acquiring an initial 60% stake in the company.
The makers of Irn Bru agreed the three year plan to full ownership with MOMA Foods.
MOMA was founded by Tom Mercer in 2006 and established itself as a modern, challenger brand in the porridge market.
Most recently MOMA has diversified into the high growth plant-based milk sector, and is now the UK's third largest oat milk brand.
It also produces a range of low sugar granola and bircher muesli branded products.
The transaction is not expected to have a material impact on the Group's profits for the current financial year ending 30 January 2022.
Tom Mercer, founder and chief executive at MOMA Foods, said: "I'm hugely excited to embark on the next phase of MOMA's growth with AG Barr. I believe that together we can harness the passion that is integral to MOMA and grow into a significantly bigger brand. We're 100% focused on crafting oats into the tastiest food and drink products we can, and I'm looking forward to the next leg of our journey."
Roger White, chief executive at AG Barr, commented: "I'm delighted that AG 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 AG Barr's growth ambitions."
In August, AG Barr reported that its first half revenue was 18% higher than the previous year, coming in at an expected £134m.
The Cumbernauld-based soft drinks group's latest trading update stated strong trading across its various business units. This explained that brand-led initiatives and market factors led to a “short term boost” to operating margins.
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