AG Barr, the parent company of Irn Bru, has acquired a 60% equity stake in porridge and oat milk maker Moma Foods with an agreed path to full ownership over the next three years.
The British soft drink maker AG Barr is expected to move into the fast-growing plant-based milk sector as the demand for vegan milk alternatives has risen in recent years.
Moma established itself in the porridge market and recently diversified into the plant-based milk sector.
It is now the third biggest brand in the oat milk category behind leaders Alpro and Oatly.
“I believe that together we can harness the passion that is integral to Moma and grow into a significantly bigger brand.” Moma Foods Limited chief executive Tom Mercer said.
“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.”
AG Barr chief executive Roger White added: “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.”
The Scottish firm, whose other brands include Rubicon, said the transaction is not expected to have a material impact on the Group’s profits for the current financial year ending 30 January 2022.