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Irn-Bru owner AG Barr has expanded its reach into plant-based milk alternatives with the acquisition of a majority stake in Moma Foods.
The Scottish soft drinks group, which also produces the Funkin cocktail brand and Rubicon, has taken an initial 60% equity stake in the business for an undisclosed sum.
AG Barr also agreed a path to full ownership of Moma over the next three years as part of the deal.
Founded by Tom Mercer in 2006, Moma has established itself as a challenger brand in the porridge market, using high-quality jumbo oats.
Most recently Moma diversified into the high-growth plant-based milk sector, where it is now the UK’s third largest oat milk brand.
The business also produces a range of low-sugar granola and bircher muesli branded products.
Mercer said he was “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,” he added.
“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 CEO Roger White said: “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.”
Shares in AG Barr opened 1.5% higher to 528p this morning.
It follows a good run last week, with the stock jumping 13% following a profits upgrade from the group.
Morning update
Tesco shoppers could be facing empty shelves this Christmas as workers threatened to strike over a pay dispute.
Unite announced the strike action for warehouse employees and HGV drivers based at Tesco’s depots in Antrim, Belfast, Didcot and Doncaster.
The strike is a result of Tesco offering the workers just a 4% pay increase, which is below the current retail price index inflation rate of 6%.
Unite general secretary Sharon Graham said: “Our members have gone above and beyond the call of duty to keep Tesco’s shelves filled throughout the pandemic. At the very least the UK’s largest and wealthiest retailer should be making our members a decent pay offer.
“Unite always prioritises the jobs, pay and conditions of its members and it will be giving its full and total support to our members at Tesco until this dispute is resolved.”
The Didcot and Doncaster sites will see an initial 48 hours stoppage beginning at 6am on Thursday 16 December. This will be followed by a further five day pre-Christmas stoppage beginning on Monday 20 December. There will be a further a 48-hour stoppage beginning on Thursday 30 December and a three-day stoppage beginning on 5 January 2022 at Doncaster and Didcot.
Unite members at the Antrim and Belfast Tesco distribution centres will begin an all-out continuous strike from 7am on Thursday 16 December.
Shares in Tesco opened down 0.3% to 279.2p this morning.
Shares in Just Eat Takeway plunged 4% to 4,190p this morning after a downgrade by Bernstein.
The firm downgraded the stock to ‘market-perform’, with analyst William Woods unclear of the path forwards for the company despite “strong fundamentals”.
“Despite the significant de-rating and weak performance, we struggle to see positive catalysts in the pipeline, and see potential for more negative catalysts in the short-medium term,” he said in a note this morning.
“However, we remain positive about the strong fundamentals of the business.”
The FTSE 100 started the week positively, rising 0.8% to 7,175.46pts, with another week of Omicron-driven volatility expected.
Besides Tesco and Just Eat Takeaway, other early fallers this morning included Deliveroo, down 4% to 232p and Glanbia, down 1.7% to €11.80.
Virgin Wines, which holds its AGM today, is up 5% to 188.5p, SSP Group is up 3.1% to 229.3p, WH Smith climbed 2.2% to 1,366.5p and Greencore Group is up 2.2% to 133.6p.
This week in the City
Tomorrow kicks off with the latest monthly market share figures from Kantar and the retail sales data for November from the British Retail Consortium. British American Tobacco will also issue a trading statement.
SSP Group reveals its latest full-year results on Wednesday, showing the scale of the challenge facing incoming CEO Patrick Coveney. There is a pre-close trading update due from embattled McColl’s Retail Group on Wednesday. In the US, Jack Daniels maker Brown-Forman and Campbell Soup both update the markets with quarterly results.
Packaging firm DS Smith puts out interims on Thursday along with online card retailer Moonpig and retail logistics company Clipper Logistics, while CostCo and spam maker Hormel Foods release quarterly updates.
Associated British Foods closes the week with its AGM.
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