Porridge stake

AG Barr buys into healthy foods firm MOMA

AG Barr has acquired 60% of the porridge maker

Irn-Bru owner AG Barr is branching out into healthy foods and has acquired a majority stake in a porridge and plant-based milk business.

The Cumbernauld-based company, whose portfolio includes a range of soft drinks, has taken an initial 60% equity stake in MOMA Foods, with an agreement to take full ownership over the next three years.

MOMA was founded by Tom Mercer in 2006 and quickly established itself as a modern, challenger brand in the porridge market, using British jumbo oats. 

Most recently MOMA has diversified into the high growth plant-based milk sector, and is now the UK’s third largest oat milk brand.  MOMA also produces a range of low sugar granola and bircher muesli branded products.

Roger White, CEO of AG Barr , commented: “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.”

Mr Mercer, CEO of MOMA, added: “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.”

The transaction is not expected to have a material impact on AG Barr’s profits for the current financial year ending 30 January 2022.

In early trade AG Barr shares were 3p (0.58%) higher at 523p.

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