AG Barr Welcomes Tropical Flavour with £12.3M Rio Purchase
Posted by Emily on 26th Oct 2023
AG Barr, the creators of Irn-Bru, are introducing a tropical twist to their expanding collection following the acquisition of the soft drink brand Rio in a deal worth £12.3 million.
Image Source and Copyright: AG BARR
The Scottish firm has finalised an agreement with Rio’s ultimate proprietor, Hall and Woodhouse, an independent brewing and pub company located in Dorset.
Launched in the 1980s under the name Arriva, Rio offers a mix of sparkling water and fruit juices, with its unique flavour profile claiming inspiration from the Brazilian rainforests. The brand maintains a presence in the Hall and Woodhouse pub network throughout southern England and is also distributed nationally within corner shops and the food service industry. Since 2021, Boost Drinks has held exclusive rights for marketing, distribution, and sales of the product.
In the latter part of the previous year, AG Barr procured Boost, a prominent energy drink label, for an initial sum of £20 million. Their portfolio boasts Tizer, Rubicon, Funkin Cocktails, and Moma oat milk.
While the recent procurement is set to enhance profit margins over an extended period, it isn’t anticipated to significantly influence the financial outcomes for the year ending January 2024.
Roger White, the chief executive at AG Barr, who has expressed intentions to resign by the upcoming summer, remarked, “We are thrilled to take ownership of the Rio brand and guarantee its enduring presence within our broader portfolio. This new venture positively reflects our ongoing strategic aspirations.”
In the 26 weeks leading up to the end of July, there was a notable 33.2 per cent surge in AG Barr’s revenue, reaching £210.4 million. Concurrently, the adjusted pre-tax profit saw a 6.7 per cent increase, settling at £27 million, and the interim dividend experienced a 6 per cent growth, equating to 2.65p. AG Barr’s shares witnessed a rise of 7p, or 1.4 per cent, concluding at 513p.