British soft drinks maker AG Barr has agreed to acquire premium mixer brand Fentimans and juice producer Frobishers in deals worth more than £50 million, strengthening its exposure to the fast-growing adult soft drinks market as alcohol consumption continues to decline.

Barr, best known for its flagship Irn-Bru brand, said it would buy Hexham-based botanical drinks company Fentimans for around £38 million, funded through a mix of cash and debt.

The company has also completed the £13 million acquisition of Devon-based juice brand Frobishers, which closed at the end of its financial year in January.

The acquisitions mark a further shift in Barr’s strategy away from reliance on mainstream carbonates and towards higher-margin, premium and functional beverage categories, a segment attracting growing consumer and retailer demand.

Both brands operate in the adult soft drinks market, which is benefiting from the consumer trend of reduced alcohol consumption. Barr says the deals will support growth through portfolio diversification and create opportunities for cost synergies across production, distribution and procurement.

The move comes as Barr reported a strong financial performance, with annual revenues rising 4% year-on-year to approximately £437 million. The company said it expects a double-digit increase in annual profits, underpinned by solid performances from brands including Rubicon and energy drink Boost.

Irn-Bru, which remains Barr’s largest brand by volume, delivered modest growth in the second half of the year after a flat first half, while a decline in its Funkin ready-to-drink cocktail range reflected broader softness in the alcoholic and alcohol-adjacent categories.

Founded in 1875 and headquartered in Cumbernauld, Scotland, AG Barr has been expanding beyond traditional soft drinks into plant-based milks, health shots and low-calorie products as manufacturers respond to tightening health regulations and shifting consumer preferences.

Fentimans, known for its botanical brewing process and premium mixers, is positioned in the fast-growing non-alcoholic and low-alcohol occasions market, while Frobishers brings a long-established presence in juices, sparkling drinks and cordials.

This combination gives Barr greater access to on-trade and premium retail channels, where margins are typically higher.

Chief executive Euan Sutherland said Barr had laid “strong foundations for future growth” and entered the new financial year with momentum across its core brands and new product pipeline.