RN Brew owner AG Barr has signed a deal to buy Deptford-based oat milk and oatmeal maker Moma Foods, making its first foray into the wellness market.
It’s a new move for the Scottish firm, which is currently behind the classic soda, juice brand Rubicon and the pre-made mixer Funkin Cocktail. It has taken an initial 60% stake in MoMA, the UK’s third-largest oat milk brand, and has agreed a path to full ownership over the next three years.
AG Barr is looking to capitalize on growing millennial and Gen Z demand for plant-based milk alternatives, which have seen rival Oatly valued in the billions.
Boss Roger White said he was pleased to enter such a “fast-growing category”.
This comes as the competition in the space heats up. Fellow-listed soft drink maker Britvik earlier this year bought another London-based health drink brand, Plenish, for an undisclosed amount. The London-based company, which was founded in 2012 by New York-born entrepreneur Kara Rosen, has stock in Waitrose and M&S.
Moma was launched in southeast London in 2006 by founder Tom Mercer, and also makes low-sugar granola and other oat-based products.
Mercer said selling AG Barr would make his brand “significantly bigger.”
Shares of AG Barr rose 1.2%, or 6.3p, to 526p this morning on the update.