Acquired from Hall and Woodhouse Limited, the independent brewer and pub company, for a total cash consideration of £12.3m, tropical fruit brand Rio has been marketed, sold and distributed on an exclusive licence basis by AG Barr’s recently acquired Boost Drinks division since 2021.

The acquisition is entirely funded from the group’s strong net cash position.

With a brand building business model, and following the Boost acquisition, AG Barr has moved quickly to secure the long-term position of the Rio brand within its wider portfolio. While an important contributor to the previously announced ongoing margin rebuild programme, the transaction is not expected to have a material impact on the group’s profits for the current financial year ending 28 January 2024.

Roger White, CEO of AG Barr, commented: “As brand builders we are delighted to acquire the Rio brand and secure its long-term position in our wider portfolio.

“This allows us to realise the benefits of full brand ownership and support Rio’s continued growth. This acquisition is a further positive indication of our strategic ambitions.”