Fruity new look for Irn-Bru firm

Scottish drinks company AG Barr, the maker of Irn-Bru, is to buy exotic juice group Rubicon as it looks to increase its presence in the £1.7 billion UK fruit-juice market.

Britain's biggest soft drinks manufacturer, which also makes Tizer and Lipton Ice Tea, will pay £59.8 million in cash for Rubicon if the deal is approved by shareholders. It will give Barr greater access to a growing market as health-conscious consumers shun fizzy soft drinks and seek more adventurous alternatives.

Barr already produces Rubicon's carbonated drinks in the UK and believes the deal will allow it to cut those manufacturing costs by £1.5 million.

Last year sales of Rubicon's own drinks, which include passionfruit and papaya flavoured juices and are mostly sold through cash-and-carry and convenience stores, reached £27.3 million.

Chief executive Roger Whitesaid said he remains open to further acquisitions. Trading of Barr's own brands is in line with expectations.