Equipment

AG Barr, the maker of Irn-Bru, has entered the "functional" water sector with the acquisition today (11 January) of the Vitaminsmart and Vitsmart brands from Chartered Brands.

The soft drinks firm, which warned of increasing packaging costs last September, will pay £350,000, including a series of payments based on future sales performance.

Vitsmart comprises six water products containing fruit juices and vitamins, and had a retail sales value of £1m in 2007.

AG Barr chief executive Roger White said the acquisitions would give his firm, which revamped the packaging of its flagship Irn-Bru brand last year, a "credible early entry" into the fast-growing functional water sector.

He said: "We plan to accelerate the development of our activity in this sector and believe this acquisition gives us a firm foundation."

The Vitsmart range can be found in selected Tesco, Sainsbury’s and Morrisons stores as well as other retail outlets.