Soft drinks firm AG Barr has snapped up a stake in a new business aiming up to capitalise on the growing market for non-alcoholic drinks.
The group, behind brands including Irn-Bru, Rubicon and Strathmore has stumped up £1 million to become a shareholder in Elegantly Spirited which owns the STRYYK brand of zero proof spirits.
Under the investment deal which is seeing AG Barr take a 20% stake, AG Barr's cocktail mixer business Funkin will act as exclusive UK distributor for all Elegantly Spirited products.
Elegantly Spirited has been set up by entrepreneurs Alex Carlton and Andrew King, original founders of the Funkin business.
Funkin was acquired by AG Barr in 2016 and has grown strongly in the cocktail market. King has continued his involvement with the Funkin business since the transfer of ownership and will remain Funkin's executive chairman.
AG Barr chief executive Roger White said: "More and more consumers are seeking a drink that adds positively to their social experience but without the side effects of alcohol. We're very excited to be involved in both investing in and growing the STRYYK brand in this new and fast moving consumer category".
Last month, Irn-Bru announced the launch of a high-sugar, high-caffeine energy drink version of its flagship product, which had its recipe changed in advance of the sugar tax. It increased pre-tax profits by 2.5% to £45.4 million last year, despite the introduction of the levy.
