AG Barr makes £1m investment in Elegantly Spirited

Irn-Bru and Rubicon maker A.G. Barr has made an initial £1m investment for a 20% stake in start-up business Elegantly Spirited, which owns zero-proof spirits brand STRYYK.

As part of the investment, A.G. Barr's subsidiary business, Funkin, has entered into a long-term agreement on normal market terms to act as exclusive UK distributor for all Elegantly Spirited products.

Elegantly Spirited was founded recently by Alex Carlton and Andrew King, who are the original founders of the Funkin business - bought by Barr in 2016 - which makes natural fruit purees, syrups and cocktail mixers.

Chief executive Robert 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."

House broker Shore Capital said: "We see this as a low risk interesting strategic move with long-term upside potential. It expands Barr’s foot print further into multi beverage categories, adjacent to core soft drinks, but is nicely relevant to the Funkin brand.

"The non-alcoholic spirits market is consumer on trend. We expect Funkin to distribute the STRYYK range in both the on and off trade at a competitively priced proposition to Diageo’s Seedlip brand. We see this as being immaterial to Barr’s near term financials."