IRN-Bru manufacturer AG Barr has invested £1 million for a 20 per cent stake in the Elegantly Spirited non-alcoholic adult drinks business, which owns the STRYYK brand and was formed recently by the founders of Funkin.

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.”

Cocktail-mixers business Funkin was founded by Alex Carlton and Andrew King and bought by AG Barr in 2016. The entrepreneurs have founded Elegantly Spirited to “capitalise on the growing demand for non-alcoholic adult drinks with a new portfolio of zero-proof spirits under the STRYYK brand”, AG Barr noted.

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Funkin has entered into a long-term agreement on “normal market terms” to act as exclusive UK distributor for all Elegantly Spirited products. Mr King has continued his involvement with Funkin since it was bought, and will remain executive chairman of this subsidiary, AG Barr noted.

Mr White said: “We’re very excited to be involved in both investing in and growing the STRYYK brand in this new and fast-moving consumer category.”

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AG Barr said, under the listing rules of the Financial Conduct Authority, Andrew King is a related party of AG Barr. The minority investment “constitutes a smaller related party transaction”.

It added: “AG Barr has obtained written confirmation from its sponsor, Investec Bank plc, in accordance with the requirements of LR (Listing Rule) 11.1.10(2)(b) that the terms of the proposals are fair and reasonable as far as shareholders are concerned.”

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