A.G. Barr has acquired a 20% stake in new business start-up Elegantly Spirited, which owns the STRYYK brand.

As part of the £1m investment, A.G. Barr’s subsidiary business Funkin signed a long-term agreement on normal market terms to act as exclusive UK distributor for all products of Elegantly Spirited.

The company has obtained written confirmation from sponsor Investec Bank in accordance with the requirements of LR 11.1.10(2)(b), ensuring that the terms of the proposals are fair and reasonable.

A.G. 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.”

Elegantly Spirited is engaged in the production of non-alcoholic adult drinks and is planning to further expand its portfolio of zero-proof spirits under the STRYYK brand.

The company recently created a joint venture (JV) with Alex Carlton and Andrew King, the original founders of the Funkin business.

A.G. Barr acquired Funkin in 2016, and has since established its presence in the cocktail market.

The company produces and markets the UK’s drinks brands, including IRN-BRU, Rubicon, Strathmore and Funkin.

Last January, AG Barr launched its Italian soft drinks brand San Benedetto in the UK market.

In February this year, Cocktail brand Funkin launched its portfolio of purées, syrups, shrubs, pre-batched mixers, garnishes and draught products with a fresh redesign.