Irish drinks company C&C Group has made an undisclosed investment in Scottish brewing company Innis & Gunn to acquire an equity stake of 8%.

Under the partnership, C&C Group agreed to sell and distribute Innis & Gunn craft beer across the on-trade, wholesale and free-trade channels in the UK and Ireland.

The new agreement builds upon the long-term manufacturing relationship between the two companies which started in 2010.

As one of the largest distributor’s beverage-alcohol distributors in the UK and Ireland, C&C will distribute Innis & Gunn beers through its distribution businesses Matthew Clark in the UK and through Bulmers Ireland.

Innis & Gunn said that it will continue its beer production and packaging at C&C’s Wellpark Brewery in Glasgow as part of a renewed agreement, as well as at Innis & Gunn’s Brewery in Perth.

It will also continue its brand marketing activities, as well as sales and distribution of its products to national pub chains, the off-trade, and current international markets.

Innis & Gunn founder Dougal Gunn Sharp said: “At a time when we are seeing consumer demand for our beers increasing, in-fact becoming the sixth-largest Scottish drinks brand in our home market in 2020, this is a key next step in our growth strategy.

“C&C’s strength in the on-trade across the whole of the UK and Ireland, and our long-term relationship, means we have solid foundations from which to build. C&C is the right partner with the right platform to help us accelerate our growth into these channels and seek to replicate the success the brand has enjoyed in Scotland.

“The partnership will also create immediate synergies enabling us to re-direct additional capital behind marketing and new product development.”