Barr(A.G.) Plc - Minority investment in STRYYK
A.G. BARR p.l.c.
Minority investment in zero proof spirits brand STRYYK
A.G. BARR p.l.c., ("A.G. Barr") which produces and markets some of the UK's leading drinks brands, including IRN-BRU, Rubicon, Strathmore and Funkin, today announces a minority interest investment in new business start-up Elegantly Spirited Limited, the owner of the STRYYK brand (the "Minority Investment").
Elegantly Spirited Limited seeks to capitalise on the growing demand for non-alcoholic adult drinks with a new portfolio of zero proof spirits under the STRYYK brand.
As part of the Minority 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 Limited products, in addition to A.G. Barr Group investing an initial £1m for a 20% minority stake in the new business.
Elegantly Spirited Limited is a recently formed venture from entrepreneurs Alex Carlton and Andrew King, original founders of the Funkin business.
Funkin was acquired by A.G. Barr in 2016 and has grown strongly in the cocktail market. Andrew King has continued his involvement with the Funkin business since the transfer of ownership and will remain Funkin's Executive Chairman.
Under the listing rules of the FCA, Andrew King is a Related Party of A.G. Barr and the Minority Investment constitutes a smaller related party transaction and is subject to the modified requirements for such transactions set out in Listing Rule 11.1.10. A.G. Barr has obtained written confirmation from its sponsor, Investec Bank plc, in accordance with the requirements of LR 11.1.10(2) (b) that the terms of the proposals are fair and reasonable as far as shareholders are concerned.
Roger White, A.G. Barr Chief Executive, commented:
"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".