AG Barr has announced the acquisition of Funkin, which enables the soft drinks company to enter the UK cocktail market.
Costing an initial £16.5m, with up to a further £4.5m subject to the achievement of financial targets, the acquisition will see Funkin continue to expand business in the on-trade.
Funkin’s fruit purees, cocktail mixers and syrups will benefit from AG Barr’s branding and marketing to increase its presence in additional channels and add new products.
Andrew King, Funkin CEO, will remain with the business under AG Barr’s ownership. Funkin will operate within the company as a supported yet stand-alone business.
Funkin was founded in the late 1990s and has developed sales through close relationships across restaurants and the on-trade channel. The business made £9m last year, with the demand for cocktails growing rapidly in the UK as cocktails increasingly become more mainstream.
Funkin is mainly operates in the UK, but has a growing presence in US and France.