AG Barr has acquired Funkin, the London-based supplier of mixer drinks, for an initial £16m.
Funkin, launched in the late 1990s, produces fruit purees, cocktail mixers and syrups for on-trade outlets designed to allow bars to produce quick and easy cocktails. Its business is primarily in the UK, but the company also has business units in Europe and the US. In 2014, its sales were around £9m.
The acquisition of Funkin will strengthen AG Barr’s portfolio, and takes the group into a new segment of cocktail mixers. The UK cocktail market has exhibited strong growth in recent years as cocktail consumption has become mainstream and consumers have sought more differentiated drinking experiences.
Funkin has been well placed to capitalise on this trend as its products enable outlets, including bars, pubs, clubs and restaurants to provide consumers with high quality cocktails efficiently and consistently.
Funkin CEO Andrew King will remain with the business under AG Barr’s ownership and Funkin will operate within the Group as a supported, yet stand alone, business unit.
AG Barr Chief Executive, Roger White said, “We are delighted that Funkin will become part of AG Barr. We believe that Funkin has created a unique niche in a growing market and together we can drive exciting growth in a new sub category. We have a proven track record of acquiring and developing high growth brands such as Rubicon. Under our ownership we believe Funkin is even more strongly positioned to take advantage of a
number of exciting growth opportunities.”