Damm UK Expands into Soft Drinks with Dalston's Investment

Damm UK, a branch of the Spanish brewing giant, has taken a significant step to diversify its portfolio beyond beer by investing a six-figure sum in Dalston’s Soda Co for a 5% ownership stake. This move will see the production of Dalston’s soft drinks relocated to Damm UK’s Eagle Brewery in Bedford by the end of this year.

As part of this new partnership, Dalston’s will become the first soft drinks partner of Damm UK’s newly introduced accelerator programme. This initiative, which also includes Leeds-based Northern Monk, aims to support emerging beverage brands with potential for growth in terms of manufacturing, innovation, and distribution.

Damm UK managing director Luke White emphasized the strategic importance of the UK market, highlighting the need for a diverse portfolio that includes premium soft drinks. He noted that Dalston's aligns well within their product range, particularly due to the active involvement of its founders.

The partnership aims to provide Dalston’s with the necessary distribution support to maximize its market potential. Duncan O’Brien, founder of Dalston’s, expressed confidence in the partnership, viewing it as a timely boost to the company’s scalability efforts.

This deal is separate from Dalston’s earlier £850k equity raise this year, led by Sorven Capital. O’Brien clarified that Damm UK invested at the same cost as other investors, indicating Damm as a potential future acquisition partner.

Damm UK has significantly invested in the Eagle Brewery since acquiring it from Carlsberg Marston’s in 2022. Approximately £80m has been spent on enhancing the facility, including new syrup handling and mixing technology, a new canning line, and increased production capacity. These improvements have been part of Damm's strategy to boost its private label and contract manufacturing business, which saw a 19% increase in volumes and revenues in 2025.