Damm UK has taken a stake in Dalston’s Soda Co as it continues to diversify beyond its Spanish lager heartland.

The UK arm of the Continental brewing behemoth has invested a six-figure sum in return for a 5% ownership stake in the London-founded Dalston’s, The Grocer understands. Production of Dalston’s range of soft drinks will move to Damm UK’s Eagle Brewery in Bedford later this year.

Following the deal, Dalston’s will also become the first soft drinks partner of a newly launched accelerator programme run by Damm UK. Leeds-based brewer Northern Monk is also a member, having penned an on-trade distribution agreement with Damm UK last year.

The Damm Eagle Brewery Accelerator Programme had been created “to support fledgling beverage brands demonstrating growth potential with manufacturing, innovation and distribution”, Damm UK said.

The investment from Damm would “support Dalston’s Soda Co across production, distribution and commercial infrastructure to further growth across on-trade and off-trade channels”, it added.

The deal with Dalston’s was another milestone in Damm’s ambition to become “a total beverage business” in the UK, Luke White, Damm UK managing director, told The Grocer.

“The UK is our biggest market outside of Spain, so strategically very important,” said White. “If we want to keep growing we need to have a portfolio that has something for everybody. Consumers are looking for a broader rate of premium drinks, and soft drinks is having one of its most exciting moments at the minute in terms of innovation.

“When we were going through the brands, Dalson’s felt like a very natural fit in terms of portfolio positioning. From experience, we’ve also seen how good partnerships work, and a lot of those are where founders are very much still involved.”

It comes after the brewer struck a deal to acquire the Greene King-owned Old Speckled Hen ale brand earlier this year. Damm UK also contract manufactures other branded and private label beers and soft drinks at its Eagle Brewery.

The partnership with Damm UK would give Dalston’s “the distribution muscle to fulfil its potential”, founder Duncan O’Brien predicted.

“I don’t think we could have found a better partner for Dalston’s,” he said. “There are plenty of brewers out there but these guys are bucking trends and growing in a category that is stalling. Why? Because they’ve got a great offer that looks and tastes great, and is reasonably priced.

“They’re in investment mode and looking to take ambitious sweeps and moves. It’s very fortunate timing for us because it’s exactly what we need. We’re growing and we’ve taken the business to a point where it’s scalable. But we just need that push and extra support.”

The deal with Damm UK was unconnected to an £850k equity raise by Dalston’s earlier this year, led by Sorven Capital, O’Brien confirmed.

“There’s been no sweep up of shares; Damm have invested at the same share cost that everyone else has,” he said. “They are potentially a future acquisition partner. But the job right now is just to get on with driving growth.”

Damm UK relaunched the Eagle Brewery in October last year, having acquired the site – its first non-Spanish brewing outpost – from Carlsberg Marston’s in 2022.

Since acquiring the site, Damm UK has pumped around £80m into improvements to facilities, including a building a hub for ‘beyond-beer’ innovation.

Other renovations include the installation of new syrup handling and mixing technology, alongside a new canning line and increased capacity.

Damm’s UK volumes and revenues soared 19% in 2025, thanks in part to the growth of the brewer’s private label and contract manufacturing business.