Distil Plc (LON:DIS) has inked a collaboration deal with British Honey Company (BHC), a Distilled and infused spirit brand owner.
Each drinks firm will contribute £30,000 to the venture which aims to produce and market a new range of branded botanical spirits and other products.
Brand development work will begin immediately. The company noted that, as a result, it will incur additional unbudgeted costs in the current financial year.
Distil said, therefore, it now guides that profit will be marginally below market expectations.
"I am very pleased to partner with BHC to facilitate an accelerated innovation agenda and more nimble product development capability,” said Don Goulding, Distil executive chairman.
“The joint venture will facilitate the creation and marketing of exciting new products and will improve Distil's capability to develop and refresh its own brand portfolio. This new collaboration brings together complementary capabilities which will benefit both companies and we look forward to communicating our progress in the coming months," he added.
Distil shares dropped around 3% to 0.8p.