Kingsland Drinks Group has secured a £65m funding package as it looks to invest in future growth and steady the ship after a tough trading period.

The Manchester-based wine and spirits supplier has agreed the deal with Barclays, giving the business greater flexibility around working capital as it moves into its next phase of development.

The funding follows a year of softer sales that reflect wider pressures across the UK drinks market, from ongoing cost inflation to shifting consumer habits.

Kingsland said the facility will support its longer-term strategy, including continued investment across its core operations spanning bulk wine sourcing, bottling, co-packing and product development.

MD Sarah Baldwin (pictured) described recent years as “challenging” for both the company and the wider trade.

“This funding will help secure an exciting future for the business as a pioneering force in the drinks industry, built on strong community roots where our people, heritage and quality continue to set us apart,” she said.

Barclays confirmed the agreement includes a £65m asset-based lending facility designed to support Kingsland’s ongoing growth plans.

The deal also underlines lender confidence in the group’s broad offer, which combines branded and own-label wine with growing activity in spirits, low & no and alternative formats such as cans and bag-in-box.

Advisory firm RSM UK supported the transaction, with its debt advisory team pointing to Kingsland’s strong reputation and scope for further innovation.