Diageo's North American arm has snapped up US-based non-alcoholic spirits business Ritual Zero Proof for an undisclosed sum.

In 2020, the Diageo-backed accelerator Distill Ventures acquired a minority stake in Ritual Zero Proof.

In a statement, Diageo said it was "well positioned to build on Ritual's already strong position with its significant presence in the non-alc category".

It added the move was "in line with Diageo's strategy to acquire high-growth brands in exciting categories".

Sally Grimes, the CEO of Diageo's North America leg, described Ritual Zero Proof as "the number one brand in the fastest growing adult beverage category and meets growing consumer demand for a flavourful and sophisticated, yet accessible spirits alternative".

Set up in Chicago in 2019, Ritual Zero Proof produces non-alcoholic versions of well-known spirits. Its range of five products includes alternatives to Tequila, gin, rum and whiskey.

A number of Distill's previous investments have led to full acquisitions, including the purchase of UK spirits alternative brand Seedlip. Following a cash injection in 2016, the Don Julio owner bought the brand three years later.

Ritual Zero Proof's products are sold in brick-and-mortar stores across the US like Total Wine & More, as well as online to US consumers through the likes of Amazon and its own website.

David Crooch, the brand's co-founder, said: "From day one, we’ve set out to create an iconic brand in the drinks industry, specifically designed to meet the needs of the modern consumer. Ritual brings this mission to life, and Diageo understood that from the get-go.

"With the continued and widespread growth of the category, there is significant market presence and consumer demand. Ritual has the ability to meet consumer desires and tastes, seamlessly offering traditional spirit alternatives ounce-for-ounce.”

Crooch will still be "actively involved with the brand" following the acquisition, Diageo said.

He will take on the position of general manager of the spirits giant's non-alcohol business.

Crooch set up Ritual Zero Proof with Marcus Sakey and GG Sakey. Marcus, who will be an advisor to Diageo's Non-Alcoholic Beverage Company unit, added: "This acquisition is proof of the mainstream potential of the category, and our shared ambition to make sure a non-alc cocktail is available on every menu and on every grocery or liquor store shelf, providing sophisticated choices to today's consumer."

Diageo confirmed that GG Sakey had now left the business.