It said on Monday that its Distill Ventures unit, which backs entrepreneurs and start-ups, has taken a stake in the Seedlip brand.

"We recognise the opportunity of non-alcoholic drinks," said Helen Michels, Global Innovation Director of Diageo's Futures Team. "We continue to explore and invest in this area."

Diageo already sells non-alcoholic brands Guinness Zero in Indonesia, Guinness Malta in Africa and Orijin Zero in Nigeria. Seedlip, which is distilled with herbs, spices and other ingredients, is currently sold in the UK and expects to expand to other select cities in Western Europe and the United States later this year.

(This version of the story corrects final paragraph to show brand already sold in UK)

(Reporting by Martinne Geller in London; Editing by Ruth Pitchford)