City veteran Michael Spencer has splashed out on a stake in Westmorland Spirits, the owner of a premium gin brand made with unusual ingredients.

The founder of financial services firm Icap, together with fine wine and spirits merchant BI, has acquired a 25pc stake in the London-based company that makes Gilpin's gin.

Mr Spencer bought the stake through IPGL, his private investment group, to take advantage of the booming demand for the spirit.

The investment from the two backers will go towards increasing distribution of Gilpin’s Westmorland Extra Dry Gin and developing new products. Westmorland will also use BI’s expertise and distribution centre to increase exports and enter new markets. Mr Spencer is the chairman of BI.

The gin is made with more unusual ingredients such as sage, borage, lime and bitter orange, as well as the more traditional botanicals. It won the gold medal in the 2012 International Wine & Spirit Competition and is used at the Ivy Restaurants, Hix Soho, Sexy Fish and Duke’s Hotel Bar.