A small Australian company is finally bringing its brand of flavoured drinking straws to the UK after settling a dispute with Nestlé over the launch of the similar product, Nesquik Magic Straws.

Strawtech is also boasting that the products offer potential functional benefits to a wide range of drinks.

Sipahh straws, which contain beads of sugar that add flavour to milk as it is sucked through, were developed by Australian company Unistraw. They are initially being launched into Sainsbury's in an exclusive deal that will run until April and come in four flavours - chocolate, banana, strawberry and caramel - all aimed at children aged five to 15.

Unistraw took Nestlé to the high court at the start of the year claiming that the food giant had copied the design for its straws. Nestlé denied the allegations and a few months ago the parties reached an "amicable settlement".

Andrew Robinson, CEO of Strawtech, which owns the licence for Sipahh in the UK, Ireland and South Africa, said Sipahh would be a strong contender for Nesquik Magic Straws because of the wider variety of flavours on offer. The company is investing £3m in marketing the product in the first year, including extensive trials to promote the brand. "Our product is something different," said Robinson. "We want to change the way people consume drinks. The first products are the tip of the iceberg."

According to Robinson, the flavoured straws mark the start of a wider spectrum of new products that will hit shelves within the next few years. The next planned launch is iced coffee straws that will be available in espresso, cappucino, latte and mocha flavours and targeted at adults. He added that future products would carry nutraceutical benefits.

Sipahh will be located in the fresh milk section and the company is already in talks with a number of fresh milk suppliers to feature the straws on bottles of milk. It will initially be available in packs of 10, with an rsp of £1.99, but other formats are planned for the future.