A Caithness distillery known for producing Rock Rose Gin and Holy Grass Vodka is set to expand.
Dunnet Bay Distillers, owned by local husband and wife team Claire and Martin Murray, has secured £180,200 from Highlands and Islands Enterprise (HIE) for the project.
The business started trading in 2014 after building a small gin and vodka distillery in the village of Dunnet. Since then, a warehouse and a visitor centre have been built, following an increase in demand and the company now exports its products to more than 20 countries.
HIE’s investment will support a bottling plant and warehouse for the gin and vodka operations near to Castletown Mill, which was recently purchased by the firm with a view to developing it into a new whisky distillery. This will also free up space at the Dunnet site to increase production of gin and vodka.
The building will incorporate an air source heat pump system for heating and cooling the premises. It also faces south to maximise the potential for a solar panel array on the roof.
The expansion is expected to boost the rural economy in Caithness by providing new employment opportunities. 19 staff are currently employed at Dunnet Bay Distillers and four new jobs will be created as a result of HIE’s investment.
The money awarded by HIE includes £90,100 of Green Jobs funding, which is being distributed by HIE on behalf of the Scottish Government, in light of the low carbon and energy saving benefits of the project.
Hilary Budge, development manager at HIE, said: “Distilleries are an important part of the Highlands and Islands food and drink sector and provide valuable rural employment while contributing to community resilience.
“As well as having an innovative approach, Dunnet Bay Distillers has shown great initiative in developing its business with a strong environmental ethos, while maintaining high quality products.“
HIE also supported Dunnet Bay Distillers through the agency’s Graduate Support Programme, which helps companies in the Highlands and Islands by offering 12-month, paid work experience placements in key sectors.
Martin Murray, co-founder and co-director of Dunnet Bay Distillers, said: “We’re excited at the prospect of regenerating the Castletown Mill, a fine 200-year-old building which has been empty for many years.
“We are so grateful to Highlands and Island Enterprise for their support, and we look forward soon to launching our website for the project which will explain more about how local people can get involved.
“We aim to make it into a local destination distillery and we intend to make this section of our business every bit as environmentally sustainable as the rest.”
Separately, several distilling industry veterans have been appointed to the senior management team of Jackson Distillers, the company developing a new grain distillery in the Scottish Borders.
Chief executive Trevor Jackson announced the appointments of David Brown as commercial director, Tommy Leigh as operations director and Nick Laird as deputy chief executive.
They will help steer the project through to full production at the proposed plant at Charlesfield, St Boswells, after planning consent was granted by Scottish Borders Council at the end of 2021.
Brown, is a familiar face in the Scotch whisky industry, having held senior positions at Allied Domecq and Whyte & Mackay, before becoming managing director of John Crabbie & Co in 2018.
Leigh has worked in the industry for more than 40 years, 37 of those with the North British Distillery, latterly as production director, responsible for all production, engineering, compliance, quality and safety.
Laird is an experienced managing director and non-executive director, having worked across automotive and technology-enabled businesses for more than 30 years.
Leigh commented: “The St Boswells Distillery will be the first carbon absorbing distillery in Scotland capable of producing grain spirit for scotch whisky and grain neutral spirit, and I am excited to have the opportunity to be at the forefront of its development.
“There is a gap in the market for low carbon and fully traceable spirit and being able to fill that gap not only supports our own business, but helps to bolster the sector as a whole.”
Laird added: “Once built, it is anticipated the St Boswells Distillery will produce 5% of the total market volume of grain whisky spirit, providing a substantial return on investment for its shareholders and supporting the wider sector in a resource-efficient manner.”
The construction phase should create 200 jobs, with 20 full-time positions once the distillery is operational.
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