THE world’s first fully community-owned distillery in the Highlands has issued a stark warning, saying rising costs and a downturn across the whisky industry have put pressure on the business’s future.
Established in 2015 as a community benefit society, the GlenWyvis Distillery has gone on to create award-winning whisky and gin while also investing back tens of thousands of pounds into the local community.
The Ross-shire-based business operates on a not-for-profit basis and donates money to various cultural, educational and entrepreneurial projects in the area, including £30,000 between local primary schools, the Dingwall Museum and the Dingwall Gaelic Choir.
The distillery previously raised £2.5 million in its first crowdfunder and had more than 3600 members in its society back in 2024.
However, bosses at the distillery have warned members that “significant new investment” is needed to secure the business's future.
In an update sent to members this week, GlenWyvis Distillery bosses cited rising production costs, a downturn across the whisky industry and a long-running dispute with its landlord as reasons for sustained financial pressures, according to the Ross-shire Journal.
“We are writing to you as your volunteer Management Committee to update you on the serious situation facing the distillery, and what may lie ahead,” the email said.
“Before anything appears elsewhere, we wanted you – our member-owners – to hear it from us directly.
“Those of you who attended the recent AGM, or caught up afterwards, will know that we have been carrying out a full review of the business. The outcome of that review is now clear: the distillery requires significant new investment to secure its future.
“Since its founding as the world's first fully community-owned distillery, GlenWyvis has produced award-winning whisky and gin and built a strong reputation at home and internationally – none of which would have been possible without you.
“However, a combination of rising costs, a prolonged downturn across the whisky industry, and the cumulative strain of long-running legal disputes with our landlord – disputes we have largely been successful in defending – has placed sustained pressure on the business.
“Member funds, grants and loans have supported the distillery since its inception ten years ago, but these are no longer sufficient to sustain operations for the longer term.
“Having completed our summer maintenance programme, production will remain paused until we have greater certainty about the path ahead, and we do not believe it would be right to begin recruitment while that uncertainty remains.
“We are exploring all viable options with our professional advisers, including external investment and, where appropriate, discussions with potential interested parties. If new investment cannot be secured, we may need to consider alternative arrangements for the distillery's future.
“Throughout this process, our priorities remain protecting the interests of our members and securing the best possible outcome for the distillery and the community it was built to serve.”
The update went on to say the business remains “very much open for sales” with the imminent launch of its new Highland Legacy Series whisky and refreshed gin.
It added: “We know this is not the news any of you wanted.
“We will write to you again as soon as there are meaningful developments to share.”
It concluded: “Thank you for standing with GlenWyvis over the past ten years. This has always been your distillery – and that has never mattered more than it does now.”
