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Lagg Distillery gets £25m boost from Barclays
Isle of Arran Distillers secured a £25 million (US$32m) funding package from Barclays to build its new Lagg Distillery, which opened earlier this year.
Lagg Distillery opened to the public this summer
Production at Lagg Distillery started in April, while the site’s visitor centre and experience opened in June. Lagg is the second distillery from Isle of Arran Distillers, following the opening of Lochranza on the Scottish island in 1995.
Lagg Distillery has allowed Isle of Arran Distillers to double production capacity to more than two million litres annually. Lagg has a capacity of around 1m litres and is currently filling casks of heavily peated spirit.
The funding from Barclays will also allow Lagg Distillery to build more on-site warehouses. The company forecasts combined visitor numbers to both Lagg and Lochranza will surpass 200,000 by 2020.
“Times have never been more exciting for our company,” said Euan Mitchell, managing director of Isle of Arran Distillers. “With the re-branding of our Arran Single Malt and the opening of Lagg Distillery, it has been a busy year and expansion and change has been at the forefront of our minds.
“We look ahead with excitement to our 25th anniversary celebrations in 2020 and are proud to partner with Barclays in securing long-term growth for the future success of our company.”
The £25m has been borrowed against Isle of Arran’s whisky inventory, which will increase in value as it matures. According to Barclays, the investment represents the bank’s continuing relationship with the whisky industry.
“We have made a significant commitment to the whisky sector by investing both time and money to become industry experts, ensuring we are able to provide bespoke solutions specific to the sector,” said Jamie Grant, head of corporate banking for Barclays in Scotland.
“The deal team worked closely with Isle of Arran Distillers, guiding them every step of the way, to provide a unique funding solution to aid growth and deliver their vision of opening a second distillery on the island.”