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Dunnet Bay Distillers to open £5.9m distillery
Family-run business Dunnet Bay Distillers will transform a historic grain mill in Caithness, Scotland, into a whisky distillery.
Located at the west end of Dunnet Bay, the Castletown Mill is a traditional stone-built water-powered grain mill that dates to the early to mid-19th century.
The site will be transformed into a 300,000-square-foot facility that will be the home of Stannergill whisky, which launched in 2022.
The group sought planning permission to renovate the site in 2022, with the project now supported by a £2m (US$2.65m) funding package from HSBC UK. Dunnet Bay Distillers said the total investment will be £5.9m (US$7.8m) including the land and a warehouse that has already been built.
The facility is expected to open in late summer 2025 and will employ 12 additional staff.
Martin Murray, managing director, said: “We’re thrilled to have HSBC’s continued support as we embark on this next chapter.
“This expansion will allow us to create more jobs, restore a piece of our local heritage, and continue growing our presence in international markets. The restoration of the mill is particularly meaningful to us as it represents both our commitment to the community and our dedication to preserving local history.
“We look forward to sharing this journey with our loyal customers as well as welcoming new ones.”
As well as Stannergill, Dunnet Bay Distillers’ portfolio includes Rock Rose Gin and Holy Grass Vodka. Its products are available in 20 markets, in both the on- and off-trade.
Tim Laundon, relationship director at HSBC UK, added: “At HSBC UK, we are committed to supporting local businesses like Dunnet Bay Distillers. Its dedication to community responsibility aligns perfectly with our values. We are excited to see the positive impact its expansion will have on the local economy and the historic preservation of the mill.”
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