Scotland set for new gin plant after £5m funding deal

A new gin plant is to be built in Scotland after a distillery business secured funding of up to £5 million from a stock market listed drinks company.

Ardgowan Distillery, backed by Austrian investor and whisky enthusiast Roland Grain, will build a custom plant to produce Blackwoods gin at its Inverkip site following the loan from the brand’s owner Distil.

An initial tranche of £3m has been approved by shareholders of the London-listed firm, with the potential of an additional follow-on loan of up to £2m.

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The new funds will kick-start the plans to make Blackwoods, which is infused with Scottish botanicals, and support the distillery’s development until its first whisky matures in 2028.

The new loan funds will support the Ardgowan Distillery’s development until the first whisky matures in 2028. Picture: contributed.The new loan funds will support the Ardgowan Distillery’s development until the first whisky matures in 2028. Picture: contributed.
The new loan funds will support the Ardgowan Distillery’s development until the first whisky matures in 2028. Picture: contributed.
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The first gin will come on stream next year after a £400,000 investment in a production plant that will create up to five long-term jobs.

The news follows the announcement in June of an £8.4m equity investment in the business, led by majority shareholder Mr Grain to start construction of a one million litre single malt distillery and visitor centre at the site.

Mr Grain, director of investments at Ardgowan Distillery, said the latest deal "will provide an opportunity for visitors to immerse themselves in the world of gin and we plan for this to be integrated fully into the distillery visitor experience at Inverkip… we hope to finalise the final critical part of the funding package over the coming months”.

The businessman is the founder, owner and boss of an eponymous IT company that operates in 17 countries. He has an extensive track record of investment in distillery businesses.

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