Old mill overlooking stunning Scottish beach to be transformed into whisky distillery

Situated at the west end of Dunnet Bay, the Castletown Mill is a large, traditional stone-built water-powered grain mill, which dates from the early to mid-19th century.

Under the plans of family-run Dunnet Bay Distillers the site will be transformed into the home of Stannergill whisky, the latest addition to its portfolio, which already includes Rock Rose Gin and Holy Grass Vodka.

The new 300,000 sq. ft facility, which is set to open by late summer 2025, will also help to boost the local economy by hiring 12 additional staff for various operational and seasonal roles.

The £2M project has been made possible due to a funding package from HSBC.

Plans for the old mill will see it be transformed into a whisky distillery by Dunnet Bay Distillers | contributed

Martin Murray, Managing Director at Dunnet Bay, said of the plans: “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.”

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.”

The distillery’s products are well-established in 20 key markets, including Germany, the USA, and Southeast Asia. These markets include both restaurants and supermarkets. The business has already received its first order from China and plans to start exporting to the Philippines.

Set up by husband and wife team, Martin and Claire Murray, in 2014, Dunnet Bay Distillery is located in the wilderness of the far north of Scotland. The couple are passionate about handcrafting spirits that celebrate the heritage and provenance of Caithness and pride themselves on using local hand-foraged botanicals. 

The distillery known for producing the multi-award winning Rock Rose Gin, a flavourful and fresh, zesty yet berryful gin, which features a carefully selected collection of local and traditional botanicals. These include juniper berries, rowan berries and sea buckthorn, along with the Rhodiola rosea (a rose in the rocks), which adds a delicate floral note to the gin. 

Along with a range of Rock Rose Gin Editions, from Navy Strength and Seasonal Editions to an Old Tom Pink Grapefruit and Guest Flavours, Dunnet Bay Distillers also has a Holy Grass Vodka and a newly released Mapmakers Rum.

With building work now underway on the whisky distillery, the couple plan to create a destination distillery to educate visitors on the history of the mill and celebrate the heritage of the site. There are currently two unique ways to support the project now live with The 1818 Club and the Sponsor a Tile project. 

So far the business has released two Castletown Mill: A History Through Whisky Sagas series which have included a curated blend of grain and single malt whiskies. They also launched a cask sale in 2022 of 200 casks, which  contained the first drops of Dunnet Bay Distillers’ Stannergill whisky.