A whisky distillery is planning to increase production and expand its growth into international markets after securing a £22.5m bank loan.
Kilchoman Distillery, a family-run distillery on Islay, aim to produce 40% more whiskey in the next year as it targets ‘exciting opportunities’ to grow their brand in France and the US.
The loan, provided from Barclays, will also be used to invest in new production facilities and on a new warehouse, which will allow the distillery to store thousands of casks of whisky for release in several years’ time.
Kilchoman Distillery is a major employer on the island of Islay, with 40 people working for the company.
The brand is already an established premium spirit in 50 countries, with it’s biggest markets being in France, Germany, the US and China.
Islay Heads, general manager at Kilchoman Distillery, said: “Filling thousands of barrels of whisky and waiting several years for the spirit to mature is an expensive business.
“This substantial investment will allow us to invest back in the business, with construction of a new warehouse already underway and plans in the pipeline that should bring efficiencies and further expansion
“There are exciting opportunities to grow our brand in countries like France and the US and despite the unsettling economic conditions there remains a growing market for premium whisky brands.
“It has been pleasing to deal with the team at Barclays who were informative about the whisky industry and genuinely interested in the business and our staff.
“For us it was all about getting the right package in place and developing a long-term relationship.
“Barclays listened to any points we made and came up with a deal not driven by ticking a box but meeting our needs for a straightforward credit facility to meet our ambitions.”