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Dunnet distillery business secures £180,200 for expansion


By Alan Hendry

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Martin Murray, co-founder and co-director of Dunnet Bay Distillers, with Castletown Mill in the background.
Martin Murray, co-founder and co-director of Dunnet Bay Distillers, with Castletown Mill in the background.

A Caithness distillery firm has secured up to £180,200 for a project that will see it expand and create new jobs.

The investment from Highlands and Islands Enterprise (HIE) will help Dunnet Bay Distillers develop a bottling plant and warehouse for its gin and vodka operations near Castletown Mill.

The mill was purchased by the firm with a view to turning it into a new destination whisky distillery.

Owned by local husband-and-wife team Claire and Martin Murray, Dunnet Bay Distillers is well known for producing Rock Rose gin and Holy Grass vodka.

The business started trading in 2014 after creating a small gin and vodka distillery in Dunnet. Since then, a warehouse and a visitor centre have been built following an increase in demand and the company now exports its products to more than 20 countries.

The new investment will also allow space to be freed up at the Dunnet site to increase production of gin and vodka.

The building will incorporate an air source heat pump system for heating and cooling the premises. It also faces south to maximise the potential for a solar PV array on the roof.

The new equipment uses the latest technology to maximise energy efficiency.

The expansion is set to boost the local economy.

Nineteen staff are currently employed at Dunnet Bay Distillers and four new jobs will be created as a result of HIE’s investment.

The money awarded by HIE includes £90,100 Green Jobs funding, which is being distributed by HIE on behalf of the Scottish Government in light of the low-carbon and energy-saving benefits of the project.

Hilary Budge, development manager at HIE, said: “Distilleries are an important part of the Highlands and Islands food and drink sector and provide valuable rural employment while contributing to community resilience.

"As well as having an innovative approach, Dunnet Bay Distillers has shown great initiative in developing its business with a strong environmental ethos while maintaining high-quality products.

A computer-generated image showing how Castletown Mill will look after the development is complete.
A computer-generated image showing how Castletown Mill will look after the development is complete.

“Creating new jobs in the area will also help the wider efforts to attract and retain working-age people in the area. We are very pleased to be able to provide this support and look forward to continuing to work with them as they develop the business.”

HIE also supported Dunnet Bay Distillers through the agency’s Graduate Support Programme, which helps companies in the Highlands and Islands by offering 12-month paid work experience placements in a variety of industries.

While working at the firm, graduate Craig Chambers produced a new gin expression called Rock Rose Gin Smoked Orange which has become part of the core range, and brings the number of gins in the main range to nine.

Martin Murray, co-founder and co-director of Dunnet Bay Distillers, said: “We’re excited at the prospect of regenerating Castletown Mill, a fine 200-year-old building which has been empty for many years. The mill will become a Caithness landmark once again and its development will transform our already successful business.

"We are so grateful to Highlands and Islands Enterprise for its support, and we look forward to launching our website for the project which will explain more about how local people can get involved.

"We aim to make it into a local destination distillery and we intend to make this section of our business every bit as environmentally sustainable as the rest. Our strong environmental ethos is at the heart of what we do.”


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