A family run company best known for producing gin have revealed ambitious plans to launch a new whisky distillery in a historic grain mill.

Dunnet Bay Distillers - the team behind the well regarded Rock Rose gin - have launched a multi-million pound project to transform the Castletown Mill in Caithness. The grain mill dates back to the mid-19th century and had been derelict for over 30 years before it was purchased. Castletown will now live a second life as the home of Stannergill Whisky.

Construction has already started on the 300,000 square foot facility. All going well, the distillery will open late summer 2025.

It is hoped that the new distillery will also be a boost to the local economy, providing at least 12 new jobs and bringing tourists to the area. The old mill is a much loved local landmark set in a beautiful location overlooking a beach, so it will no doubt be a popular spot for whisky fans.

The £2 million project recently received a financial leg-up thanks to a funding package from HSBC. Additional support for the distillery has come in the form of a cask ownership programme and The 1818 Society - an investor programme whose participants will be among the only people to get their hands on the distillery’s inaugural whisky.

Dunnet Bay Disitllers also have plans to release whiskies through the Castletown Saga Series. This is a range of specially crafted, limited edition blends that honour specific periods of Castletown Mill’s history.

Martin Murray, managing director at Dunnet Bay Distillers, said of their plans: “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.”

Dunnet Bay Distillery was established in 2014 by husband and wife duo Martin and Claire Murray. Over the past decade they have built a respectable portfolio of spirits including the award winning Rock Rose gin, Holy Grass vodka and mapmakers rum. Stannergill will be their first foray into Scotch whisky.

Because of their experience with other spirits, Stannergill will have something of a head start when it comes to selling their whisky. Their other products are already well established in over 20 markets including the United States and various territories in Southeast Asia and the EU. These existing connections could prove to be invaluable for the upstart whisky brand.

If you’re interested in Castletown Mill and Stannergill, you can keep up to date by visiting the company’s website.