The Lakes Distillery has secured £3.5 million of funding which will enable it to treble production of single malt whisky at its Setmurthy headquarters near Bassenthwaite.
The asset-based lending facility from Secure Trust Bank Commercial Finance will support a three-fold expansion of the distillery’s current 130,000 litres a year capacity for its award-winning whisky.
Founded in 2011 at a Victorian farmstead, the Lakes Distillery has become renowned for its range of single malt and blended whiskies, winning a gold award for The Lakes Single Malt at the 2020 World Whisky Awards, It has also won awards for its vodkas and gins, The Lakes Vodka being named the world’s best at the World Vodka Awards last year.
David Robinson, chief financial officer at The Lakes Distillery, said: “In the past, it has been difficult for us to secure an asset-based facility due to the complexities of the whisky market. Secure Trust Bank took the time to understand our business model and was able to take a flexible and common sense approach to the lending criteria. They understood that the value of our whisky stock increases over time, meaning that the facility can grow as our business expands.”
One of only 14 English whisky distilleries, The Lakes began distilling in 2014 and by the end of last year it had produced over half a million litres of alcohol, which equates to 1.5 million bottles of whisky. However, as the spirit must remain in an oak cask for more than three years before it is classified as whisky, the company did not make its first whisky sale until 2018. It has since sold more than 15,000 bottles.
Last September, The Lakes released its first widely available single malt whisky, The Whiskymaker’s Reserve No.1, which sold out in just five weeks through their website and stockists such as Booths, Harvey Nichols, and Master of Malt. The Whiskymaker’s Reserve No.2 followed in October and it also sold out. The third single malt in the Whiskymaker series is due to launch in April.
John Gribbon, from Solihull-based Secure Trust Bank Commercial Finance, said: “The Lakes Distillery brand looks set to enjoy phenomenal growth over the next year as it aims to increase production capacity, inventory age and holding. The quality of the company’s operations, management team and product range mean it has the potential to rival the very biggest and best alcohol brands, not only in the UK but across the world. We are excited to work with David and the team and we’re pleased to be able to support them as The Lakes works towards becoming a household name.”
The distillery has also become a popular visitor attraction, welcoming more than 32,000 visitors on its tours in the last 12 months and over 60,000 diners at the on-site restaurant.
