Islay distillery to raise production after funding boost

A family-run distillery on Islay is to "substantially" increase production after securing a £22.5m funding package from Barclays.

Kilchoman Distillery said the loan would allow it to invest in new production facilities and further grow the brand globally.

It aims to produce 40% more single malt whisky within the next 12 months.

That would increase its current output from 445,000 70cl bottles to about 625,000.

Meanwhile, work has already started on a new warehouse, which will allow Kilchoman to store thousands more casks of whisky for release in several years' time.

The distillery is a major employer on the island, with 40 people now working for the company.

The brand is already established as a premium spirit in 50 countries, with the biggest markets being in France, Germany, the US and China.

The Barclays investment will in part be used to help Kilchoman increase its presence in these big four markets.

Kilchoman Distillery general manager Islay Heads said the funding package would allow the company to invest back in the business.

He added: "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."

Set in 2,000 acres of farmland, Kilchoman is one of nine distilleries on Islay.

The family business was established by Anthony and Kathy Wills in 2005, when the first cask was laid down.

Kilchoman reported turnover of about £7m in its last audited accounts to December 2020.