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Shetland’s first dedicated whisky distillery to open this year

The business also claims it will be the most northerly whisky-only distillery in the world.

The new distillery is expected to open later this year. Image: Big Partnership
The new distillery is expected to open later this year. Image: Big Partnership

The first dedicated whisky distillery in Shetland will open its doors later this year.

Lerwick Distillery, founded by Martin Watt, Calum Miller and Caroline MacIntyre, is nearing completion after they found the site on Market Street two years ago.

It aims to offer tours to customers in the future, with tourists being a particular target market.

The business claims it will also be the most northerly whisky-only  distillery in the world, with an opening date yet to be announced.

New distillery has overcome challenges, says founder

The idea was hatched between Mr Watt and Mr Miller more than a decade ago.

Mr Watt said: “It came from me around 16 years ago when someone tried something similar.

“I was finance manager and realised their project was not sustainable at all — Shetland has changed a lot since then.

“With around 150 cruise ships arriving into Shetland every year and a more stable whisky industry, our plan, all being well, should be sustainable.”

Lerwick Distillery currently employs six people, with a further six jobs in the pipeline.

Scottish law dictates a spirit can’t legally be called a whisky until it has matured for three years and one day.

Lerwick Distillery will open later this year. Image: Big Partnership

Lerwick Distillery is planning to bottle a “new make” spirit, Haad Still, to cover operational costs.

The name comes from a traditional Shetland phrase for “hold on”, encouraging people to wait for the whisky to mature.

Mr Watt said he’ll be glad once everything is ready to go after facing several challenges and setbacks.

He added: “We’ve had a lot of logistical challenges since we’ve been in Shetland.

“We had hoped to open a little sooner, but we’ve overcome our challenges and are still hopeful for the future.

“It’s been both big and little things, but I’m really looking forward to it now.”

Ian Millar has also joined Lerwick Distillery and has been named master distiller.

Business Gateway support for Lerwick Distillery

The business accessed a £4,000 start-up grant signposted by Business Gateway, which also led to an extra £682,000 share capital investment.

The founders’ initial funding target was to raise £1 million but the pair have now far exceeded this.

It means they have been able to secure premises four times the size they had originally planned.

Business Gateway adviser Diana Abernethy added: “Shetland is the last area of the UK without a distillery. It’s an exciting brand and journey they’re embarking on.

“It will give such a boost to tourism in the area and the local economy.”

The distillery will look to offer tours to customers in the future. Image: Big Partnership

Mr Watt said the new distillery  had received “excellent” support from Business Gateway.

He added: “Diana was able to point out things that we had missed in our business plan, and gave us access to great contacts to help us develop.

“If it hadn’t been for the funding Business Gateway signposted us to, we would not have raised enough share capital to be able to expand the business so quickly.

“We truly couldn’t have done this without Business Gateway.”

Conversation