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Barclays
further invests in the whisky industry
in Scotland with a deal which supports
Islay farm distillery Kilchoman's global
ambitions.
Barclays
has agreed a £22.5 million funding
package with Kilchoman Distillery
allowing them to invest in new
production facilities and further grow
the brand globally.
Barclays has a wealth of experience and
expertise in supporting the whisky
industry in Scotland. The new deal with
Kilchoman Distillery is the latest
example of the bank providing financial
support to one of the country’s most
valuable industries throughout the
supply chain.
The deal will allow the independent
distillery on the island of Islay to
substantially increase production of its
famous Single Malt.
Kilchoman aims to produce 40% more
whisky within the next 12 months and the
owners have already started work on a
new warehouse and extra staff have been
hired to cope with demand.
The distillery is a major employer on
the island, with 40 people now working
for the company. The new investment will
allow Kilchoman to store thousands more
casks of whisky which they can release
to the market in several years’ time.
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 allow Kilchoman to
increase its presence in these big four
markets.
The process of "laying down" and storing
whisky, normally for a minimum of three
years, is an expensive one as
substantial working capital is needed
while the spirt matures.
Barclays experience of working across
all aspects of the whisky industry means
they have an understanding and insight
into the unique demands of the industry.
Their team of experts have a range of
flexible finance packages to support the
growth of independent distilleries.
Islay Heads, General Manager at
Kilchoman Distillery, said:
"Filling thousands of barrels of whisky
and waiting several years for the spirit
to mature is an expensive business. This
substantial investment will allow us to
invest back in the business, with
construction of a new warehouse already
underway and plans in the pipeline that
should bring efficiencies and further
expansion
"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.
"It has been pleasing to deal with the
team at Barclays who were informative
about the whisky industry and genuinely
interested in the business and our
staff. For us it was all about getting
the right package in place and
developing a long-term relationship.
Barclays listened to any points we made
and came up with a deal not driven by
ticking a box but meeting our needs for
a straightforward credit facility to
meet our ambitions."
Andy Hall, Head of Barclays Corporate
Banking, Central Scotland, said:
"Despite the challenging economic
conditions, the production of our
national drink remains an expanding
industry and we are pleased that
Kilchoman is now one of several
independent distilleries in Scotland
where we are supporting their ambitions
for growth in Scotland and beyond.
"Whisky remains a growing market and
there is still a huge appetite for
single malts, with many people still
prepared to pay premium prices.
"Our expertise in this area means that
Barclays is ideally placed to offer a
range of support to businesses in one of
Scotland’s most important sectors. We
have a breadth of knowledge and
understanding of how varying levels of
investment is key to supporting
distilleries, where in most cases the
whisky produced today will not be
available for market for several years."
Set in 2,000 acres of farmland,
Kilchoman is Islay’s only farm
distillery, producing Islay’s only
Single Farm Single Malt.
The provenance of the whisky represents
the revival of single malt whisky being
cultivated from barley to bottle in a
single location.
Kilchoman is one of nine distilleries on
the island of Islay and is a family
business established by Anthony and
Kathy Wills in 2005 when the first cask
was laid down, and is now supported by
their three sons, George, James and
Peter.
As Managing Director, Anthony remains
hands-on as Master Distiller while Kathy
is head of the Visitor Centre. Their
three sons manage the distillery’s sales
and marketing activities.
Kilchoman Distillery reported turnover
of c.£7m at its last audited accounts to
December 2020.
You will also find the current Kilchoman whisky
range available from specialist online
whisky retailers such as
The Whisky Exchange,
Amazon
and
Master of Malt
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