Production to ramp up at Scotch whisky distillery following funding deal
Production at Bladnoch Distillery is set to double following a £3m asset-based lending deal secured with Royal Bank of Scotland’s asset-based lending team. The recently re-launched Scotch whisky brand is set to become fully operational within the next 18 months as a result of the investment.
Bladnoch Distillery is a single malt Scotch whisky distillery located in south west Scotland. Originally established in 1817, it has a rich history and is one of the oldest Scotch whisky producers in the area. After ceasing production in 2009, Bladnoch Distillery was acquired in 2015 by Australian entrepreneur David Prior who, driven by his passion for Scotch whisky, has re-started production at the site with the objective of focussing on re-igniting the brand in the UK as well as launching it to the Australian market.
Since the acquisition, Bladnoch Distillery has launched a brand new blended whisky called Pure Scot, which is contemporary product aimed at a modern, younger generation of whisky drinkers. It is also working on the launch of various iterations of Bladnoch’s traditional signature Single Malts, that have been maturing at the distillery over the last six to twenty-eight years.
The Royal Bank of Scotland’s asset-based lending team has supported expansion plans at Bladnoch Distillery with a £3m asset-based lending facility secured against their company assets which in this case is Bladnoch Distillery’s maturing whisky casks. The working capital freed up via this facility will support the business’s strategy to launch the brand in Australia as well as provide ongoing capital to meet expenditure costs to get the distillery fully operational again over the course of the next 18 months. Day to day banking facilities have also been provided.
David Prior, owner of Bladnoch Distillery said:
“I’m really thrilled to be able to invest into Bladnoch and bring this wonderful 200-year distillery back to life.
“Giving the distillery a vision for the future so it’s once again the centrepiece for the community is something I’m hugely passionate about – so we can bring back the distillery’s vibrancy and have Bladnoch a bigger generator of income for this region.
“Of over 100 operating distilleries in Scotland, only half a dozen are independently owned so when the opportunity arose to acquire Bladnoch, the attraction was in the great history and provenance. Scotch whisky has been one of my passions since I was old enough to drink.
“We see great opportunity in Scotch whisky; it’s a strong category and there is room for innovation. We have big plans for the future of the company but initially we are concentrating on getting the Bladnoch Distillery fully operational, increasing brand awareness in the UK and launching products across Australia.
“The asset-based lending team has delivered an innovative funding package which will allow us to focus on our core objectives of launching the Bladnoch Distillery brand and exporting to Australia. The ability to leverage funding via our company assets is a clever and flexible solution and gives us increased confidence because the facility grows in line with our business.”
Allan Jackson, corporate development director, Royal Bank of Scotland asset-based lending, said:
“Bladnoch Distillery is a very reputable Scotch producer and it is great that David has been able to rescue the brand from falling by the wayside. I am pleased that we have been able to support the company with its plans to re-launch in the UK and its entry into the Australian market.”