Shetland’s First Whisky Distillery: A Milestone for Lerwick Distillery

Shetland’s whisky scene is on the brink of a significant development, with progress on the islands’ first whisky distillery in Lerwick advancing steadily.

The Lerwick Distillery team has recently achieved a major milestone, installing two 4,000-litre malt stills, bringing the dream closer to reality.

Blended Whisky to Lead the Way

Before the distillery’s single malt whisky is ready, a blended whisky made from casks sourced from the mainland will be produced. This interim product will be available in the shop, allowing visitors to sample the early fruits of the distillery’s labour. The single malt whisky, crafted entirely on-site, will follow in the coming years, adding a unique Shetland flavour to the market.

The Lerwick Distillery Shop

The first phase of the distillery’s opening is slated for September, with plans to unveil the shop section of the building on Market Street. This retail space will offer a range of products, including whisky and other Shetland-themed items. The shop’s grand oak counter is set to be the centrepiece, creating an inviting atmosphere for visitors.

A Multi-Million Pound Project

The Lerwick Distillery is a significant investment in Shetland’s economy, with over £4 million expected to be poured into the project by the time it fully opens next year. The funding has been bolstered by an investors’ scheme, attracting interest from around the globe, including Australia, Japan, and the United States. This financial support has enabled the distillery to expand its scope beyond the original concept.

Support from Highlands and Islands Enterprise

Highlands and Islands Enterprise (HIE) has played a crucial role in the distillery’s development, contributing £250,000 towards production equipment. Andrew Gear, HIE’s head of business growth in Shetland, expressed enthusiasm for the project, describing it as a “real asset” to the isles.

“It will create a high-quality product with global appeal, that will enhance Shetland’s food and drink offering and the visitor experience for our growing tourism market.”

“It will also help create valuable employment opportunities in a new industry for Shetland.”

Job Creation

The distillery is expected to create between 12 and 14 jobs, marking the beginning of a new industry for Shetland. These positions will offer valuable employment opportunities and the chance for career progression, particularly for young people and graduates.

The Production Process

The distillery’s equipment has the capacity to produce between 700 and 900 litres of whisky daily. However, under Scottish law, the spirit must mature for at least three years and one day before it can legally be called whisky. In the meantime, the team will bottle a blended spirit to be sold in the shop.

Walking through the former joinery building, visitors will find the tasting room, dominated by a large oak table matching the shop’s counter. Beyond the tasting room lies the heart of the operation – the production area. Here, the two malt whisky stills, standing tall beside seven 5,000-litre fermenters, represent a significant investment of around £800,000. An elevated platform will allow visitors on tours to get a close look at the stills, offering an immersive experience into the whisky-making process.

An Ambitious Vision for the Future

Operations director Calum Miller and co-founder Martin Watt have been working on this project for six years, and seeing it come to fruition is a source of immense pride. Miller described the progress as “amazing,” though he acknowledged that there is still work to be done.

The distillery’s future plans also include exploring the viability of using homegrown barley in the whisky-making process. The team has already conducted one test batch and is eager to collaborate with local crofters to source at least 30 tonnes of barley as soon as possible.

Supporting Whisky Tourism in Shetland

Looking ahead, the Lerwick Distillery team is open to the idea of other distilleries opening in Shetland. They believe that multiple distilleries could help grow whisky tourism on the islands, similar to the success seen on mainland Scotland and other Scottish islands.

Watt emphasised that they are willing to offer advice and support to anyone interested in establishing a whisky distillery in Shetland, recognising the broader benefits such ventures could bring to the region.

Investment in Whisky Distilleries

With significant investments, strong community support, and a clear vision for the future, Lerwick Distillery is set to become a must-visit destination for whisky enthusiasts worldwide.

Other whisky distilleries have invested in new and existing sites. These include:

• Dallas Dhu reopening for Welsh whisky production
• Benbecula Distillery starts production with a 130-year-old whisky recipe
• Kingsbans Distillery expanding its operations with a huge investment
• Lochranza Distillery release Ewan’s Cut, their oldest release yet with Ewan McGregor whilst donating to charity

Many old and new distilleries are restarting or increasing their production of whisky.

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We work with clients to discover whisky they are excited about, and then they can store their whisky in our dedicated whisky storage facility near Edinburgh.

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