The Lakes Distillery has received a £3.5 million asset-based lending facility from Secure Trust Bank Commercial Finance to help triple the number of litres of alcohol produced each year.
As one of only 14 English whisky distilleries, we began distilling in 2014 and, as of the end of 2019, have produced over half a million litres of alcohol, which equates to 1.5 million bottles of whisky. As the spirit must remain in an oak cask for three years and one day before it is classified as whisky, we made our first whisky sale in 2018, and have since sold more than 15,000 bottles.
In September 2019, we released our first widely available single malt whisky, The Whiskymaker’s Reserve No.1, which sold out in just five weeks through our website and stockists such as Booths, Harvey Nichols, and Master of Malt. Also sold out, The Whiskymaker’s Reserve No.2 followed in October, with the third single malt in the Whiksymaker series due to launch in April 2020.
The £3.5 million provided by Secure Trust Bank will allow us to increase the quantity of single malt whisky stock we can produce each year by threefold, from our current capacity of 130,000 litres. The facility is also able to grow over time, as the value of its current stock of whisky increases the older it becomes.
The deal was led by Paul Goodchild, Director at Secure Trust Bank Commercial Finance, with support from John Gribbon, Regional Managing Director for Yorkshire and the North East.
David Robinson, Chief Financial Officer at Lakes Distillery, said:
“In the past, it has been difficult for us to secure an asset-based facility due to the complexities of the whisky market. Secure Trust Bank took the time to understand our business model and was able to take a flexible and common sense approach to the lending criteria. They understood that the value of our whisky stock increases over time, meaning that the facility can grow as our business expands.”
John Gribbon at Secure Trust Bank Commercial Finance said:
“The Lakes Distillery brand is set to enjoy phenomenal growth over the next year, as it looks to increase production capacity, inventory age and holding. The quality of the company’s operations, management team and product range mean it has the potential to rival the very biggest and best alcohol brands not only in the UK but across the world. We are excited to work with David and the team and we’re confident it will become a household name in the time we work with them.”