Lakes Distillery secures £3.5m loan to triple production
English whisky maker the Lakes Distillery has secured a £3.5 million asset-based loan, which will enable it to triple its annual production.
The distillery, which was founded in 2011 and also produces gin, is set to increase the volume of alcohol it makes each year, from 130,000 litres to 390,000 litres.
Lakes has secured the loan from British commercial and retail bank Secure Trust. Chief financial officer of the Lakes Distillery, David Robinson, said that as the value of the whisky stock increases over time, the “facility can grow as our business expands”.
Robinson added: “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.”
Lakes began production in 2014, and earlier this year sold a minority stake of the business to investment firm Comhar Capital for £4.25 million.
Secure Trust Bank’s regional managing director for Yorkshire and the northeast, John Gribbon, who led the deal for the £3.5 million loan, said: “The Lakes Distillery brand looks set to enjoy phenomenal growth over the next year, as it aims 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 pleased to be able to support them as The Lakes works towards becoming a household name.”
Over the years, Lakes has built up a loyal following and the distillery attracted over 32,000 visitors in the last 12 months.