The Glasgow Distillery Company, a prominent producer of Scotch whisky, has successfully secured an £11 million funding facility from Shawbrook. This significant capital injection is earmarked to boost the distillery’s production capabilities and underpin its ambitious long-term growth strategies.
Established in 2012 by co-founders Liam Hughes and Mike Hayward, The Glasgow Distillery Company embarked on a mission to reintroduce single malt whisky distillation to the city of Glasgow, a craft that had been absent for over a century. The company takes its name from an original Glasgow Distillery founded in 1770, which operated until its closure in 1902. Located in Hillington Business Park, the distillery launched its first product, Makar Gin, in 2014, followed by its signature Glasgow 1770 Single Malt Scotch Whisky in 2018. Their diverse portfolio also includes Banditti Club Rum and G52 Botanical Vodka.
As the distillery continued its investment in production and sought to expand its premium whisky offerings, a funding structure tailored to the inherent long-term nature of whisky maturation became essential. Scotch whisky, by legal definition, must mature in oak casks in Scotland for a minimum of three years, with significant value accruing over this extended period before bottles reach the market.
Shawbrook addressed this unique requirement by structuring a specialist inventory-backed Asset Based Lending (ABL) facility. This financial arrangement is secured against the distillery’s eligible maturing Scotch whisky inventory. The funding package serves to refinance existing financial commitments while providing additional working capital headroom for ongoing investments and future expansion.
Mike Hayward, co-founder of Glasgow Distillery Company, emphasised the specific financial dynamics of the industry. He stated “As an independent distiller, significant value is created long before every bottle reaches the shelf.”
He added that Shawbrook’s understanding of their business model and the unique characteristics of whisky maturation enabled the creation of “a facility that unlocks working capital and enables us to invest in production, expand our inventory and continue delivering exceptional spirits to customers around the world.”
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Jeremy Bolton, Senior Director of Asset Based Lending at Shawbrook, highlighted the bespoke nature of the deal. “Glasgow Distillery Company has built a distinctive position within Scotland’s premium spirits sector. By taking the time to understand both the business and the value of its maturing whisky inventory, we were able to structure a funding solution that provides flexibility today while supporting its long-term growth strategy.”
The transaction saw Noble & Company introducing the deal, with Addleshaw Goddard providing legal counsel.
