CAITHNESS, SCOTLAND – In a landmark moment for the Scottish spirits industry, Dunnet Bay Distillers has officially fired up the stills at its brand-new, £5 million (US$6.7 million) Stannergill Distillery. Located in the rugged, windswept landscape of Caithness, the facility represents one of the most significant investments in northern Highland whisky production in recent years. Housed within the historic walls of the 200-year-old Castletown Mill, the distillery began its first production run on June 30, 2026, with the inaugural spirit flowing through the copper stills on July 10.

This opening marks a pivotal evolution for founders Martin and Claire Murray, who have spent the last decade building a global reputation for botanical excellence with their Rock Rose Gin and Holy Grass Vodka. With the commencement of operations at Stannergill, the duo is now firmly planting their flag in the world of single malt Scotch whisky, combining traditional heritage with cutting-edge, sustainable engineering.

Main Facts: The Birth of a Northern Icon

The Stannergill Distillery is not merely an expansion of Dunnet Bay Distillers; it is a meticulously planned venture into the premium whisky market. The facility is designed to produce 240,000 liters of pure alcohol (LPA) per annum, a scale that allows for artisanal quality while maintaining a significant commercial presence in the growing global demand for Highland single malts.

The project’s centerpiece is the restoration of Castletown Mill, a Grade B-listed building that had long stood as a silent sentinel over the Caithness coastline. By repurposing this 19th-century industrial site, the Murrays have preserved a piece of local history while installing state-of-the-art distillation technology.

Key highlights of the new operation include:

• Total Investment: £5 million (US$6.7 million) dedicated to restoration, construction, and equipment.
• Production Capacity: 240,000 liters per year.
• Sustainability Focus: The distillery is powered by a high-efficiency electric boiler, ensuring zero on-site emissions from the steam generation process.
• Heritage Integration: The facility includes "The Grain Store Restaurant," which opened earlier this year, and an upcoming visitor center to bolster local tourism.

Chronology: From Restoration to First Spirit

The journey to Stannergill’s first "middle cut" has been a multi-year endeavor characterized by architectural challenges and engineering precision.

2014–2022: The Foundation of Dunnet Bay

Before the first stone was turned at Castletown Mill, Claire and Martin Murray established Dunnet Bay Distillers in 2014. Their flagship product, Rock Rose Gin, became a household name in the craft spirits movement, known for its ceramic bottles and locally foraged botanicals. The success of their gin and vodka portfolio provided the financial and brand foundation necessary to pursue a long-term dream: distilling whisky.

2022–2024: Planning and Acquisition

In 2022, the company unveiled its first whisky releases under the "Stannergill" and "Castletown Mill" labels. These were initially sourced and blended spirits, designed to introduce the brand’s flavor profile to the market while the physical distillery was being developed. In late 2024, after securing the historic Castletown Mill, the company announced its formal plans to transform the site into a dedicated single malt production hub.

2024–2026: The Restoration Phase

The restoration process took nearly two years. Working with heritage experts, the team had to reinforce the 200-year-old masonry to support the weight of modern copper stills and mash tuns. The renovation was not just about aesthetics; it involved a complete overhaul of the internal infrastructure to accommodate a modern, industrial-grade distillery within a historic shell.

March 2026 – July 2026: Launch and Production

The site’s hospitality wing, The Grain Store Restaurant, opened its doors in March 2026, serving as a precursor to the distillery’s operational phase. On June 30, 2026, the mashing and fermentation processes officially began. Ten days later, on July 10, the spirit stills were charged, and the first "new make" spirit was collected, marking the official birth of the distillery.

Supporting Data: Engineering and Sustainable Distillation

At the heart of Stannergill Distillery lies a marriage of familial sentiment and rigorous chemical engineering. Martin Murray, a chartered chemical engineer by trade, has applied a data-driven approach to the distillery’s design to ensure maximum efficiency and a specific spirit character.

The Stills: Anna and Isla

The distillation process is managed by two bespoke copper stills, named after the founders’ daughters.

1. Anna (Wash Still): A 5,000-liter vessel where the initial separation of alcohol from the fermented wash occurs.
2. Isla (Spirit Still): A 3,500-liter vessel where the final distillation takes place, refining the liquid into the high-quality spirit that will eventually become Stannergill Single Malt.

The disparity in size between the wash and spirit stills is a deliberate choice, allowing for specific reflux levels that contribute to a cleaner, more fruit-forward spirit—a hallmark of the intended Stannergill style.

Green Energy Leadership

In an era where the Scotch Whisky Association (SWA) has set ambitious net-zero targets, Stannergill is positioning itself as a leader in sustainable production. The facility utilizes an electric boiler to generate the steam required for heating the stills. Unlike traditional oil or gas-fired boilers, this system produces zero on-site emissions. By sourcing electricity from renewable Highland wind and hydro projects, the distillery aims to minimize its carbon footprint from day one.

Maturation and Capacity

While production is underway, the spirit must legally mature in oak casks for at least three years before it can be called "Scotch Whisky." To facilitate this, construction on a dedicated on-site maturation warehouse is scheduled to begin in the coming months. This warehouse will utilize the cool, maritime climate of Caithness to encourage a slow, steady maturation process, drawing salt-tinged air into the casks.

Official Responses: A Vision for the Future

The founders view Stannergill as more than just a production plant; they see it as a legacy project for the Caithness community.

Martin Murray, co-founder and chartered chemical engineer, emphasized the technical pride behind the project:

“We’re incredibly proud to have reached this point. Bringing Stannergill Distillery into production has been a complex and rewarding journey, combining detailed process engineering with a clear vision for the style of whisky we want to create. Everything here has been designed with intention, from fermentation through to distillation, to produce a spirit that truly reflects this landscape, while also setting a new standard for energy efficiency in our sector.”

Claire Murray, co-founder, focused on the cultural and economic impact of the distillery on the region:

“This is a very special moment for us and our team. Stannergill is not just about whisky production; it’s about creating a destination and continuing to share the story of Caithness with visitors from around the world. We’ve always believed in building something with a strong sense of place, and this distillery allows us to take that even further.”

The Murrays’ commitment to the local economy is evident in their decision to include a full-scale visitor center and restaurant, which are expected to create numerous jobs and draw thousands of tourists to the northern reaches of the North Coast 500 (NC500) route.

Implications: Impact on the Whisky Industry and Caithness

The opening of Stannergill Distillery carries significant weight for both the local economy and the broader Scotch whisky category.

1. Boosting Highland Tourism

Caithness has traditionally been a "pass-through" region for travelers on the NC500. By creating a high-end destination featuring a 200-year-old mill, a gourmet restaurant, and a world-class distillery, Dunnet Bay Distillers is providing a compelling reason for tourists to stay longer. This "distillery tourism" is a proven driver of economic growth in rural Scotland.

2. The Shift Toward "Green" Whisky

As the industry faces pressure to decarbonize, Stannergill serves as a blueprint for small-to-medium-sized distilleries. The successful implementation of an electric boiler system proves that high-volume spirit production can be decoupled from fossil fuel consumption, potentially influencing future distillery designs across the Highlands.

3. Diversification of the Dunnet Bay Portfolio

For Dunnet Bay Distillers, this move mitigates the risks associated with the saturated gin market. By diversifying into single malt whisky—an asset class that often appreciates with age—the company is securing its long-term financial health. The inclusion of Mapmaker’s Rum and Myxd Cocktails in their portfolio further demonstrates a brand that is prepared for evolving consumer tastes.

4. Heritage Preservation

The restoration of Castletown Mill is a victory for industrial archaeology. Rather than allowing a historic structure to fall into ruin, the project has given it a functional, commercial future. This model of "adaptive reuse" is increasingly popular in Scotland, where the romance of the past meets the commerce of the future.

Conclusion

The first spirit running through the Isla still on July 10, 2026, signifies more than just the start of a new product line; it marks the beginning of a new chapter for Caithness. With its £5 million investment, zero-emission goals, and deep respect for local history, Stannergill Distillery is poised to become a cornerstone of the Highland whisky scene. As the spirit begins its long slumber in oak casks, the world waits to see how the unique terroir of the far north will shape the next great Scottish single malt.