Summary:
Dornoch Distillery expands despite challenging whisky market conditions.
Phil and Simon Thompson raised $2.94 million through crowdfunding for their new distillery.
Thompson brothers have a long-term strategy to thrive in cyclical markets.
Their distillery products are now exported to 14 international markets.
New Struie Distillery aims for sustainable production, showcasing innovation in tough times.
The Dornoch Distillery team, led by Phil and Simon Thompson, is boldly expanding their whisky empire in Scotland, even as major players retreat from the market. With consumers tightening their belts due to rising living costs and global trade tensions affecting the whisky industry, starting a new distillery in 2025 seems daunting.
Major Industry Challenges
Recent events, such as Diageo shutting down its Distill Ventures programme, showcase the pressure even industry giants face, resulting in significant layoffs across the sector. Yet, the Thompson brothers are not just surviving; they are thriving.
From Bar to Distillery
Phil and Simon are well-known in the Scotch whisky community, thanks to their award-winning bar at Dornoch Castle Hotel. During the pandemic, they kept their loyal customers connected by delivering whisky, earning accolades like Whisky Bar of the Year in 2014 and 2016.
In 2016, they launched the Dornoch Distillery Company, reviving old-style Highland spirits through a successful crowdfunding campaign that transformed a derelict fire station into a distillery. By 2017, Dornoch Castle became the first hotel in the UK with its own on-site distillery, and now their spirits are exported to 14 international markets.
Ambitious Expansion
Recently, the brothers announced a new crowdfunding campaign aiming to raise $2.4 million (£1.8 million) for a state-of-the-art sustainable distillery, Struie Distillery, located just 200 meters from their current site. Simon Thompson humorously remarked about launching a distillery at the worst possible time, yet their confidence is backed by already raising $2.94 million (£2.26 million) on Crowdcube, exceeding their target by 122%.
Long-Term Vision in Whisky
Thompson acknowledges the cyclical nature of the whisky industry. They anticipated market shifts and have strategically planned for downturns since 2016. Phil emphasizes that their approach is not reactive but proactive, allowing them to thrive even in challenging times. Their new product, Mystery Malt, exemplifies their strategy to capitalize on market conditions while ensuring a win for everyone involved.
The Thompson brothers’ meticulous planning and passion for their craft demonstrate that even in the most challenging times, there are opportunities for those willing to invest in the long game of whisky production.
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