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£15 million invested in Glenrothes whisky distillery InchDairnie

Ian Pamer, managing director of InchDarnie distillery.
Ian Pamer, managing director of InchDarnie distillery.

More than £15 million has been invested into a Fife distillery which plans to release a single malt in 2029.

The InchDairnie distillery outside Glenrothes is currently constructing its third set of warehouses, which will allow it to store a total of 150,000 barrels.

The project has been led by Ian Palmer who has more than 40 years of experience in the whisky industry.

Initially there will be 20,000 cases — each containing 12 bottles — of the single malt released annually.

Mr Palmer said it’s his ambition to increase production to around 100,000 cases a year of the premium spirit, which will retail for around £60 a bottle.

He said: “We have been building up the warehouses as we continue to lay down the whisky and let it mature.

“As well as get the distillery started and construct the warehouses we’ve had to buy thousands of barrels every year so our investment at this stage is around £15m.

Managing director Ian Palmer at his distillery

“However this has always been part of our business plan. The Scotch whisky industry is about the long term — you’ve got to have a long term plan and see it through.

“You can’t react to sales going up or down on a quarterly business. You have to make a commitment and go for it.”

The distillery, located on seven hectares of land on Whitecraig Road purchased from Fife Council, currently employs 12 staff.

This number will rise next year as the distillery begins blending for its ‘strategic partner’ Macduff.

As well as the single malt, InchDairnie is also producing a rye whisky and a peated whisky.

“Blending for Macduff will help with our working capital,” Mr Palmer said.

“Our first release will be the rye whisky which will probably be released in two or three years’ time but we will stick to our plan of saying we will release it when it’s ready.

“The peated malt will be six or seven years away.

“We will take on additional staff next year and as we get closer to putting product to the market we will need more employees.”

InchDairnie has also signed a deal with British Airways to supply a single malt in 2031 which will be served to customers in the first class lounge.

“Our use of technology and innovation very much aligns with British Airways,” Mr Palmer said.

“For a company that’s so young, that doesn’t even have a product in the market… to be able to link up with BA says a lot about us, what our ambitions are and what we are capable of.”

rmclaren@thecourier.co.uk