On-farm distillers making hay while sun shines on new trend

More businesses are now growing, harvesting and refining crops to create crafted premium alcohol

For generations, farmers have acted as stewards of natural resources – soil, water, plants, wildlife, and the environment – and worked tirelessly to produce crops and livestock in order to feed an ever-growing population.

Now, as the agriculture and farm business landscape evolves, on-farm distilling, by taking the raw ingredients grown on a farm and distilling them to produce spirits such as vodka, gin and whisky, has emerged as a fashionable diversification.

Setting up an on-farm distillery may seem an overwhelming prospect for many farming families and it does require significant investment, time, planning, and management.

However, three farming businesses – Arbikie, Ballindalloch, and Ogilvy – have made the leap into on-farm distilling and are now producing premium alcohol with a long shelf-life and export potential.

One could argue that the drinks industry is becoming an ever crowded marketplace, with more than 131 registered distilleries producing whisky and raw spirit for flavoured gins and vodka.

In 2016, gin stole the limelight as Britain’s most popular spirit. According to the Scottish Gin Society, there are now more than 100 Scottish gins and more than 50 distilleries producing gin within Scotland.

In2010UKginsaleswere£774.9million compared to £1.29 billion whisky sales. Today, both spirits are worth more than £1.2bn, and by 2020 gin is predicted to overtake whisky to more than £1.5bn. In what some would regard as a saturated marketplace it is imperative to develop a Unique Selling Point.

Ogilvy, Arbikie and Ballindalloch have done this by emphasising the provenance of ingredients used to create their premium spirits. On-farm distilleries differentiate from other brands by communicating the story of growing, harvesting and distilling crops to create their premium alcohol.

Farm distilleries can also add value through promoting the use of a single grain.

Arbikie has achieved this by extending its product portfolio to include potato vodka, wheat vodka and a limited edition Highland Rye whisky.

With strong demand for premium drinks both at home and overseas, cereal and potato growers may have the opportunity to supply a local craft distillery.

This would extend their customer base, spread risk by reducing market volatility and help distilleries communicate their story of locally sourced ingredients from field to bottle.

From top: Caroline Bruce-Jarron with a bottle of Ogilvy vodka made from Maris Piper potatoes and Graeme Jarron holding some young plants; brothers Iain, John and David Stirling at the Arbikie Distillery; a bottle of chilliflavoured vodka from Arbikie.