9th August, 2016 by Kristiane Sherry

Independent Scotch producer Isle of Arran Distillers has won planning approval for a second distillery on the island, as full-year net profits grow 25%.

Plans for a second distillery at Lagg, on the south coast of the island, were approved by North Ayrshire Council on 8 August.

The approved proposals include the development of the distillery itself, a visitor centre and bonded warehousing.

“We are delighted to have been given approval by North Ayrshire Council to proceed with our second distillery in Lagg,” said Euan Mitchell, managing director of Isle of Arran Distillers. “This is a great opportunity for us to deliver a second exceptional distillery on the island and we will progress as planned.

“This second distillery is part of our ongoing investment to increase capacity and capability and support future company growth. It marks a new chapter in the developing story of Isle of Arran Distillers.

“The designs from our architects Denham and Benn are truly spectacular and we can’t wait to see them brought to life.”

Planning approval follows the release of 2015 full-year results which show a 16% increase in brand sales, consolidating six years of profit gains, up 130% since 2010.

Exports accounted for 61% of total turnover during 2015, with the US representing 9% of overseas sales and Taiwan contributing 7%. France remains a “core market”, according to the company.

Visitor numbers to the Lochranza site increased from 66,000 in 2014 to 85,000 in 2015.

“We are delighted with the results which renew our dedication to creating quality whisky with a story to tell,” Mitchell said in a statement.

“There is an undeniable consumer desire for authenticity, something which we can deliver as an independently owned Scottish business. In contrast, three quarters of Scottish distilleries are in the hands of international businesses.

“Our success shows that it is not only possible to survive in a challenging market, but to thrive. While the larger companies might be struggling, and that prompts a negative tone, we believe that the future for whisky is very promising.”

The Isle of Arran distillery celebrated its 21st anniversary earlier this year with the release of a commemorative book.