The couple behind Whitby’s craft distillery have secured a £500,000 loan to help launch a new flagship site in a dramatic clifftop setting beside the town’s most famous landmark.
Luke Pentith and Jess Slater are renovating two derelict barns in the grounds of Whitby Abbey to create a visitor centre with distillery, shop, tasting bar and events venue. The loan from NPIF II – Mercia Debt Finance, which is managed by Mercia as part of the Northern Powerhouse Investment Fund II (NPIF II), will enable them to complete the construction and fit-out in the run-up to the opening next spring.
The site will provide a new headquarters for Whitby Distillery, which currently manufactures at a local industrial estate and has a shop in the old town. It will also create a year-round visitor attraction for Whitby, offering guided distillery tours and hosting weddings and events. The company, which currently employs 10 staff, expects to create 10 new jobs as a result.
Whitby Distillery was founded in 2017 after a holiday in the Outer Hebrides where the couple visited local distilleries. They initially operated from Luke’s parents’ utility room, selling products through two local stores. The first batch sold out in days and within a year they had given up their management jobs to focus on the business full time.
The company has achieved year on year growth ever since. Whitby Distillery now offers eight varieties of gin, three varieties of rum and a vodka, all made using hand-foraged botanicals from the Yorkshire coast and moors. Work on the new site, which is leased from English Heritage, began three years ago and will have cost almost £3m by the time it is complete, much of it raised from crowd funding. The couple are also looking at opportunities to expand sales beyond Yorkshire.
Luke Pentith, founder and Director, said: “This is a very exciting time for the business. The new centre will be one of the best distillery sites in the UK and will provide a platform to showcase the business and boost its growth. By opening up access to the public, it will also give people the opportunity to experience the previously unseen views and spectacular sunsets.”
Andy Clough of Mercia Business Loans adds: “To go from a utility room to such a prominent site within the space of eight years is a real achievement. The past few years have been challenging for distilleries but Luke and Jess have bucked the trend and established the business as one of the UK’s leading distillery brands. We are pleased to support the launch of the new centre, which will open up fresh growth opportunities.”
Sarah Newbould, Associate Director at the British Business Bank, said: “This investment in Whitby Distillery highlights the role that the Northern Powerhouse Investment Fund II is playing in helping ambitious businesses across the North turn their growth plans into reality. By supporting the development of this exciting new visitor attraction, the Fund is helping to create local jobs, boost tourism and strengthen the regional economy, while enabling businesses to invest, grow and reach new markets.”
Andy Davidson of RedSky Corporate Services, who provided fundraising advice to the company, added: “Whitby Distillery is an amazing business with huge potential. I am delighted to have helped the team to raise funds to achieve their growth ambitions.”
The £660m Northern Powerhouse Investment Fund II (NPIFII) covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.
The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.