How Campbeltown is reviving its whisky industry

One of Scotland’s once thriving whisky regions is on the cusp of a renaissance

For many years, the Campbeltown area was known as the whisky capital of the world, with more than 30 distilleries in operation

From the 1800s onwards business boomed. There was plentiful fertile farmland for growing barley as well as local peat bogs

Crosshill Loch provided a reliable supply of fresh water while coal from the Drumlemble mine powered the distilleries

The natural deep-sea harbour enabled exporting to Glasgow and on to London and the US

Then came World War 1, the Great Depression and American prohibition, as well as increased competition from Speyside due to the expanding railway network

All of this hit Campbeltown hard. Seventeen distilleries closed, sparking a decline that continued until only Glen Scotia, Springbank and Glengyle remained

But this is changing. Campbeltown whisky is on the rise and the distillery count is doubling to six

The newcomers are: Brave New Spirits’ Witchburn Distillery, which is being created in the Machrihanish Airbase Community Company (MACC) Business Park; R&B’s Machrihanish Distillery nearby; and the Dal Riata Distillery in Campbeltown’s Kinloch Road

So why is Campbeltown experiencing this revival?

Provenance

The area has 200 years of heritage and a reputation for quality that was maintained by the small number of remaining distilleries, which are highly respected among consumers.

Natural advantage

Kintyre’s longstanding resources of freshwater and peatland, and the natural deep-sea harbour are now supplemented by wind and solar energy availability, creating significant potential to run businesses sustainably

The creation of new distilleries offers opportunities to embrace decarbonisation from the outset.  The new Machrihanish Distillery, for example, will be a farm distillery with a net zero production process.

Business infrastructure

The peninsula’s many natural assets are now underpinned by a more developed and sophisticated business infrastructure. There are ample local suppliers, hauliers to support logistics, and a bustling commercial port.

There’s also support from us at HIE, including advice, funding, and developing partner and supplier networks.

The community owned MACC Business Park is also playing its part. It’s no surprise that one of the new distilleries has set up home here.

A former RAF airbase, the park is spread over 1,000 acres, and offers a secure location for distilling, storing and maturing whisky. Just minutes’ walk from beaches, the sea air is ideal for maturing fine quality Scotch and the site has its own private water for the distilling process.

The US Navy SEALs building not only provides ample scale and capacity for a distillery – and some history of its own – but speed of construction. Refitting existing buildings comes with a reduced build time that helps accelerate business returns from an already long process.

Meanwhile, recent wider investment in Campbeltown has included the town centre £10m heritage-led regeneration programme. This has seen over 2,000m² of vacant floorspace brought back into use, creating a vibrant high street with independent retailers and hospitality offerings.

The growth of the local whisky industry will boost this regeneration.

There are already around 39,000 skilled production jobs in Scotland’s whisky industry. For a rural area like Campbeltown, more distilleries means more local jobs, particularly for young people, supporting population retention.

And of course, growth in one sector helps others flourish. Whisky tourism is lucrative. In 2022 over two million people visited Scotland’s distilleries and spent nearly £30m.

With beautiful beaches, picture perfect scenery, and local golf facilities as well as an airport with daily flights from the central belt, there is undoubtedly more opportunity for Campbeltown to develop its whisky tourism market for the wider benefit of the local economy.

Indeed, it’s a great opportunity the whole Kintyre peninsula and Argyll and Bute. Scotch remains our country’s biggest export, generating £7.1bn GVA for the UK economy and £5.6bn in overseas sales to more than 160 global markets.

Trade barriers are reducing and the popularity of whisky as an investment option is increasing.

While Scotch whisky continues to maintain its economic and cultural importance globally, the real success story is the impact closer to home.

By embracing the heritage of its past, Campbeltown can develop a thriving future.