Scapegrace building $25m distillery in Central Otago

Scapegrace Distilling Company has begun construction on a $25m distillery in Central Otago, which will include a bottling hall, barrel room and hospitality offering on the 36-hectare site that overlooks Lake Dunstan. 

The craft spirit producer says that the new distillery, believed to be New Zealand’s biggest-ever, will eventually produce the entirety of its current portfolio of super premium gin and vodka, alongside its soon-to-be released single malt whisky.

Artist’s render of the new Scapegrace Distillery overlooking Lake Dunstan.

Scapegrace Managing Director Daniel Mclaughlin says the site aligns perfectly with the company’s future plans. “The 45th parallel (the halfway point between the equator and South Pole) runs directly through our distillery site, giving us extremes in hot and cold temperatures – an optimum environment for ageing whisky. Naturally, the pristine water quality is also ideal for distilling gin and vodka, pulling from glacial run-off from the Southern Alps. And with almost 60% of shareholders based in Otago, as well as our Chairman Peter Kean who was born and bred in the region, it always felt right.”

Mclaughlin says that Scapegrace acquired an award-winning single malt whisky distillery four years ago and has been putting down whisky since then, with plans to launch Scapegrace Single Malt Whisky soon. He says there is a huge opportunity around the growing demand for ‘New World’ whisky and Scapegrace is well placed to meet that.

“Quality whisky requires an experienced master distiller, sufficient scale in its distillery assets and – given the time taken for the whisky to mature – significant cashflow and space for inventory,” says Mclaughlin. “With Anthony Lawry, our experienced master distiller, already producing highly acclaimed whiskies, this development is the final piece of the puzzle for Scapegrace, allowing a 20-fold increase in production and ample space to store the whisky while it matures.”

Artist’s render inside the new Scapegrace Distillery

Scapegrace was founded almost 10 years ago by Wanaka-based brothers-in-law Daniel Mclaughlin and Mark Neal, along with Richard Bourke. The brand is now distributed to 35 countries and has picked up a slew of international awards, including title of World’s Best London Dry Gin at the prestigious International Wine & Spirits Competition in London 2018.

The new Scapegrace Distillery has been designed by Nat Cheshire, Ascinda Stark & Emily Doll of Cheshire Architects and will be delivered by Central Otago locals, family-owned builders Breen Construction.

The development will be 100% independently owned by Scapegrace and funded through a mixture of debt and equity, with the capital raise for the next phase due to commence in the coming months.

Construction has already commenced on the first building which contains the new Scapegrace head office, bottling hall, warehouse and the first barrel room, due to be open in August this year. Each barrel room holds almost 2000 casks of whisky, with three more barrel rooms planned over the coming years. The second building, which contains the new distillery, opens in October 2023.

The Distillery is planned to open to the public around November 2023 and will have a food and beverage experience and distillery tour offering.

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