Stauning Whisky will benefit from a GBP10m investment from Diageo

Stauning Whisky will benefit from a GBP10m investment from Diageo

Diageo's incubator fund project, Distill Ventures, has lined up a GBP10m (US$15.1m) spend on a whisky distillery in Denmark.

Stauning Whisky plans to use Diageo's investment to increase production at its facility in Stauning, West Jutland by around 50 times current capacity of around 15,000 litres per year. The company, which was founded ten years ago by nine friends, will continue as an independent entity.

"The founders are still the main shareholders, so we are still very much in charge of Stauning Whisky and can keep our focus on making hand-made Danish whisky," said co-founder Alex Højrup Munch. "We will keep every process in-house using the same local Danish ingredients."

Frank Lampen, co-founder of Distill Ventures, added: "This deal represents a step change in the scale of investments Distill Ventures is undertaking. We are delighted to be working with Stauning, as they scale their business and take their great whiskies beyond Denmark."

For an interview with Frank Lampen, click here

Stauning's portfolio comprises three iterations: Peated and traditional are both single malts, while Young Rye is made using mainly malted rye.

Construction will begin mid-2016, with the expanded distillery set to come online in 2018.

Diageo set up Distill Ventures in 2013 as a joint initiative with creative agency Independents United. The unit provides funds and support to spirits start-ups. An initial funding limit was set at GBP200,000, with five spaces available. Diageo doubled the intake to ten a year later.

For a closer look at how Distil Ventures operates, click here