Just Transition Fund for the North East and Moray: final evaluation report

Cabrach Distillery

Introduction

The Cabrach Distillery, a social enterprise owned by The Cabrach Trust, is a regeneration project aimed at revitalising the Cabrach region through sustainable whisky production.

The initiative integrates economic development, heritage preservation, and environmental sustainability to create long-term opportunities in this rural area. Funding from the Just Transition Fund (JTF) played a crucial role in advancing infrastructure development and supporting the early operational phase of the distillery, positioning it as a model for rural economic renewal.

Just Transition Fund contribution

JTF provided £325,000, complementing private and philanthropic investments, including £2 million from the Ethos Foundation, £1 million from the Bentley Foundation, and £500,000 from Forsyths Ltd. This funding helped close a £500,000 financial gap, ensuring that capital works progressed without delay.

Beyond financial impact, JTF support strengthened confidence among other investors. The funding facilitated:

• final distillery design and fabrication;
• installation of sustainable energy systems, including latent heat recovery and integration with local anaerobic digestion plant; and
• completion of key infrastructure works, such as masonry restoration and enabling civil works.

Outcomes and strategic impact

Recognising the traditionally high emissions associated with whisky production, The Cabrach Distillery has prioritised sustainability through several measures:

• eliminating Scope 1 & 2 emissions by using renewable energy and repurposing co-products to generate green gas;
• enhancing land stewardship, with the planting of 3,000 native broadleaf trees and the creation of riparian habitats; and
• embedding circular economy principles, including latent heat recovery from distillation to improve energy efficiency.

Additionally, The Cabrach Trust is actively pursuing B Corp and Positive Luxury certification to formalise its sustainability commitments and ensure continued accountability for environmental and social impact.

The CEO further highlighted the project’s broader ambition:

“This is also about the role this project will play in terms of community regeneration, propping up a rural community that's been dealt a difficult hand across recent years. but is also aligns with the commitments that we were making to doing this in harmony with the environment and being very cognisant of the pressures the wider industry was under from a carbon point of view.”

Just Transition outcomes

The Cabrach Distillery delivers across several JTF outcomes:

• Jobs, skills and economic opportunities: has created four permanent jobs and expected to support 15 permanent jobs, in addition to 50 volunteering opportunities and increased activity for local suppliers. The distillery is also projected to attract 12,000 visitors annually, generating economic benefits for local businesses in tourism and hospitality.
• Communities and place: as a community-owned social enterprise, profits will be reinvested locally, providing a model for sustainable rural regeneration.
• Decarbonisation and environmental protection: the project’s commitment to net-zero operations and environmental stewardship further supports Scotland’s climate goals .

Lessons learned and future opportunities

While the project has made significant progress, it has not been without challenges. Rising inflation and increasing material and labour costs have required the Trust to take a highly proactive approach in securing additional funding and managing costs, including maintaining communication with current funders and engaging with potential new partners, including Highlands & Islands Enterprise.

One of the key lessons learned is the importance of multi-year funding commitments to support long-term rural regeneration projects. While JTF provided a crucial financial boost, the one-year funding model created uncertainties around future financial planning.

Conclusion

The Cabrach Distillery illustrates how JTF funding can unlock private investment, create sustainable jobs, and drive environmental innovation in rural Scotland. By integrating economic regeneration with net-zero aims, the project provides a scalable example of how the spirit industry can address issues of sustainability and carbon reduction to support a just transition.