A major restoration project by Dunnet Bay Distillers, known for Rock Rose Gin and Holy Grass Vodka, has reached completion with the transformation of Castletown Mill into the new Stannergill Distillery, a distillery which will produce single malt whisky. The once-derelict grain mill, long considered one of Caithness’s most iconic industrial landmarks, which prompting King Charles to highlight its historic importance back in 2007, is now home to the newly launched whisky distillery, along with a restaurant and shop. The distillery bar, tours and tastings set to launch by Easter 2026.
Dunnet Bay, founded by Martin and Claire Murray, has now also launched a crowdfunding campaign which invites the public, and especially the Caithness diaspora, to become part of the next stage in Stannergill’s journey. The funds raised will support the development of a maturation warehouse and help grow the team. In return, supporters will receive access to limited edition releases and exclusive behind-the-scenes experiences
Martin Murray, Founder of Dunnet Bay Distillers, said, “I’ve driven past the Mill for more than 25 years and always dreamed of bringing it back to life. Back in 2008, I enquired about purchasing it with a view to restoring it to a whisky distillery. It wasn’t possible at the time, but I didn’t let go of the idea and, although it’s taken nearly two decades, it’s great to see this idea finally become reality. The setting and building couldn’t be better suited – it’s a perfect location for whisky-making and for welcoming visitors, with the main tourist road passing running right past the front gate.”
“Reaching this stage is an important step for us. The Mill is now ready to showcase the very best of Caithness. The crowdfunding campaign marks the start of an exciting new phase, as we continue to invest in local talent, expand production, and build a ideal destination for whisky tourism. We welcome others to join us on this journey.”
Co-founder Claire added, “This project represents more than whisky – it’s about bringing people together and giving new life to a place that means so much to the community. From the very beginning, we wanted Stannergill to reflect the history and character of this place. The Mill’s restoration shows what can be achieved with shared vision and care for heritage.”
The project has been designed by Organic Architects, Scottish specialists in distillery projects, who worked in consultation with Historic Environment Scotland and Highland Council to keep the site’s heritage and character. Local contractor, Norbloc Construction brought the design to life, delivering a high-quality build while supporting local employment throughout the project.

