In Good Spirits

New Zealand’s largest premium spirits producer has found its forever home amidst the mountains of Central Otago.

When Scapegrace founders Daniel McLaughlin, Mark Neal and Richard Bourke set about finding a new location to create NZ’s largest distillery, they had a few prerequisites.

One: the climate had to be conducive for producing the best spirits in the world. Two: the water source had to be exceptional and pure, straight from the Southern Alps. Finally, they needed wide-open spaces to develop a facility large enough to appease global demand.

It was a challenge, but one they soon found the solution to in Central Otago. After many years scouring the land, they found the perfect spot: a 36-hectare property bang on the 45th Parallel, the exact midpoint between the equator and the South Pole. Scapegrace vacated its Auckland premises and ventured south to the shores of Lake Dunstan.

Now – five years, $30 million and multiple awards later – the new distillery is up and running, producing a portfolio of luxury gin, vodka and single malt whisky from a state-of-the-art facility nestled within the Bendigo hills.

“We’re in a unique location that experiences extreme seasonal variations – intense heat and dryness in the summer, and very cold winters,” says Daniel. 

“This means over a 12-month period there is considerable ‘talk’ and influence between our new-make spirits and barrels, providing a lot more depth and flavour over a shorter period of time. The early signs of flavour development that we are seeing are extremely promising.”

Designed in collaboration with Cheshire Architects, the expansive distillery encompasses a head office, bottling facility, warehousing and a barrel hall in one building, and the distillery in the other. It’s one of the few distilleries in the world to use hydroelectricity instead of diesel to power its boilers – one of the many steps Scapegrace is taking to achieve Carbon Zero certification by 2026.

“We wanted an urban design in a magnificent, idyllic location – the idea was two long, barn-style buildings set sympathetically within the landscape. If Scapegrace was a building, this is exactly what it would look like, especially with some of the interior finishings,” says Daniel. “Throughout the entire process, there has been no corner cut or stone unturned to ensure that we are following authentic, traditional methods, while showcasing the very best of our distinct Scapegrace portfolio.”

Nat Cheshire of Cheshire Architects says the design is a celebration of darkness, distillation, delight and, above all, discovery.

“Our proposal was to place two simple longhouses in this enormous landscape: two dark, straight shadows cast across the rough ground. One building is perched higher on the hillside, while the other is nestled lower within excavated ground. Their forms slip past each other, both abutted by lichen and kanuka,” he says. “Seen from the outside, little is revealed. But inside, the darkness slowly recedes, and a network of illuminated steel and copper emerges – the three copper stills shine brightly, and a few carefully placed windows allow glimpses of the surrounding lake and mountains."

With the new facility, Scapegrace has the scope to produce 160,000 cases of single malt whisky per year, plus enough gin and vodka to meet long-term forecasts. It enables the brand – which already exports to more than 40 countries – to significantly upscale its production, ultimately boosting Aotearoa’s profile as a producer of premium, world-class spirits.

The single malt whisky alone is projected to generate an annual wholesale value of $33 million, once the distillery is running at full steam. It’s an impressive stat for a once-small Kiwi startup, launched in 2014 by brothers-in-law Daniel and Mark, and friend Richard.

“We began our journey in a small Grey Lynn office a decade ago, and it's been an incredible adventure. This new facility is a product of our commitment to the future,” says Daniel. “We have a lot of fun taking NZ spirits to a global audience and everyone wears the brand on their sleeve. We’re very lucky to have such a great team – being a young, independent spirits company, our culture is quite entrepreneurial, innovative and collaborative.”

Although the construction work is largely done and dusted, the company is not resting on its laurels. The New Year brings new initiatives such as public distillery tours and the opening of a cellar door and retail store, while an anticipated 1000 sq m hospitality concept is on the cards in the future.

“Over the past 40 years we’ve seen NZ’s wine industry experience huge growth and that’s what we’re working to create for our spirits industry,” says Daniel. “We’re building a strategy to really put the foot down on our export markets whilst continuing to grow domestically, and we have some exciting new products and a new brand on the horizon. The Scapegrace journey is only at the beginning.”