Case Study: Raising a glass to the farm's future

Running a farm and setting up a new venture at the same time is not without its challenges, but it’s an option an increasing number of UK farmers are exploring. In this article, Chris Walsh, NFU Mutual’s Farm Insurance Specialist, explores some initial considerations around farm diversification.

19 October 2022 • 3 min read

First generation beef and sheep farmer, and Scottish AgriTourism member, Jenny McKerr, saw a diversification opportunity in her run-down farm steading and decided to launch a craft gin distillery.

Before getting started with planning her diversification venture, Jenny checked her insurance would cover the ideas she had. After much research, she decided to take the biggest gamble, when she invested her familys savings to launch her farm diversification on the familys South Lanarkshire unit.

With support from her husband, Stephen, Jenny transformed a former milking byre into The Wee Farm Distillery. During this time, Jenny and her family lived in a static caravan while Drovers, Jennys first gin, was developed. It celebrates Scottish farming and complements beef with its mix of pink peppercorns, allspice, heather and thistles.

Development

Produced from a craft copper still, small batches of gin are double distilled which are then bottled and labelled on-farm. Jenny worked with a mentor for a year, which helped her learn the technical aspects, recipe development and legislative requirements of her diversification.

Soon after, she developed three gins to celebrate the spirit of Scottish farming along with, what is now, a 30-strong portfolio of gin liqueurs.

Holiday lets

By offering visits to the distillery, Jenny realised people enjoyed spending time on the farm. So, in 2020, after exploring the opportunities and risks (including additional insurance requirements) she further diversified by renovating an old cottage on-site into luxury self catering holiday accommodation featuring a hot tub, barbecue hut and a sensory gin garnish garden.

The success of the initial gin diversification, coupled with a Government Bounce Back Loan, helped fund this additional venture. Although lockdown affected many people in so many ways, Jenny showed great agility and resilience when she adapted her business. Jennys distillery switched to sanitiser production and gin sales moved online.

Most recently, the McKerrs opened the Steak and Still Farm Shop. The shop sells beef reared on the farm, as well as items from local producers.

Diversifying into the drinks industry

If youve already diversified into the drinks industry, or are thinking of doing so, its worth considering how to elevate your farm business further by:

Exploring packaging options - perhaps depicting the farm and where the ingredients have been gathered. Use your surroundings for inspiration.
Running on-farm tasting events and promotions. Direct selling from the farm is a solid way of building a brand and obtaining customer feedback.
Using social media to tell the story of your drinks. From harvesting through to brewing and bottling. This plays into the recent field to-fork trend that consumers are becoming increasingly interested and aware of.
Diversifying your range once youve established the foundations. If gin falls out of fashion, its important to have another offering. English whisky and rum are tipped to be growth areas.

Jennys diversification top tips

Be bold and be brave when asking questions.
Seek support from experts and those who have already diversified. Their insight and advice can help you save precious time and money.
Dont be afraid of competition. Team together with other producers. I am a member of Lanarkshire Larder, a group of other local food and drink companies.
Take time away from day to-day farming tasks to work on new products.