The Oxford Artisan Distillery, an ultra-premium English rye whisky producer, announced today it has joined drinks accelerator Distill Ventures via a minority investment from Diageo. Terms of the deal were not disclosed.
The distillery is the fifth New World whiskey in Distill Ventures’ portfolio, which includes Stauning Danish Whisky, Westward American Single Malt, Kanosuke Single Malt Japanese Whisky and Starward Australian Whisky.
Founded in 2016, the distillery’s first English rye whisky was released in April 2021, with a second batch available shortly after. To date, The Oxford Artisan Distillery has released a further nine batches, although none are available in U.S. markets yet. Citing 11% growth in ultra-premium whisky in the United Kingdom over the last five years, the brand envisions growing a modern and scalable whisky brand centered on restorative agriculture and sustainable farming.
“We’re thrilled to welcome The Oxford Artisan Distillery into the Distill Ventures portfolio,” said Eugene Khabensky, vice president of global ventures at Diageo, in a press release. “Its ultra-premium positioning coupled with its commitment to put regenerative agriculture at the heart of what it does, fits perfectly with our strategy to support premium and environmentally responsible brands.”
To produce its whiskey the distillery uses biodiverse populations of heritage grains, which were lost with the industrialization of farming in England during the early 1800s. The grains and farming techniques have been developed in partnership with veteran farmer and archaeobotanist John Letts, whose approach aims to minimize the use of fossil fuels and enhance biodiversity. The Oxford Artisan Distillery is the only distillery in the world with a license to use Letts’ grains: a proprietary mix of 30 to 100 different varieties grown exclusively for flavor and not yield.
The whiskey brand is part of a new wave of spirit companies exploring the spectrum of sustainability, from going organic to reducing their carbon footprint. The trend represents a possibly growing area of opportunity, as consumers seek out better-for-you and more sustainable food and drinks. Nearly half of U.S. alcohol drinkers say their purchase decisions are positively influenced by a company’s sustainability or environmental initiative, according to drinks market research firm IWSR.
“Over the last few years we have seen the industry take major steps towards addressing the climate crisis, but we have a responsibility to do more in tackling sustainable farming and grain production,” said Dave Smith, CEO of The Oxford Artisan Distillery in a press release. “With Diageo and Distill Ventures’ support, we believe we can use whisky to further a revolution in the field.”
The investment and partnership will support the next stage of the company’s growth by enabling the upgrade and expansion of its production sites, and the development of The Oxford Artisan Distillery brand and its consumer experiences. As with all brands within the Distill Ventures portfolio, the founding Oxford Artisan Distillery team will retain majority ownership and control of the business.
The ultra-premium plus whiskey investment marks Diageo’s second this month after acquiring Texas-based whiskey maker Balcones Distilling in a cash transaction.