The investment arrives as the sixth generation of the hotel group’s owners, the Leckie family, has been appointed to operate the distillery and accelerate a growth strategy for the brand.

The distillery is part of the group’s 132-bedroom hotel located in Peebles. It is also home to the UK’s largest gin school, The Courier reports.

Charlie Leckie, who has been appointed brand manager, said the gin brand was attracting nationwide interest from retailers.

He said: “The UK’S love of gin shows no sign of cooling off so this is an exciting time to be taking the product to market. We’ve carefully rebranded every element of our gin bottles and 1881 brand. The bottle has been redesigned with artisan illustrations for each flavour to represent our history and passion for the Borders and the product itself.

“We have ambitious growth plans for the 1881 gin brand with several new products already in the pipeline that are attracting the attention of nationwide retailers.”

The gin is named 1881 in honour of the hotel, which was founded in the same year. It uses local botanicals and an onsite spring water source.

Stephen Leckie, chairman and chief executive of Crieff Hydro Family of Hotels, added: “We’re embarking on an exciting new chapter, repositioning our 1881 gin brand to more accurately represent our heritage and values.”