The expansion will see Edinburgh Gin increase production capacity by more than 200% in line with continued demand.
Neil Mowat, UK marketing director of Ian Macleod Distillers, said: “This is the beginning of an exciting new chapter in the evolution of Edinburgh Gin. As the number one super premium gin brand in the UK, Edinburgh Gin is in high demand and this investment is our commitment to continued innovation and growth.
“Working with local businesses including Staran Architects and Contagious, we are confident this will be a stunning distillery that offers a gin experience quite unlike any other.”
The development includes the acquisition of large-scale premises on East Market Street and the new facility will enable Edinburgh Gin to welcome more than 100,000 visitors through its doors each year.
These visitors will have the chance to make their own gin as part of the Edinburgh Gin experience.
First-stage plans for the three floor premises include a glass-fronted entrance providing a street-side view of the stills, a rooftop terrace featuring Edinburgh Gin botanicals and private gin tasting rooms.