Illicit Spirits stated that they take the residue left in their gin still, filtering out the solids (which are then composted) before reducing the resulting liquid down to a syrup to concentrate the essential oils.
This is then mixed with Argan oil, Shea butter and Beeswax to create a natural balm that "enhances and nourishes beards".
Darran Edmond, who founded the distillery in a railway arch in Glasgow last year after graduating from Heriot-Watt and the International Centre for Brewing and Distilling, announced the new product this week on social media stating that it would soon be available to buy (£10 for 60ml) online.
Darran said: "Any gin distiller will tell you that the smell that greets you upon opening a still after a distillation is amazing, and we decided it was a shame to just pour this concentrated mixture of botanicals and essential oils that don't make it out of the pot down the drain.
"As a bearded man myself, I realised that the aroma was akin to something you'd find a a beard oil-type product, and that we could create something similar just by concentrating the oils and adding a couple more ingredients.
"After a bit of research on Google, we also found out that a lot of the essential oils found in the botanicals - juniper, sweet orange, cinnamon, clove - have beneficial properties for your hair and skin anyway, so it all sort of made sense. As well as being a cool product it helps us reduce waste, so it's a win-win."