Created by Billy and Jory Duncan - who is believed to be one of the country's youngest distillers - the converted shed, which is just 10ft by 8ft, has already created 150 bottles of spirit, which are now on sale.
The distillery at their home in Carnoustie, Angus, has been fitted with fermenters and stills and can, according to the pair, produce three flavours of rum — caramel banana, rhubarb and toffee apple — and a white chocolate-flavoured vodka.
Billy said: "We have three main bottles we produce and so far we have had great feedback. The Rum Caramel/Banana is so popular, we can barley keep it on the shelf.
"So far the feedback has been great as that's the part we love the most - people enjoying our products."
The brainchild of Jory, dad Billy decided to go along with the idea to help his son pursue a career in distilling.
Dubbed Duncan's Distillery, each bottle is labelled with the Duncan family tartan and motto 'Savour the Moment' - which Billy said was Jory's idea as he is proud of his country and his heritage.
The pair have already made appearances at Angus Farmers Market in Forfar where their spirits have proved popular - selling out half way through the day.
Billy explained to the Courier, that though they have only been up and running for three months that the demand has been "crazy".
He said: "Neither of us really knew much about distilling but we have learnt a lot in a short space of time.
"We have been told we could be the smallest distillery in the UK.
"We haven't done much marketing and we don't have a website yet but we hope to do all this stuff when we get the chance.
"It has been trial and error mostly but we are really happy with the flavours we have come up with."
Though perhaps their most unique selling point, the fact that the unit is so small does come with some challenges.
Billy added:"Because to work in such a small space it means we need to wash every piece of equipment as soon as we have used it.
"That can be quite time-consuming."
Billy added that they have demand all over Scotland and that they require outlets to sell their products in the Edinburgh and Glasgow areas as at the moment they only have one outlet in Arbroath.