UK crisps maker Tyrrells Potato Chips is planning to produce vodka made from potatoes and apples at its site in Herefordshire.

The company is to inject cash won from a recent entrepreneurial prize into the construction of the distillery, which will produce 100,000 bottles of vodka a year.

A Tyrrells spokesperson said it is "very much the early days" of the project but forecast that the company would launch its vodka nationwide next summer.

"Tyrrells is growing as a sustainable business and the idea is to turn potatoes that are too small to be turned into potato chips into vodka," the spokesperson said.

Tyrrells earned GBP5m (US$10.4m) after winning the Midlands heat of the GBP25m Bank of Scotland Corporate Entrepreneur Challenge.