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Distilleries

Why distilleries need private investors

The cost of providing secure storage for millions of pounds worth of casks is massive. Then there’s insurance fees and the cost of capital – outlaid prior to buying grain, paying staff, importing barrels and paying distillery overheads.

Without help from investors, many distilleries, especially the smaller or newer ones, simply couldn’t afford Cask Maturation.

Distilleries
Distillery revenue options
Borrowing

Like any credit facility or bank lending, this option requires assets to be used as security. It exposes the distillery to fickle fates of interest rates – not a viable option for distilleries with existing credit lines in place.

Distilleries are also up against a new ruling. Asset backed lenders must now take their company’s further liabilities into account. The upshot of this is low funding levels offered by lenders.

Investment

Ultra High Net-worth investors and Family Offices are an alternative funding option for distilleries, but there’s a downside; The distillery owner has to give up a large amount of equity and control of the distillery.

One of the things that makes Scotch Whisky a globally desired commodity, is the generations of expertise that goes into its production. Many distilleries are family owned and corporatising any family business runs the risk of killing its heart and soul. The very things that make it a great business.

Whisky Investment Partners

Due to our strong relationships with several leading distilleries, we have contracts in place to purchase New Make Spirit casks at heavily discounted prices. This gives the distillery much-needed funding, helping them cover operational costs.

It also creates an opportunity for private investors, like you, to take New Make Spirit from distillation to cask. Your cask is then laid till maturity in a bonded warehouse, insured for 10 years against theft and accidental damage

How to invest

Whisky Investment Partners are a specialist Whisky Cask brokerage offering HMRC authorised Cask sales.

Speak to our knowledge Investment advisors today by calling 0131 374 3050 or download your Whisky Investment Guide below