The Alternative Investment Diversification Benefits Fully Insured & Secure Low-Risk Opportunity
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The Alternative Investment
Diversification Benefits
Fully Insured & Secure
Low-Risk Opportunity
&
Contents The investment case for cask Irish whiskey 6 Why distilleries need investors 8 How investing in cask whiskey works 11 – Exit strategies 12 Why Irish whiskey? 13 The Irish whiskey market – Past 14 – Present 15 – Future 16 Long-term strategy — Thirty years to grow €3,000 into €300,000 19 Contact us & Meet the team on a distillery tour 20 Whiskey offers an alternative investment that can provide diversification benefits
“The idea of Whiskey & Wealth Club came to me and my father over
a whiskey one night. As we discussed who would be the best CEO of the
Foreword from Scott Sciberras, CEO
company, we both simultaneously said, “Scott Sciberras”. After working and Co-Founder, Whiskey & Wealth Club
closely with Scott for over 19 years, my father, a whiskey aficionado and
expert in the field, believed Scott was the perfect fit for the role, trusting Thank you for taking the time to look into our
him to take on his vision and grow it to its greatest potential.” unique cask whiskey investment opportunity.
JAY BRADLEY, CO-FOUNDER OF WHISKEY & WEALTH CLUB
Whiskey & Wealth Club Irish whiskey is the fastest In addition, all our casks The average return on
was co-founded by myself, growing spirit in the world are fully insured and stored a five-year investment
my close friend and Irish with exports increasing in a bonded warehouse, of new make spirit is
whiskey expert, Jay Bradley 300% over the last decade, providing you with security around 12% per annum.3
and entrepreneur, William according to Irish food and peace of mind.
Fielding. We have combined board, Bord Bia. 2 But for keen investors who
our passion for whiskey Many savvy investors are are able to keep their casks
along with our investment The Whiskey & Wealth using whiskey as a way to for longer than five years or
experience to bring you Club team has over sixty diversify their portfolio. even eight years, the returns
this unique opportunity years combined experience Aged whiskey carries a are considerably higher.4
first conceived by Jay and in the investment and higher value than the new Some clients are also using
his father over a whiskey beverage industries. make whiskey spirit that our whiskey investment
one night. We only work with Ireland’s initially goes into the barrel. portfolio to add a different
top whiskey brands and flavour to their pension plans
Analysts expect this distilleries, so you can be Therefore, this presents now that the use of cask
already well established sure you’re purchasing a a wholesale model with whiskey has been approved
industry to double over premium product with a attractive returns, even to the by self-invested personal
the next decade.1 strong resale value. most risk-averse individual. pension schemes.
These are exciting times for the Irish whiskey
market and an opportunity not to be missed.
Best wishes
Scott Sciberras
CEO and Co-Founder
Whiskey & Wealth Club
4 5
Investing in cask Irish whiskey has been around for
centuries, but only to a select few. Whiskey & Wealth Club’s
mission is to open up this lucrative market to individuals
interested in owning a part of this rich Irish heritage.
Why invest in cask Irish whiskey?
Investing in casks of Irish Whiskey & Wealth Club The Irish market would
whiskey is an attractive has built trusted need to have 950 million
option for many people, relationships with some LPA in reserve, undergoing
with returns ranging of Ireland’s best distilleries. the process of maturation,
from 12% to 20% per year5. These relationships are in order to meet
The price increase is what set us apart from expected demands. 8
inevitable providing you other whiskey investment Taking its reserves into
buy at the right value; as firms and are part of account, there is still a huge
overspending initially the reason we are able supply deficit that will take
will delay any profit. to offer premium casks years to bridge. This opens
at substantially up several opportunities
The draw of cask whiskey discounted rates. for potential investors.
as an investment is clear.
Irish whiskey had another Based on the present rate All whiskey purchased
record year of export growth of production, Ireland is from our distillery partners
in 2018 with the value of not meeting its demand is securely stored in
whiskey exports increasing for whiskey. At current, government bonded and
to €1 Billion in the US alone. distilleries operating in insured warehouses until
Ireland are predicted to such a time as you wish
There simply isn’t produce a maximum of to exit your ownership.
enough mature Irish 150 million LPA (Litres of Thereafter, you can sell
whiskey available to Pure Alcohol) per annum. 7 to other buyers or distilleries,
meet rising demand. or bottle it yourself.
Whatever option you choose, our experts will support you every step of the way. “I’m very comfortable
with what I’ve learned
today to move forward. &
I’m delighted to be
investing.” ROBERT PEPPER
6 7
Why distilleries need investors There are two key strategies that distilleries commonly
adopt to accommodate this high upfront cost and remain
profitable during the whiskey maturation period:
Strategy One: Strategy Two:
Borrowing Wholesale selling
New make spirit needs to be matured for at least Traditional borrowing
from banks is an option
This is when distilleries sell casks at
wholesale rates to a whiskey bonder or broker.
three years before it can be called Irish whiskey.10
chosen by some distilleries. This model is used with a certain amount
However, this strategy of their whiskey production to ensure a
Maturing whiskey is a capital intensive business. exposes distilleries to the consistent revenue stream.
By selling a percentage of their yearly production, risk of market fluctuations
and lending limitations. This is where Whiskey & Wealth
distilleries can cover their operating costs, allowing
Many new distilleries have Club comes in.
them to lay down the remaining percentage for already borrowed capital
their own brands whilst enjoying a mutually to cover set-up costs and We contractually agree a price to buy large
do not want to take on quantities of this new make spirit straight off
beneficial business relationship. any more debt during the the stills. This provides the distillery with the
process of maturation. funds they need to operate. We then add our
small profit margin. The whiskey is put in
first-fill, A-grade, American oak barrels, stored
in a bonded warehouse, and fully insured for five
years against fire, theft, accidental damage and
spoilage, making it a full turnkey opportunity.
8 9
“I have invested in whiskey before. I think it’s a
good investment for the future. I think that it’s very How investing in cask whiskey works
unlikely that the spirit in the barrels is going to go
off, not sell or be destroyed. I consider it an 80-90%
secure investment.” ANTONELLA BARBATI
1. Production: inside the cask (this is a 5. Exit strategies:
New make spirit is rough guide as casks are We propose holding
distilled and stored in made by hand so not all the spirit for at least three
casks for maturation. are exactly 200 litres), plus years.10 While whiskey
At Whiskey & Wealth storage and insurance for will increase in value for
Club, we only work five years. The whiskey’s each year of maturation,
with the finest Irish title and ownership are there are markets for
distilleries with a proven registered in your name whiskey of any age.
record of producing and as you own the asset,
premium whiskey. you can sell (or bottle) Like maturing whiskey,
This offers a much the whiskey at any time. this is an unhurried
stronger resale value. investment. This needs
4. Aged value: to be considered by
2. Broker negotiations: In five years, you should investors who require
Whiskey & Wealth Club own the equivalent of ready access to capital.
buys the whiskey in bulk around 385-400 70cl
at heavily discounted, bottles of Irish whiskey When exiting your
wholesale rates. (46% ABV) per cask. investment, there are
We organise the The slight reduction a number of strategies
insurance and storage in volume is down to to choose from.
in a bonded and the ’angel’s share’ – an These options are
maintained warehouse. estimated 2% per annum briefly covered within
rate of evaporation. this brochure.
3. Private investors: Some five-year-old
Each cask costs our Our highly trained
whiskies in Ireland are
investors €2,400 - €2,900 and trusted team of
selling between €80
depending on the Whiskey and Wealth
and €110 per bottle.9
distillery you’re buying Club professionals
Tax, bottling and
from and the specifics tailor each clients’
handling fees will need
of the cask and spirit. strategy to meet their
to be considered when
This price covers the cask, specific needs.
estimating the cask
the 200 litres of whiskey holder’s total profits.
10 11
How investing in cask whiskey works – Why Irish whiskey?
exit strategies
1. Sell to an existing 2. Sell to private investors 3. Sell at a whiskey auction According to Fortune Irish whiskey had Whiskey
whiskey brand or collectors magazine, Irish whiskey another record year of
• Whiskey auctions are versus wine
for bottling has been overshadowed by export growth in 2018 and
• Private investors a popular exit strategy its Scottish, Japanese and is the fastest growing spirit “Whiskey is viewed
• Many whiskey brands often wish to bypass and require the least American counterparts from in the world with exports as a much safer
do not own their own large portions of the effort on the part of an investment standpoint. 12 growing 300% over the last investment than
distillery. As whiskey’s maturation period by the investor. But long-time writer for decade, according to Irish wine, and also a more
popularity grows, we purchasing mature the Whisky Advocate, food board, Bord Bia. 14
4. Private bottling accessible investment
expect to see many stock from our existing Jonny McCormick, has
and labelling for new collectors,”
more brands looking to clients. For example, a predicted that this is about Whiskey tops the
according to
buy ready aged whiskey. potential client hoping to change: “the Irish market Knight Frank Luxury
• You can sell to Iain McClune of
With the demand for Irish to own a 15-year-old is going to be really big Investment Index.
private labels such as Whisky Auctioneer. 11
whiskey far outstripping whiskey will be willing over the next decade.” 13 Knight Frank now includes
supermarkets, hotel Wine requires many
current production, this to pay a premium for a With Irish whiskey set whiskey as an investment
chains and even existing different variables
places investors in a safe five-year-old and wait a for a breakout moment, in its index. Out of all other
brands or distilleries. to develop into a
position with very little shortened ten years to see now would be a great luxury investments indexed
This option may be viable valuable commodity.
risk of competition. a drastic return in profits. time to invest. such as classic cars, wine,
to some of our clients. It also continues to age
diamonds and even stamps,
Over 100 Irish whiskey This exit strategy is inside the bottle, leaving
Please do get in whiskey is in second place
brands are predicted to incredibly valuable when it vulnerable to spoilage.
contact with one of behind the usual first place
enter the market in the considering the bidding Whiskey doesn’t evolve
our whisky experts. juggernaut, art.15
next five to ten years. wars that begin after the or age while in the
This, in turn, provides a eight-year benchmark. bottle, so the key is to
wider market for whiskey invest in it while the
buyers and sellers. spirit is in the cask.
Whiskey & Wealth Club are here to support you with any of these exit options.
“Excellent, very informative, Whiskey & Wealth Club
obviously know their business and we would like
to look further into investing.” DENIS AND ANN LYNCH
12 13
The Irish whiskey market, In 2018 over 11 million cases of Irish whiskey
were sold – 500% more than in the 1980s and
past, present and future the value of Irish whiskey exports increased
by €45m to €623m 19
Past Present
Irish whiskey was once an uprising of Irish rebels embargo on all Irish By the 1980s, Ireland Midleton and Redbreast. Slane Distillery in 2015 19
the biggest selling spirit resulted in Irish whiskey exports to Commonwealth was producing only two With major players like to make their play for
in the world, outselling falling out of favour with countries, another of million cases of whiskey Pernod Ricard heavily the anticipated Irish
even vodka and gin. the British Government. Ireland’s largest export a year, 50% of which was invested in Irish whiskey, whiskey boom.
Over 75% of all whiskey By 1919, Ireland was markets. The Second sold domestically. and increasing competition As soon as brands
consumed between the at war with Britain. World War followed as the The rest was largely sold from emerging distilleries, became popular or available
1600s and early 1900s Once the Anglo-Irish trade war ended, and Irish in Irish pubs around the a resurgence was for sale, they were acquired
was Irish whiskey. Treaty was signed in 1921, whiskey production fell world. At the same time, underway to return Irish rapidly by global drinks
Irish whiskey appeared by 99% from over 12 million Scottish whisky was whiskey to its former conglomerates.
Before the First World War, to be back on track. cases per annum (more selling over 100 million glory as the main player Irish whiskey emerged,
whiskey was Ireland’s main than we make today) cases per year, globally. in the whiskey market. once again, as a global player.
export. However, in 1914, America used to be one to just 100,000.
all Irish distillers were forced of Ireland’s biggest whiskey IDL’s Irish whiskey The modern Irish Fast forward to 2018
to cease production as the markets, however, when The Irish whiskey monopoly lasted nearly whiskey market gained and over 11 million
barley was needed to feed Prohibition was introduced market all but collapsed. 30 years. Cooley Distillery momentum in 2012. cases of Irish whiskey
soldiers and there were no in 1920, many distilleries Only four distilleries in Dundalk opened in 1987; Jim Beam bought Cooley were sold, (500% more
ships available to deliver the were forced to close and survived: Bushmills, it was the first independent Distillery for a reported than in the 1980s).
scarce whiskey produced. Irish whiskey’s position Powers, Jameson, and the distillery to open in Ireland €73 million 16 and Bacardi The value of Irish whiskey
in the market began to Cork Distillers. Three of in nearly 70 years. acquired a stake in exports increased by €45m
This had a significant diminish again. these distilleries merged The following year, French Dublin based Teeling to €623m as Ireland’s
economic impact on in 1966 after 20 years of drinks powerhouse, Pernod Whiskey Company. 17 industry delivered greater
distilleries resulting in The 1930’s brought fighting for the same local Ricard, bought IDL and all Tequila giant, Jose Cuervo volumes of more premium
many going bankrupt. further struggle for the customers, forming the the brands associated with bought Bushmills.18 product to consumers
Irish whiskey industry. Irish Distillers Limited it, which then included Jack Daniels’ owners, across the globe. 20
In 1916, in an effort to Ireland’s trade war with (IDL). Bushmills then Jameson, Bushmills, Brown-Forman created
overthrow British rule, Britain resulted in an joined the group in 1972.
“The tour was very impressive. It’s a very
professional setup and I like the idea that it all
started off small and expanded.” ALFRED BUIS
14 15The future looks bright The IWSR (International Wine and Spirits Record)
predict the Irish market to continue to outgrow both
for traditional Irish whiskey Scotch and Bourbon for at least another ten years.
Future
Irish whiskey sales are expected to grow to 14
million cases by 2020, doubling in size by 2030. 21
There are four main forces Irish whiskey is the fastest In September 2018,
driving the market’s growth: growing spirit in the world Teeling auctioned
with exports having grown its first bottle from its
1. Consumer trends – 300% over the last decade, new Dublin distillery.
young drinkers are according to Irish food
choosing brown spirits, board, Bord Bia.26 Despite the relatively
helping to make whiskey early maturation age
fashionable again 22 Irish whiskey also has of three years, the bottle
the benefit of exclusivity. sold for £10,000. 28
2. Emerging middle classes While Japanese whisky,
in developing countries for example, can be blended New luxury Irish whiskey
are buying luxury goods 23 with whisky from brands have entered the
different countries, Irish market and long-standing
3. Eastern Europe and brands are also releasing
law only allows whiskey
Russia are showing an expensive collectables.
distillled and matured in
increasing appetite for
Ireland to be sold as such.
whiskey imports 24 An Irish whiskey also
The future for the Irish won ‘Best Single Malt’
4. There is increased at the World Whiskey
whiskey market looks
investment in Irish Awards 2019. 29
incredibly optimistic.
whiskey production 25
In May 2019, Redbreast
All of this attention,
released a limited-edition
coupled with big
bottle called the Dream Cask.
marketing budgets,
All 924 bottles had sold out
bodes very positively
in under 14 minutes at a
for Irish whiskey.
cost of €340 per bottle. 27
16 17Long term strategy Investors who are able to keep their whiskey casks
for longer than the average five years could see huge
increases in their initial investment.
30 years to While not all 27-year-old
casks will achieve this, it’s
Therefore, the six-figure
sale price points we are
grow €3,000 an important marker for
just how much an aged
highlighting today could
potentially be a lot more
to €300,000 barrel can sell for. 30 30 years from now.
There have been recent At Whiskey & Wealth Club 97% of Irish whiskey sells
reports of record prices we sell new-make spirit between the ages of three
achieved on rare whiskies. (straight off the still) for and eight years old.
less than €3,000 a cask.
For example, a 12-year-old The concept of a long-term Once whiskey passes the
ex-Bourbon cask with an strategy with the cask being eight-year mark, it can enter
asking price of €75,000 worth, say, €300,000 in a bidding war. New whiskey
was sold via Midleton’s cask 30 year’s time, is not as far brands that do not have
circle30, as well as a 16-year- fetched as it may appear on mature stock, but would like
old cask for €320,000 (400 the surface. When taking to position themselves with
litres, which is double into consideration natural rare, quality whiskey from
the size of our casks, so inflation, the prices for the outset, must buy mature
€160,000 by comparison). grain, manual labour and whiskey from elsewhere.
other factors in the process
“There are a lot of different influences here and Another example is These brands will often
of production, a cask would
a 27-year-old 500-litre pay a premium to have a few
a lot of heritage, the family background was very have cost less than €500
Marsala cask which went thousand bottles of top shelf,
interesting. I’m quite a cautious investor but am to produce 27 years ago.
on sale for a colossal rare whiskey in their arsenal.
very interested by the prospects.” JENNIFER KEANY price of €907,000.
18 19Get in touch
your invitation to experience
the magic of a whiskey distillery
We invite all potential investors to tour the distillery they’ “I had thousands of notes and questions and believe
re considering buying barrels from. This tax-deductible my decision is right. I would recommend to friends
trip to rural Ireland offers investors the chance to take
a behind-the-scenes look at a commercial distillery and family. I will be working with Whiskey & Wealth
and provides Club from tomorrow.” OLEG SAVELJEV
a rare chance to see where the magic takes place
. You will also get to meet our team.
Our whiskey experts are always on hand to
discuss whether buying cask whiskey is right
for you, so please don’t hesitate to contact us.
Call now on
+44 (0) 208 638 5921 or
+353 (0) 1 442 8672
20 21Footnotes
1. https://www.thespiritsbusiness.com/2017/01/irish-whiskey- 16. https://www.irishexaminer.com/business/cooley-
exports-to-double-by-2020/ distillery-acquired-for-73m-as-beam-inc-aims-to-take-on-
jameson-177537.html
2. https://www.bordbia.ie/press-releases/minister-creed
--bord-bia-build-on-the-success-of-irish-drinks-exports-to 17. http://whiskyadvocate.com/teeling-irish-whiskey-
-the-us-in-chicago/ sells-minority-stake-to-bacardi/
3. Calculation based on initial new make cask bought for €2,900 18. https://www.belfasttelegraph.co.uk/business/news/
and sold for €3,250 - €3,500 after five years bushmills-whiskey-distillery-bought-by-tequila-giant
-jose-cuervo-30713263.html
4. https://www.bbc.co.uk/news/uk-scotland-scotland
business-41558737 19. https://www.thespiritsbusiness.com/2017/09/brown
-forman-opens-slane-distillery-in-ireland/
5. Calculation based on initial new make cask bought for €2,900
and sold for €3,250 - €3,500 after five years. Please note, past 20. https://www.bordbia.ie/globalassets/performance--
performance cannot guarantee future returns. prospects-2018-2019/export-performance-prospects
-2018-2019.pdf
6. https://www.irishtimes.com/business/agribusiness-and-food/
sales-of-irish-whiskey-surge-in-us-on-back-of-premium- 21. https://www.euronews.com/2019/08/26/watch-
brands-1.3379665 millennials-help-double-sales-of-irish-whiskey-in-a-decade
7. Conversation with John O’Connell, West Cork Distillers, 22. https://www.euronews.com/2019/08/26/watch-
February 2019 millennials-help-double-sales-of-irish-whiskey-in-a-decade
8. Conversation with John O’Connell, West Cork Distillers, 23. https://www.mckinsey.com/industries/retail/our
February 2019 -insights/capturing-the-worlds-emerging-middle-class
9. https://www.masterofmalt. 24. https://www.thespiritsbusiness.com/2019/07/
comsearch/#search=five%2520year%2520old%2520irish&page= eastern-europe-affordability-biggest-barrier-to-
1&sort=_score&direction=desc recruiting-new-drinkers/
10. In accordance with the Geographical Indication Technical File (4.1): 25. https://www.irishcentral.com/culture/food-drink/
https://www.agriculture.gov.ie/media/migration/foodindustry irish-whiskey-production-to-jump-by-33-after-12-
developmenttrademarkets/geographicalindicationsprotectednames/ 7m-investment-in-stills
drinks/IrishWhiskeyTechnicalFileFinal180719.pdf
26. https://www.bordbia.ie/globalassets/performance--
12. https://www.thedrinksbusiness.com/2018/04/rare-whisky- prospects-2018-2019/export-performance-prospects
offering-better-returns-than-gold/ -2018-2019.pdf
13. https://fortune.com/2017/09/23/how-to-invest-in-whisky/ 27. https://www.thespiritsbusiness.com/2019/05/
redbreast-dream-cask-snapped-up-in-14-minutes/
12. https://fortune.com/2017/09/23/how-to-invest-in-whisky/
28. https://teelingwhiskey.com/2018/10/dublin-
14. https://www.bordbia.ie/globalassets/performance-- whiskey-is-reborn-with-teeling-single-pot-still/
prospects-2018-2019/export-performance-prospects-2018-2019.pdf
29. http://www.worldwhiskiesawards.com/winner/whisky/
15. https://www.knightfrank.com/wealthreport/2019/luxury- 2019/worlds-best-single-malt-world-whiskies-awards-2019
spending/luxury-investment-index
30. https://scotchwhisky.com/magazine/in-depth/16374/
midleton-launches-cask-circle-programme/
22 23whiskeywealthclub.com
&
LONDON DUBLIN
51a George Street, 20 Harcourt Street, Dublin
Richmond TW9 1HJ D02 PF99 Republic of
United Kingdom Ireland
+44 (0) 208 638 5921 +353 (0) 1 442 8672
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