Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on [email protected] for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact [email protected]

Investing in distillery

  • 04-12-2020 10:52am
    #1
    duffysfarm
    Registered Users Posts: 837 ✭✭✭


    There is an opportunity to invest in an established distillery. It produces vodka and whiskey and will have a visitor centre. I am not so much concerned about the return but more with the security of the sector and the investment. What are peoples thoughts on this area?


Comments

  • #2
    Browney7
    Registered Users Posts: 3,096 ✭✭✭Browney7


    duffysfarm wrote: »
    There is an opportunity to invest in an established distillery. It produces vodka and whiskey and will have a visitor centre. I am not so much concerned about the return but more with the security of the sector and the investment. What are peoples thoughts on this area?

    Lots to consider - how long in business, have they started making their own whiskey yet, what's their route to market, how much scale have they and what's their capacity for production (a lot of distilleries don't produce enough of the spirit at the start to cash in when it matures). What's the USP - a lot of whiskey is down to marketing in my opinion.

    How do you plan on investing? - buying equity or a cask (with an agreed buy back amount) or a loan? Be careful if you buy a cask, you have to pay the excise duty when they put it into bottles for you at maturity.

    The market for whiskey itself is likely to keep growing but an exit from the investment may prove difficult in an illiquid (excuse the pun) small/micro distillery. Plenty knowledgeable guys in the Beer wine and spirits forum too


Advertisement