Thank you for your interest in the Founders Club at Blacks Brewery and Distillery. Below we have outlined the relevant information on the Founders Club below. In summary, this is a unique opportunity to invest in an individualised cask of Irish whiskey. There is a much greater level of detail available in the prospects but here is a summary of the investment cost, options and benefits to you.
The Irish Whiskey Founders Club.
As part of our initial production in 2020 we will offer the first 500 casks to individuals looking to invest in something different. Owners of the first 500 casks will join the exclusive Founders Club. The Founders Club will be your chance to own a strictly limited cask of Whiskey produced in Kinsale and to become part of an exclusive business network which will comprise of 500 like minded business individuals and investors from all corners of the world, spanning many different industries. Each year the Founders Club will host a weekend event in Kinsale for all of the members. Providing an unrivalled opportunity to meet with business leaders, network with your peers and develop meaningful business connections.
Buy in Options.
There are several buy in options based on the type of cask and the type of whiskey that you would like to own. These range from an investment of €6500 for an Ex Bourbon cask with 200 Litres of Whiskey, to a larger Sherry Cask with 250 Litres of Whiskey at €7000. Investors can purchase several casks. Once your cask is filled it will be transferred to a 3rd party bonded warehouse and stored for 5 years. This is the maturation period of the whiskey. After 5 years you will be presented with several options. You do not need to decide on which exit option you wish to use until the end of the maturation period.
Exit Option 1: Buy Back Scheme
Apart from offering the potential for significant price appreciation over the long-term, this proposal offers a virtually risk-free investment due to the structuring of a unique buy-back scheme offered by the Distillery. Casks will be offered to investors in a similar form to discount bonds, with initial entry prices at a substantial discount to the eventual buy-back par value offered by the Distillery at the end of year five. Casks will be offered to investors at a discounted price starting from €6,500 per cask. This price includes the relevant cask, the Whiskey and its ingredients, the labour of the Expert Distiller, plus bonded storage and insurance for the five-year period.
The scheme therefore offers investors a virtually risk-free return of 4% p.a. compounding (or approximately €280 per year per cask). Upon maturation, the Distillery will buy the cask back at the predetermined agreed value. This yields investors a CAGR of 4% per year or a total gross return of 21.7% for the five-year period.
Exit Option 2: Full Cask Exit
When matured at five years, cask owners may choose to take the cask, removing it from the bonded warehouse and reselling the whole cask at a higher value on the open market. This option maybe taken if the open market selling value is in excess of the Buy Back Scheme value.
Exit Option 3: Mature the Spirit
The cask can be kept at the bonded warehouse for a longer period to allow it to mature further with an additional storage charge of approximately €100 per year for storage and insurance. The value of whiskey continues to rise significantly year on year, this is a good option for investors who follow the rise of Irish Whiskey values and wish to maximise their return and are comfortable with a longer term investment.
Exit Option 4: Bottle Your Cask
Investors may choose to have the contents of their personalised Whiskey casks bottled. These unique and special edition bottles of Whiskey could be kept for future investment, resold via auction, exported or kept for personal use. If you choose this exit then your bond certificate will be redeemed with Blacks and a bottling date will be agreed. This is a good option for investors with a retail outlet such as pubs or restaurants, brand owners who want to launch their own whiskey brand or businesses that would like to reward staff or clients with a unique gift.
If in 5 years time you decide to sell single bottles at auction a good comparison would be the Dingle Founding Fathers Cask whiskey (Dingle did a similar investment scheme back in 2014). These currently average around €325 per bottle at auction. So if you sold just 24 bottles from your cask then you would cover the €7000 initial investment and still have 360 bottles left. For investors selling the bottle yield from a full cask (400 btls) it could be substantially more profitable.
We will contact you in the next few days to and arrange sending you the full financial prospectus and cask order form.