New online platform unlocks private funding for £4.5bn Scotch whisky industry
The Scotch whisky industry faces an important financial boost from the launch of a new online marketplace which enables private investors to buy and sell many different Scotch whiskies early on in the maturation process, while the spirit is still in the barrel.
WhiskyInvestDirect comes from the team behind BullionVault, the world’s largest physical gold and silver market online, together with a former director of Diageo – the Scotch whisky brand owner – with 24 years’ industry experience.
The positive outlook for Scotch sales worldwide has recently put significant financial demands on distillers’ cashflow. WhiskyInvestDirect’s innovation supports this £4.5bn industry – which accounts for 25% of UK food and drink exports – by providing an attractive source of capital for distillers, with greater flexibility than traditional banking debt.
Historical performance of maturing Scotch whisky has been strong, averaging real price appreciation of 7% annually over the last decade. Using this new online platform, investors who’ve bought whisky early in the maturation process and held it in HMRC-approved warehouses in Scotland can then sell to the world-famous blends which account for nine in every 10 bottles of Scotch sold globally.
CEO and co-founder Rupert Patrick commented: “Scotch whisky’s long ageing process makes forecasting sales very difficult for individual distillers. Cautious production, plus the lack of a modern trading platform, has caused whisky’s traditional broking market to dry up, leaving a clear opportunity for a technology-based alternative.
“I have never been more confident about the prospects for the Scotch industry, and by using our cutting-edge platform, both investors and distillers alike can benefit from the growth of the multi-billion pound Scotch whisky market.
“Using the proven trading and custody technology behind BullionVault’s success, WhiskyInvestDirect solves a real problem in this vital, growing UK export industry.”