The New Zealand Whisky Collection Limited

By The New Zealand Whisky Collection

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About

The New Zealand Whisky Collection Limited

NZ Whisky Team

The New Zealand Whisky Collection was formed to share New Zealand whisky with the world. Built upon Dunedin’s rich distilling tradition and the superb whiskies from the old Willowbank Distillery, we have developed high value, blue-chip international sales channels.

We value and develop premium partnerships in each market which prompt sales with good profit margin. To meet this increasing demand we must control the quality and volume of our distilling. This Investment Memorandum details how we are responding to these demands and invites you to consider joining us on this exciting journey.

 

The Story So Far

 

 

 

 

 

 

The Opportunities

Build a distillery 

We’re excited about building our own New Zealand whisky distillery so we can continue our commitment to quality and produce the volumes demanded by our distribution partners.

 

Operate in a modern, efficient bonded warehouse and production facility

When we bought the business in 2010 the bonded warehouse and production area was on the ground and first floors of the grand Loan & Mercantile building in Oamaru. While this looks beautiful inside-and-out, it is an impractical set up for us from a range of compliance and practical applications. Ultimately, it cannot accommodate the volume of whisky we are maturing.

Moving to a large, open space, ground floor warehouse and production area is a priority. This will capture efficiencies and save costs.

 

Grow existing export (Australia, Europe, USA, Taiwan) 

Since relaunching the range in 2011 we have been exporting South Island Single Malt and Dunedin DoubleWood, firstly to Australia, then the EU and now Asia. We have had to allocate our sales and increase prices to slow down sales and preserve our stock. We have consistently enjoyed steady export growth, even while increasing price and reducing bottle sizes.

This year, our EU distributor grew sales by 40%. We launched across the USA to a great reception. In Australia, we have mainly been selling in the 220+ store chain Dan Murphy’s and have seen sales grow. With greater volume, we could start servicing trade accounts in many of our markets too.

With increased capital, we will put more cash into marketing in the regions we are already selling well in - to boost sales and yield per litre.

 

Develop new export (Singapore, China, Japan, SE Asia)

Due to having to place our remaining stock on allocation since 2015, we have not activated any new regions apart from the USA in 2017 and Taiwan in 2018. A prominent Japanese retailer has asked if they can import us for next year’s Rugby World Cup and the following Olympics. The timing of each new region needs to be managed to allow supply of our new products to crossover with the old products without interruptions of brand presence in any markets.

We know there’s huge potential across Asia and in parts of Europe we have not yet touched. An operating distillery will give us the confidence of large, consistent supply of our own high quality whisky from 2021, we can continue seeding new export regions in 2019 with existing stocks - to ensure high demand when our increased volumes are mature and available for sale.

 

Grow NZ trade sales, on and off premise 

Several years ago we took onboard the feedback from bars, restaurants and bottle shops we sell directly to in New Zealand, that the smaller bottle sizes make it difficult for them to carry our products. On-premise accounts prefer 700ml bottle size, as less handling / re-ordering. Other feedback we received said our prices were high compared with quality Scotches, and we want to ensure prices in all markets around-the-world represent great value to our consumers - as well as sustainable and attractive profits to our shareholders.

When our next generation of products are mature we will be moving back to the original 700ml bottle size we initially launched the business with in 2010. We will also invest in a marketing budget (up until now, we have operated on a shoestring sales plan) in boosting our brand, demand and solidifying our sales channels across our markets.

 

Grow NZ retail sales, with another Cellar Door and Limited Releases

In the last eight years, our little Cellar Door in Oamaru has grown and grown in sales and profit. It has performed very well in the tiny 35m2 space Matt and his team have had to dance around. There is a great opportunity to sell more of our whisky directly around New Zealand, with improved interpretation, tours, tastings and merchandising in Oamaru. And if we achieve over $360,000 in annual Oamaru Cellar Door sales, imagine what we can achieve in Dunedin, Christchurch, Queenstown or Auckland.

 

The Challenges

Limited remaining stock

Since 2015 we have been limiting, or allocating, where NZ Whisky Co. whisky can be sold. Opening up new markets has been restricted due to our finite stock. On the current rate of sales, we have five years supply of stock (both aged and maturing spirit) on hand.

 

Limited new production capacity

In 2015 we started filling casks with new-make spirit from our contracted production partner. However, they cannot supply the volume we are confident we can sell. We are building our own distillery to ensure all whisky is produced to the highest quality, so it can stand proudly on the world stage.

 

Capital 

The business has consistently generated healthy profits. However, it has not generated the necessary cashflow to enable the capital investment required to build a distillery and expand sales. We have raised private capital and we now invite other whisky lovers and investors on this journey with us.

 

Increasing competition

 

The world’s beverage landscape is changing at a rapid rate. Traditional (some would say standard) powerhouse beer, wine and spirits brands are declining as consumers pursue authentic, crafted drinking experiences. The new world whisky category is exploding both in demand and producers (Japanese, Indian, Taiwanese, Australian). In New Zealand there are around 18 operating distilleries. Local distillers are not competition, they are colleagues working collaboratively to establish New Zealand’s credibility on the world whisky stage.

 

Use of Capital

PURPOSE IF MINIMUM IS RAISED IF MAXIMUM IS RAISED
Increase Distillery efficiencies $50,000 $200,000
Additional production of spirit $200,000 $985,000
Domestic market expansion (another Cellar Door, increase trade accounts) $35,000 $100,000
International market expansion (USA, UK, Japan, SE Asia) $40,000 $150,000
Working capital and / or debt reduction $90,000 $400,000
Capital raising costs (PledgeMe platform fees, legal and accounting work, branding and marketing) $85,000 $165,000
Total $500,000 $2,000,000

 

The Share Offer

We’re offering shares in The New Zealand Whisky Co. Limited to raise a minimum of $500,000 and a maximum of $2,000,000 for up to 16.9% of the company. Shares are priced at $1 and the minimum investment amount is $500.

 

Post Raise

 

Share Classes

There are two share classes on offer. The minimum holding of Ordinary Shares has been set at 40,000 shares.All purchases of share bundles less that 40,000 shares will be issued Investor Shares.

Further information on the rights and restrictions associated with each share class is set out in The New Zealand Whisky Collections Constitution, which you should read before subscribing for any shares.

Investor Shares 

The New Zealand Whisky Collection Investor Shares in packages A and B are non-voting but will have the following rights:

Non-voting shares do not give the holder the right to vote at meetings of shareholders. In very limited circumstances (to ensure the shareholder’s core rights are protected) each non-voting share gives the holder the right to one vote. This only occurs where there is a proposal or resolution:

  • that will affect the rights attached to the Investor Shares;
  • to put the company into liquidation; and
  • for the disposal of the whole, or a material part, of the property, business and undertaking of The NZ Whisky Co. Limited.

Non-voting shares will give the holders:

  • The right to an equal share in dividends and other distributions made by The NZ Whisky Co. Limited (subject to the rights of any other class of share); and
  • The right to an equal share in the distribution of surplus assets of The NZ Whisky Co. Limited.

However, investor shareholders have no rights to vote on removal or appointment of directors.

Ordinary Shares

The package C shareholders have Ordinary Shares, which are voting shares and have full voting rights attached.

 

 

Share Packages

Post Raise

 

 

 

 

 

 

 

 

Who Can Buy Shares

If you are a New Zealand citizen living in New Zealand then you are eligible to invest. If not then you need to be sure you qualify. Seek your own legal advice but here is a broad outline to help guide you. Foreigners living in New Zealand You must be a permanent resident, or be entitled to flow freely into and out of New Zealand. New Zealand citizens living abroad Equity crowdfunding must be legal in the country where you live. Some of those countries include:

  • Australia;
  • U.K.; and
  • Most of Europe.

If you are a resident of these countries then you cannot participate in our crowdfund:

  • Japan; and
  • India.

The U.S.A. and Canada are more complicated as it will come down to the State legislation of where you live. You will need to consult your lawyer, and provide us a proof of address. International investors need to confirm this offer is compliant with all applicable laws in their country of residence, and confirm they are a “wholesale investor”. A wholesale investor can be defined as people who meets any one of these 5 criterion:

  1. are an investment business, in that their principal business involves investing in financial products, acting as an underwriter, providing financial advisory services, providing broking services or trading financial products;
  2. have, during the previous two year period, owned a portfolio of, or carried out transactions to acquire financial products of a value of at least $1 million;
  3. have, in the previous two years, materially participated in the investment decisions made by an investment business;
  4. have, or any entities controlled by them, have, as at the last day of the two most recently completed financial years, net assets or total consolidated turnover exceeding $5 million;
  5. are "eligible investors", and have certified that they have previous experience in acquiring or disposing of financial products that allows them to assess:
    1. the merits of the transaction;
    2. their own information needs in relation to the transaction;
    3. the adequacy of the information provided, that they understand the consequences of so certifying, and the grounds for this certification; or
    4. an authorised financial adviser, a chartered accountant, or a lawyer signs a written confirmation of the certification.

Investors from overseas cannot invest through a foreign company or entity. They must invest as an individual through the equity crowdfunding campaign - provided that they meet the criteria for investing from overseas. The New Zealand Whisky Collection Limited - after the campaign has closed and the funds have been fully processed - will then have discretion over permitting a share transfer to happen between the foreign individual and the foreign company or entity.

About our Team

Greg Ramsay - Founder

Greg is a visionary. And a doer. A man who sets an audacious goal and drives a team to deliver it. He is a champion of regional development, creating businesses which showcase their wares on the global stage. Growing up in Tasmania’s highlands, Greg’s family farm featured Australia’s oldest golf course. To learn how to turn golf history into golf tourism, Greg had gap-years either side of University, in Scotland; where he first started working in the whisky industry.

Troy Trewin - CEO

Troy reports to the Board and ensures we execute the strategic plan. He focuses on strategy, finance and management. He has been running the business since early 2011, with a two year break from late 2013 as CEO of Lark and Overeem Distilleries in Tasmania. In early 2016 Troy returned to the New Zealand Whisky Collection to help raise the capital to allow the business to expand and prepare for building a distillery. Before his time in whisky, Troy started, managed and grew several of his own technology companies in Melbourne and London. Before that he spent three years at PriceWaterhouseCoopers as a Consultant.

Grant Finn - General Manager

Southland born, Otago raised, ‘Finny’ was an early drinker of Wilson's Whisky in his Otago Uni days. Mixed with raspberry cordial and lemonade no-less! Thankfully both his palate and knowledge have improved since then. His background in resource management and town planning saw Grant live and work all around-the-world, and he met Greg Ramsay playing rugby (very badly) in Hobart. They struck up a firm friendship and when Greg needed a General Manager that could take the New Zealand Whisky Co. to the next level, it coincided with Grant moving his family to Oamaru for schooling.

Tom Holder - Export, Brand and Production Manager

Tom has been with the company since its inception in 2010 initially coming on to invigorate the branding and packaging of the existing stock. He has gone on to create production partnerships, and forge export channels across Australia, Asia, North America and Europe.

James MacKenzie - Master Blender

James is now a proud Oamaruvian, who was born and bred a Cantabrian. After the Christchurch earthquakes James moved his young family to Oamaru for a new life. Whisky distilling is in his blood and the MacKenzie family has a very long history with whisky blending and distilling. Some of it not entirely lawful! Like our Oamaruvian and with experience beyond his years, James has a passion and knowledge for whisky and remarks that he knew his ABVs before he knew his ABCs. James is thrilled to be part of the new exciting chapter in NZ whisky history.

Matthew Wicks - Cellar Door Manager

Our born-and-bred ‘Oamaruvian’, Matt has returned home after travelling the globe and managing pubs across England. Matt has a multi-faceted role within the business. An accomplished graphic designer/artist (his works can be found in collections and galleries across New Zealand, the UK, US and Australia). Matt is responsible for a lot of our branding, merchandise design and organising events and will continue to fine tune our brand and aesthetic wherever it appears. Outside of work you will find Matt meandering his local golf course.

     

Our Governance

   

Stuart McLauchlan - Chairperson

Stuart is a Chartered Fellow of the IoD and a pat President. He is a chartered accountant, partner of GS McLauchlan & Co, and a fellow of the New Zealand Institute of Chartered Accountants. He is currently Chairman of Scott Technology Ltd, UDC Finance Ltd and Dunedin International Airport Ltd, as well as being a Director of Ngai Tahu Tourism Ltd, Argosy Property Ltd and a member of a number of private companies. Stuart is also governor of the New Zealand Sports Hall of Fame.

Warren Egen - Director

A semi-retired business person, Warren owns commercial properties and is involved with some property developments. Warren’s past employment was as a Regional Company Manager for Motorspecs/Repco (Southland area, 1980-1983). He and Lyn then bought a small hire company and built it into a multi-branch tool and equipment rental company with a division of catering, marquee and party hire. They owned and operated that company for over 21 years, until selling to Hirepool in 2005. He then served on the Board of management of the NZ Hire and Rental Association for four years, then as NZ President of that Association. Warren also served on an advisory Board for the National / ANZ Private Bank for five years. His focus is to have a clean, efficient and profitable business.

Greg Ramsay - Founder & Director

Since delivering Barnbougle Dunes and Nant Distillery, Greg’s original 2 passions of great golf and world-class whisky, have seen him develop, advise or be a Director of successful golf destinations and distilleries around the world; Lark and Launceston Distilleries in Tasmania, Journeyman Distillery and Oliphant Golf in USA, and right back to being a Founder and Director of Kingsbarns Distillery near St.Andrews. His commitment to strong Corporate Governance has been a mainstay of the success of the NZ Whisky Co..

 

 

 

Risks and Challenges

Note from PledgeMe

We have completed a Veda check on the company and their directors, as well as a google check. There were no adverse findings.

 

Updates 11

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Investment Memorandum Doc updated

05/12/2018 at 12:17 PM

Hi All, 

Due to a lot of great questions and feedback, we have released an updated version of the IM that you can download from our PledgeMe page. 

Please take some time to browse through it, particularly a new section on page six which outlines the value proposition in more detail. 

As always, please let us know if you have any questions. 

 

2 Weeks to go!

05/12/2018 at 10:25 AM

Just under two weeks to go in our Crowdfunding Campaign! We close on Monday the 17th of December at 4pm. If you have ever wanted to own your own whisky distiller make your pledge now!

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    Details

    Offer Details

    Current Valuation 9,800,000
    Raise Minimum 500,000
    Raise Maximum 2,000,000
    Share Price 1.00
    Maximum Shares Offered 2,000,000
    Explanation of valuation:

    The valuation of The New Zealand Whisky Collection was undertaken by the current shareholders.

    It has been calculated using a ‘multiple of revenue’ method. The shareholders are comfortable that a multiple of 4.93 times the current financial year, FY19 estimated revenue is a fair market value.

    The valuation multiple is consistent with the multiples set out in the below comparative analysis of recent market transactions in the same or similar industries, or recent crowdfunding in New Zealand.

    Financial Summary

    Prev Year Current Year Est. FY 2022 Est. FY 2023
    Revenue NZ $1,147,210 NZ $1,711,265 NZ $2,149,561 NZ $2,348,039
    Operating Expenses NZ $738,762 NZ $1,151,420 NZ $1,142,075 NZ $1,352,009
    EBITDA NZ $131,341 NZ $178,343 NZ $471,759 NZ $408,037
    Net Profit NZ $19,258 NZ $169,635 NZ $330,307 NZ $284,427

    Company Details

    Company Name: The New Zealand Whisky Collection

    Company Number: 0

    Company details are currently being synced with the Companies Office, please wait.

    Company Documents

    Documents no longer available to download, as this campaign has closed

    Director Details

    Name Role Profile URL Invested?
    Greg Ramsay Founder & Director https://au.linkedin.com/in/greg-ramsay-989380168
    Stuart McLauchlan Chairperson https://app.companiesoffice.govt.nz/companies/app/service/services/documents/00468621B994CA10AF45DB050062A475
    Warren Egen Director https://app.companiesoffice.govt.nz/companies/app/ui/pages/individual/search?q=egen%2C+warren&roleType=ALL&indEntityTypes=ALL&indDirStatus=ALL&indEntityStatusGroups=ALL&indShrStatus=ALL&advancedPanel=true&mode=advanced&expandedResults=#results

    Questions 10

    Ask a Question (You must login to ask a question)


    Hello. Question in relation to A Shares - if NZ Whisky Co is sold/acquired etc what happens to these shares.

    Posted on 26-10-2018 by Vivienne

    Hi Vivienne, each share, regardless of the package perks, have the same value. If we sold the company you would be paid for your shares. The value would be determined by the sale price of the company.

    Answered on 26-10-2018 by The New Zealand Whisky Collection


    Hi there.

    Firstly, well done on where you have taken the company to date. It is fantastic to see NZ's distillery capacity grow.

    Just a couple of questions.

    1. You mention in the IM that the new make whisky will be matured for 3-5 years. Is there sufficient demand for younger whisky given the current product has a different age profile? Is this decision an interim decision for cash flow reasons or a long term strategic decision? Is there any intention to retain a certain amount of spirit in the casks for a longer period to produce a premium product? If so how much?

    2. Friendly finance is mentioned in the IM. What is the total amount of debt and what are the terms under which that debt can/will be converted to equity?

    3. What actual distilling experience does the team have? I appreciate the comments on pg 16, but can you provide some further detail on practical experience of the team?

    4. Why did the company choose to go down the crowd funding path with a minimum raise of $500k. With fees and associated costs of $85k (assuming $500k raised) 17% of what you raise will be used to pay capital raising costs. Is there limited appetite for a capital raising amongst existing investors?

    Many thanks for your time in responding.

    Kind regards,

    Matt

    Posted on 29-10-2018 by Matt

    Hi Matt,

    Some great questions here, thank you. Our answers are:

    ONE
    There is strong demand for younger whiskies as brands all over the world in the last 10-15 years have shown time in cask does not always mean great quality. This has been born out of necessity on two fronts.

    Firstly, the big Scotch distilleries in the UK and Japanese distilleries have all been moving away from marketing their whisky on age. They simply cannot keep up with demand so have had to blend younger-and-younger whiskies to be able to supply the market. In the last year the larger Japanese distilleries have said they will need at least 10 years to catch up with demand. There will still be older whiskies in market and stock held back for that segment but their prices will continue to rise due to scarcity and young whiskies will become even more common.

    Secondly, climates where the Angel’s Share is extreme - like India and Taiwan - MUST release younger whiskies, otherwise there would be nothing in the cask when they went to bottle it. In those hotter countries they lose 10-15% of the spirit from the cask, each year. There are several award-winning, fabulous whiskies from India.

    And if you need any further evidence, look at Kavalan from Taiwan. In 2015 they won best single malt whisky in the world at the leading international whisky awards - the World Whisky Awards. Their whiskies are 3-4 years of age, and are sensational drops.

    Worth noting, the year before that, Sullivan’s Cove in Tasmania won the award and was the first whisky outside Scotland or Japan that won the coveted prize. So a lot of notions are being challenged, that is - “it has to be made in Scotland, and it has to be old.”

    We feel this movement is an exciting one and are honoured to have the challenge before us to make one of those great new world whiskies, and young.

    For the medium and long term we will keep some whiskies in larger casks for older whiskies, but more for our limited release ranges and to allow our distillers to experiment. The older whiskies won’t be part of our core range.

    TWO
    We have a $400k convertible loan which can be converted to equity in the next 2 years if the lender chooses to. This was used to finance our stills (as they can take a long time to be built), and buying new-make from a contract distiller so we have stock maturing while we set up our distillery. This is the only debt we have an agreement on as a convertible loan.

    There are some other smaller debt and once we know how much money we have raised we will assess what we will pay down. The focus for the last 2 years has been to conserve as much cash as possible so we could lay down new-make, so our new products can hit market sooner than waiting for us to build our distillery. We have leveraged some debt to make this happen.

    THREE
    Our Master Blender, James, who will become our Head Distiller once the stills are operational has almost 20 years experience home distilling. Our Founder and CEO have both had a handful of days on the floor of distilleries they have built and operated, but more of their time and focus has been finding distilling talent, ensuring they have been trained well and managed them to produce consistent, good quality whiskies.

    We already invest in some of the best distilling knowledge and experience that can be tapped in the Southern Hemisphere, Tasmania - where the climate is similar to New Zealand South Island. James has 2 distilling mentors at the moment he regularly calls on, and as mentioned in the IM, we will send sending James on the leading distilling course in our industry at the IBD.

    Quality is at the core of our business, and our whiskies. We have a tasting panel we use before any whisky is released, or new-make put into cask. We have a passionate drive to ensure what we put on the market is terrific.

    FOUR
    There are a few reasons why we are crowdfunding. We want more Kiwis to be involved in our exciting next chapter and not only help us make more exciting whiskies, but share in any financial success we have too.

    We also want more people around the nation talking about our whiskies, and helping us get them into more venues. If you are in a nice bar or restaurant and they don’t stock our whisky, we want to know about it. We also see our crowd being loyal customers in their own right, buying our products each year. This is a sales channel we don’t currently have, so will offset the higher cost of this finance as you point out.

    Existing investors have put in additional capital recently, as well as new investors buying in. We still have a handful of potential investors we are talking with but these are more strategic - where we get more value than just the cash (e.g. distribution in new and large markets, like China - which is currently not in any of our planning as it requires a lot more volume and therefore capital).

    Please let us know if you have any further questions Matt.

    Regards,

    Troy

    Answered on 31-10-2018 by The New Zealand Whisky Collection


    Hi, does your revenue figure include excise tax? If so what is the figure without excise tax. With excise being so high and a tax, I feel it wouldn’t be right to apply a revenue multiple to a tax to reach a valuation. Thus it would be good to get a true picture before making an investment decision. Thanks and good luck

    Posted on 29-10-2018 by Brian Green

    Hi Brian, this is a great question. Excise is included in some of our revenue, but not most of it. You pay excise in the country the alcohol is sold to the public in. So when we export we sell to our distributors “ex-works”, which means no freight charge, GST or excise.

    As 58% of our sales are currently export, and will grow to 75% from FY23 when we are selling the full 50,000 litres of year we are about to start laying down each year, the bulk of our sales do not include excise. Australia is the only export market where we don’t use a distributor and deliver orders direct into the Woolworths / Dan Murphy’s Distribution Centre, so we do pay the excise there. Also, we don’t charge or pay excise on orders shipped to Duty Free in New Zealand, or online orders shipped outside New Zealand.

    In our current FY19, with projected revenue of just under $2m, we estimate there will be about $130,000 of excise in that, or 6.5% of sales.

    Please keep in mind other alcohol businesses listed in the table on ‘Our Valuation’ page of the IM include excise in their sales too.

    Answered on 31-10-2018 by The New Zealand Whisky Collection


    Hi. I have a few questions:
    1. I'm interested in your comments around your current production partner - is this coming from off-shore? You mention limited competition in NZ, so my assumption is that the current partner is off-shore if they have the capacity to supply you plus presumably do their own thing too? Or is it a NZ-based producer, and in which case once you stop buying off them they'll then be able to ramp up production of their own stock, thus providing more competition in the NZ-produced market?
    2. Valuing and selling shares further - how will this be facilitated? You mention the selling won't be easily done and looked after in house - is there any guarantee that if we purchase, we'll be able to sell them at a later date if needed?
    3. Valuation - are you able to provide some info around external advice and reports that you have obtained for the valuation? Ordinarily it would seem logical that an external valuer would do this, rather than have it completed in house?
    4. Other shareholders/interested parties - I note that most of the names of the board, staff and advisors aren't on the current investors list (outside of Greg, Troy and Tom). Are any of these that are closest to the operation planning on investing their own money via the Pledgeme raise or otherwise? Obviously this will instill a lot more confidence in us as potential investors!
    Thanks for your time - it's an interesting prospect, but just want to get a clearer picture of things.

    Posted on 02-11-2018 by Thomas Buchanan

    Hi Thomas,

    Thank you for your good questions. Here are some answers from us:

    ONE
    Our production partner is based in the South Island of New Zealand. We can’t import new-make spirit and call it New Zealand whisky when it matures, as it was not distilled in New Zealand. We are not worried about them as a competitor as the more distilleries making top quality whisky, the better for all - the "New Zealand whisky" brand, in general, gets more well known globally. New Zealand is still under-represented in distilleries, we believe. In comparison to Australia, USA and other major distilling nations - on a per capita basis New Zealand has low competition at the moment. There are only about 18 distilleries operating in NZ, whereas there are more than 120 in Australia. And around 2,000 in the USA.

    TWO
    There is no guarantee you can sell your shares, we are unlisted company so not a lot of liquidity. We will keep a register of shareholders wishing to sell their shares, and put them in touch with anyone interested in buying shares. You will need to agree on an sale price between yourselves.

    THREE
    We studied recent crowdfunding valuations in New Zealand and other developed crowdfunding countries, like the UK and based ours on the same methods and similar multipliers. We feel this is a better method of valuing the investment opportunity we are presenting. We have seen tremendous value generated in fast-growing, crowdfunded companies and aim to be the same. In our table of other companies and multipliers some were purchased by large multinational companies for multipliers bigger than what we have valued our business on.

    FOUR
    All three Directors have a vested financial interest in the company in either equity (Founder), a loan to the company or a convertible loan (they can choose to change their current debt to equity within 2 years). The two non-Founder Directors may choose to convert their debt to equity in the future (and if offered to the Director who does not have a convertible loan in place), but that is a decision for them to make in the future.

    Please do let us know if you have any further questions.

    Regards,

    Troy

    Answered on 07-11-2018 by The New Zealand Whisky Collection


    Hi, The world loves a great product with a story and I wish the team great success. Before joining the team I have two questions. I lack the financial astuteness and experience of your advisors etc so please forgive me if these questions sound naive;
    1) 'Skin on the table' Further to a previously asked question, just wondering, other than for personal reasons, as to why the other advisors, board etc do not have financial vested interest in the business?
    2) Protection of Assets - Earthquakes - Those beautiful barrels take a bit of long loving storage. Are they insured in the event of damage from natural disasters and to what level as it is not just the replacement cost the revenue loss is over many years should the worst happen in our shakey Isles ....and was any building upgrading to meet 'Building Code' or Insurer requirements addressed as part of the due diligence when scoping the expansion project with the leasee.
    Cheers, Tracey

    Posted on 08-11-2018 by Tracey Marvin

    Hi Tracey,

    Thank you for your questions. Here are some answers for you:

    ONE
    As mentioned above, all three of our Board have a financial vested interested in one-form-or-another. Our Founder obviously has the bulk of the equity and the other two Directors have loans to the business so we could get to this point. Both these Directors have loaned substantial funds to the business to assist us in buying out the original 50% shareholders who didn’t want to build a distillery and keep the brand let alone expand it globally (they just wanted to sell down the old whisky stock and cash out); fund contract production over the last -2.5 years, so we have new-make in cask maturing and we can release our new generation of whiskies at least 2 years earlier than if we waited for our own distillery to be operating; and allowed us to pay for our new shiny stills which landed in Dunedin in late October (as it can take 9-24 months for your stills to be built, depending on where you buy them from).

    TWO
    This is an excellent questions, and something we didn’t really mention in the IM. We have always had the best insurance you can get for our whisky stock, it is called Throughput Insurance and is provided by Lloyds in London. It is insurance specific to the type of business we have, asset heavy. As you know, we have to wait 2-5 years for our whisky to mature before we can sell it. That means a lot of OPEX (Operational Expenditure) is sitting in our bond store and on our balance sheet for years. While the accountants will only allow us to show the value of our casks on our balance sheet at the lower of cost or net realisable value, the reality is when we bottle that cask and sell it we can yield say an extra $20k gross profit per cask, which is above that original cost. The insurance we have covers the gross profit in the casks. So, God forbid, if our bond store burnt to the ground we would be paid what we would have yielded selling that whisky in the marketplace - not just what it cost us. Even the casks we filled on the day of the fire, we’d get the full gross profit the cask would have yielded when it matured in a few years.

    Our insurance covers earthquakes too and we have an excellent broker and relationship with them, we always run past them any changes in our cask storage etc. The new building we have just signed a lease on, they went through it with us months ago and we made sure any security or protection measures they requested we have in place are completed before our valuable whisky is moved.

    Please do let us know if you have any further questions.

    Regards,

    Troy

    Answered on 08-11-2018 by The New Zealand Whisky Collection


    Hi, I see in your valuation you use Reefton Distillery - as I understand it, Reefton Distillery only opened a couple months back so we cannot know what their actual revenue will be in first year of trading....so is it right to have them listed here? Could be a little misleading seeing as though its based on a revenue forecast for a new start up that has only traded for a couple of months.....I understand you may want to use them as an example of successful fundraising but not sure putting them in with these other companies is right.

    Posted on 14-11-2018 by Danny

    Hi Danny,

    Thanks for your question. We included them as that was the valuation they put in their IM (2 times projected sales), and were able to raise about $1.4m on that. We have 8 years sales track record, 18-30 year old stock in the bond store, established brands and international sales channels plus a much higher future sales growth plan - which is why we have valued our business higher (4.93 times projected sales in the current financial year).

    All the other companies in the table use the same valuation method - a multiple on the financial year in progress at the time of raise or sale.

    Regards,

    Troy

    Answered on 14-11-2018 by The New Zealand Whisky Collection


    Heya guys! Liking the plan :) Just noticed mention of a distillery that hit the news a few years back. What sorts of connections to Nant Distilery does the team have?

    Posted on 14-11-2018 by Jan Pluta

    Hi Jan,

    Thanks for your question. Our Founder, Greg, developed the business plan to restore the old buildings and watermill, and it was his initial idea to set it up as a distillery on the property in Tasmania's central highlands. He sold this plan to the then-owner, who contracted Greg to project manage the distillery build and set up.

    Not long after the distillery was up-and-going in 2008, Greg had little to do with the business. A couple of years ago the business went into administration and soon after the assets were acquired by ASX-listed AWH, which also owns Lark Distillery, Overeem Distillery and some of Old Kempton Distillery (all in Tasmania).

    It is worth noting, the funding model Nant used until AWH acquired them was an "investment barrels" scheme - what some would deem is a financial product. You earned 9.55% interest per annum on the funds you put in, and Nant would pay you your original investment when the whisky matured. This is NOT a funding option we will be conducting.

    Also, when our CEO was CEO of Lark and Overeem from late 2013 for around 2 years, AWH was Lark/Overeem's largest shareholder at the time (they now own both distilleries in full).

    Both our Founder and CEO know the new team at Nant and AWH and are pleased to see what they are doing to not only keep this great whisky on the market, but expand production and get more of it selling around the world.

    Regards,

    Troy

    Answered on 15-11-2018 by The New Zealand Whisky Collection


    Hi guys. First, serious congrats on making the first target, but can you clarify what impact the extension has on the settlement date for us existing investors?

    Cheers
    Gary

    Posted on 23-11-2018 by Gary Cole

    Hi Gary,

    Thank you! And thanks for your question. As we have extended the deadline to 17 December no funds will be processed before then, unless we reach the $2m maximum raise.

    PledgeMe will then be in touch soon after either 17 December of the $2m maximum being raised, to start the process of receiving funds. Please let us know if you have any further questions.

    Regards,

    Troy

    Answered on 23-11-2018 by The New Zealand Whisky Collection


    does the shareholders discounts apply to the trade price if the shareholder happen to be one of your trade accounts and guaranteed of best discounted price as well as stock priority?

    Posted on 06-12-2018 by Xiaobo Raymond Hu

    Hi Raymond,

    Thanks for your question. The shareholder discount can only be redeemed in the Cellar Door our online at our website. The discount does not apply on top of the lowered trade price, only to our retail prices.

    Please let us know if you have any further questions.

    Regards,

    Troy

    Answered on 07-12-2018 by The New Zealand Whisky Collection


    Is it possible to buy more shares?

    Posted on 26-04-2019 by Logan Panting

    Hi Logan, The campaign has closed for the time being, however, we may open it again in 1-2 months. If you would like to subscribe to our newsletter here: http://eepurl.com/j2gLT you can keep up-to-date and be informed when we reopen. Thanks for your interest!

    Answered on 03-05-2019 by The New Zealand Whisky Collection

    Pledgers 313

    Frances Austin
    2018-11-08 08:45:59 +1300
    Wayne Teutenberg
    2018-11-07 17:47:36 +1300
    Clayton Dias
    2018-11-07 17:12:24 +1300
    Nathan Moffat
    2018-11-07 16:21:38 +1300
    Kim Crossman
    2018-11-07 14:04:29 +1300

    "Good Luck "

    Anitesh Govind
    2018-11-07 09:04:55 +1300
    Neil Whitford
    2018-11-06 07:46:33 +1300
    SM Ang
    2018-11-05 15:30:40 +1300
    Dean Douglas Staples
    2018-11-05 14:35:57 +1300
    Stewart Clark
    2018-11-05 12:59:07 +1300
    Dennis Trembath
    2018-11-04 20:55:18 +1300

    "Looking forward to some great Whiskey being Distilled"

    James Groom
    2018-11-03 18:10:37 +1300
    James Lawrence
    2018-11-03 17:40:20 +1300
    C & D Cooper
    2018-11-03 10:45:57 +1300
    DataGardner Ltd
    2018-11-03 01:28:39 +1300
    MKP Nuttall
    2018-11-02 17:22:22 +1300
    Gary Cole
    2018-11-02 08:11:50 +1300
    Martin Raue
    2018-11-02 00:14:46 +1300
    Alistair Kirkland
    2018-11-01 21:34:49 +1300
    Daryl Pearson
    2018-11-01 19:48:59 +1300
    Liam Tranter
    2018-11-01 19:27:17 +1300
    Cameron Craik
    2018-11-01 18:28:21 +1300
    Kendyll Lamont
    2018-11-01 17:10:06 +1300
    John O'Connell
    2018-11-01 12:43:14 +1300
    Lyra Stewart
    2018-11-01 03:03:03 +1300
    Andy Heyward
    2018-10-31 19:31:01 +1300
    Clare Lumsden
    2018-10-31 18:02:13 +1300
    Jacqui Gordon
    2018-10-31 17:28:23 +1300

    "Wishing you great success"

    Jeremy Burns
    2018-10-31 09:23:42 +1300
    Lydia Carol
    2018-10-31 07:25:59 +1300

    The New Zealand Whisky Collection Limited

    NZ Whisky Team

    The New Zealand Whisky Collection was formed to share New Zealand whisky with the world. Built upon Dunedin’s rich distilling tradition and the superb whiskies from the old Willowbank Distillery, we have developed high value, blue-chip international sales channels.

    We value and develop premium partnerships in each market which prompt sales with good profit margin. To meet this increasing demand we must control the quality and volume of our distilling. This Investment Memorandum details how we are responding to these demands and invites you to consider joining us on this exciting journey.

     

    The Story So Far

     

     

     

     

     

     

    The Opportunities

    Build a distillery 

    We’re excited about building our own New Zealand whisky distillery so we can continue our commitment to quality and produce the volumes demanded by our distribution partners.

     

    Operate in a modern, efficient bonded warehouse and production facility

    When we bought the business in 2010 the bonded warehouse and production area was on the ground and first floors of the grand Loan & Mercantile building in Oamaru. While this looks beautiful inside-and-out, it is an impractical set up for us from a range of compliance and practical applications. Ultimately, it cannot accommodate the volume of whisky we are maturing.

    Moving to a large, open space, ground floor warehouse and production area is a priority. This will capture efficiencies and save costs.

     

    Grow existing export (Australia, Europe, USA, Taiwan) 

    Since relaunching the range in 2011 we have been exporting South Island Single Malt and Dunedin DoubleWood, firstly to Australia, then the EU and now Asia. We have had to allocate our sales and increase prices to slow down sales and preserve our stock. We have consistently enjoyed steady export growth, even while increasing price and reducing bottle sizes.

    This year, our EU distributor grew sales by 40%. We launched across the USA to a great reception. In Australia, we have mainly been selling in the 220+ store chain Dan Murphy’s and have seen sales grow. With greater volume, we could start servicing trade accounts in many of our markets too.

    With increased capital, we will put more cash into marketing in the regions we are already selling well in - to boost sales and yield per litre.

     

    Develop new export (Singapore, China, Japan, SE Asia)

    Due to having to place our remaining stock on allocation since 2015, we have not activated any new regions apart from the USA in 2017 and Taiwan in 2018. A prominent Japanese retailer has asked if they can import us for next year’s Rugby World Cup and the following Olympics. The timing of each new region needs to be managed to allow supply of our new products to crossover with the old products without interruptions of brand presence in any markets.

    We know there’s huge potential across Asia and in parts of Europe we have not yet touched. An operating distillery will give us the confidence of large, consistent supply of our own high quality whisky from 2021, we can continue seeding new export regions in 2019 with existing stocks - to ensure high demand when our increased volumes are mature and available for sale.

     

    Grow NZ trade sales, on and off premise 

    Several years ago we took onboard the feedback from bars, restaurants and bottle shops we sell directly to in New Zealand, that the smaller bottle sizes make it difficult for them to carry our products. On-premise accounts prefer 700ml bottle size, as less handling / re-ordering. Other feedback we received said our prices were high compared with quality Scotches, and we want to ensure prices in all markets around-the-world represent great value to our consumers - as well as sustainable and attractive profits to our shareholders.

    When our next generation of products are mature we will be moving back to the original 700ml bottle size we initially launched the business with in 2010. We will also invest in a marketing budget (up until now, we have operated on a shoestring sales plan) in boosting our brand, demand and solidifying our sales channels across our markets.

     

    Grow NZ retail sales, with another Cellar Door and Limited Releases

    In the last eight years, our little Cellar Door in Oamaru has grown and grown in sales and profit. It has performed very well in the tiny 35m2 space Matt and his team have had to dance around. There is a great opportunity to sell more of our whisky directly around New Zealand, with improved interpretation, tours, tastings and merchandising in Oamaru. And if we achieve over $360,000 in annual Oamaru Cellar Door sales, imagine what we can achieve in Dunedin, Christchurch, Queenstown or Auckland.

     

    The Challenges

    Limited remaining stock

    Since 2015 we have been limiting, or allocating, where NZ Whisky Co. whisky can be sold. Opening up new markets has been restricted due to our finite stock. On the current rate of sales, we have five years supply of stock (both aged and maturing spirit) on hand.

     

    Limited new production capacity

    In 2015 we started filling casks with new-make spirit from our contracted production partner. However, they cannot supply the volume we are confident we can sell. We are building our own distillery to ensure all whisky is produced to the highest quality, so it can stand proudly on the world stage.

     

    Capital 

    The business has consistently generated healthy profits. However, it has not generated the necessary cashflow to enable the capital investment required to build a distillery and expand sales. We have raised private capital and we now invite other whisky lovers and investors on this journey with us.

     

    Increasing competition

     

    The world’s beverage landscape is changing at a rapid rate. Traditional (some would say standard) powerhouse beer, wine and spirits brands are declining as consumers pursue authentic, crafted drinking experiences. The new world whisky category is exploding both in demand and producers (Japanese, Indian, Taiwanese, Australian). In New Zealand there are around 18 operating distilleries. Local distillers are not competition, they are colleagues working collaboratively to establish New Zealand’s credibility on the world whisky stage.

     

    Use of Capital

    PURPOSE IF MINIMUM IS RAISED IF MAXIMUM IS RAISED
    Increase Distillery efficiencies $50,000 $200,000
    Additional production of spirit $200,000 $985,000
    Domestic market expansion (another Cellar Door, increase trade accounts) $35,000 $100,000
    International market expansion (USA, UK, Japan, SE Asia) $40,000 $150,000
    Working capital and / or debt reduction $90,000 $400,000
    Capital raising costs (PledgeMe platform fees, legal and accounting work, branding and marketing) $85,000 $165,000
    Total $500,000 $2,000,000

     

    The Share Offer

    We’re offering shares in The New Zealand Whisky Co. Limited to raise a minimum of $500,000 and a maximum of $2,000,000 for up to 16.9% of the company. Shares are priced at $1 and the minimum investment amount is $500.

     

    Post Raise

     

    Share Classes

    There are two share classes on offer. The minimum holding of Ordinary Shares has been set at 40,000 shares.All purchases of share bundles less that 40,000 shares will be issued Investor Shares.

    Further information on the rights and restrictions associated with each share class is set out in The New Zealand Whisky Collections Constitution, which you should read before subscribing for any shares.

    Investor Shares 

    The New Zealand Whisky Collection Investor Shares in packages A and B are non-voting but will have the following rights:

    Non-voting shares do not give the holder the right to vote at meetings of shareholders. In very limited circumstances (to ensure the shareholder’s core rights are protected) each non-voting share gives the holder the right to one vote. This only occurs where there is a proposal or resolution:

    • that will affect the rights attached to the Investor Shares;
    • to put the company into liquidation; and
    • for the disposal of the whole, or a material part, of the property, business and undertaking of The NZ Whisky Co. Limited.

    Non-voting shares will give the holders:

    • The right to an equal share in dividends and other distributions made by The NZ Whisky Co. Limited (subject to the rights of any other class of share); and
    • The right to an equal share in the distribution of surplus assets of The NZ Whisky Co. Limited.

    However, investor shareholders have no rights to vote on removal or appointment of directors.

    Ordinary Shares

    The package C shareholders have Ordinary Shares, which are voting shares and have full voting rights attached.

     

     

    Share Packages

    Post Raise

     

     

     

     

     

     

     

     

    Who Can Buy Shares

    If you are a New Zealand citizen living in New Zealand then you are eligible to invest. If not then you need to be sure you qualify. Seek your own legal advice but here is a broad outline to help guide you. Foreigners living in New Zealand You must be a permanent resident, or be entitled to flow freely into and out of New Zealand. New Zealand citizens living abroad Equity crowdfunding must be legal in the country where you live. Some of those countries include:

    • Australia;
    • U.K.; and
    • Most of Europe.

    If you are a resident of these countries then you cannot participate in our crowdfund:

    • Japan; and
    • India.

    The U.S.A. and Canada are more complicated as it will come down to the State legislation of where you live. You will need to consult your lawyer, and provide us a proof of address. International investors need to confirm this offer is compliant with all applicable laws in their country of residence, and confirm they are a “wholesale investor”. A wholesale investor can be defined as people who meets any one of these 5 criterion:

    1. are an investment business, in that their principal business involves investing in financial products, acting as an underwriter, providing financial advisory services, providing broking services or trading financial products;
    2. have, during the previous two year period, owned a portfolio of, or carried out transactions to acquire financial products of a value of at least $1 million;
    3. have, in the previous two years, materially participated in the investment decisions made by an investment business;
    4. have, or any entities controlled by them, have, as at the last day of the two most recently completed financial years, net assets or total consolidated turnover exceeding $5 million;
    5. are "eligible investors", and have certified that they have previous experience in acquiring or disposing of financial products that allows them to assess:
      1. the merits of the transaction;
      2. their own information needs in relation to the transaction;
      3. the adequacy of the information provided, that they understand the consequences of so certifying, and the grounds for this certification; or
      4. an authorised financial adviser, a chartered accountant, or a lawyer signs a written confirmation of the certification.

    Investors from overseas cannot invest through a foreign company or entity. They must invest as an individual through the equity crowdfunding campaign - provided that they meet the criteria for investing from overseas. The New Zealand Whisky Collection Limited - after the campaign has closed and the funds have been fully processed - will then have discretion over permitting a share transfer to happen between the foreign individual and the foreign company or entity.

    About our Team

    Greg Ramsay - Founder

    Greg is a visionary. And a doer. A man who sets an audacious goal and drives a team to deliver it. He is a champion of regional development, creating businesses which showcase their wares on the global stage. Growing up in Tasmania’s highlands, Greg’s family farm featured Australia’s oldest golf course. To learn how to turn golf history into golf tourism, Greg had gap-years either side of University, in Scotland; where he first started working in the whisky industry.

    Troy Trewin - CEO

    Troy reports to the Board and ensures we execute the strategic plan. He focuses on strategy, finance and management. He has been running the business since early 2011, with a two year break from late 2013 as CEO of Lark and Overeem Distilleries in Tasmania. In early 2016 Troy returned to the New Zealand Whisky Collection to help raise the capital to allow the business to expand and prepare for building a distillery. Before his time in whisky, Troy started, managed and grew several of his own technology companies in Melbourne and London. Before that he spent three years at PriceWaterhouseCoopers as a Consultant.

    Grant Finn - General Manager

    Southland born, Otago raised, ‘Finny’ was an early drinker of Wilson's Whisky in his Otago Uni days. Mixed with raspberry cordial and lemonade no-less! Thankfully both his palate and knowledge have improved since then. His background in resource management and town planning saw Grant live and work all around-the-world, and he met Greg Ramsay playing rugby (very badly) in Hobart. They struck up a firm friendship and when Greg needed a General Manager that could take the New Zealand Whisky Co. to the next level, it coincided with Grant moving his family to Oamaru for schooling.

    Tom Holder - Export, Brand and Production Manager

    Tom has been with the company since its inception in 2010 initially coming on to invigorate the branding and packaging of the existing stock. He has gone on to create production partnerships, and forge export channels across Australia, Asia, North America and Europe.

    James MacKenzie - Master Blender

    James is now a proud Oamaruvian, who was born and bred a Cantabrian. After the Christchurch earthquakes James moved his young family to Oamaru for a new life. Whisky distilling is in his blood and the MacKenzie family has a very long history with whisky blending and distilling. Some of it not entirely lawful! Like our Oamaruvian and with experience beyond his years, James has a passion and knowledge for whisky and remarks that he knew his ABVs before he knew his ABCs. James is thrilled to be part of the new exciting chapter in NZ whisky history.

    Matthew Wicks - Cellar Door Manager

    Our born-and-bred ‘Oamaruvian’, Matt has returned home after travelling the globe and managing pubs across England. Matt has a multi-faceted role within the business. An accomplished graphic designer/artist (his works can be found in collections and galleries across New Zealand, the UK, US and Australia). Matt is responsible for a lot of our branding, merchandise design and organising events and will continue to fine tune our brand and aesthetic wherever it appears. Outside of work you will find Matt meandering his local golf course.

         

    Our Governance

       

    Stuart McLauchlan - Chairperson

    Stuart is a Chartered Fellow of the IoD and a pat President. He is a chartered accountant, partner of GS McLauchlan & Co, and a fellow of the New Zealand Institute of Chartered Accountants. He is currently Chairman of Scott Technology Ltd, UDC Finance Ltd and Dunedin International Airport Ltd, as well as being a Director of Ngai Tahu Tourism Ltd, Argosy Property Ltd and a member of a number of private companies. Stuart is also governor of the New Zealand Sports Hall of Fame.

    Warren Egen - Director

    A semi-retired business person, Warren owns commercial properties and is involved with some property developments. Warren’s past employment was as a Regional Company Manager for Motorspecs/Repco (Southland area, 1980-1983). He and Lyn then bought a small hire company and built it into a multi-branch tool and equipment rental company with a division of catering, marquee and party hire. They owned and operated that company for over 21 years, until selling to Hirepool in 2005. He then served on the Board of management of the NZ Hire and Rental Association for four years, then as NZ President of that Association. Warren also served on an advisory Board for the National / ANZ Private Bank for five years. His focus is to have a clean, efficient and profitable business.

    Greg Ramsay - Founder & Director

    Since delivering Barnbougle Dunes and Nant Distillery, Greg’s original 2 passions of great golf and world-class whisky, have seen him develop, advise or be a Director of successful golf destinations and distilleries around the world; Lark and Launceston Distilleries in Tasmania, Journeyman Distillery and Oliphant Golf in USA, and right back to being a Founder and Director of Kingsbarns Distillery near St.Andrews. His commitment to strong Corporate Governance has been a mainstay of the success of the NZ Whisky Co..

     

     

     

    Risks and Challenges

    Note from PledgeMe

    We have completed a Veda check on the company and their directors, as well as a google check. There were no adverse findings.

     

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    Investment Memorandum Doc updated

    05/12/2018 at 12:17 PM

    Hi All, 

    Due to a lot of great questions and feedback, we have released an updated version of the IM that you can download from our PledgeMe page. 

    Please take some time to browse through it, particularly a new section on page six which outlines the value proposition in more detail. 

    As always, please let us know if you have any questions. 

     

    2 Weeks to go!

    05/12/2018 at 10:25 AM

    Just under two weeks to go in our Crowdfunding Campaign! We close on Monday the 17th of December at 4pm. If you have ever wanted to own your own whisky distiller make your pledge now!

    You need to pledge to see this update.

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      Offer Details

      Current Valuation 9,800,000
      Raise Minimum 500,000
      Raise Maximum 2,000,000
      Share Price 1.00
      Maximum Shares Offered 2,000,000
      Explanation of valuation:

      The valuation of The New Zealand Whisky Collection was undertaken by the current shareholders.

      It has been calculated using a ‘multiple of revenue’ method. The shareholders are comfortable that a multiple of 4.93 times the current financial year, FY19 estimated revenue is a fair market value.

      The valuation multiple is consistent with the multiples set out in the below comparative analysis of recent market transactions in the same or similar industries, or recent crowdfunding in New Zealand.

      Financial Summary

      Prev Year Current Year Est. FY 2022 Est. FY 2023
      Revenue NZ $1,147,210 NZ $1,711,265 NZ $2,149,561 NZ $2,348,039
      Operating Expenses NZ $738,762 NZ $1,151,420 NZ $1,142,075 NZ $1,352,009
      EBITDA NZ $131,341 NZ $178,343 NZ $471,759 NZ $408,037
      Net Profit NZ $19,258 NZ $169,635 NZ $330,307 NZ $284,427

      Company Details

      Company Name: The New Zealand Whisky Collection

      Company Number: 0

      Company details are currently being synced with the Companies Office, please wait.

      Company Documents

      Documents no longer available to download, as this campaign has closed

      Director Details

      Name Role Profile URL Invested?
      Greg Ramsay Founder & Director https://au.linkedin.com/in/greg-ramsay-989380168
      Stuart McLauchlan Chairperson https://app.companiesoffice.govt.nz/companies/app/service/services/documents/00468621B994CA10AF45DB050062A475
      Warren Egen Director https://app.companiesoffice.govt.nz/companies/app/ui/pages/individual/search?q=egen%2C+warren&roleType=ALL&indEntityTypes=ALL&indDirStatus=ALL&indEntityStatusGroups=ALL&indShrStatus=ALL&advancedPanel=true&mode=advanced&expandedResults=#results

      Ask a Question (You must login to ask a question)


      Hello. Question in relation to A Shares - if NZ Whisky Co is sold/acquired etc what happens to these shares.

      Posted on 26-10-2018 by Vivienne

      Hi Vivienne, each share, regardless of the package perks, have the same value. If we sold the company you would be paid for your shares. The value would be determined by the sale price of the company.

      Answered on 26-10-2018 by The New Zealand Whisky Collection


      Hi there.

      Firstly, well done on where you have taken the company to date. It is fantastic to see NZ's distillery capacity grow.

      Just a couple of questions.

      1. You mention in the IM that the new make whisky will be matured for 3-5 years. Is there sufficient demand for younger whisky given the current product has a different age profile? Is this decision an interim decision for cash flow reasons or a long term strategic decision? Is there any intention to retain a certain amount of spirit in the casks for a longer period to produce a premium product? If so how much?

      2. Friendly finance is mentioned in the IM. What is the total amount of debt and what are the terms under which that debt can/will be converted to equity?

      3. What actual distilling experience does the team have? I appreciate the comments on pg 16, but can you provide some further detail on practical experience of the team?

      4. Why did the company choose to go down the crowd funding path with a minimum raise of $500k. With fees and associated costs of $85k (assuming $500k raised) 17% of what you raise will be used to pay capital raising costs. Is there limited appetite for a capital raising amongst existing investors?

      Many thanks for your time in responding.

      Kind regards,

      Matt

      Posted on 29-10-2018 by Matt

      Hi Matt,

      Some great questions here, thank you. Our answers are:

      ONE
      There is strong demand for younger whiskies as brands all over the world in the last 10-15 years have shown time in cask does not always mean great quality. This has been born out of necessity on two fronts.

      Firstly, the big Scotch distilleries in the UK and Japanese distilleries have all been moving away from marketing their whisky on age. They simply cannot keep up with demand so have had to blend younger-and-younger whiskies to be able to supply the market. In the last year the larger Japanese distilleries have said they will need at least 10 years to catch up with demand. There will still be older whiskies in market and stock held back for that segment but their prices will continue to rise due to scarcity and young whiskies will become even more common.

      Secondly, climates where the Angel’s Share is extreme - like India and Taiwan - MUST release younger whiskies, otherwise there would be nothing in the cask when they went to bottle it. In those hotter countries they lose 10-15% of the spirit from the cask, each year. There are several award-winning, fabulous whiskies from India.

      And if you need any further evidence, look at Kavalan from Taiwan. In 2015 they won best single malt whisky in the world at the leading international whisky awards - the World Whisky Awards. Their whiskies are 3-4 years of age, and are sensational drops.

      Worth noting, the year before that, Sullivan’s Cove in Tasmania won the award and was the first whisky outside Scotland or Japan that won the coveted prize. So a lot of notions are being challenged, that is - “it has to be made in Scotland, and it has to be old.”

      We feel this movement is an exciting one and are honoured to have the challenge before us to make one of those great new world whiskies, and young.

      For the medium and long term we will keep some whiskies in larger casks for older whiskies, but more for our limited release ranges and to allow our distillers to experiment. The older whiskies won’t be part of our core range.

      TWO
      We have a $400k convertible loan which can be converted to equity in the next 2 years if the lender chooses to. This was used to finance our stills (as they can take a long time to be built), and buying new-make from a contract distiller so we have stock maturing while we set up our distillery. This is the only debt we have an agreement on as a convertible loan.

      There are some other smaller debt and once we know how much money we have raised we will assess what we will pay down. The focus for the last 2 years has been to conserve as much cash as possible so we could lay down new-make, so our new products can hit market sooner than waiting for us to build our distillery. We have leveraged some debt to make this happen.

      THREE
      Our Master Blender, James, who will become our Head Distiller once the stills are operational has almost 20 years experience home distilling. Our Founder and CEO have both had a handful of days on the floor of distilleries they have built and operated, but more of their time and focus has been finding distilling talent, ensuring they have been trained well and managed them to produce consistent, good quality whiskies.

      We already invest in some of the best distilling knowledge and experience that can be tapped in the Southern Hemisphere, Tasmania - where the climate is similar to New Zealand South Island. James has 2 distilling mentors at the moment he regularly calls on, and as mentioned in the IM, we will send sending James on the leading distilling course in our industry at the IBD.

      Quality is at the core of our business, and our whiskies. We have a tasting panel we use before any whisky is released, or new-make put into cask. We have a passionate drive to ensure what we put on the market is terrific.

      FOUR
      There are a few reasons why we are crowdfunding. We want more Kiwis to be involved in our exciting next chapter and not only help us make more exciting whiskies, but share in any financial success we have too.

      We also want more people around the nation talking about our whiskies, and helping us get them into more venues. If you are in a nice bar or restaurant and they don’t stock our whisky, we want to know about it. We also see our crowd being loyal customers in their own right, buying our products each year. This is a sales channel we don’t currently have, so will offset the higher cost of this finance as you point out.

      Existing investors have put in additional capital recently, as well as new investors buying in. We still have a handful of potential investors we are talking with but these are more strategic - where we get more value than just the cash (e.g. distribution in new and large markets, like China - which is currently not in any of our planning as it requires a lot more volume and therefore capital).

      Please let us know if you have any further questions Matt.

      Regards,

      Troy

      Answered on 31-10-2018 by The New Zealand Whisky Collection


      Hi, does your revenue figure include excise tax? If so what is the figure without excise tax. With excise being so high and a tax, I feel it wouldn’t be right to apply a revenue multiple to a tax to reach a valuation. Thus it would be good to get a true picture before making an investment decision. Thanks and good luck

      Posted on 29-10-2018 by Brian Green

      Hi Brian, this is a great question. Excise is included in some of our revenue, but not most of it. You pay excise in the country the alcohol is sold to the public in. So when we export we sell to our distributors “ex-works”, which means no freight charge, GST or excise.

      As 58% of our sales are currently export, and will grow to 75% from FY23 when we are selling the full 50,000 litres of year we are about to start laying down each year, the bulk of our sales do not include excise. Australia is the only export market where we don’t use a distributor and deliver orders direct into the Woolworths / Dan Murphy’s Distribution Centre, so we do pay the excise there. Also, we don’t charge or pay excise on orders shipped to Duty Free in New Zealand, or online orders shipped outside New Zealand.

      In our current FY19, with projected revenue of just under $2m, we estimate there will be about $130,000 of excise in that, or 6.5% of sales.

      Please keep in mind other alcohol businesses listed in the table on ‘Our Valuation’ page of the IM include excise in their sales too.

      Answered on 31-10-2018 by The New Zealand Whisky Collection


      Hi. I have a few questions:
      1. I'm interested in your comments around your current production partner - is this coming from off-shore? You mention limited competition in NZ, so my assumption is that the current partner is off-shore if they have the capacity to supply you plus presumably do their own thing too? Or is it a NZ-based producer, and in which case once you stop buying off them they'll then be able to ramp up production of their own stock, thus providing more competition in the NZ-produced market?
      2. Valuing and selling shares further - how will this be facilitated? You mention the selling won't be easily done and looked after in house - is there any guarantee that if we purchase, we'll be able to sell them at a later date if needed?
      3. Valuation - are you able to provide some info around external advice and reports that you have obtained for the valuation? Ordinarily it would seem logical that an external valuer would do this, rather than have it completed in house?
      4. Other shareholders/interested parties - I note that most of the names of the board, staff and advisors aren't on the current investors list (outside of Greg, Troy and Tom). Are any of these that are closest to the operation planning on investing their own money via the Pledgeme raise or otherwise? Obviously this will instill a lot more confidence in us as potential investors!
      Thanks for your time - it's an interesting prospect, but just want to get a clearer picture of things.

      Posted on 02-11-2018 by Thomas Buchanan

      Hi Thomas,

      Thank you for your good questions. Here are some answers from us:

      ONE
      Our production partner is based in the South Island of New Zealand. We can’t import new-make spirit and call it New Zealand whisky when it matures, as it was not distilled in New Zealand. We are not worried about them as a competitor as the more distilleries making top quality whisky, the better for all - the "New Zealand whisky" brand, in general, gets more well known globally. New Zealand is still under-represented in distilleries, we believe. In comparison to Australia, USA and other major distilling nations - on a per capita basis New Zealand has low competition at the moment. There are only about 18 distilleries operating in NZ, whereas there are more than 120 in Australia. And around 2,000 in the USA.

      TWO
      There is no guarantee you can sell your shares, we are unlisted company so not a lot of liquidity. We will keep a register of shareholders wishing to sell their shares, and put them in touch with anyone interested in buying shares. You will need to agree on an sale price between yourselves.

      THREE
      We studied recent crowdfunding valuations in New Zealand and other developed crowdfunding countries, like the UK and based ours on the same methods and similar multipliers. We feel this is a better method of valuing the investment opportunity we are presenting. We have seen tremendous value generated in fast-growing, crowdfunded companies and aim to be the same. In our table of other companies and multipliers some were purchased by large multinational companies for multipliers bigger than what we have valued our business on.

      FOUR
      All three Directors have a vested financial interest in the company in either equity (Founder), a loan to the company or a convertible loan (they can choose to change their current debt to equity within 2 years). The two non-Founder Directors may choose to convert their debt to equity in the future (and if offered to the Director who does not have a convertible loan in place), but that is a decision for them to make in the future.

      Please do let us know if you have any further questions.

      Regards,

      Troy

      Answered on 07-11-2018 by The New Zealand Whisky Collection


      Hi, The world loves a great product with a story and I wish the team great success. Before joining the team I have two questions. I lack the financial astuteness and experience of your advisors etc so please forgive me if these questions sound naive;
      1) 'Skin on the table' Further to a previously asked question, just wondering, other than for personal reasons, as to why the other advisors, board etc do not have financial vested interest in the business?
      2) Protection of Assets - Earthquakes - Those beautiful barrels take a bit of long loving storage. Are they insured in the event of damage from natural disasters and to what level as it is not just the replacement cost the revenue loss is over many years should the worst happen in our shakey Isles ....and was any building upgrading to meet 'Building Code' or Insurer requirements addressed as part of the due diligence when scoping the expansion project with the leasee.
      Cheers, Tracey

      Posted on 08-11-2018 by Tracey Marvin

      Hi Tracey,

      Thank you for your questions. Here are some answers for you:

      ONE
      As mentioned above, all three of our Board have a financial vested interested in one-form-or-another. Our Founder obviously has the bulk of the equity and the other two Directors have loans to the business so we could get to this point. Both these Directors have loaned substantial funds to the business to assist us in buying out the original 50% shareholders who didn’t want to build a distillery and keep the brand let alone expand it globally (they just wanted to sell down the old whisky stock and cash out); fund contract production over the last -2.5 years, so we have new-make in cask maturing and we can release our new generation of whiskies at least 2 years earlier than if we waited for our own distillery to be operating; and allowed us to pay for our new shiny stills which landed in Dunedin in late October (as it can take 9-24 months for your stills to be built, depending on where you buy them from).

      TWO
      This is an excellent questions, and something we didn’t really mention in the IM. We have always had the best insurance you can get for our whisky stock, it is called Throughput Insurance and is provided by Lloyds in London. It is insurance specific to the type of business we have, asset heavy. As you know, we have to wait 2-5 years for our whisky to mature before we can sell it. That means a lot of OPEX (Operational Expenditure) is sitting in our bond store and on our balance sheet for years. While the accountants will only allow us to show the value of our casks on our balance sheet at the lower of cost or net realisable value, the reality is when we bottle that cask and sell it we can yield say an extra $20k gross profit per cask, which is above that original cost. The insurance we have covers the gross profit in the casks. So, God forbid, if our bond store burnt to the ground we would be paid what we would have yielded selling that whisky in the marketplace - not just what it cost us. Even the casks we filled on the day of the fire, we’d get the full gross profit the cask would have yielded when it matured in a few years.

      Our insurance covers earthquakes too and we have an excellent broker and relationship with them, we always run past them any changes in our cask storage etc. The new building we have just signed a lease on, they went through it with us months ago and we made sure any security or protection measures they requested we have in place are completed before our valuable whisky is moved.

      Please do let us know if you have any further questions.

      Regards,

      Troy

      Answered on 08-11-2018 by The New Zealand Whisky Collection


      Hi, I see in your valuation you use Reefton Distillery - as I understand it, Reefton Distillery only opened a couple months back so we cannot know what their actual revenue will be in first year of trading....so is it right to have them listed here? Could be a little misleading seeing as though its based on a revenue forecast for a new start up that has only traded for a couple of months.....I understand you may want to use them as an example of successful fundraising but not sure putting them in with these other companies is right.

      Posted on 14-11-2018 by Danny

      Hi Danny,

      Thanks for your question. We included them as that was the valuation they put in their IM (2 times projected sales), and were able to raise about $1.4m on that. We have 8 years sales track record, 18-30 year old stock in the bond store, established brands and international sales channels plus a much higher future sales growth plan - which is why we have valued our business higher (4.93 times projected sales in the current financial year).

      All the other companies in the table use the same valuation method - a multiple on the financial year in progress at the time of raise or sale.

      Regards,

      Troy

      Answered on 14-11-2018 by The New Zealand Whisky Collection


      Heya guys! Liking the plan :) Just noticed mention of a distillery that hit the news a few years back. What sorts of connections to Nant Distilery does the team have?

      Posted on 14-11-2018 by Jan Pluta

      Hi Jan,

      Thanks for your question. Our Founder, Greg, developed the business plan to restore the old buildings and watermill, and it was his initial idea to set it up as a distillery on the property in Tasmania's central highlands. He sold this plan to the then-owner, who contracted Greg to project manage the distillery build and set up.

      Not long after the distillery was up-and-going in 2008, Greg had little to do with the business. A couple of years ago the business went into administration and soon after the assets were acquired by ASX-listed AWH, which also owns Lark Distillery, Overeem Distillery and some of Old Kempton Distillery (all in Tasmania).

      It is worth noting, the funding model Nant used until AWH acquired them was an "investment barrels" scheme - what some would deem is a financial product. You earned 9.55% interest per annum on the funds you put in, and Nant would pay you your original investment when the whisky matured. This is NOT a funding option we will be conducting.

      Also, when our CEO was CEO of Lark and Overeem from late 2013 for around 2 years, AWH was Lark/Overeem's largest shareholder at the time (they now own both distilleries in full).

      Both our Founder and CEO know the new team at Nant and AWH and are pleased to see what they are doing to not only keep this great whisky on the market, but expand production and get more of it selling around the world.

      Regards,

      Troy

      Answered on 15-11-2018 by The New Zealand Whisky Collection


      Hi guys. First, serious congrats on making the first target, but can you clarify what impact the extension has on the settlement date for us existing investors?

      Cheers
      Gary

      Posted on 23-11-2018 by Gary Cole

      Hi Gary,

      Thank you! And thanks for your question. As we have extended the deadline to 17 December no funds will be processed before then, unless we reach the $2m maximum raise.

      PledgeMe will then be in touch soon after either 17 December of the $2m maximum being raised, to start the process of receiving funds. Please let us know if you have any further questions.

      Regards,

      Troy

      Answered on 23-11-2018 by The New Zealand Whisky Collection


      does the shareholders discounts apply to the trade price if the shareholder happen to be one of your trade accounts and guaranteed of best discounted price as well as stock priority?

      Posted on 06-12-2018 by Xiaobo Raymond Hu

      Hi Raymond,

      Thanks for your question. The shareholder discount can only be redeemed in the Cellar Door our online at our website. The discount does not apply on top of the lowered trade price, only to our retail prices.

      Please let us know if you have any further questions.

      Regards,

      Troy

      Answered on 07-12-2018 by The New Zealand Whisky Collection


      Is it possible to buy more shares?

      Posted on 26-04-2019 by Logan Panting

      Hi Logan, The campaign has closed for the time being, however, we may open it again in 1-2 months. If you would like to subscribe to our newsletter here: http://eepurl.com/j2gLT you can keep up-to-date and be informed when we reopen. Thanks for your interest!

      Answered on 03-05-2019 by The New Zealand Whisky Collection

      Frances Austin
      2018-11-08 08:45:59 +1300
      Wayne Teutenberg
      2018-11-07 17:47:36 +1300
      Clayton Dias
      2018-11-07 17:12:24 +1300
      Nathan Moffat
      2018-11-07 16:21:38 +1300
      Kim Crossman
      2018-11-07 14:04:29 +1300

      "Good Luck "

      Anitesh Govind
      2018-11-07 09:04:55 +1300
      Neil Whitford
      2018-11-06 07:46:33 +1300
      SM Ang
      2018-11-05 15:30:40 +1300
      Dean Douglas Staples
      2018-11-05 14:35:57 +1300
      Stewart Clark
      2018-11-05 12:59:07 +1300
      Dennis Trembath
      2018-11-04 20:55:18 +1300

      "Looking forward to some great Whiskey being Distilled"

      James Groom
      2018-11-03 18:10:37 +1300
      James Lawrence
      2018-11-03 17:40:20 +1300
      C & D Cooper
      2018-11-03 10:45:57 +1300
      DataGardner Ltd
      2018-11-03 01:28:39 +1300
      MKP Nuttall
      2018-11-02 17:22:22 +1300
      Gary Cole
      2018-11-02 08:11:50 +1300
      Martin Raue
      2018-11-02 00:14:46 +1300
      Alistair Kirkland
      2018-11-01 21:34:49 +1300
      Daryl Pearson
      2018-11-01 19:48:59 +1300
      Liam Tranter
      2018-11-01 19:27:17 +1300
      Cameron Craik
      2018-11-01 18:28:21 +1300
      Kendyll Lamont
      2018-11-01 17:10:06 +1300
      John O'Connell
      2018-11-01 12:43:14 +1300
      Lyra Stewart
      2018-11-01 03:03:03 +1300
      Andy Heyward
      2018-10-31 19:31:01 +1300
      Clare Lumsden
      2018-10-31 18:02:13 +1300
      Jacqui Gordon
      2018-10-31 17:28:23 +1300

      "Wishing you great success"

      Jeremy Burns
      2018-10-31 09:23:42 +1300
      Lydia Carol
      2018-10-31 07:25:59 +1300
      This campaign was successful and got its funding on 17/12/2018 at 4:00 PM.

      This campaign has closed, but this company may choose to do more equity raises on PledgeMe in the future. If you're interested in investing in The New Zealand Whisky Collection Limited, you can sign up to be notified when a new equity campaign from this company is published.

      Notify Me

      Investor Perks

      Package A

      NZ $500.00+

      10% discount on Cellar Door and online purchases | One duo tasting set | Invitation to AGM

      Package B

      NZ $3,000.00+

      15% discount on Cellar Door and online purchases | Three duo tasting sets | Invitation to AGM

      Package C

      NZ $40,000.00+

      20% discount on Cellar Door and online purchases | Five duo tasting sets | Invitation to AGM | One event at the Distillery per year, with the venue hire fee waived

      Warning statement about equity crowdfunding

      Equity crowdfunding is risky.

      Issuers using this facility include new or rapidly growing ventures. Investment in these types of business is very speculative and carries high risks.

      You may lose your entire investment, and must be in a position to bear this risk without undue hardship.

      New Zealand law normally requires people who offer financial products to give information to investors before they invest. This requires those offering financial products to have disclosed information that is important for investors to make an informed decision.

      The usual rules do not apply to offers by issuers using this facility. As a result, you may not be given all the information usually required. You will also have fewer other legal protections for this investment.

      Ask questions, read all information given carefully, and seek independent financial advice before committing yourself.