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May 29, 2015 5:46 EST

WhiskyInvestDirect leverages BullionVault’s proven model of crowdfunding wholesale bullion bars (25,000 UK clients) and applies it to maturing whisky

iCrowdNewswire - May 29, 2015

WHISKYINVESTDIRECT

A platform that gives investors the chance to profit from maturing whisky.

WhiskyInvestDirect leverages BullionVault’s proven model of crowdfunding wholesale bullion bars (25,000 UK clients) and applies it to maturing whisky. The model eliminates the key working capital constraint experienced by producers, whilst users can potentially profit as the whisky increases in value. The team includes the founder and CEO of BullionVault and an ex-Commercial Director at Diageo who has been building whisky brands for the last 24 years.

 
 
  • THE IDEA

    PRODUCTS & SERVICES

    Just as BullionVault has given its 25,000 customers access to the professional gold bullion market, WhiskyInvestDirect will offer private investors a new opportunity to invest into maturing whisky. This new asset class has seen average annual real returns of over 5% since 1980. As more people invest into whisky, the brands can reduce the amount of working capital required to build stock without compromising future sales. WhiskyInvestDirect itself will encourage producers to produce more whisky, which it will buy. It will acquire a substantial inventory of young whisky to underpin the development of its own brands, marketed and sold by a wholly owned subsidiary, James Eadie Ltd.

    PROBLEM SOLVED

    Consumer demand for Scotch whisky is growing but requires, on average, 10 years of ageing in oak casks. This has created a big working capital problem in the industry, which always risks having its mid to long term upside capped by current financial constraints. Successful brands are already heavily supply constrained. We will make maturing whisky investable by private individuals by introducing crowdfunding of barrel whisky. This will potentially unlock the upside for successful brand builders, including ourselves, as we will be resurrecting a 160 year old Scotch brand, James Eadie.

    REVENUE MODEL

    Our primary revenue is derived from commissions and custody fees on sales of barrel whisky to crowd investors on our trading platform.

    Our secondary revenue is derived from sales of James Eadie Scotch Whisky brands.

    Initial target customers will be 25,000 British BullionVault customers who already know our technology and management team. These will form our initial whisky stock-holding crowd.

    EXIT STRATEGY

    WhiskyInvestDirect (the crowd funding platform) is targeted for trade sale or IPO in 3-10 years.

    James Eadie (the brand development business) is targeted for trade sale in not less than 10 years.

    Whisky brands are highly marketable assets.

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