Press release 11 April 2024: Thornæs Distillery is successful in selling whiskey as an investment object

PRESS RELEASE

Thornæs Distillery is successful in selling whiskey as an investment

Published April 11, 2024

Whiskey must be stored for many years before it can be bottled and sold, and it obviously requires deep pockets or, alternatively, great creativity to get the financing together – especially in the first period when the stock of whiskey must be built up. Thornæs Distillery produces organic Danish Single Malt Whisky, and here they have created a special program which solves the financing with the principle of what is available.

Thornæs Distillery sells and buys back whiskey casks

The idea is so simple that it can be described in a single sentence. Thornæs Distillery sells newly filled whiskey casks to investors, and when the whiskey is matured, the distillery buys the casks back again for a fixed return to the investor. The concept is based on the fact that whiskey increases in value as it matures in the cask. The return to the investor is therefore to be regarded as a kind of profit sharing of the increase in value and the expected sales.

"It's an incredibly simple program", explains founder and director Torben Thornæs Andersen. "The whiskey cask is an asset that is physically in our warehouse during the entire process. When an investor buys the asset, it is their property until the day we want to buy the barrel back. At that time, the value of the dish has most often multiplied, and therefore we can offer the investor a reasonable fixed rate of return on the asset. This makes the investment safer and not least 100% transparent.”

The goal is financing through earnings

With the investment programme, Thornæs Distillery is able to produce up to 200 casks of whiskey per year. The distillery is not dependent on having to sell all the casks as assets through the program, but it is still an important piece of the distillery's funding strategy.

“To achieve a sustainable whiskey business in the long run, you will need to build up a reasonably large stock of maturing whisky. And that requires capital. Thornæs Distillery is run by a few passionate people, and when it comes to financing our whiskey stock, it is primarily ourselves who must create the necessary income. Therefore, the investment barrels are an important piece of our business, because it makes our build-up of inventory revenue-driven and postpones the need to raise capital, for example through issues or borrowing", says Torben Thornæs Andersen.

Investments for over half a million kroner

Thornæs Destilleri introduced the program back in October 2023 and has already sold investment casks for over half a million kroner. These are primarily private investors who are partly attracted by the program's transparency, but who can also see the potential in Danish whiskey and therefore want to support the distillery. One of the investors is Bjørn Johanssen, who, among other things, is active in the investment network Keystones.

"When you want to support startups through the difficult initial capital phase, I see Thornæs' barrel investment program as a unique opportunity to invest your free funds in a less risky way. When you own your investment and are guaranteed a reasonable interest rate - and even have the option of profit sharing - the whiskey casks are an extremely attractive investment, not least compared to equity investments without security. This is not the last time I choose to invest in assets," says Bjørn Johanssen.

For further questions please contact

Torben Thornæs Andersen
Founder, Director & Head Distiller
Thornæs Distillery A/S
Mob. +45 5091 5890
Email torben@thornaes.com

or

Jesper E. Moller
Chairman of the board
Thornæs Distillery A/S
Mob. +45 2440 1414
jesper@emoeller.dk