Australia's Finest Aged Whisky
Open for investment Hellyers Road (Whisky Tasmania Ltd)
Hellyers Road (Whisky Tasmania Ltd) | Equity crowdfunding
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$3,548,867
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Become an owner of Australia's premier whisky distillery
Established in 1997, Hellyers Road is Australia’s oldest operating single malt whisky distillery. Boasting the largest bond store of aged Australian whisky in existence, Hellyers Road is unsurpassed in quality, having recently been the most awarded Australian Distillery at the 2024 World Whiskies Awards.
Hellyers Road is backed by an extraordinary asset base, including more than $49 million dollars' worth of the finest aged whisky and one of the largest and most modern whisky distilleries in Australia.
With long-term distribution relationships throughout Australia, and more than a decade of exporting, Hellyers Road has a dedicated following, both domestically and worldwide.
Hellyers Road’s company history spans 8 decades and 4 generations, and it is now finally offering an ownership opportunity to all of its loyal local community and devoted fans.
Why we like Hellyers Road Distillery
- Hard Asset Backing - More than 5,700 full sized barrels of whisky spanning back over 22 years with an estimated wholesale value of at least $49 million. A modern, high-capacity distillery, high speed bottling line, cellar door and restaurant with a total replacement value in excess of $20 million.
- Australia’s Finest Aged Whisky – And nearly all of it! Hellyers Road estimates it holds more than 90% of all Australian whisky aged over 18 years in existence.
- Internationally Recognised - Hellyers Road was the most awarded Australian distillery at the 2024 World Whiskies Awards. Hellyers Road has been exporting across Europe for more than 10 years, with established export channels also in North America, Japan, Mainland China, Macau, Taiwan, and Singapore.
- Rapid Near Term Inventory Value Growth – The profile of Hellyers Road’s existing whisky inventory means it is predicted to grow in wholesale value from $49 million to over $100 million by 2027, even with drawdown of whisky for sales.
- Revenue Growth - FY24 Year to Date revenue growth of 91% over FY23 Prior Comparable Period with $6.1 million revenue in the 9 months to 30 March 2024.
- Increased Net Profit - Net profit (before tax) Increased by $1.1m to $750k from FY23 to FY24 Year to Date.
- Decade long Headstart on Competitors - 27 years of commitment and investment by existing shareholders means other Australian whisky distilleries are more than a decade from being able to offer significant volumes of fine aged whisky.
Inventory value – huge now, and growing rapidly
With more than 5,700 full-sized barrels of meticulously aged whisky, our collection spans over 22 years, representing an estimated wholesale value of at least $49 million. This extensive inventory is not just a testament to our historical investment but a strategic asset that supports our future growth ambitions.
From the time it reaches maturity, the value of a barrel of fine aged whisky grows exponentially with age. Each year for the last decade we have substantially increased the amount of whisky distilled and barrelled.
These two facts mean that over the next 10 years the volume of premium whisky reaching maturity will increase substantially each year, and the volume of mature whisky experiencing exponential value growth will also grow each year. This combined effect will fundamentally change the scale of the Hellyers Road business from its already impressive position.
Numbers
Key Values:
- $49 million – Wholesale Value of Whisky Inventory in Cask
- $20 million+ - Replacement Value of Distillery, Bottling Hall and Restaurant
- $6.1 million – FY24 YTD Turnover
- $755k – FY24 YTD Net Profit Before Tax
Key Numbers:
- 5,700 - Full Size Barrels in the Bond Store
- 500,000 - Annual production capacity in bottles
- 35,000 - Annual visitors to the distillery
- 13 – Medals at 2024 World Whiskies Awards – more than any other Australian distillery
- 12 – Number of Best Australian Whisky Category wins at World Whiskies Awards since 2019
Key Dates:
- 1957 – Founding of Whisky Tasmania Limited (then known as Betta Milk Cooperative)
- 1997 – Commencement of work on Hellyers Road Distillery
A decade or more of competitive advantage
Establishing a mature whisky business that can offer high quality aged whisky at competitive prices takes decades.This is a significant barrier to entry, giving Hellyers Road a decisive ten year head start over newcomers.
Unlike many Australian whisky distilleries constrained to selling their younger whisky to fund their operations, Hellyers Road is in a privileged position. The enduring support from our shareholders over the last 27 years has enabled us to cultivate an inventory rich in matured whisky. This positions us uniquely to offer whiskies of exceptional quality at prices that remain competitive on the global stage, while still achieving attractive profit margins. This is a long term competitive advantage. No amount of investment by other Australian distilleries can close the age gap, only time – and even in 15 years, when some newcomers might finally be releasing a 20 year old - we will have Australia’s first 37 year old whisky.
Investor rewards
Why are we being so generous in offering so much extraordinary whisky and whisky cream to new shareholders? Because the whole point of this crowd-sourced funding is to have you join us as our best and most fervent ambassadors – and you can’t do that without whisky in hand, can you?
The 21 Club
The 21 Club is an exclusive club for shareholders who have shown unparalleled support for our journey.
For those investing more than $7,500, you will be invited to join the 21 Club with exclusive benefits that include:
- the ability to purchase up to six exclusive release 21 year old+ whiskies per year at not more than $500 per bottle - unmatchable value; and
- private behind the scenes distillery tours with barrel sampling of 21 year old whiskies.
This club is more than a reward, it's a partnership, recognising those who see the long-term value and impact of our work.
The Board
Lesley French
Chair
Eloise House
Deputy Chair
Derek Charge
Managing Director/CEO
Anthony Mortimer
Non-Executive Director
Cameron Taylor
Non-Executive Director
Devon Cruickshank
Non-Executive Director
Management
Amanda Beck
National Sales Manager
Lara Wehby
CFO/Head of Marketing
Fiona Coutts
Head Distiller
Mark Gluyas
Executive Chef
Terms of the Offer
Issued Capital
For more detailed information, please read the Capital Structure section of the offer document.
Use of Funds
For more information, please read the Use of Funds section of the offer document.
Company Risks
Whisky Tasmania Limited is Australia’s oldest operating single malt whisky distillery boasting the largest bond store of aged Australian whisky in existence. As with any growth business, an investment in the Company should be seen as high-risk and speculative. A description of the main risks that may impact their business are listed in the offer document. Investors should read this section carefully before deciding to apply for shares under the Offer. There are also other, more general, risks associated with the Company (for example, limited sales, marketing and distribution resources, business development, sufficiency of funding, key personnel or the inability to sell their shares). See the Risk section in the Offer Document for further information.
The Offer is subject to a Maximum Subscription amount of $4,799,996.60. If the Maximum Subscription is reached, the Offer will close early. Applications will be treated on a time priority basis and may be subject to scale back, so please fund your application as soon as possible.
RISK WARNING: Crowd-sourced funding is risky. Issuers using this facility include new or rapidly growing ventures. Investment in these types of ventures is speculative and carries high risks. You may lose your entire investment, and you should be in a position to bear this risk without undue hardship. Even if the company is successful, the value of your investment and any return on the investment could be reduced if the company issues more shares. Your investment is unlikely to be liquid. This means you are unlikely to be able to sell your shares quickly or at all if you need the money or decide that this investment is not right for you.
Even though you have remedies for misleading statements in the replacement offer document or misconduct by the company, you may have difficulty recovering your money. There are rules for handling your money. However, if your money is handled inappropriately or the person operating this platform becomes insolvent, you may have difficulty recovering your money. Ask questions, read all information given carefully, and seek independent financial advice before committing yourself to any investment.
5 DAY COOLING OFF PERIOD: There is a 5 business day cooling off period for retail investors. During this period, you may withdraw your application and receive a full refund into your nominated refund account. Please note: After the 5 day cooling off period has expired, you will be unable to withdraw your application. More information here.
ONMARKET FEES: Upon successful completion of the Offer, a maximum fee of 6.0% of the funds raised will be paid to OnMarket by the Company.
ONMARKET INTERESTS: OnMarket and its associates may be participating in this offer.
ONMARKET INTERESTS AND AMOUNTS SUBJECT TO COOLING OFF: The funding bar displayed under each crowd funding offer may include applications where payments are yet to be made and amounts that are subject to the cooling off period.
Section 734(6) disclosure: The issuer of the securities is Whisky Tasmania Limited ACN 009 501 268. The securities to be issued are fully-paid ordinary shares. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above)
Discover investment opportunities here.
Question time
We'd love to answer your questions, we'll have one of the OnMarket team or the company representative of the offer get back to you asap. So ask away ...
I registered for early access to purchase shares of which are now live but there is no bid button displayed.
Colin C (OnMarket member) on 07/05/2024Regards, Colin Cox
0404 650 281
The link that says Invest Now, in Blue below the video, will take you to the bid page.
Mark H (Hellyers Road (Whisky Tasmania Ltd) representative) replied to Colin C on 07/05/2024Last year (and previously) total sales were under $4m with loss of $1.2m. This year up to $6.1 in first 9 months with EBITDA profit.
Brendan P (OnMarket member) on 07/05/2024Is this year's jump primarily the result of one particularly big sale of stock? Could you please confirm the amount of that sale, when it occurred, was it a private buyer or a wholesaler, and whether it will be on repeat next FY and beyond? Or is it more likely to drop back to $4m to $5m in revenue on present trends?
Hi Brendan, thanks for the question. Part of the uplift in revenue has been in 3 large sales - these are export and domestic. These are, and will continue to be a part of our future as we continue to expand our export footprint. Most importantly for shareholders in terms of assessing value is that all of these larger sales have been at prices at or above the price calculated according to the formula on page 77 of the offer document (shown graphically on page 79). This means that even though these were substantial sales they still reinforced the wholesale price assumptions on which we based the estimated value of inventory in cask. We will continue looking to large sales with our domestic and increasingly with our existing and new export partner. A substantial part of the funding in this offer will be applied toward continuing to build the brand profile and sales volumes of Hellyers Road whisky and Tasmanian whisky cream.
Derek C (Hellyers Road (Whisky Tasmania Ltd) representative) replied to Brendan P on 07/05/2024Cheers, thanks for the quick response Derek.
Brendan P (OnMarket member) replied to Derek C on 07/05/2024No worries Brendan!
Derek C (Hellyers Road (Whisky Tasmania Ltd) representative) replied to Brendan P on 07/05/2024I am trying to create my investment profile and it will not accept my 6 digit BSB number. Therefore I cannot complete the entry?
Ian S (OnMarket member) on 07/05/2024Hi Ian, you can complete your bid, and come back later to complete those details of your profile. Cheers.
Mark H (Hellyers Road (Whisky Tasmania Ltd) representative) replied to Ian S on 07/05/2024The financials provided that I can see in the offer document are insufficiently detailed to provide for accurate assessment of trends in key valuations such as EBITDA, will we be able to see last two years of published financials?
Peter A (OnMarket member) on 08/05/2024Hi Peter,
Derek C (Hellyers Road (Whisky Tasmania Ltd) representative) on 08/05/2024Thanks for the request. We've uploaded the audited FY2023 Annual Report under the blue "Offer Documents" button at the top of the page. If it's not showing you may need to just refresh the page. This has both FY2023 figures and FY2022. Cheers
Thanks so much, very useful. This opens a few questions primarily around the fact this raising is at 6.20 per share at max subscription we will be at circa 53m value but all prior shares including the prior sophisticated raise are at 66.00 level values. It seems unclear in this raising how this is being handled is the intention to split the current 66.00 circa value shares out to say a 10:1 or 11:1 type ratio? This would then flow to incentives and rights which are currently set in the 60s range. Lastly, details on government grants are circa 400k or higher it is unclear what if any liabilities flow from these grants or if they are a pure grant no requirement for repayments.
Peter A (OnMarket member) replied to Derek C on 08/05/2024Thanks Peter, All the existing shares and those to be issued under this raise are ordinary shares with exactly the same rights. You are right the issue price of the shares issued in FY2023 was $66. Since that raise, in January 2024 there was a 1:20 share split to enable shares to be sold among shareholders in more divisible parcels. This means the equivalent share issue price for the FY2023 raise was $3.30. Since those investors purchased, the new product range and new whisky packaging has been released, turnover for the 9 months to 31 March has increased 91% (compared to the equivalent period and the company is expected to return to profitability after two years of losses as shown in the accounts. The issue price under this equity crowd fund has been set recognising this progress and also with the plan to deliver marked growth in enterprise value and share price for shareholders over the next few years. The Government grant of around $400,000 on the balance sheet relates to a government grant many years ago relating to the construction of the Visitor Centre at the distillery. There are no ongoing obligations attaching to this grant. It is amortised at $16,170 per year (as shown in the shift from non-current to current liability each year).
Derek C (Hellyers Road (Whisky Tasmania Ltd) representative) replied to Peter A on 09/05/2024Thanks for that, yes improvements are there but cash flow still some way out. Doubling is quite the journey from that raise to this raise. I had hoped to invest more than the 7500 shares I have committed but this premium is probably the limitation on where I am at now.
Peter A (OnMarket member) replied to Derek C on 09/05/2024Thanks for your very welcome investment Peter. We believe the issue price offers excellent value for new shareholders and the whole team is absolutely committed to realising extraordinary returns to shareholders off the back of the unparalleled asset base, inventory, history and trajectory of Hellyers Road. I hope you are minded to invest more.
Derek C (Hellyers Road (Whisky Tasmania Ltd) representative) replied to Peter A on 10/05/2024The horizon for self-sustaining sales and positive cash-flow is given as quite some time - Is this expected to be within the 2-4yr window of other intents or beyond?
Steven M (OnMarket member) on 08/05/2024Hi Steven,
Derek C (Hellyers Road (Whisky Tasmania Ltd) representative) replied to Steven M on 08/05/2024Yes, with the investment in sales and marketing and continuing to produce new whisky spirit at current levels, we are looking to return to positive cash flows in 2 to 4 years.
Cheers
As a potential investor I would like to understand how many existing members there are in the 21 Club, as well as details of any existing similar arrangements that reserve inventory for shareholders at capped prices or minimum age statements. Could you please comment on The Group's ability to meet the potential commitment of 21yo+ whisky via the 21 Club if all eligible members claimed their maximum allocation, and whether this is factored into the 2027 inventory value estimate.
Leigh H (OnMarket member) on 08/05/2024Thanks Leigh, great question as it gives and opportunity explain how the 21 Club delivers an exceptional opportunity to members to buy our oldest whisky at unmatchable prices, but also delivers additional value to all shareholders whether they are members or not .
Derek C (Hellyers Road (Whisky Tasmania Ltd) representative) replied to Leigh H on 09/05/2024TL:DR
1.There are no other arrangement reserving inventory for shareholders.
2.There is ample whisky of 21yr+ in the bond store to supply the 21 Club without limiting other channels.
3. Sales to 21 Club member actually realise a price to Hellyers Road above the value used in estimating the wholesale value of inventory, demonstrating the conservatism of that inventory value estimate.
The Detailed Answer
As can be seen from the graph on page 78 of the Offer Document, we estimate we have a bit of 50,000 bottles equivalent (700ml @43% alcohol) of whisky from 2002, 2003 and 2004 (that is the years that would provide a 21year old+ in the next three years). The theoretical maximum number of shareholders who could be eligible for the 21 Club after this equity crowd fundraising is about 600 (and that is only if the entire remaining $2.4 million in shares available was taken up by investors at $7,500!). Therefore, even if every eligible shareholder (600) became a member of the 21 Club and took up every single offering (6 per year for 3 years), the total number of bottles would be 600 x 6 x 3 = 10,800 at 43%. Now these ultra-premium aged whiskies are unlikely to be released at 43% - they will be released at the alcohol content at which show their best. This is likely to be between 46% and 55%. Even at 55% this equates to 13,800 bottles (10,800/43% x 55%). Even at the theoretical maximum we have ample whisky inventory in cask to cover this without impacting availability for other markets. In reality, we expect the take up could be less than half this number.
Just as importantly the 21 Club benefits, while fantastic for members, are actually adding value to the shareholder base as a whole. This is for two reasons:
1. The conservatism of the model used to estimate inventory value, particularly in respect of older whiskies; and
2. The opportunity these very exclusive direct sales to 21 Club members offer to realise value without damaging other market channels.
1. Page 79 of the Offer Document shows that the wholesale value per 700ml @ 43% for a 21 year old used in the value estimate is around $160. Using page 68 as a guide shows that at a $500 sale price the return to Hellyers Road would be well above this level even if the alcohol content was as high as 55%. Therefore, $500 a bottle even through retail channels is still value accretive to the estimated inventory value demonstrating the conservatism of that model. But, Club 21 sales are not retail, they are direct to the members so Hellyers Road also retains the retail margin, making the sales even more value accretive.
2. A maximum of $500 is extraordinary value for a 21 year old Tasmanian Single Malt Whisky. Through our normal sales channels, whisky of this age would be at least $700-$800 and in many cases well over $1,000 per bottle. The sheer exclusiveness of the 21 Club being only open to shareholders means that Hellyers Road can offer these amazing whiskies to direct to 21 Club members and retain the retail margin without damaging the channels through our trade partners.
Thanks again for the question!
If I buy $4997 of shares do I still qualify for the $5000 investor rewards level?
Daniel L (OnMarket member) on 09/05/2024Hi Daniel, Absolutely you will.
Derek C (Hellyers Road (Whisky Tasmania Ltd) representative) replied to Daniel L on 09/05/2024We will round up those subscriptions for shares that are within a share value ($6.20) of each rewards targets as meeting that reward target.
This question is particularly important for those at the $10,000 threshold. The nearest number of shares to $10,000 is 1,613, which would be a value of $10,000.60. Some of these investors may not be able to or may not want to obtain a sophisticated investor certificate. We will treat investors who subscribe for 1612 shares ($9,994.40) as $10,000 investors for the purpose of shareholder rewards and they will receive the Hellyer Road 20 year old Port Cask Finish (which is a truly stunning whisky!)
Hi Derek,
Paul J (OnMarket member) replied to Derek C on 09/05/2024I missed the information regarding 'sophisticated investor' requirements for $10,000+ when subscribing for 1,613 shares ($10,000.60). Will this subscription automatically be reduced to 1,612 shares ($9,994.40) to meet 'retail investor' classification, or should I cancel and re-subscribe?
Thanks and all the best.
Hi Paul, you can cancel and resubscribe, or we will reduce the subscription at the conclusion of the offer. if you have already funded the offer, it is probably better to wait for us to reduce the subscription so you do not have to wait for a refund before you bid again. If you have not paid for the shares, either works. Either way, please take comfort that the Investor Rewards at the $10k level will be honored for investments at the $9,994.40 level. Cheers.
Mark H (Hellyers Road (Whisky Tasmania Ltd) representative) replied to Paul J on 09/05/2024G'day,
Hugh H (OnMarket member) replied to Mark H on 09/05/2024I have just made this mistake too. I invested $10,000.60 and paid this amount. How should I make contact to have this reduced to $9,994.40? I cannot obtain a sophisticated investor certificate.
Tahnks
Hi Hugh - no need to do anything, we will make a $6.20 refund and reduce the allocation by one share for those invested at this level that are not eligible as sophisticated investors when the offer closes.
Mark H (Hellyers Road (Whisky Tasmania Ltd) representative) replied to Hugh H on 10/05/2024Just wondering with the 21 Club, why does the documentation not state that the maximum price of the bottles as being $500 and any other potential conditions of the club (is it free to join for top 2 tiers, and I thought I read somewhere else online that it was only for the first 3 years).
Christopher H (OnMarket member) on 09/05/2024Hi Chris,
Derek C (Hellyers Road (Whisky Tasmania Ltd) representative) replied to Christopher H on 09/05/2024There are full details here of the 21 Club - https://hellyersroaddistillery.com.au/pages/21-club
or go to the Hellyers Road website and click on 21 Club in the menu bar at the top.
It is free for investors of $7,500 or more to join. Availability of at least 6 21+ year old whiskies per year for the first 3 years at a price of not more than $500 is guaranteed (while ever you remain a shareholder with 1209 or more shares). There are a range of other benefits too spelled out in more detail on the webpage - even I'm excited about joining and I'm here every day!
Hi Chris, thanks for your questions. There is further information about the 21 club on our website. https://hellyersroaddistillery.com.au/pages/21-club
Lara W (Hellyers Road (Whisky Tasmania Ltd) representative) replied to Christopher H on 09/05/2024Yes it is free for those who have invested over $7,500. As a member of the 21 Club, each year for the next three years youll gain access to six exclusive releases of Tasmanian Single Malt whisky each one at least 21-years old. These will be capped at $500 a bottle. This does not mean it ends after 3 years, but as the club grows and the liquid ages we will assess what is the best value to the members and what is available and ready for release in the bond store. The priority is to only release the best liquid when it is ready.
How do you get a valuation of at least twice book value?
Scott Andrew P (OnMarket member) on 10/05/2024Hi Scott, good quesiton. Page 75 of the offer Document deals with exactly this question, and the whole of the Addendum from page 64 onward is included to allow potential investors to see exactly how we have built up the estimate of the inventory value.
Derek C (Hellyers Road (Whisky Tasmania Ltd) representative) replied to Scott Andrew P on 10/05/2024The short answer? Accounting standards require that the balance sheet value is recorded at the lower of cost of production and market value - fine for normal inventory that declines in value as it ages - but whisky increases in value as it ages! It is clear that the wholesale sale value of a litre of whisky laid down in 2002 is more than what it cost us to make that spirit way back in 2002. Cheers
Hi, do you have any profit projections for the next 5 years or so?
Christopher H (OnMarket member) on 11/05/2024Hi Chris, All the financial information that is available to share is in the offer document.
Lara W (Hellyers Road (Whisky Tasmania Ltd) representative) replied to Christopher H on 11/05/2024Hello, Are there any barrels yet to be bottled prior to 2002 or are these the oldest barrels remaining? Also, what types of barrels are being used more recently? Are you still using predominately ex-Bourbon & Sherry barrels or more of the pinot or wine barrels?
Albert B (OnMarket member) on 12/05/2024Hi Albert,
Derek C (Hellyers Road (Whisky Tasmania Ltd) representative) replied to Albert B on 13/05/2024Unfortunately there are no pre-2002 barrels left.
Right through our history we have predominantly used ex-Bourbon American Oak barrels for majority of our new make whisky and continue to do so. We do have some whiskies fully matured in Spanish Oloroso casks and in Port and Tawny casks. We use a wide range of casks including Tasmanian Pinot Noir for secondary maturation (that is, more than finishing for a few months, but an extended second long term maturation after initial 4 or 5 year maturation in ex-Bourbon barrels). We also have smaller numbers of a wide array of some really interesting and exciting casks being used for finishing and secondary maturation of some of our older whiskies for future limited releases.
Are you accepting investments from Self Managed Super Funds (SMSF)?
Peter E (OnMarket member) on 13/05/2024Hi Peter, yes we are accepting investments from SMSFs and many of our existing and new shareholders invest through their SMSF. The eligibility of this investment for your own SMSF is always a question for your accountant of course.
Derek C (Hellyers Road (Whisky Tasmania Ltd) representative) replied to Peter E on 13/05/2024Cheers
Hi I have received confirmation that payment had been received. I all so made the mistake of the 10000.60 but I see that you will address this with a reduction of one share correct? When will we receive an email/ communication on progress and information on benefits.
Nick S (OnMarket member) on 16/05/2024Kind regards
Nick
Hi Nick
Lara W (Hellyers Road (Whisky Tasmania Ltd) representative) replied to Nick S on 16/05/2024Kit (Our Shareholder Relationship Manager) will give you a call tomorrow. Thanks
Hi Lara.
Nick S (OnMarket member) replied to Lara W on 16/05/2024Thank you for the quick reply. Can Kit Call early next week as I will not have phone coverage tomorrow.
Regards.
Nick.
No worries, he has emailed you.
Lara W (Hellyers Road (Whisky Tasmania Ltd) representative) replied to Nick S on 16/05/2024Please sign in to post a question