An online whisky auction site and tasting rooms in Udny has teamed up with a Hong Kong-based investor in a multi-million pound deal.
Whisky Hammer, which opened its shop and dram bar called Still Spirit in September last year, has sold a 49% stake in its business to Rare Whisky Holdings.
Launched by Macduff-born brothers Daniel and Craig Milne, Whisky Hammer hosts monthly auctions of rare and often very expensive spirits to buyers around the globe.
The group offers a trading platform to an extensive global network of whisky enthusiasts who buy and sell via the brothers’ regular auctions.
The company has sold a wide range of whiskies, both bottles and casks, with auctions selling in excess of £1million under the hammer each month and resulting in a 70% growth in revenue in 2020.
A recent highlight for sales included the 31-year-old Black Bowmore ‘DB5’ collaboration with Aston Martin, distilled in 1964 and sold for a hammer price of £81,000 in March 2021.
Rare Whisky Holdings is led by Rickesh Kishnani and Li Hua Tan, the same management team behind the Platinum Whisky Investment Fund, which is thought to be the first private equity fund to focus on rare single-malt whiskies.
The fund launched in 2014 when it raised $12million (£8.8m) and is in the final stage of its wind down, exiting at over $24m in seven years, the company said.
Rare Whisky Holdings also owns the Glenor Cask Company, which holds 1,000 casks of maturing single malt, blended, and grain whiskies. The new investment and partnership ensures registered members of Whisky Hammer and Still Spirit will receive exclusive access to a range of cask opportunities for the long-term.
Mr Kishnani and Ms Hua Tan were customers of Whisky Hammer before striking an agreement with the Milne brothers to buy a stake in the venture.
The company did not disclose the value of the sale, however Daniel Milne said the deal will deliver a 2.6X return to retail investors who participated in a crowdfunding campaign just two years ago.
The brothers raised £200,000 from 155 investors to capitalise on the fast growing UK secondary whisky market.
Auctioneers generate revenue primarily via commission on each bottle or cask sold under the hammer and has grown significantly over recent years. In its crowdfunder, Whisky Hammer said it made revenues of £604,000 and profits of £139,000 in 2019.
Daniel Milne, managing director of Whisky Hammer and Still Spirit said: “This is a very exciting time for our business.
“The transaction signifies an important bond with our new Asian partner that will rapidly bring the group to the next phase of growth, and we are incredibly excited about what lies ahead.
“In addition, we are delighted to have generated a substantial return for our crowdfunding investors that helped us build the business to where it is today.”
Mr Kishnani added: “Our investment group is proud to join the Milne family business and help with their expansion to Asia, where the demand for whisky continues to grow at a rapid pace.
“We are also excited to use this new partnership to provide Whisky Hammer and Still Spirit members with exclusive access to our collection of aged casks.”