Opening up the whiskey market to all
With the Irish whiskey market ripe for expansion, two companies have opened up for EIIS funding with the new 50 per cent tax relief sure to catch the eye of investors
Since its establishment in 2011, the EIIS funding scheme has opened up major opportunities for businesses and investors, with many Irish companies completing successful funding rounds.
Now two new companies are entering the market with their offerings: Black Emerald Irish Whiskey and LYQD Cask Exchange. Both companies qualify for the new 50 per cent tax relief bracket which is available in 2024 and will catch the eye of investors.
The companies themselves have a lot of confidence behind them with significant backers already.
The first is Black Emerald Irish Whiskey, an exciting new venture designed to bring a modern approach to whiskey to established and new consumers.
The team has significant pedigree having been co-founded by Simon Zebo, the Ireland & Munster rugby player, alongside Ernest Cantillon and Finian Sedgwick, who have extensive whiskey business experience.
It’s currently targeting the fastest-growing Irish whiskey markets, including US cities like Detroit and Atlanta, South Africa and Nigeria.
Alongside the extensive connections Zebo has in South Africa thanks to his rugby career, the markets for both South Africa and Nigeria are “deceptively big” says Ernest Cantillon, director of Black Emerald Irish Whiskey and LYQD Cask Exchange.
“South Africa is the fifth biggest market for Irish whiskey, and Nigeria just went into the top ten last year,” he stated. “Nigeria is the fastest growing market for Irish whiskey, bar none, and South Africa would be more mature about Irish whiskey.”
By sheer coincidence, the name already resonated with whiskey connoisseurs in South Africa who are referred to as Black Diamonds.
The second business, LYQD Cask Exchange, is a new platform launching in 2024 designed to make investing in whiskey safer, fairer, and transparent. Currently, there is no recognised secondary market for cask whiskey and it has already been backed by Enterprise Ireland’s High Potential Start-up Fund and founder capital.
Cantillon says that whiskey, which is valued for rarity and taste, is a more tangible and accessible asset for people to invest in.
“Particularly since the crypto boom, people’ s eyes are opened up to alternative assets,” he said. “They might feel that bitcoin or NFTs are too volatile whereas whiskey is tangible.”
“It’s more accessible, and people like investments they can relate to. As people’ s interests in alternative assets grow, whiskey is ripe for that.”
One area that might not be associated with whiskey that LYQD has incorporated is AI. While the connection may not be obvious, the business is using AI and other tools to help it and its users make more informed decisions about the value of casks and selling and holding onto them.
A massive boon for the company is that one of its co-founders and NEDs is Padraig Coffey, CEO of Zartis, who is bringing significant experience in the area of technology innovation to LYQD. All of this boosts the credentials for both investors and users.
It’s more accessible, and people like investments they can relate to. As people’ s interests in alternative assets grow, whiskey is ripe for that
Now, you have thousands of cask owners who are not all together but at some stage are looking to exit, whether to reinvest or retire, and I don’ t think they have a place to sell that cask,” he explained.
“It’s nice for someone to log into the exchange and see ten similar casks at a very competitive, transparent pricing and let someone decide which one to buy.”
That philosophy extends to the EIIS funding, where both companies are now open to investment as both businesses prepare to launch products early next year. While it still requires funds, it’ s a more accessible way for the average person to invest in a company.
“Our pitch is to democratise the whiskey market and give people fair, transparent pricing, so the way we raise money should be the same,” said James Jardella, CEO of LYQD. “The average investment so far have been around the €25,000, so while it’s not for everyone, it’s not a closed door or one of these opportunities you hear afterwards."
“It can be very onerous to deal with venture capital funds, whereas it is lovely to have family and friends invest, and that’s the case.”
“With EIIS, while no investment is a sure thing, it is at least a way for them to get 50 per cent of their tax back, which is satisfying and de-risks their investment. That’ s why the EIIS scheme is so popular and successful in Ireland, and there are a lot of success stories.”
To view Black Emerald’s EIIS deck, visit here or email info@blackemerald.ie. For LQYD, visit its landing page here or email eiis@lyqd.io
