The €2.5 million cash injection from the fund will allow Nephin Whiskey to complete work on its Mayo distillery.
The Davy EIIS Fund is a joint venture between Davy Group and advisory firm BDO and has been investing in high growth Irish businesses for 20 years under the Employment Incentive and Investment Scheme (EIIS) and its predecessor, the Business Expansion Scheme (BES).
Nephin Whiskey Company operates a cooperage in Foxford, Co. Mayo, making and repairing barrels for Irish distilleries. The company is also in the business of bringing whiskey into the US market through its licenced spirit importation subsidiary based in Florida.
Sinead Heaney, Partner in the Corporate Investment & Business Advisory department at BDO, who led the investment on behalf of the Davy EIIS Fund, said the new capital will be used to “complete the construction of a single malt distillery in the small village of Lahardane, Co. Mayo, with the plant having a production capacity of 1 million litres of whiskey per year.”
“This investment from the Davy EIIS Fund will allow Nephin Whiskey to finish all remaining engineering works and allow them to scale their business quickly as they look to ramp up sales,” said Heaney.
Speaking to The Sunday Business Post, Mark Quick, Nephin Whiskey’s co-founder, said the funding would help it complete the distillery in time to begin production next year. “It’s about 80 per cent finished at this stage and a lot of the equipment is in place……By the end of this year it means we can start producing liquid,” he said.
The company has previously raised €1.5 million in funding under the Immigrant Investor Programme (IIP) and €2 million from private investors, including Michael Walsh, owner of premium clothing brand, Dubarry.
Under the Irish Whiskey Act, 1980, a distilled product must age for a minimum of 3 years before it is legally termed Irish whiskey. Commenting on their plan to deal with the cashflow challenge that this regulation presents to new businesses in the sector, Dr. Paul Davis, Nephin Whiskey’s chief executive said “We’re lucky to have revenue streams from our cooperage and importation businesses and we will also sell a small quantity of casks to private individuals who want to invest in their own barrel of Nephin Whiskey.”
Sunday Business Post article available at: "Nephin Whiskey secures €2.5m investment from Davy"