Nine Rivers Distillery Secures an Unprecedented Financing Deal in the Chinese Whisky Market
Jun 12 2024
Da Chi, Longyan, Fujian Province, China, Friday 15th November 2024.
Nine Rivers Distillery Secures Unprecedented Financing
Nine Rivers Distillery (9RD), an ambitious newcomer to the Chinese single malt whisky distillery scene, has achieved a monumental milestone by securing a multi-million financing deal, secured against its future maturing whisky stocks. It is worth noting that 9RD has achieved this whilst its facilities are still under construction and with 9RD recently starting the process to install their stills, and with no onsite distilled product in barrels, this is a real show of confidence in the project and its potential..
Overcoming Industry Challenges
Most new distilleries face an array of seemingly insurmountable challenges, some of which are the most difficult to overcome early such as building brand recognition and credibility. On both of these fronts, 9RD has risen to meet these challenges, as evidenced by their growing following on LinkedIn and other social media platforms, the industry buzz surrounding 9RD and its obvious potential to disrupt the single malt whisky industry. Inclusion of industry veterans on their board, such as Macallan’s former Master of Wood, Stuart MacPherson, also aids in establishing credibility in the industry. Additionally, the often-impossible task of acquiring land in China to establish the 9RD Chinese single malt whisky distillery, was through hard work and diligent adherence to the process also achieved by the Nine Rivers Management team. It cannot be understated how much of a tricky and often impossible task this is to achieve, despite the increasing thirst for whisky among Chinese consumers and the endless patience and helpfulness of the relevant Government personnel.
Carnation Capital’s Confidence in 9RD
The financing deal, led by Carnation Capital, will provide a drawdown finance facility for Nine Rivers Distillery, allowing them to fill thousands of additional casks during the first few years of production.
“Our journey has been full of firsts, but this is an achievement myself and the board are especially proud of,” said Jeff Olyniec, Deputy Chair of Nine Rivers Distillery. “We’re still a construction site, but we’ve secured financing against maturing stocks. If ever there was proof we are going to disrupt the Chinese single malt whisky distillery industry, this is it.”
Elaine Lau of Carnation Capital elaborated on the decision:
“As financiers, we need confidence that credit lines will be repaid from future revenues. So, we traveled to China and spent time on-site with the 9RD team to understand how they plan to differentiate themselves and how the quality of their final product will drive strong sales. With the insights we gained, there was sufficient confidence that their goals, while ambitious, were attainable. Underwriting their financial needs was straightforward.”
Insights from Key Stakeholders
Board Member Jan Broni highlighted the significance of the deal:
“As part of the 9RD team working with Carnation Capital on this deal, I can’t tell you how thrilled we are to get this done. Securing finance against casks of maturing whisky while we’re still a construction site and haven’t even filled a single cask—that’s practically unheard of!
“To people outside the industry, this might not seem like a big deal. But trust me, in our world, it’s tough enough to secure financing on maturing stock even after many years of solid sales and a shelf full of awards. Getting a professional finance partner on board before we’ve filled our first cask is something special. And the fact that the terms are better than what startups like us usually get makes it even sweeter.”
A Promising Future for the Chinese Single Malt Whisky Distillery
Jay Robertson, CEO of Nine Rivers Distillery, concluded:
“Securing this deal was a really important milestone for our project as it shows that despite the general global downturn in whisky, there is a lot of confidence in the future of the Chinese whisky market.
“It also demonstrates that our approach to being a difference maker in the Chinese whisky market, and focusing on quality and affordability for whisky lovers, is something that finance partners outside of China believe in.”
Conclusion
With this surprising but well-deserved financing secured, Nine Rivers Distillery is prepared to make a significant impact on the Chinese single malt whisky distillery market. As they move closer to commencing production, whisky enthusiasts worldwide eagerly anticipate 9RD’s disruption of the market. For the latest updates, follow Nine Rivers Distillery on LinkedIn or visit their website.
About Nine Rivers Distillery
Nine Rivers Distillery (9RD) is a startup single malt whisky distillery located in Longyan, Fujian Province, China. Collectively funded by more than 300 whisky enthusiasts from around the globe, 9RD’s mission is to Revive the True Essence of Whisky by bringing world-class whisky to the mass market at prices that are affordable to all.
9RD will initially commence operations with a production capacity of 1.31 million LPA (Liters of Pure Alcohol) but has the foundation and infrastructure to rapidly scale up to 7.5 million LPA. The distillery will eventually include its own onsite cooperage capable of producing up to 100,000 oak barrels each year, supplying both 9RD and other single malt whisky distilleries in China. For more information, CLICK HERE.
About Carnation Capital
Carnation Capital is a private investment firm specialized in the wine and spirits sector. Dedicated to identifying emerging and innovative debt and equity investment opportunities, we prudently direct our clients’ investments to maximize returns while empowering the working capital growth of wine and spirits businesses.