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Dingle-Distillery-Brochure.pdf - The Dingle News

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Business Expansion Scheme<br />

Prospectus<br />

<strong>The</strong> Spirit Reborn ...in <strong>Dingle</strong><br />

2010


<strong>The</strong> Golden age of Irish whiskey<br />

took a bit longer to arrive<br />

but by the late eighteenth century<br />

there were an estimated 1,200 distilleries<br />

throughout the island of Ireland


SOMETHING OLD<br />

To some, whiskey is like a religion. And perhaps it's not surprising. After all, Irish monks brought the art of<br />

distillation home from their travels in the 6th century. This was Ireland's Age, when we were known as the Isle<br />

of Saints and Scholars.<br />

<strong>The</strong> Golden age of Irish whiskey took a bit longer to arrive but by the late eighteenth century there were an<br />

estimated 1,200 distilleries throughout the island of Ireland, not all of them entirely legal. Irish whiskey was to<br />

become the premium spirit in Britain and the United States during the following century. On the eve of<br />

Prohibition, Irish whiskey was on the crest of a very broad and well-founded wave.<br />

But the failed action of the US Administration in banning alcohol put paid to that. And, of course, during<br />

Prohibition dubious illegal moonshine was sold as Irish whiskey, this being, perversely, the bootlegger's<br />

pretence of quality. And so the reputation was severely tarnished. Real Irish whiskey - rich, round and<br />

complex - came to be seen as rough, fiery stuff. Blended Scotch whisky, which had become a commercial<br />

reality in the early years of the 20th century, devoured the market.<br />

By 1966, distilling in Ireland had been so badly damaged that three of the surviving producers were forced to<br />

merge. Thus Jameson, Power's and Cork Distilleries became<br />

Irish Distillers. Bushmills was part of Irish Distillers from the early 1970's until its recent purchase by Diageo.<br />

Currently there are three working distilleries in Ireland:<br />

Bushmills in Co Antrim, Midleton in Co Cork and Cooley<br />

in Co Louth, the latter two being modern, large facilities.<br />

Times change. And things have been looking up for Irish<br />

whiskey in recent years. International interest in single malt<br />

Scotch whiskeys, many of them from very small distilleries,<br />

has created a new market for discerning spirits enthusiasts.<br />

Overall, in recent years the market for such products has<br />

been growing by 15% to 20% a year. Irish whiskey accounts<br />

for just over 2% of the world market. Diageo, owners of<br />

Bushmills, and Groupe Pernod-Ricard, owners of Irish<br />

Distillers, are understood to have ambitious plans to expand<br />

this share.


This will be a craft distillery,<br />

specialising in high quality,<br />

essentially artisan spirits.<br />

And in the Irish context,<br />

that is something wholly new.


SOMETHING NEW<br />

<strong>The</strong>re is an opportunity.<br />

Consider this:<br />

Scotland has over 150 distilleries. Some of them are vast, industrial operations;<br />

many of them are very small, craft distilleries, almost artisan in scale.<br />

Ireland has three distilleries. None of them could be described as artisan, despite the undoubted quality of<br />

some of their produce.<br />

Ireland will soon have four distilleries. <strong>The</strong> Porterhouse Group, which pioneered craft brewing in Ireland, has<br />

joined forces with Kerry entrepreneur Jerry O'Sullivan to create the <strong>Dingle</strong> Whiskey <strong>Distillery</strong>. <strong>The</strong> new<br />

company has secured the consultancy services of some the greatest authorities on premium spirits in the<br />

world and have appointed John McDougal, former head distiller/manager at Springbank, Balvenie, Laphroaig,<br />

Tormore and several other distinguished Scottish distilleries, as consultant distiller. His book “Worts, Worms<br />

and Washbacks” highlights his distilling career which began in 1963. reputedly the only man alive to have<br />

distilled all styles of Scottish Whisky.<br />

<strong>The</strong> distillery is being constructed within the old <strong>Dingle</strong> Creamery and will have three stunning copper pot<br />

stills which have been carefully designed and will be hand-crafted by Forsyths, famed Scottish still makers.<br />

This 100% Irish whiskey distillery will have the capacity to produce five hogsheads of spirit per day, roughly<br />

1250 litres. This will be a craft distillery, specialising in high quality, essentially artisan spirits. And in the Irish<br />

context, that is something wholly new.<br />

<strong>Dingle</strong> is a major tourism destination and the <strong>Distillery</strong>'s visitor centre will be yet another attraction in this<br />

much-visited Atlantic town.


Peddler’s Lake,<br />

<strong>The</strong> source of the water<br />

For the <strong>Dingle</strong><br />

Whiskey <strong>Distillery</strong>


REBEL TERRITORY<br />

It is hard to conceive of the essential difference between the boutique <strong>Dingle</strong> Whiskey <strong>Distillery</strong> and other<br />

whiskey producers in Ireland. Essentially, it comes down to scale. Where the others are devoted to promoting<br />

major international brands, <strong>Dingle</strong> will concentrate largely on a niche market for high quality, distinctive,<br />

perhaps even quirky whiskeys. In that sense, this a venture that breaks the mould. In the old days the <strong>Dingle</strong><br />

Peninsula and <strong>Dingle</strong> itself, the most westerly town in Europe, were firmly in rebel territory. It seems like a<br />

very suitable place for such a distillery. And it will mean the first Irish whiskey to be matured right next to<br />

the Atlantic ocean.<br />

THE ARGUMENT, DISTILLED<br />

It takes years before a whiskey distillery can actually sell any product, doesn't it? Actually, no. From Day One,<br />

<strong>The</strong> <strong>Dingle</strong> Whiskey <strong>Distillery</strong> will be producing a white spirit born from Kerry barley and Irish malt and this<br />

will form the backbone of <strong>Dingle</strong> Cream, the world's only cream liqueur that can claim to be made in a<br />

former creamery.<br />

In addition we will create and produce a unique liqueur, expressing the natural, delicate edible botanicals,<br />

honey and fruit of Kerry. This will be an Irish digestif, aimed primarily at the dining experience.<br />

So, while the distillery's premium whiskeys age in casks, the rest of the output is being put to immediate<br />

benefit with these two exciting new malted barley spirits-based liqueurs.


our Distiller’s Thoughts<br />

An artisan distillery highlights and emphasises the hand-crafted patience, commitment and skill to be used<br />

in distilling premium spirits. <strong>The</strong> portfolio will include:<br />

<strong>Dingle</strong> Green:<br />

Aged exclusively in former Bourbon casks to finish clean, has a soft aroma and gentle flavour profile.<br />

This is the very water of life, and barrel aging for four years will reveal a classic creamy, sweetish Irish whiskey<br />

enhanced by the salt air of <strong>Dingle</strong> Bay and the calcium-rich distillery water (from Peddler's Lake) used in<br />

producing it. Roasted nuts and Irish malt will come through in the easy drinking and exceptionally smooth<br />

40% abv whiskey.<br />

<strong>Dingle</strong> Gold:<br />

Aged in sherry casks, with a new aromatic nose of marzipan timbre and a unique layer of sweetness (caramel<br />

and honey) with lush apricot note. <strong>The</strong> Triple Wood, in general terms, features the finish-off year in sherry<br />

casks before being bottled and the sherry cask tones down the resin and dry spice notes from American oak<br />

in the first year of ageing. A reddish amber colour with immediacy of flavour which will be packaged at<br />

natural cask strength. Nose: A spicy aroma of dried citrus and muted (but well balanced) with vanilla, honey,<br />

a hint of caramel sweetness from the intermediate wood. A warm aftertaste with tingle will be the closing<br />

note in the finish.<br />

Whale Tail: Single Malt 4-year cask aged whiskey<br />

<strong>The</strong> wash is made of a grist of Kerry barley and Irish malted barley, fermented with proprietary Irish brewing<br />

yeast in washbacks, and spirit is triple-distilled and collected into ex-bourbon casks for four years ageing.<br />

A classic Irish whiskey results that is warming and smooth.<br />

<strong>Dingle</strong> Cream: the celebration of fresh Irish cream<br />

Irish malt and barley spirit is carefully mixed with fresh cream from local herds and natural Irish honey.<br />

<strong>The</strong> resulting white cream liqueur is easy-going, delightful and a complement to coffee or enjoyed readily<br />

neat, or over ice.<br />

<strong>Dingle</strong> Dew: the essence of Kerry<br />

Irish malt and barley spirit extracts aromas and flavours of Kerry botanicals and flowers in the distillation<br />

process itself. <strong>The</strong> resulting aperitif is a distinctive sipping amber herbal liqueur with some natural Irish honey<br />

sweetness.<br />

Special Limited Edition Spirits<br />

Founding Fathers: Individually Designed Cask Strength Whiskey<br />

<strong>The</strong> finest cut spirit matured in the wood of your choice. 63% alcohol by volume, choice of either; port,<br />

madeira, bourbon or oloroso cask.<br />

Celebration: Single Malt 5-year cask aged whiskey<br />

<strong>The</strong> wash is made of a grist of 100% Irish malted barley, fermented with proprietary Irish brewing yeast in<br />

washbacks, and spirit is triple-distilled and collected into ex-bourbon casks for five years ageing.<br />

<strong>The</strong> master distiller will select the most distinctive casks and set these aside for a limited-edition five-year<br />

single cask whiskey (2000 bottles) whiskey (2000 bottles).


Our Distiller’s Thoughts<br />

<strong>Dingle</strong> Gold is our benchmark single malt whiskey using our single malt ageing system. <strong>The</strong> wash is<br />

fermented in washbacks. Once distilled and collected, our spirit will undergo a novel system of maturation<br />

unique to <strong>Dingle</strong>.<br />

Ageing <strong>Dingle</strong> Gold whiskey at <strong>Dingle</strong> <strong>Distillery</strong> takes<br />

place through the laborious and precise Spanish process<br />

known as the Criaderas y Solera system. In this process,<br />

the younger spirit is blended slowly and methodically with<br />

other more mature spirit. <strong>The</strong> older whiskeys impart their<br />

flavour to the younger ones, while the latter freshen the<br />

former due to their youth and strength.<br />

<strong>The</strong> new spirit is placed into the Añado barrels, large oak<br />

ex-bourbon barrels.<br />

<strong>The</strong> Solera System<br />

<strong>The</strong> Anado Barrels<br />

Criadera #3<br />

Criadera #2<br />

Criadera #1<br />

<strong>The</strong> Solera Row - floor<br />

As whiskey is drawn from the ‘solera’ row, bottled and<br />

sold, spirit is drawn from the ‘Criadera #1 barrels (which<br />

may be ex-Sherry Butts) to replenish the “solera” barrels–(never drawing of more than 1/3 of any barrel at<br />

any time)–and so on through the successive next row of ‘Criadera’ above, i.e.: Criadera #3 (which may be export<br />

pipes) is used to fill Criadera #2 and so on.<br />

<strong>The</strong> solera system may add complexity, but it painstakingly and ingeniously<br />

replicates the proven and beloved sherry technique called fractional<br />

blending.<br />

Here’s how it works:<br />

Barrels of spirit of the same type but different vintage are stacked on top<br />

of each other, the oldest on the bottom, and the youngest on the top.<br />

With four rows of barrels representing four vintages of spirit, each year<br />

anywhere from 10 percent to 30 percent of the bottom (the oldest)<br />

barrels’ volume will be drawn off to be bottled as that year’s Solera whiskey:<br />

<strong>Dingle</strong> Gold.<br />

<strong>The</strong> headspace created by this drawing-off will be filled with spirit from the level above, and those barrels<br />

will be filled with the level above them, and onwards and upwards, while the last year’s barrels on the top<br />

level will be topped up with new spirit. Each year, as a limited amount of finished <strong>Dingle</strong> Gold is drawn off<br />

from the bottom level of barrels, the average age of the whiskey at the bottom barrels will continue to rise<br />

with the years until it reaches a constant average age. A solera that is eight levels deep (if 25 percent is taken<br />

out of the oldest row for bottling each year) will produce whiskey that are an average age of 8 years old<br />

after 10 years.<br />

Using American oak casks releases sweet flavours (honey, vanilla, toffee...). But the the use of aged casks in<br />

a Solera array brings out richness and nuances of caramel flavours, fruity notes, subtle char, dry fruits and<br />

others. This ensures that future batches of Solera-reserved single malt whiskey always taste the same.


Each cask will then be bottled,<br />

allowing for the annual evaporation rate<br />

that distiller's call <strong>The</strong> Angels' Share


THE ANGELS' SHARE and YOUR SHARE<br />

Business Expansion Scheme<br />

1. Summary of Relief<br />

BES provides a tax deduction for Irish resident individuals who invest in what is<br />

known as qualifying companies.<br />

Drioglann Daingean is a qualifying company on the understanding that its primary turnover<br />

will be derived from the distillation/manufacturing of whiskey and liqueurs for at least the<br />

first 3 years of the BES period. We have obtained confirmation from Revenue in the form<br />

of an RICT 2.<br />

An individual can invest in an unlimited number of qualifying companies.<br />

However, the total BES relief available to him/her is restricted to €150,000 in any one tax year.<br />

Spouses are treated as separate individuals for the purposes of BES relief.<br />

<strong>The</strong>refore, a husband and wife could each make a qualifying investment and obtain relief<br />

of up to €150,000 each provided they are each in receipt of sufficient taxable income.<br />

<strong>The</strong> relief is used to reduce the individual’s taxable income.<br />

<strong>The</strong>refore, a tax saving of up to €73,500 is available to an individual paying tax at the 49% rate<br />

of tax on the investment amount and in respect of an investment of €150,000.<br />

This saving is increased where the value of PRSI and the health levy is taken into account.<br />

BES is a specified relief which is subject to the high earner restriction i.e. the maximum tax<br />

reliefs that an individual can claim in any one year is restricted to the greater of €250,000<br />

or 50% of his/her total income (before tax reliefs) in any one tax year.<br />

Any relief, not used in a particular tax year, is carried forward for offset in future tax years.


2. Form of Investment<br />

BES relief is available in respect of newly issued qualifying shares.<br />

On making the relevant investment, the individuals will be granted new shares in<br />

Drioglann Daingean. <strong>The</strong>se shares will be ordinary shares with no preferential rights.<br />

<strong>The</strong> individual will receive a share certificate detailing his/her investment.<br />

Once the company has traded for four months, Revenue will issue each investor with a<br />

Form RICT 3 in respect of their investment. This form should be retained for a period<br />

of six years in the event of any future Revenue queries.<br />

<strong>The</strong> investor will claim the tax relief in the year in which the investment was made i.e. if the<br />

investment is made in September 2009, the relief will be claimed in the individual’s 2009<br />

income tax return.<br />

Investors must retain their interest for five years in order to avoid a claw-back of the relief.<br />

3. Other Key Issues<br />

We understand from the promoters that they themselves are extensively investing in this<br />

project and promoter funds will not be returned to the promoters until the investors<br />

have received their monies.<br />

4. Exit Mechanism<br />

At the end of the five year holding period the company will repurchase the investors’ shares.<br />

Put and call agreements will be put in place to facilitate the investor’s exit at market value<br />

following the relevant retention period.<br />

Market value will be determined by the company’s auditors and the determination will be final.<br />

Due to the rights attached to the shares, it is anticipated that the market value will not exceed<br />

the par value of the shares on acquisition plus 20%.<br />

<strong>The</strong> investors, investing more than 100k will have the option, but not the obligation of retaining<br />

2% of their total investment at the end of the 5 year period, by virtue of retaining non-voting<br />

shares which have rights to dividends.<br />

5. FGS’s role in this project<br />

It should be noted that FGS are the tax advisers to this project.<br />

However, FGS’s role is solely in this tax capacity and hence,<br />

FGS are not promoters to this project.<br />

<strong>The</strong> contact promoter for potential investors<br />

is Oliver Hughes (mobile no: 087 244 2576 email: oliver@theportehouse.ie).<br />

FGS have not been specifically asked to comment on the non-tax and financial aspects<br />

of the project. However, the promoters are available to discuss these aspects in detail<br />

with each investor.


BES investors with an investment of €100k plus will receive a Founding Fathers Cask of whiskey for €1<br />

(not including duty and/or VAT)<br />

Ownership of such a cask confers the honour of being a Founding Father. <strong>The</strong> owner's name will be handstencilled<br />

on the cask and inscribed on a plaque in the visitor's centre. Founding Fathers are welcome to visit<br />

the distillery at any time and will be encouraged to taste their casks once a year in order to monitor<br />

development. Indeed, it is possible to be present in the distillery when your cask is being distilled.<br />

And there is a choice of cask available including port, madeira, oloroso and bourbon.<br />

This price is based on your whiskey maturing in a 250 litre cask, a hogshead, at cask strength 63%.<br />

Our distilleries preference is a sherry cask, but you may prefer your spirit to mature in either a bourbon,<br />

madeira, oloroso or port cask.<br />

€8,250.00 includes storage for up to 10 years, bottling labelling and insurance.<br />

When the Whiskey is drawn down excise duty and vat become payable.<br />

At 63% duty currently is €17.31 per bottle.<br />

Taking into account the Angels’ Share at 2% per annum, at 5 years this equates to approximately 320 bottles.<br />

€25.78 per bottle<br />

+ €17.31 duty<br />

= €43.09 plus VAT<br />

As a Founding Father you will be invited to our annual party but why not distil your whiskey with our distiller.<br />

A purchase includes a 4 star house and within that week you will brew and distil your spirit.<br />

NOTE: Further details of the various lifestyle entitlements of being a Founding Father will be available<br />

at a later date.<br />

For further information contact:<br />

Oliver Hughes John Sheehy David L'Estrange<br />

<strong>The</strong> Porterhouse Brewing Company, John B. Sheehy & Co. L'Estrange & Co.<br />

11 - 15 Tara Street, Waterside, <strong>Dingle</strong>, College House, 71 - 73 Rock Road<br />

Dublin 2, Ireland Co. Kerry, Ireland Blackrock, Co. Dublin, Ireland<br />

Tel: +353 (0) 1 671 5715 Tel: +353 (0) 66 - 915 2363 Tel: +353 (0) 1 278 0811<br />

Fax: +353 (0) 1 670 9605 Fax: +353 (0) 66 - 915 2364 Fax: +353 (0) 1 278 094<br />

Email: oliver@theporterhouse.ie<br />

mobile: +353 872 44 2576<br />

FGS will be liaising with<br />

Oliver Hughes on the taxation issues.<br />

Email: john@johnbsheehy.com Email: info@lestrangeco.com


<strong>The</strong> foundation of<br />

the <strong>Dingle</strong> Whiskey <strong>Distillery</strong><br />

is a milestone


STARTING A TRADITION<br />

<strong>The</strong> foundation of the <strong>Dingle</strong> Whiskey <strong>Distillery</strong> is a milestone. It marks Ireland's very first move to introduce<br />

the craft-based, boutique distillery that is so much part of Scotland. Instead of another Irish whiskey, it had<br />

to be different: the first of its kind. A new tradition starts here.


DINGLEWHISKEY.IE

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