Reefton spir­its firm looks to raise $3.5m

Otago Daily Times - - BUSINESS & MONEY - AIMEE SHAW

REEFTON: West Coast spir­its com­pany Reefton Dis­till­ing Co is seek­ing to raise $3.5 mil­lion to fund its move into a big­ger pro­duc­tion fa­cil­ity to in­crease its man­u­fac­tur­ing ca­pac­ity and sup­port its ex­pan­sion over­seas.

The South Is­land com­pany, founded by Reefton lo­cal Patsy Bass about 15 months ago, pro­duces gin, vodka and liqueurs. It is gear­ing up to pro­duce a sin­gle malt whisky, once it moves into a new dis­tillery later this year.

The com­pany will launch its cap­i­tal­rais­ing on on­line in­vest­ment mar­ket­place Snow­ball Ef­fect in com­ing weeks, seek­ing funds in re­turn for about 30% of the com­pany. It seeks at least $5000 per in­vestor.

The com­pany, whose sales for the cur­rent fi­nan­cial year are on track to de­liver more than $1.3 mil­lion in rev­enue, is seek­ing a total of $3.5 mil­lion and a min­i­mum of $2 mil­lion.

Ms Bass, who is manag­ing direc­tor, told The New Zealand Her­ald the com­pany had re­ceived more than 400 ex­pres­sions of in­ter­est to in­vest.

The com­pany got off the ground in Oc­to­ber 2018 af­ter rais­ing $1.38 mil­lion.

Cap­i­tal raised this time around will be used to scale the busi­ness.

It would pro­vide a larger pro­duc­tion fa­cil­ity, the fit­ting­out and work­ing cap­i­tal, Ms Bass said.

‘‘It will [al­low] us to take the op­por­tu­ni­ties in front of us, and to look at ex­port. We are grow­ing ex­po­nen­tially, and that's with­out ex­port. We've had huge de­mand.’’

Reefton Dis­till­ing Co pro­duces four gin prod­ucts, a vodka and two fruit liqueurs, made out of botan­i­cals and fruits sourced from the South Is­land.

The com­pany leases the 200sq m build­ing it is in but hopes to re­lo­cate pro­duc­tion to a ‘‘sig­nif­i­cantly big­ger’’ prop­erty. It will re­tain the cur­rent prop­erty, in Reefton town­ship, as a cel­lar door.

‘‘We're look­ing at se­cur­ing our own fa­cil­ity that has got po­ten­tial for our long­term home, es­pe­cially once we're pro­duc­ing our whisky.’’

This year the com­pany would fo­cus on ‘‘set­tling into the new premises’’, de­vel­op­ing its whisky and ex­port­ing its first prod­uct, she said. It had its eye on Aus­tralia, Bri­tain and Ire­land.

New Zealand's gin mar­ket is boom­ing. Do­mes­tic sales were up more than 30% in the past year, driven by ar­ti­sanal, higher­end prod­uct and gin be­ing con­sid­ered trendy. — The New Zealand Her­ald

Newspapers in English

Newspapers from New Zealand

© PressReader. All rights reserved.