Roll out the barrel: Do you fancy yourself a whisky maker?
Waikato’s Good George, a craft beer, cider and gin maker is launching a whisky share venture called the People’s Cut.
It offers whisky fans a chance to team up with others to buy a share in a barrel of single malt whisky, distilled with their flavour choice.
Those with no friends can buy a whole barrel for themselves, sit back for five years and wait for the contents, and hopefully the returns, to age nicely.
A barrel costs $16,000 and yields about 250 bottles. Investors can buy a whole barrel or take a 10 per cent or
50 per cent stake in a barrel. Good George says it has already sold 35 barrels pre-launch.
Precise profit returns are difficult to forecast, but investors can be confident this is an appreciating asset in a sector set to outshine gin in the premium spirits market over the next
10 years, Good George co-founder and in-house whisky maker Brian Watson says.
“Barrel owners can expect anything from an 8 to 15 per cent return based on current market trends from overseas,” he says.
When investors choose to bottle their whisky, they’ll have to pay an alcohol excise tax, which Watson says works out at about $20 a bottle. Insurance and storage fees are included in the whole barrel price. A certificate of title is issued with each barrel.
On the five-year aging journey — the minimum aging time — barrel owners can visit the distillery in Hamilton annually to taste their whisky. They can store their whisky longer than five years, if desired.
The programme makes it easy for Kiwis to jump on an international trend and develop a custom product without the pricey setup, says Watson.
“Whisky is product where you (the investor) bring the secret sauce. We just help you make it happen — with a few guard rails in place. What’s most exciting about the flavour combinations in the pipeline is they are uniquely Kiwi and will stand out from the crowd.”
Not all investors will want to cash in by reselling their whisky, he says. Some private purchasers will keep the finished product after five years to share and enjoy for years to come.
That said, Good George will help investors sell their shares after three years.
Good George, with 12 branded, licensed venues and its product in 700 retail outlets and 50 hospitality spots nationally, will operate the share scheme. The whisky will be stored in its barrel hall in Hamilton’s Frankton, where the company started in 2012. Today, Good George has annual revenue of more than $20 million and has posted revenue growth of more than 10 per cent a year for the past three years. It employs 40 in the Frankton brewery and another 100 across the group.
Watson told the Herald 100 barrels had been allocated for the first year of the People’s Cut programme. The company had invested more than $800,000 in the venture so far and had made several different whiskies.
“The interesting thing about People’s Cut is we can make whatever the customer wants, from an American style all the way through to a peated-style whisky,” he says.
“We’ve had a lot of requests for different whiskies. The whisky we have was made in 2019, it’s aging very well in ex-bourbon barrels . . . it won a silver medal at the New Zealand Distilling awards in 2023 when it was only four years old.
“It outperformed a number of 12-year-old Scottish single malts. “The main requests are for this type of whisky, and we are also laying down heavily peated whisky at the moment.”
Watson says New Zealand’s subtropical climate significantly speeds up the aging process.
“The Waikato’s extreme temperature variance is quite unique . . . very hot days in excess of 30C, but at the same time very cool nights as low as
10-12C in the middle of summer. “The temperature change accentuates the expansion and contraction of the liquid within the heavily-charred wooden barrels, adding colour and depth to the flavour while making the whisky richer and smoother.”
Good George has a team of distillers for the whisky venture, which Watson says was “a natural evolution” for the company.
“We have a full brewery and access to some of the world’s greatest malted barley grown right here in New Zealand. We have also experienced a great deal of success distilling gin, both in sales and winning industry awards.
Watson says the distillery has a variety of barrel types, from bourbon barrels from the US, virgin oak from France to ex-IPA and New Zealand merlot and pinot barrels.
It has 50 barrels of whisky in storage and the goal this year is to lay down another 100.
“It’s a unique product. Buying a barrel appeals to a wide cross-section for different reasons.
“It appeals to whisky lovers, people who don’t know about whisky but want to learn, people who want to own a barrel for the bragging rights and those who are seeking to make a canny investment.”
Whisky education is part of the package, Watson says.
“People’s Cut is all about bringing people on the journey with us.
“They get to come in and watch their barrel get filled.”