Q & A
Why and how to invest into Whisky
How does Oak Group invest into whisky?
We have our internal team working together with external partners. We are investing mainly in bottles, but will also invest in a few casks for long term holding. Over 95% of the investments are made into well known brands for maximum security.
Where the whisky is purchased from?
For us the first priority is the authenticity of the whisky. This means that we are mainly purchasing directly form the distillers or their authorised dealers across the world. We will naturally also be active in auctions. Most of the inventory consists of Scottish Single Malts.
Why to invest in whisky?
As long-term Whisky Index shows, whisky as investment has been performing better that most of the traditional assets. The future of whisky as an investment looks very promising too. Due to fact that consumption seems to be growing but supply of rare whisky does not so it is natural to expect that the current trend will continue.
What is the inventory management and liquidation strategy?
We are keeping about 80% in long-term inventory and 20% in ongoing trading for covering expenses and making sure that we have enough funds for paying dividends.
Where is the inventory stored?
Our long-term storage is in Scotland and short term in Europe for logistic reasons and minimising possible Brexit issues. Barrels are mainly stored at the distilleries. All warehouses are bonded for tax reasons.
How is Oak liquidating and when?
Our liquidation is based on the market conditions. Three main channels are directly to restaurants through our network, auctions and collectors and whisky enthusiasts through our web store.
Why is the maximum investment only £1 million?
Due to fact that purchase process might take several months there is no reason to raise more funds that we can invest in to the market in reasonable time. Our main goal is the expected performance of the inventory, not the quantity of it.
Oak Group as an investment and security
Why tokenised shares?
Share tokenisation brings extra layer of security for the investors and also opens a possibility for a global aftermarket trading. Tokenisation is currently the most cost effect way of trading SME shares.
What if crypto market loses value?
Our share price is calculated in GBP (English Pound, £). Whatever happens in the crypto market will not have effect on our share value. Dividends are also valued in Pounds.
Where do you base the expected earnings used on calculations?
Our calculations are based on RW Apex 1000 [link]. Our inventory is evaluated every year by a third party for giving investors a fair valuation. Evaluation prices are based on UK auction prices.
How will the profits be shared?
After taxes, profit will be shared on a 60/40 basis, 60% paid as dividends for all shareholders and 40% re-invested for the future growth. When the inventory is liquidated after five to seven years all of the profit will be paid as dividend for the shareholders.
What is expected profit margin and expenses?
Maximum expenses are 20% of the revenue. We have negotiated a unique model with our vendors, where they are committed to profit sharing based on expenses. This means that if for some reason we would not make any profit in one year, there would be no expenses either. This means that we will never use the inventory for covering the costs.
Does investor have to pay some fees in the future?
No. company pays all the purchase and inventory storage expenses as well as all operative costs (max 20% of revenue).
How does Oak guarantee the authenticity of whisky?
First element is our purchase policy. We will never invest in a bottle or a barrel if we can’t be 100% sure of it origin. Second element is our well-kept secret of future authenticity process. We have created a method which makes it possible for us to authenticate a bottle years after it has been purchased from us. This method will actually add extra value for the collectors or anybody else who is trading a bottle that has been purchased from us.
What do you mean by being 100% transparent?
We want that our investors can easily follow the performance of their investment as well as feel secure about everything. This is based on 3 main elements.
1. Real time performance reports for investors.
2. All the transactions are store into Blockchain ledger and easily adduced by any investor
3. Third party evaluator who’s report is used for evaluating the inventory based on UK action prices.
How to invest and what to expect
How can shareholders follow-up the performance?
Our shareholders have an access into a real time inventory management system where the portfolio performance and all the trading is displayed. Through this system investors can easily follow the performance of each single investment as well as the total portfolio performance.
Are tokenised shares traded in secondary markets?
Our tokens will be traded in the future. We know that some investors might want exit before 5-7 years, and we do want to make this possible.
What means 5-7 years lifespan?
We are liquidating the whole portfolio after five to seven years from the first purchase. Five to seven years is based on market performance. If we see that for some reason market growth is lowering or whisky prices are overvalued, we might liquidate everything after five years for guaranteeing the best possible performance for our investors. If it looks that everything is performing as it has been, we keep the investment open for seven years.
What other benefits are there for the investor/shareholder?
We offer our shareholders a possibility to partner with us on some purchases with better price. Our shareholders will also have special discounts on most of the products.
When we are ready to launch to global whisky lounge chain, Oak Library, shareholders will automatically get a membership.