Waterford Distillery Group, a premium whiskey distillery specialising in cultivating organically grown barley using biodynamic farming, has received €45m funding from HSBC UK to support its growth and export strategy.

The company said the funding will support the company’s expansion into a premium UK supermarket, and exporting strategy through new international sales.

Waterford’s whiskey is currently available in 32 countries.

Working with HSBC Ireland, HSBC UK provided €45m financing to Waterford through a bespoke Cross Border Asset Based Lending (ABL) facility leveraged against the company’s maturing casks of whiskey.

Founded in 2015 by Mark Reynier, formerly the co-owner of Bruichladdich.

In Association with

Hebrides distillery Bruichladdich was acquired by Remy Cointreau in 2021 for £58m.

A group of private investors led by Reynier purchased the Victorian distillery on the isle of Islay in 2000 and revived the business.

Waterford Distillery makes premium-priced whiskey in a converted Guinness brewery.

The company has sustainable practices at its heart and focuses on growing and harvesting local barley, whilst working with a host of local farms to create Single Farm Origin single malt whiskeys.

As part of its sustainability strategy, Waterford has also produced the first Irish whiskey that has been certified as organic by the Organic Trust.

Reynier said HSBC UK was the bank of choice for his venture because of the bank’s expertise in cross border trade, the whiskey sector and the bank’s long-term relationship with the management team, who prior to incorporating Waterford, were the owners of Bruichladdich Distillery, which banked with HSBC UK until it was sold.

Grant Bett, HSBC UK relationship director, commented: “For over ten years, HSBC UK has built a strong relationship and track record working with Waterford’s management team on several successful ventures.

“We are delighted to refinance Waterford Distillery and support its ambitious plans to expand internationally, as part of its growth strategy.

“Waterford is a fantastic example of an innovative whiskey distiller using local providence and sustainable practices to bring their award-winning brand to the global market.”

Mark Reynier, CEO of Waterford Distillery Group, stated: “It is a pleasure to be back with Grant and HSBC UK, with whom we have worked before on previous ventures. 

“Waterford is natural single malt whiskey, barley-forward and terroir-driven flavours. Now, together with this HSBC UK facility and the outstanding stocks of maturing whiskey, we can bring Waterford to a wider global market.”

The distillery in Waterford operates through Spirit of Waterford Distillery Ltd, a subsidiary of London company Waterford Distillery Group Ltd.

The parent reported turnover of £2.9m in 2021 and booked a loss of £750,000 after accounting for a £760,000 depreciation charge.

In December 2021, the balance sheet of the Irish operating company showed fixed assets of €14m, and alcohol and whiskey stocks valued at €31.9m.

Total liabilities were €32.4m, including ‘other loans’ of €30.7m.

HSBC UK was advised by Simon Prendergast and Simon Warburton in Dentons UK, Peter O'Brien in Dentons Ireland, and Christian Humphries in Sanderson Weatherall LLP.

Waterford Distillery Group was advised on the funding transaction by Muireann Hernon in Mason Hayes & Curran, and Dawn Reoch in Burness Paull LLP.