Karabiner Mountaineering Club Centenary Whisky Bottling

This is a literally once in a lifetime opportunity. It is a chance to own a little of the club’s future and a little slice of history at the same time.

2019 is the 75th Anniversary of the KMC.  There will be a number of events to celebrate and one of them will be the production of the first official KMC single malt whisky.

250l of single malt spirit from Ardnamurchan or Annadale distillery in 2019 will be matured in a refill American Oak, ex-sherry hogshead barrel for 25 years.  In celebration of the KMC centenary in 2044 the whisky will be bottled and made available for purchase.

The expression will be unique to the KMC and will be called:

An Taigh Pùdair – The Powder House – Ty Powdwr

Buy a share in the barrel

Shares in the barrel will be made available to full KMC members to buy.  Each share will be for 700ml (a standard bottle). The up-front cost is £19.78 per share.  If you want to buy a share or want more information, please e-mail whisky@karabiner.org. To reserve your share,  please include in the e-mail the number of shares you would like to purchase.

The deadline for committing is 31st March 2019.

Once I have the exact invoice from the distillery I will contact those who have reserved shares to obtain payment.

Future costs

In 2044, the barrel will have matured and the whisky will be bottled.  Those members with shares will be allowed to purchase a bottle at cost.  These costs will include:

• Bottling fee and labelling - £2.42
• Alcohol duty - £8.05 to £12.07 depending on bottling strength
• VAT - £6.32

Based on these numbers, converting your share into a bottle will cost an additional £20.86 bringing to total investment to £40.63/bottle.

Even though taxes are one of the two certainties in life we cannot guarantee the rates will not change in future.  The numbers above are just a guide. There is also a risk that the cask may be damaged over such a long period of time.  If the barrel needs re-casking we will need to pay for that. A new cask is currently around £150 so this should be less than £1 per share.

What if we don’t get enough interest?

If all 205 shares are not purchased up front, the purchase will not go ahead.  

What about future members of the club?

Shares will not be put aside for future members of the club though members with more than one share may wish to pass theirs on.  As the whole operation is done on a not for profit basis you should not look to sell your share for more than the purchase price.

What if I bought a share but decide later I don’t want to buy the bottle?

The club will not be offering refunds on shares, though equally you are not compelled to buy a bottle upon maturation.  However you are free to trade your share with other club members (see section on transferring shares). As the whole operation is done on a not for profit basis you should not look to sell your share for more than the purchase price.

What if I want more than one share?

We estimate that there will be around 205 shares available.  There will be an initial limit of one share per member but with the option to purchase more if there is capacity available.  Please indicate when you order how many shares would like to purchase and we will try to accommodate.

Can I transfer my share to someone else?

Inevitably over such a long period of time there may be need for shares to change hands.  Please inform whisky@karabiner.org of the decision so we can track the shares over time.

Appendix A - Cost details

The Angel’s Share

The barrel will be filled to a capacity of around 250l however over the maturation period some of this liquid will evaporate (the so-called “angel's share”). This is around 5% in the first year and 2% for every year after that.  This means when we come to bottle we will only have around 143l remaining, enough for around 205 bottles. If we have more spirit remaining then additional shares will be offered to club members on a first-come, first served basis.

Insurance

The purchase of the barrel includes storage and insurance for 15 years.  After that, the distillery charges between £65 and £75 per year. The worst case costs for this additional storage are included in the share price.

Alcohol Duty and VAT

As a guide, current duty is £28.74 per litre of pure alcohol so for a 700ml bottle between 40-60% will yield a duty payment of between £8.05 and £12.07.  The spirit will be bottled at around 63.5%.

VAT is currently 20% which would be charged on the total cost including duty.  For this bottling it will be: ( Share Price + Duty ) x 20% = £6.32.

Bottling and Labelling

Bottling cost estimates are currently £2.42, based on costs from The Arran Distillery.