Ferovinum launches into Scotch whisky with £100m of support
The fintech business behind wine and spirits inventory funding platform Ferovinum has today announced its launch into the Scotch whisky industry, with an ambition to transform the way distillers, bottlers and brand owners fund their growth.
Backed by institutional capital to deploy £100 million of support for Scottish business in the next year alone, Ferovinum’s technology allows companies to quickly and easily access their ‘liquid assets’, turning stock into working capital to reinvest wherever and whenever it’s needed.
Furthermore, because Ferovinum is not an exchange, broker or trader, and takes no speculative interest in the value of stock on the platform, power is handed to users so they can stay in control of the process at all times.
Ferovinum was launched in 2018 and is already established as a tried and trusted funding partner to the English wine sector. Founders and global finance experts Mitchel Fowler and Daniel Gibney have now appointed Scottish drinks and hospitality veteran Gregor Mathieson to lead their Scotch whisky operation.
Mr Mathieson is confident that Ferovinum’s flexible funding model - buying stock to release cash into businesses with a long maturation process, then selling it back to meet sales once ready for release – has never been more relevant for the Scotch whisky sector.
After a successful pilot with market-leading independent bottler Adelphi and The Glenturret, Scotland’s oldest working distillery, Mr Mathieson believes a modern, flexible and favourable alternative to traditional bank finance is long overdue, to maximise whisky’s huge potential and help companies stay competitive in global markets.
Mr Mathieson commented: “Ferovinum is already bringing some real financial muscle to the burgeoning UK wine industry with a model that is now absolutely right for Scotch whisky businesses, many of which are facing the same challenges and opportunities. This is about democratising access to finance with levels of growth funding that have traditionally been out of reach for most companies, whether they’re heritage brands or one of the exciting new entrants to Scotland’s whisky market.
“Having founded and managed whisky businesses over the past few decades myself, I immediately understood the benefits that the Ferovinum platform brings. Companies typically have a lot of stock, but for most, it sits in warehouses as a completely dormant and untapped asset. Releasing its value using bank facilities is often a prohibitively lengthy and cumbersome process, which is problematic at a time when the need for agility and acting quickly to seize opportunities has never been greater.
“Ferovinum overcomes these barriers. Once companies are up and running on our platform, they’re in full control of the funding process. They can log in and upload stock to release cash within a matter of days, to expedite funding for any project and buy it back whenever they need it, with no additional fees or penalties.
“The platform also brings business efficiencies, supporting logistics, stock management, supply chain automation and procurement, helping users protect their profits. And because The Ferovinum team is commercially neutral, we’re on side with expert advice at all times, always working in the best interests of our clients to help them realise their goals and ambitions.”