What price a dram of Tasmanian whisky?
Quite a lot, judging by a trading update from Lark Distilling (formerly Australian Whisky Holdings) which revealed the value of its 1.1 million litres of maturing whisky surged 140% to $236 million.
It is forecasting the stocks will be worth $389 million by the end of 2021-22.
That’s certainly better than house prices in Sydney at the moment.
The update was released on Tuesday evening and traders grabbed the news and ran with it, sending lark shares up nearly 31% yesterday to $4.24.
That takes the rise so far this year to 150% and the market value to more than $122 million, which while at its all-time high, is substantially less than the value of its whisky holdings.
Lark said in the update that the value of litres under maturation was $100 million at the end of 2019-20, but will be $400 million by next July as it produces 700,000 more litres of more whisky.
(And it is similar to wine that it takes several years for the drink to mature, which means the value isn’t realised until it is sold).
And the $236 million value assumes it can maintain a sales price of $216 a litre.
The briefing gave a big hint as to the ambitions of the company for going upmarket, and no doubt the appetite of its customers to consume the Lark dram at whatever the cost.
The company revealed it released two new whiskies in 2020-21 — it launched Lark Legacy at more than $1,800 a bottle and the Lark Rare Cask Series at more than $500 + a bottle.
