Hundreds of Nant whisky investment barrels ‘were never filled’, damning audit reveals

MORE than 700 whisky barrels sold to investors by Aussie distillery Nant have “never been filled with whisky and are not there”, a damning audit has found.

Australian Whisky Holdings says more than 700 Nant whisky investment barrels have ‘never been filled’. Picture: Mathew Farrell

MORE than 700 whisky barrels sold to investors by the Nant Distillery have “never been filled with whisky and are not there”.

And “many more” barrels that were sold are still unfilled, according to the company that had struck a deal to buy the Tasmanian distillery business.

Hundreds of people who tipped funds into the whisky barrel investment scheme now stand to lose millions of dollars.

The damning report card follows an audit of Nant’s finances by listed group Australian Whisky Holdings.

Luckier investors in about 1000 barrels have fared better and their investment is safe, Australian Whisky says.

Hundreds of whisky barrel investors now stand to lose millions of dollars.

The group carried out the audit as part of its due diligence process after striking a deal last year to buy the Nant Distillery business.

Last month it bought the Nant Estate at Bothwell, north of Hobart, but it said last week the deal to buy the broader Nant Distillery business had collapsed because key conditions had “not been fulfilled”.

The unlucky barrel investors join a growing number of tradespeople and suppliers around Australia chasing money owed to them by Nant, linked to the family of bankrupt businessman Keith Batt, who owes $16 million from his failed property business.

Australian Whisky has sent letters to investors in the Nant barrel scheme revealing the results of its audit.

Australian Whisky chief Chris Malcolm said in the letter that it was the “most extensive audit of whisky stock that has ever been done in the history of whisky distilling in Australia”.

Macca cartoon.

It had “uncovered a number of serious anomalies”, Mr Malcolm said.

“There have been more than 700 barrels sold to barrel investors but the barrels have never been filled with whisky and are not there,” he said.

“There are many more than this number still unfilled.”

Mr Malcolm said confidential negotiations with the Nant group of companies revealed the extent of the empty barrels.

“Australian Whisky Holdings Limited offered Keith Batt and his companies a very competitive price to fill these non-existent barrels at a rate cheaper than Australian Whisky Holdings Limited are even buying from independent distilleries for our own needs,” he said.

But Keith Batt had “turned down this offer”, he said, “so these barrels remain unfilled.”

Keith Batt.

Investors in the Nant investment scheme ranged from self-managed super funds and “mum and dad investors” to whisky lovers and industry leaders.

They bought the barrels in 13 different offers, including 100, 200 and 225 litre barrels. Nant promoted the investment scheme aggressively earlier this decade, along with a similar scheme involving angus cattle.

Some buyers bought two 225 litre whisky barrels for $25,000 with a guarantee that Nant would buy back the barrels on maturation for more than $36,000.

People who have invested in “unfilled” barrels will now have to pursue Nant for redress.

Mr Malcolm told investors he had the “deeply sad duty to inform one of the barrel owners that the barrels he had invested in have never been filled and don’t exist”.

“You can imagine how difficult the phone call was for both of us,” he said.

“There are many more of these conversations unfortunately to come.”

A whisky bottler checking the Nant barrels during the audit by Australian Whisky.

While the whisky business includes bars on the mainland and a bar and hotel in Hobart, Australian Whisky only wanted the estate at Bothwell.

The negotiations began in October last year, when Australian Whisky announced it would pay $3 million in cash and assume certain debts and liabilities of the Nant group to the tune of $5.5 million.

On February 17, Australian Whisky announced the purchase of Nant Estate at Bothwell.

On March 2, the Sydney-based group announced to the stock exchange that its deal to acquire the broader Nant Distillery business had collapsed, while the Nant Distilling Facebook page said Australian Whisky had “failed to secure” the broader business.

“Australian Whisky Holdings has purchased the land only where the distillery is located,” the Facebook page said.

It said it was looking at securing a new storage facility and all the plant and equipment and barrels would be moved.

Australian Whisky disputes this and says it will not be dealing with Nant, but with secured creditors.

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