Terms and Conditions – Lolaire Whisky – Your Independent Bottler

Terms and Conditions from Lolaire Whisky

Terms and Conditions

LAST UPDATED FEBRUARY 2025

BACKGROUND

This document describes the arrangement between the Cask Purchaser, Lolaire Ltd and our parent company, Our Sommerlier Ltd, in relation to our cask sale and bottling process.

The terms within describe the terms and conditions by which Our Sommelier will facilitate the process from the purchase of a cask to the bottling and distribution of the whisky.

Our Sommelier Ltd is the main contact throughout the entire process and will arrange for the stock holdings of casks to be bottled, sold and distributed, on behalf of the Cask Purchaser.

OPERATIVE PROVISIONS

DEFINITIONS AND INTERPRETATION
1. In these Terms, unless the context otherwise requires:

Wholesale Selling Price is an estimated price and means the estimated price at which Our Sommelier Ltd will put the cask’s contents up for sale following the bottling process.

Sale of Cask(s) refers to the sale of an purchaser’s Cask(s), in which Our Sommelier Ltd will either bottle and distribute the product owned by the purchaser or sell such Cask(s) at wholesale to a suitable purchaser (as determined by our Whisky team).

Certificate of Title means Proof of Right to all contents of the Casks of whisky. Certificates will be issued by Our Sommelier Ltd to the purchaser upon receiving full payment. The purchaser’s capital will be put towards the cask and the bottling costs of the cask – in part or full.

Storage and Insurance is included in the Purchase Price for the first 5 years of storage; insurance covers against fire and theft of the cask and covers the purchase price. Storage and Insurance after the first 5 years will be charged annually at the cost price at the time of renewal.

Bottling, Labelling & Packaging costs for a premium whisky brand can vary depending on the type of bottles acquired, as well as the labelling & custom packaging. We estimate the cost of bottling, labelling and packaging to be between £160-£1,000 GBP per bottle however this can change depending on the luxury packaging and bottle choice. The estimate is based on today’s average costs.

Additional funding is also required to facilitate the running costs and to bring the whisky to the marketplace. This includes the cost of re-casking the whisky into smaller 50L firkins or similar, the supply of whisky bottles, labels, packaging, warehouse bottling costs, warehouse & office administration fees, transport, whisky consultancy & marketing. These costs are factored into the retail price. The retail profit contributes towards the next cask being bottled to cover the operational costs.

CONDITIONS PRECEDENT
1. This agreement shall only come into effect upon the transfer of title for the Casks of whisky specified on the Certificate of Title. A Certificate of Title will be provided to the cask purchaser within 30 days of the purchaser’s cleared funds of the purchase invoice.
2. If the Certificate of Title is not issued within 30 days of cleared funds, the parties herein shall be deemed released from further performance of their respective obligations under these Terms. Any monies paid by the purchaser pursuant to these Terms shall be refunded by Our Sommelier Ltd, without any interest or other charges thereon within 14 days from receipt of notice requesting a refund.
3. Our Sommelier Ltd maintains a right of first refusal should the purchaser wish to sell the Title to their Cask(s). We guarantee to make an offer to purchase any Cask(s) based on the agreed rate referred to at the time of sale.
4. Our Sommelier Ltd will give as much notice to the purchaser when we are looking to procure each Cask(s) for bottling.

2. SALE OF CASK(S)

1. You will be informed of the intended sale or estimated bottling date of your cask by Our Sommelier Ltd.
2. We may partially bottle a Cask’s contents or sell the Cask in its entirety if a suitable wholesale offer is made.
3. Our Sommelier will mediate the distribution of the sale of the bottled whisky on the Purchaser’s behalf.
4. Our Sommelier Ltd shall pay the final sum to the Purchaser, which is based on the Purchaser’s agreement at the time of sale.

3. SALE OF TITLE

1. The Purchaser may at any time opt to sell their right of Title (pursuant to any Cask(s).
2. Our Sommelier Ltd maintains the Right of First Refusal pursuant to Clause 2.iii) should the Investor opt to do so.
3. Our Sommelier Ltd reserves the right to sell casks on the Purchaser’s behalf, without prior warning or notice to the Investor to fulfil marketplace order(s). Details of the sale and payment will be sent to the Investor upon completion of the sale.

Cask Value Estimates and Returns

The returns payable to the Purchaser on the cask sale shall be calculated at the time of sale unless pre-determined and specified within.

For the avoidance of any doubt, the cask values will be based on market value, wholesale prices, and include a processing fee for Our Sommelier Ltd.
Payment to the Purchaser will be made when the full cask has been sold and payment collected.
Should the Purchaser opt to sell their right of Title of their cask before the cask is bottled, the market value of the cask will apply.
The percentage of the returns to the Purchaser is calculated after the cask has been bottled and represented as an average over the term held (per annum).