Shawbrook lends £22.5m to McConnell’s

Belfast Distillery Company Ltd, trading as McConnell’s Irish Whisky, has clinched a significant £22.5 million Asset Based Lending (ABL) facility from Shawbrook aimed at supporting its ongoing growth and expanding its international footprint. The historic brand, first launched in 1776, has played an instrumental role in establishing Belfast as a pivotal centre in the global whisky trade. At the beginning of the 20th century, the city was responsible for exporting 75% of all Irish Whisky worldwide, making Belfast a key player in the whisky arena.

However, the industry saw a decline during the latter half of the last century. Since its relaunch in 2020, McConnell’s Irish Whisky has been at the forefront of a whisky renaissance in the region, symbolising Belfast's modern success. Over the six years since this revival, the brand has broadened its export reach to more than 45 countries, accumulating over 55 International Whisky Awards in the process. The opening of its brand home in the heart of Belfast in 2024, transforming an old Victorian prison into a cutting-edge distillery, allows the production of 500,000 litres of pure alcohol annually. Currently, McConnell’s portfolio includes four premium and ultra-premium expressions, with more planned for the future, each small batch and personally approved by master distiller Graeme Millar.

The £22.5m ABL facility from Shawbrook is structured around McConnell’s maturing Irish Whisky inventory, replacing previous ABL agreements and providing vital funding to bolster long-term stock maturation, support international expansion, and facilitate early-stage bulk commercialisation of their premium whisky. John Kelly, CEO of McConnell’s Irish Whisky, expressed his thoughts, saying “Reviving a brand of this scale requires patient capital and a funding partner who understands both our growth ambitions and the dynamics of maturing whisky inventory. Shawbrook demonstrated a genuine appetite to understand our vision from the outset. This facility gives us the flexibility to continue investing in our stocks, our international footprint and our visitor experience. The facility will also provide us with the resources required to continue on our mission to put Belfast back on the Whisky Map where it belongs.”

Oliver Sutton, Senior Director of Asset Based Lending at Shawbrook, spoke of the partnership, stating “McConnell’s represents an exceptional blend of premium positioning and international growth ambition. We engaged early with management and took time to understand the evolution of the business and the long-term value embedded within its maturing inventory. It has been a pleasure to work alongside John and his passionate team in delivering this facility that will see them continue to revive the city’s reputation in the world of Irish Whisky.”

Fellow Senior Director Oliver Jenkins also highlighted the adaptability of the facility, saying “Our £22.5m ABL facility is structured to provide the flexibility and headroom required to support McConnell’s journey. Key to our delivery was gaining a deep understanding of their current lifecycle stage and tailoring our offering to their future growth and aspirations.” Rothschild & Co advised McConnell’s on this significant transaction.