This week’s announcement that Lark Distilling Co will acquire Shene Estate & Distillery is another sign of the rapid growth trajectory of Tasmania’s foundational distilling brand.
Lark announced on Monday that it had entered into a binding agreement for the acquisition of Shene Distillery, the business that was founded by Anne and David Kernke in 2016 and aided by distiller Damian Mackey and his Mackey whisky brand.
The $40 million acquisition is comprised of $38.5 million in cash and $1.5 million in Lark shares to be issued to Shene’s owners. Lark plans to spend $13 million to build a new distillery at Shene Estate, with a capacity to produce 1 million litres of spirit per year. The new distillery is expected to be operational in early 2023.
The sale includes Shene’s 40 acres of land and buildings, including the Shene Distillery, upwards of 400,000 litres of whisky stocks, a cellar door, eight bond stores, a working cooperage and the historic stables and homestead.
Shene Estate & Distillery – Supplied
Lark had already purchased 30,000 litres of Shene whisky around six months ago to help avoid a potential shortfall in mature whisky stocks in 2023-24. Alongside existing Lark and Nant stocks, the takeover will increase Lark’s estimated whisky under maturation to 2+ million litres by June 2022.
Shene Distillery was 30 per cent owned by the Kernke family and 70 per cent owned by Sydney businessman John Ibrahim, as reported by the Australian Financial Review. The newly constructed Callington Mill Distillery, set to opens its doors this December, is also owned by Ibrahim and will become one of Tasmania’s largest distilleries when fully operational.
Bill Lark and head distiller Chris Thomson. Supplied – Lark Distilling Co.
Shene is Lark’s second distillery purchase in five years, after the business, which formally traded as Australian Whisky Holdings, acquired Nant Distillery and its associated scandals in 2016.
When Lark’s current managing director Geoff Bainbridge took leadership of the company in 2019 following a board room coup, the Lark strategy has seen single malt whiskies including Overeem and Nant rebadged under the parent ‘House of Lark’ brand. The strategy has drawn criticism from some in the industry, as the practice confuses accepted standards on single malt whisky brands being produced in the one location.
As with the rebranded ‘Bothwell’ Nant Distillery site, Shene Distillery and the whisky produced there will now be referred to as Lark’s ‘Pontville’ whisky, and sources in the Tasmanian industry told Oz Whisky Review that the Shene brand will be wound up. What becomes of Shene’s popular, award-winning Poltergeist Gin is unclear.
Mackey Single Malt Whisky – Oz Whisky Review
Oz Whisky Review can reveal that the Mackey whisky brand was recently sold by Shene and the trademark transferred to a new owner. A source told Oz Whisky Review that the new owner is looking to revive the brand with previously acquired Mackey whisky stocks.
As for Mackey whisky’s founder, Damian, he and his wife Madeleine recently revealed they’re producing Tasmania’s first Irish single pot still-style whiskey, set for a probable release next year.
Shene Distillery, which recently rebranded its portfolio of Mackey and Shene whiskies, was contacted for comment on the acquisition but no response was provided. Responding to questions on the sale raised on social media, Shene commented:
‘The directors of Shene decided that it was in their best interests and in the best interests of the Shene distillery to sell to Lark. Shene needed extensive capital to expand production and realise its potential on the global market.’
Speaking on the release, Bill Lark said: ‘Lark at Pontville points to the exciting future of Australian whisky. I could never have imagined 30 years ago from my kitchen bench, where that very first bottle of Lark was made, that in 2022 we’d be producing some of the world’s best whiskies across three exceptional distilleries right here in Tasmania…’
The sale will also assist in Lark Distilling Co’s ambitions to enter the export market in 2023, as Lark managing director Geoff Bainbridge said of the acquisition.
‘Critically, the age profile and quality of the whisky under maturation being acquired will enable The House of Lark to commence an export programm from FY23 which is approximately 12 months ahead of previously published plans.’