“We’ve seen a great deal of interest from investors looking to diversify their portfolios. There is a real demand from people wanting to invest in whiskey.”
Cask whiskey – an alternative investment
Whiskey is an old and loved spirit. It takes a long time for it to be labelled whiskey and longer still to develop the depth of flavour. Whiskey becomes smoother and richer in flavour the longer it matures. The harshness of the alcohol decreases whilst the quality of the spirit increases dramatically.
Purchasing cask whiskey is often compared to wine investment but the two are very different. Grapes need to have the right amount of sun and rain, at the right times which determines the wine with some years better than others. With whiskey time is key along with, the quality of the barley, malt and water, plus the distiller’s technique and the wood it matures in play – but the main indicator in whiskey’s value is its maturity.
Whiskey continues to age in the cask which means it is favoured as an investment over bottled whisky.
Why distilleries need investors
Distilleries make spirit. In order to generate an alternative source of funds or to gain more control over funding, they can produce new make spirit and sell the casks at wholesale rates. Some distilleries use this model to ensure a consistent revenue stream. They can cover running costs while the bulk of their spirit is laid to rest to mature and be bottled many years into the future.
Whiskey & Wealth Club facilitates this process. We contractually agree a price to buy large quantities of this new make spirit, which is taken straight off the stills and put in quality casks. We then store the whiskey in a bonded warehouse, and ensure the casks are fully insured for five years against fire, theft, accidental damage and spoilage.
Find out more about Whiskey & Wealth Club here.