Investments in whisky
Whisky is one of the most profitable alternative asset classes. For many years, the rates of return on investment in whisky have been very high, overcoming other alternative investments, such as rare coins, wine, works of art, or watches.
When buying a barrel of whisky, you buy a product which value increases with age. This increase is influenced by qualitative factors (in simple terms – the distillate taste improves with the maturation time in the barrel), as well as quantitative factors (almost 90% of barrels are bottled before or shortly after reaching 12 years of maturation, which affects the high rarity of barrels older than 12 years).
The uniqueness of investments in barrels of whisky
is that they are independent of the situation on the stock exchange or raw materials markets. The low correlation with traditional financial instruments makes barrels of Scotch whisky ideal for the diversification of the investment portfolio.
In the long term, the whisky market has been steadily growing for two decades. The value of Scotch exports in 2019 reached a record level of £4.9 billion.
Last year, the Scotch whisky industry was affected by three unprecedented events – the global pandemic, the customs war with the largest export market and the difficulties caused by Brexit. The situation did not cause a drop in consumer interest and demand for Scotch whisky, nor did it have a negative impact on the price of bottles of whisky.
The data for the first half of 2021 show the first signs of recovery – exports of Scotch whisky increased by 31% compared to the first half of 2020.
All available data indicate that the supply of Scotch whisky is not keeping up with the growing demand.
Despite the growing number of distilleries in Scotland, the demand for Scotch whisky, especially in Asian countries, is much greater than the production capacity.
Whisky barrels purchased by our investors are a quality component of blended whisky, which still accounts for the majority of production in Scotland.
The uniqueness of investments in whisky barrels is that they are independent of the financial markets, so even the possibility of an economic crisis does not affect them. A large influence on the stability of the market is the steadily increasing demand, both for blends and single malts, while the supply of barrels is limited. Returns on the whisky and stock markets and on raw materials are characterised by low (close to zero) correlation coefficients, indicating that the whisky market can be considered as an alternative to the stock and raw material market.
Whisky barrels purchased by our investors are a quality component of blended whisky, which still accounts for the majority of production in Scotland. Despite the growing number of distilleries in Scotland, the demand for Scotch whisky, especially in Asian countries, is much greater than the production capacity.
By investing in Scotch whisky barrels, you become the owner of the physical assets. Investors receive a full description, including information about the distillery and the barrel used. The barrels are insured and stored in a distillery in Scotland.
The experience of Scottish distilleries guarantees storage in ideal conditions that ensure safety and proper aging of the distillate. The customer can end the investment at any time and sell his barrels.
The process of investing in barrels of whisky
Advisor of Stilnovisti, after consultation with the client and the investment committee, prepares the offer of barrels. Our priority is always to meet customers expectations. Depending on the desired size and degree of portfolio diversification, the purpose of the barrels, the length of the investment or even the investor's personal preferences, we are able to propose a portfolio of assets that will be fully adapted to the individual requirements of the client.
The customer becomes the owner of specific barrels of whisky. Receives proof of purchase and all necessary information and documents confirming the ownership.
The barrel ripens in Scottish warehouses and takes on value over time. Assets are insured against theft, damage and fires.
Barrels most often go to producers of blended whisky. The growing demand for blended whisky, combined with the limited production capacity of Scotch whisky, means that investors do not have to worry about the liquidity of their assets.
We are one of the few Polish companies that has the status of an independent bottler. We are able to carry out the entire process for the customer, from bottling to distribution and promotion of a unique, limited series of whisky.