Whisky investments have proved to be a high performing asset class, our team will help lead the way, with prices reaching new highs in recent years. For new investors looking to enter the whisky market, it can be a daunting proposition due to the relationship-based nature of acquiring sought after whiskies. The Spirit Exchange are uniquely positioned to guide clients new and experienced alike through the opportunities to invest in whisky, be that through individual & collectable bottles or entire casks.
Scotch whisky investment has consistently been recognized as one the world’s leading tangible asset classes. In the 2019 Knight Frank Wealth Report, an index of the top 100 rare Scotch Whisky bottles was recognized as the leading investment class of the year. The returns associated specifically with scotch whisky casks are also robust, with capital growth exceeding 12% per annum on average. One of the most powerful aspects of Scotch Whisky casks is their resilience to market volatility and downturns in the broader economy. Throughout economic cycles, Scotch whisky casks have continued to generate consistent returns for investors. As the chart demonstrates, capital growth remains strong for investments in Scotch whisky casks.
Scotch Whisky has a completely different regulatory structure than bourbon whisky, but one which provides a similar level of protection for investors. Every cask of whisky that is distilled by a licensed distillery must remain in a government bonded warehouse throughout the maturation process. Records of these casks are maintained by both the warehouse and the HMRC (Her Majesty’s Revenue and Customs). This system ensures that the provenance of each cask can be verified such that any bottle labeled as Scotch can be traced back to its origin. The Spirit Exchange ensures that all partner distilleries, warehousing facilities and investment offerings adhere to appropriate legal requirements so that investors are protected to the maximum extent.