Investment leaders in cask whiskey, Whiskey & Wealth Club, have reported growth in cask whiskey’s popularity with investors.
Whiskey & Wealth Club, recently commended at the prestigious UK Business Awards for business excellence, provides the rare opportunity to invest in casks of premium Scottish, Irish and American whiskey directly from leading whiskey distillers, for discounted wholesale rates.
While traditional financial markets across the world continue to fluctuate with the ongoing coronavirus pandemic, the result of which has seen the UK economy fall by a record 20.4%, investment in whiskey has been steadily rising.
So much so, since lockdown began in March, over 258.5 pallets of Scottish, Irish and American whiskey have been snapped up by savvy investors.
CEO and co-founder at Whiskey & Wealth Club, Scott Sciberras, said: “Despite the current predicament of global financial markets, cask whiskey investment bucks the trend. We’ve seen it go from strength to strength as it grows in favour with investors, which crucially is also supporting distilleries at this testing time.”
Since the start of the year (2020), Whiskey & Wealth Club has seen €7.8m of cask whiskey purchased – double the sales from this time in 2019.
But it’s not just this year that has seen unprecedented growth in whiskey investment, the popularity of investing in whiskey in recent years has grown substantially. Research carried out by Whiskey & Wealth Club revealed that 55% of investors were interested in investing in cask whiskey, and it’s not hard to see why.
Topping the luxury investments index curated by Knight Frank this year has been rare whisky, with these whiskies having risen in value by 564% over the last decade. Such incredible results has lead to a boom is positive whiskey and wealth club reviews.
Given the uncertainty of the current economic climate, investing in cask whiskey is becoming a great buy and hold strategy with investors. Purchasing these asset-backed casks is an ideal way to invest funds, as the casks are not tied to the fluctuating financial markets.
The benefits of investing in cask whiskey are numerous with investors getting full ownership and titles to the aging whiskey. These casks are securely stored in excise warehouses for the duration of the aging process (typically between five to 10 years), before being sold for a profit or bottled and enjoyed.
What return might an investor expect to receive for their whiskey investment? The secondary wholesale market for Scottish whisky, according to the IWSR, is worth approximately $40m. In 2019 alone, exports of Scottish whisky increased to a whopping £4.9bn. Irish whiskey is also experiencing a renaissance too, with exports increasing by 300% in the past ten years. The US market alone is responsible for $1bn of these sales.
Sciberras added, “With expected returns ranging depending on the length of the investment, we estimate conservative returns at 16.1% p/a or an annualized ROI at 10.11% p/a.”
About Whiskey & Wealth Club
Whiskey & Wealth Club is a wholesale whiskey company that offers both private individual investors and funds the opportunity to purchase premium, authentic Single Malt and Single Pot Still cask whiskey at ultra-wholesale prices, from leading Irish and Scottish distilleries.
The distilleries make casks of their new whiskey available to Whiskey & Wealth Club at wholesale rates which Whiskey & Wealth Club in turn then release to private investors and funds at a significantly discounted rate.
Whiskey & Wealth Club manages the storage and insurance of the whiskey investment for five years as standard, with the whiskey maturing in secure excise warehouses. Investors then decide when to sell their whiskey or bottle it to drink themselves.