NEW YORK--(BUSINESS WIRE)--Cask whiskey investment leader, Whiskey & Wealth Club, has reported increased favourability with global investors this year. A total of 258 pallets of Scottish and Irish whisk(e)y have been purchased since lockdown through the wholesaler.
This year, €7.8m has been invested in cask whiskey through the Whiskey & Wealth Club from investors in the US, Europe and Asia, twice that from the same period last year. This comes as global financial markets across the world waver amidst the coronavirus pandemic. With the global economy forecast to shrink by 5.2% this year.
These asset-backed investments are not tied to financial markets. Investors receive full ownership and titles to casks which are stored in bonded warehouses for the ageing process, typically five to 10 years.
The popularity of whisk(e)y investment has soared in recent years. This year, rare whisky topped the Knight Frank luxury investments index, rising by 564% in value over the last decade.
Currently, the Scottish whisky cask market is estimated at $40m according to the IWSR, the global benchmark for wine and spirit data. Last year, exports grew to a record £4.9bn. Irish whiskey exports have grown by 300% in the past decade, with the US market worth $1bn alone.
CEO of 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.”
“The value of these premium sprits is largely determined by age, but also by the quality of the distillery and the brands they release. While all whiskey increases in value over time, some increase more than others. Working on an exclusive basis with leading distilleries really gives a strong value add to our clients. Combine this with the fact that cask whiskey is an asset based-investment not tied to financial markets makes it ever-appealing.”
“With expected returns around 10% and above as well as growing secondary markets for premium mature spirit, it’s little surprise that whiskey is currently liquid gold to investors.”