Whisky investment is increasingly popular, particularly among whisky lovers themselves. There are three types of whisky investment. Investing in whisky bottles, investing in whisky casks, and investing in companies themselves.
But how does whisky investment work? Let's take a look at each of these three approaches.
How to invest in whisky bottles
The best route to investing in whisky bottles is to aim for limited editions from prestigious brands, for example, Macallan. Generally speaking, the fewer bottles made, the better the potential of the bottle. Other characteristics also come into play, including whether the bottle has an age statement, how old that statement is, what the bottling strength (ABV) is, the style of whisky and cask, and so on.
It's important not to pay over the odds. Ideally, you should aim to pick up whisky investment bottles at the recommended retail price (RRP). This can be easier said than done. In many cases, it will involve entering ballots for the opportunity to then purchase the most limited releases. You can sign up to the website email newsletter, and your favourite brands will then let you know when there's a new limited edition going on ballot.
Once you've bought your bottle, keep it safe - somewhere it won't get knocked, will remain at a stable room temperature, and is out of direct sunlight. You should also look after the presentation box, if the bottle comes in one, as the packaging is also of value to collectors.
When you're ready to sell, there are a couple of good whisky auction sites that offer a secure way to sell whisky bottles.
How to invest in whisky casks
Whisky casks have an added advantage over whisky bottles: the whisky is still maturing. Because the whisky continues to mature in the cask, its flavours develop and it becomes inherently more desirable. This can help increase the value of your whisky investments.
The best way to invest in whisky casks is through a reputable cask broker. Make sure they hold the correct licences, are well reviewed, and price fairly. Once you've found a partner you trust, they can help you source casks that meet your whisky investment criteria. And, when you're ready to sell, they can also help you with this process, giving you an end-to-end solution.
How to invest in whisky companies
The mainstream way of investing in whisky companies is to research the major alcohol brands whose shares are freely traded on the stock exchange.
If the company performs well, the value of the shares could increase, and you may get a dividend. If the company does not perform well, the value could decrease and you may not get a dividend.
Exploring whisky investments further
In all three cases you should reflect carefully, invest within your means, and remember that all investments can fluctuate in value, up and down.
Of the three, Spiritfilled can help with investing in whisky casks. Spiritfilled is a cask broker that helps clients from around the world buy casks of single malt whisky. We've written a guide on whisky cask investments, which gives you further information. And, if you'd like to learn more, you can contact our whisky cask investment experts here.