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What is the buzz about whisky investment? Reasons for its high growth rate and the casks attracting attention now.

2022.02.03 / Last Updated: 2022.04.28

Whisky investment is an investment method where you hold whisky for the long term, expecting its price to increase over time.

There are mainly two types of whisky investment: cask investment and bottle investment. Currently, cask investment—where you purchase entire casks of whisky—is attracting the most attention.

However, there are many people who are interested in cask investing but do not know how to invest.

This article provides a comprehensive explanation of everything you need to know before starting whisky investment.

Key Points of this Article:

  • Explaining how whisky cask investment works and why it is recommended
  • Introducing how to choose the right cask and recommended brands when starting whisky investment

What is the trending whisky investment?

There are various theories, but whisky is said to have originated as a drink enjoyed by Scottish royalty before the 15th century.

Whisky is highly popular, and a Japanese whisky boom has arrived in Japan as well. In recent years, it has also gained attention as an investment asset.

Whisky belongs to the category of distilled spirits among alcoholic beverages, Because of its high alcohol content, bacteria cannot grow, so while it may deteriorate depending on storage conditions, it will not spoil.

Therefore, it is possible to store it for a long time, even though it is a beverage, for a period of several decades.

Additionally, the older the whisky, the rarer it becomes, and its price tends to rise significantly.

The fact that it can be stored for a long time and that the price can be expected to rise as it matures can be said to be used for long-term asset management

Recognizing this trend led to the establishment of whisky investment, and our company’s " Whisky Cask Ownership " is the only platform in Japan where you can purchase whisky casks specifically for cask investment.

Whisky distilleries boasting high growth rates

Distilleries in Scotland, the home of whisky, boast high growth rates. The annual base growth rates by region are as follows.

Location January 2020 June 2020 December 2020
Speyside 11.55% 11.74% 10.05%
Highland 10.62% 11.36% 9.69%
Lowland 12.91% 9.82% 7.00%
Campbeltown 16.06% 15.36% 13.79%
Islay 15.57% 16.35% 15.02%
Islands 13.41% 14.60% 11.64%

The average growth rate is 12.76% per annum Many distillery areas have grown by more than 10%.

The growth potential of the market will also lead to an increase in cask prices.The above data is also appealing to investors who are considering starting whisky investment.

If you would like to learn more about the regions of Scotch whisky and data on capital growth rates, please check out this article.

Analyzing High-Growth Whisky Investments by Annual Capital Growth Rate for Each Distillery

How whisky cask investment works

Before explaining how cask investment works, let's first review how whisky is made.

  • Malting
  • Mashing (Saccharification)
  • Fermentation
  • Distillation
  • Maturation
  • Bottling

There are six main steps, but to put it simply: barley is processed, distilled into new make spirit, placed in casks for long-term aging, and then bottled and shipped.

Normally, whisky reaches us after it has been bottled, but with cask investment, you purchase the cask before it is bottled.

On the cask investment platform,Since there is a system in place where casks are sourced from distilleries and sold to corporations and investors, it is possible to purchase whisky before it is bottled.

On average, the period from maturation to sale for whisky is About 9 years It is said that distilleries will need a means to raise funds in the meantime.

The means of raising funds is to sell some of the casks stored in the distillery.

This not only gives distilleries a means of raising funds, but also reduces costs by reducing the number of casks they manage

Cask investment can also be considered a beneficial investment method for distilleries that produce whisky.

If you would like to know more about how cask investment works, please check out this article.

A comprehensive guide to whisky cask investment: from how it works to storage methods.

Reasons why whisky investment is recommended

Compared to other types of alcohol, whisky is less prone to deterioration and is relatively easy to manage, so with proper care, individuals can also maintain its quality appropriately.

For cask investments, HM Revenue and Customs (the Japanese equivalent would be the National Tax Agency) Under the management of In a bonded warehouse Since it is managed by experts, a system is in place to maintain quality.

Also, in the case of bottle investment, About 10,000 yen It is also an advantage that you can invest according to your own assets.

In the case of cask investment, a certain amount of money is required, but our " Whisky Cask Ownership In the About 500,000 yen From the products that can be purchased, 100 million yen We handle high-end casks with similar values and cater to a wide range of investment amounts.

If you would like to learn more about the reasons why whisky investment is recommended, please check out this article.

Three reasons why whisky investment is recommended right now and how to get started

Disadvantages and risks of whisky investment

A disadvantage of whisky investment is the liquidity risk: if you cannot find a buyer, you may not be able to sell.

Compared to financial assets such as stocks, the market has not been formed, so it takes time to convert them into cash compared to financial assets.

Additionally, the greatest risk is that if storage fails, spirits like whisky can lose all their value.

It is difficult to hedge against the above risks in bottle investments, and it is necessary to find a buyer at the time of sale and to manage it thoroughly.

On the other hand, cask investment has a mechanism for finding buyers, and the above disadvantages and risks can be reduced because of the strict storage system and full insurance

If you would like to learn more about the disadvantages and risks of whisky investment, please check out this article.

A detailed explanation of the disadvantages and risks of the currently popular whisky investment

How to choose casks for whisky cask investment

When it comes to choosing casks for whisky cask investment, Type of cask, cask maturity, cask size There are three types of criteria.

The most important of the above criteria is the degree of maturity of the barrel.

This is because the degree of maturity is not only directly related to the amount of investment, but also affects the appropriate investment period

Below is a table summarizing the relationship between aging period, investment amount, and investment period for each level of maturity.

Degree of maturity Maturation Period Amount of investment Optimal investment period
New make Less than 3 years ★☆☆☆☆ More than 15 years
Emerging 3~10 years ★★☆☆☆ More than 15 years
Intermediate Less than 10~20 years ★★★☆☆ More than 10 years
premium Less than 20~30 years ★★★★☆ More than 5 years
Blue Chip More than 30 years ★★★★★ More than 5 years

New make spirit requires a lower investment amount, but achieving results requires long-term holding.

On the other hand, premium and high-end casks such as blue chips have a very high investment value, but they can be sold for several years and have the potential to be highly profitable.

In this way, the nature of the product as an investment product differs depending on the degree of maturity, so if you are not sure how to choose a cask, it is a good idea to choose from the degree of maturity

If you would like to learn more about how to choose casks for whisky cask investment, please check out this article.

A detailed guide to choosing and purchasing whisky cask investments!

Recommended brands for whisky investment

From here, we will introduce specific recommended brands for whisky investment.

  • Macallan
  • Highland park
  • Bowmore
  • Yamazaki

Macallan

The Macallan is one of the most renowned Scotch whiskies from Speyside, and is often referred to as the 'Rolls-Royce of single malts.'

Macallan has recorded the highest return in the history of single malt casks.

Macallan's Blue Chip Casks are based on our " Whisky Cask Ownership It is also available.

Although it is not always possible to obtain the above returns, it is a good example if you are considering investing in Macallan's blue chip casks

Macallan has also soared in bottle investment, and the "Macallan 60 Years" exhibited at the auction held in 2018 1.2 million GBP (approx. 174 million yen) It has been sold at.

If you would like to learn more about The Macallan Distillery, please check out this article.

Macallan Distillery

Highland park

Highland Park is a whisky produced in the Orkney Islands off the coast of Scotland, and its well-balanced flavor has earned it fans around the world.

This is an example of returns obtained from holding an emerging cask for over 10 years.

This can be a useful reference not only for Highland Park, but also when purchasing casks with lower maturation periods.

If you are buying a cask with a low degree of ripeness, you will want to buy it on the assumption that it will be held for at least 10 years.

If you would like to learn more about the Highland Park Distillery, please check out this article.

Highland Park Distillery

Bowmore

Bowmore is a whisky produced on Islay, an island in Scotland famous for whisky production, and it is extremely popular due to its exceptional quality among Islay whiskies.

Bowmore's blue chip casks have skyrocketed in value due to their rarity.

The growth rate of distilleries on Islay, where the Bowmore distillery is located, is among the highest in all of Scotland.

Let's refer to it as an example of the soaring price of blue chip casks, a popular brand similar to Macallan.

If you would like to learn more about the Bowmore Distillery, please check out this article.

Bowmore Distillery

That concludes our introduction to recommended brands for cask investment, but if you would like to learn more, please also refer to this article.

What are the recommended whisky brands for investment? Introducing the trending cask investment

Yamazaki

Finally, I would like to briefly introduce Yamazaki, which is a popular stock in bottle investment.

Yamazaki is a Japanese whisky sold by Suntory, and due to the recent Japanese whisky boom, it is currently in short supply.

It is listed on auction sites at prices above the retail price, and Suntory has continued to raise its price.

Also Yamazaki 55 years Such as Approximately 85,000,000 yen Since there are cases where it was sold in, More and more people are holding Yamazaki for investment purposes

Depending on the age, some bottles are sold for double or even more than ten times the retail price, making it a whisky that attracts attention not only in Japan but around the world.

If you would like to learn more about the value of Yamazaki in whisky investment, please check out this article.

What is the value of Yamazaki in whisky investment? Introducing specific examples.

Future outlook for whisky investment

In recent years, data shows that the percentage of people considering investing in whisky has increased by more than 25.4% in just six months.

In addition, among overseas investors, " What investments should I consider to protect my assets in the face of economic uncertainty? In a survey with this question, 77.4% responded with 'whisky.'

Among overseas investors, the number of whisky investors is increasing, especially among millennials (aged 25 to 40).

Although whisky investment is not yet widespread in Japan, The reason Japan has lagged behind other countries is that, until now, there was no established platform for purchasing whisky casks.

Awareness of whisky investment is definitely increasing, and it is expected that the number of whisky investors will continue to grow worldwide, including in Japan.

If you would like to learn more about the future outlook of whisky investment, please check out this article.

What is the outlook for whisky investment? A thorough explanation of the market's growth potential!

At Last

We have provided a comprehensive explanation of everything you need to know to get started with whisky investment.

Once you understand the above, you are ready to start investing in casks.

Our " Whisky Cask Ownership Please find the best cask that suits your investment policy and asset situation.

Purchase your Whisky by the Barrel! Learn more details here at Free Webinar!

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