Creating value

An investment in whisky can consist of an investment in raw material (barrels or parts of barrels) or an investment in the final product (bottles). If you invest in barrels you still have influence on a number of factors that affect the value, with bottles you can hardly exert any influence. It’s only when you drink a bottle that the remaining bottles become more scarce.

With bottles...

Bottles of single malt Scotch whisky are the final product in the whisky chain.

When investing in bottles, SCARCITY is the biggest driver of value increase. This is because the demand for old quality whiskies has been on the rise for many years now. The name of the distillery, the alcohol percentage and the quality score (rating) can also be important for the value development. Sometimes the packaging can also have an effect. The reason for this is that exclusive packaging can increase the premium feel.

...and barrels of single malt whisky

As indicated, when it comes to the more speculative investing in rare bottles, the scarcity and increasing demand are mainly responsible for the value development. The future market value of your own barrel of single malt Scotch whisky is determined by three factors. They are:

Age

In addition to a good barrel of course, whisky mainly needs to age to create a qualitatively strong product. Therefore you need to give whisky time, which unfortunately is done increasingly less often in the industry.

No Age Statement

An increasing number of distilleries are bringing so-called ‘No-Age Statement’ whiskies (NAS) to the market, where the age is no longer stated on the label. This is often done under pressure from the rising demand for whisky and things such as profit maximization and shareholder value. Just try to see if you can find a single malt whisky that’s more than 18 years old in a regular liquor store.

Premium feel

We recommend that your whisky be aged for at least 20 years (preferably even longer) before it is bottled. Moreover, we’ll always state the whisky’s age on your label. An age of 20 years or more gives a whisky a premium feel when it is ultimately consumed.

6651168

Quality

Buying a barrel is not that hard, but managing it during the maturation period is a different story. This requires knowledge and expertise. Our passion for single malt Scotch whisky is the main motivation behind our activities. That’s why we strive for the highest possible quality to ensure that your whisky will generate the highest possible return at the end of the maturity period.

Annual analysis

We can only achieve this through a great deal of attention. In order to know how a whisky is developing, we take a sample of your whisky every year. Our professional whisky analysts then analyse its progress. If necessary, they decide whether the maturation process needs to be adjusted (for example by transferring the whisky into another barrel). Hardly any other company in the professional whisky industry samples its barrels on an annual basis. That’s how we can guarantee that the whisky will have the high quality that we’re aiming for when it’s finally bottled.

Scarcity

Since we let your whisky age to at least 20 years old, a considerable shortage is created already. The whisky that is produced from the relevant distillation year is mostly incorporated in blended whisky and/or bottled as young malt whisky during this period. As a result, less of it remains.

Angel’s share

During the maturation period, approximately 1.5 to 2% of the liquid in the barrel evaporates each year (the so-called angel’s share). In addition, we always bottle single cask, which means that we fill bottles with whisky from a single barrel. This makes the whisky exclusive and immediately scarce, because one barrel only produces a limited amount of bottles.

The most important scarcity factor is the increasing demand for high-quality old whiskies. In Asia, Russia and the Middle East in particular, the demand for these whiskies is enormous. Due to a growing middle class in these markets, the demand is likely to continue to rise.

A created value

If you still own your whisky at the time of bottling you’ll have a single malt whisky that is at least 20 years old and of exceptionally high quality, of which there are only a limited number of bottles. All of these factors combined are reflected in the value of the whisky.