Whisky as investment

When Scotch Whisky International started investing in whisky in 2007, we were truly the new kid on the block. Almost no one had ever heard of investing in whisky (and especially in single malt Scotches) or knew how it was done.

Now it’s ten years later and single malt Scotch whiskies are increasingly seen as a perfect alternative for investors who want to diversify their investment portfolio. It’s a well-known fact that whisky gets better the longer you mature it. Basically, the same can be said of investing in single malt Scotch whisky: it’s most attractive if you commit to it for a longer period of time.

Rising demand for 'old' whisky

Rising demand for ‘old’ whisky

For quite some time now we have been witnessing a rise in the demand for single malt Scotch whisky that has been barrel-aged for a long time. Single malts Scotches of a high age and quality are enjoying enormous popularity. This is true in particular in Asia, the Middle East and Russia, where wealthy consumers not only appreciate the taste but also the prestige that comes with possessing and drinking ‘old’ bottles of single malt whisky. However… the supply can’t grow. You simply can’t make some extra 20 year old whisky today. That will take you 20 years.

The market in figures

The current export market for Scotch whisky amounts to 5.5 billion euros per year. 93% of this whisky is sold as a blend and 7% (with a value of 550 million euros) as single malt. 80% of this whisky is less than 15 years old.

Independent market information

If you would like more information from an independent party that reports on the developments in the Scotch whisky market and on rare whiskies in particular, please go to the website www.rarewhisky101.com.

Shortage

This is a development that the Scotch whisky industry never anticipated; if that had been the case, the Scottish distilleries would have had to start up additional production at least twenty years ago in order to meet today’s (rising) demand for high-quality single malt whisky. It’s one of the reasons why a market mechanism of supply and demand is active and the price of, and demand for, single malt whisky is increasing. This makes investing in whisky very appealing.

20 years or older

Scotch Whisky International focuses on whiskies that are 20 years or older, with a special emphasis on those of 25 years or over. In these categories there’s hardly any influx and the demand is rising to unprecedented heights; there just aren’t enough ‘old’ whiskies on the market. The whiskies that were recently distilled and put into barrels simply aren’t 20 year old whisky yet.

Why investors decided to invest in whisky

  • “Lost trust in the traditional products and financial institutions”
  • “The exclusivity and quality of the underlying value”
  • “Scarcity of the product”
  • “It’s innovative investing in a traditional and authentic actual product”
  • “I don’t need the cash in the short term”
  • “I can sell my bottles all over the world”
  • “No financial product but the certainty of tangible property”
  • “Finally a real product as security for my money”
  • “Attractive return”
  • “Risk diversification within existing invested capital”
  • “I see it as a nest egg for later a kind of pension build-up”
  • “A mean to transfer a part of my assets to the next generation”