Investors who are considering putting their money into whisky shares have had their confidence boosted that this would be a good move, after an expert suggested the industry has a glowing future.
Cristina Diezhandino, chief marketing officer at drinks giant Diageo, told Investors Chronicle there has been growing interest in investing in alcoholic beverages.
She stated: “Around the world, there is a higher degree of interest in the more premium [whiskies].”
The expert went on to say: “We believe that the future is bright for Scotch.”
Despite being hit by the repercussions of Covid-19, Diageo has seen its brand grow from strength to strength, with its shares offering long-term success for investors. This is thanks to its ability to adapt to suit consumers’ preference for up-scale brands, as well as opportunities in emergency markets.
Indeed, net sales of Diageo’s Scotch increased by eight per cent in the year leading to June 2021.
This could be the result of more people making cocktails at home instead of drinking at pubs and bars, as a result of the pandemic. Therefore, they are choosing spirits, as opposed to wine and beer.
Indeed, Whisky Investment Partners recently revealed 11 per cent of investors are aged between 25 and 34 years old, 17 per cent are 35 to 44, and a third are millennials.
Alistair Moncrieff, managing partner at the organisation, told The Whiskey Wash, while millennials are perhaps drinking less than older generations, “those [who] do drink are switching from lager and wine to spirits such as whisky”.
Additionally, whisky drinkers are becoming more diverse. Instead of being predominantly Scottish, a survey by the Scotch Whisky Association revealed 2.6 million tourists visited distilleries in 2019, with most of these being foreigners. The greatest proportion of international visitors were from the USA.