WHISKY MARKET PERFORMANCE

For the last 10 years the Whisky Cask Market has yielded a return of 12% per annum.

The Market has moved from the margins into the mainstream over the last decade, due to this consistent performance.

Knight Frank published their annual ‘Luxury Investment Index’ in 2019 (below). It was reported that the Whisky Market rose by 40% in the previous year, and over 580% over the last decade, making it the top performing asset class available.

According to research published by Lloyds Private Bank the same year, 88% of their whisky investors were satisfied with the market’s performance.  

 

A Single Malt Whisky Fund launched on the Nordic Stock Exchange late 2019, which aims to yield investors 10% per annum. It aims to raise €25 Million, with a minimum investment of €100,000 per investor. 

 

Over the period from December 2014 to June 2019, the Apex 1000 Index, which tracks the best performing rare whiskies rose by 162%, considerably outperforming the FTSE 100 (13%), Brent Crude (11%) and Gold (19%). 

 

In November 2019 Bonhams Auction House in Hong Kong set a new record for a cask of Whisky. A 30 year old cask of Macallan sold for over £440,000. It is believed this cask was originally purchased for a few thousand pounds. 

 

The whisky boom is by no means limited to the Asian markets. In London, Sotheby’s held their first whisky only auction which netted £7.6 Million in revenue. 

Aside from the market's 10 year performance, the concept of casks rising in value is easy to understand. This graph from the Telegraph illustrates how a cask rises in value over time. 

The article goes onto explain how and why Whisky Casks rise in value:

" Investors buy the spirit from distillers, who need to free up capital where it would otherwise be tied up for years as the liquor matures. Once mature, the Scotch is bought back by major brands for bottling and retailing. This is how the investor exits, hopefully at a profit.

The profit would come from the drink's appreciation in value as it matures. The producer oversees the maturation in secure storage. 

While the trade in pre-bottled Scotch has existed for many years within the industry, the market has never before widened out to include private investors.

The concept is the brainchild of whisky guru Rupert Patrick, who has for the past decade overseen the sales to emerging markets of giant Scotch brands including Teacher's and Laphroaig for Suntory, and Johnnie Walker and White Horse for Diageo. "