Whisky industry defies economic turmoil with exponential growth-boosting favourability with investors – Whisky News

Whisky industry defies economic turmoil with exponential growth-boosting favourability with investors  

Pandemic pushes investors towards cask Irish whiskey and Scotch   

  • The Irish and Scottish whisk(e)y industry is predicted to grow at a high CAGR in the next five years in spite of the coronavirus economy, driving higher investor interest
  • Irish whiskey exports have grown by 300% in the past decade, with the US market worth $1bn alone 
  • A third of investors are looking to cask whiskey investment amongst other ‘alternative investments’ to protect their wealth during the pandemic
  • 55% of investors would turn to cask whiskey to hedge against economic uncertainty and spread risk once informed with potential returns being the biggest driver  

Eighty-nine percent of investors are changing their approach to their portfolios by turning to alternative investments to spread risk, at a time when the UK economy plummet by a fifth. According to the 2020 Cask Whiskey Buyer Report, with premium cask’s whiskey becoming increasingly appealing.

New research by cask whiskey investment leader,Whiskey & Wealth Club also reveals that investors largely favoured longer established options such as art (31%), antiques (28%) and wine (24%) with interest in cask whiskey investment rising to 55% in the current environment.

Over two-thirds of investors cite the potential returns on cask whiskey investment as the main reason to invest. While 57% are willing to invest in the spirit to diversify their portfolios as the pandemic affects financial markets.

Commenting on the report findings, Whiskey & Wealth Club founder, Jay Bradley, said:

“The more ‘traditional’ alternatives, such as art and, antiques and watches are the most sought-after. Yet cask whisky, is becoming popular as an ever-appealing prospect for investors looking to negotiate this period of financial uncertainty and meet their changing needs.”

The appeal is especially with younger investors. Over half of those aged between 25-34 are more likely to invest in the spirit over their older counterparts, reflecting recent trends with whiskey’s growing popularity with younger drinkers.

Whiskey’s growing investment appeal 

Globally whiskey’s popularity has soared in recent years and is set to continue increasing the demand for aged spirit. Currently, the Scotch whisky secondary wholesale market is estimated at $40m according to the IWSR, the global benchmark for wine and spirit data. Last year alone, exports grew to a record £4.9bn.

Irish whiskey is also amid a resurgence following its fall from grace as the in the early twentieth century. Exports have grown by 300% in the past decade, with the US market worth $1bn alone

Cask whiskey investment is a developing market that has largely been unexplored, having previously been available to a select few. The market is now more accessible, with investors able to purchase casks of premium spirit from leading distillers via brokers. The investors receive full ownership of the casks they purchase, while distilleries receive an injection of capital.

Bradley concludes: “As the cask whiskey buying market matures, the key differentiator is the cachet of premium spirit. Investing in a whiskey from a premium distillery or brand — with a limited run— offers the potential for significant return on investment. When it comes to whiskey, quality and rarity will always count.”

Research methodology

Whiskey & Wealth Club commissioned research in summer 2020 from Censuswide of 505 individuals with capital of £100,000 or more available for investment –full methodology.

About Whiskey & Wealth Club

Whiskey & Wealth Club is a wholesale whiskey company that connects individual investors with authentic and premium Irish and Scottish distilleries. The distilleries make casks of new make spirit available to Whiskey & Wealth Club at a wholesale rate that are then released to private individuals at significantly discounted rates.

Whiskey & Wealth Club manages storage and insurance as standard, allowing the whiskey to mature in maintained, government bonded warehouses. Investors can then decide when is best for them to sell their mature whiskey or bottle to enjoy themselves.

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