‘Whisky vs wine’ is a topic we get into, with wine lovers, quite often. We are in the whisky business but wine lovers ourselves and have done our homework.
Whisky as an appreciating, alternative asset is a relatively recent phenomenon. The market for such investments is growing in parallel with the booming industry. Between January and October 2019, all markets rose by 5.9% with BIS Blend up by 2.7 % and Single Malts up by 14.4%, according to Pagoda Scotland/Whisky newsletter Dec19/Jan20′ export statistics.
Scotch is the most attractive and reliable alternative asset class in the world. When compared to wine or gold, whisky as an investment is extremely low risk. In addition, the popularity and global demand has been rapidly growing.
On the other side, over 99% of wine consumed and purchased in the United Kingdom is imported. Despite a steady growth in the prices of fine wine, the whisky industry is growing much faster.
Allocations of investment-grade wine are few and far between. Often, you have to purchase it as a bundle along with an estate’s 2nd and 3rd wines in order to secure a package. To the contrary, Cask Trade whisky is a highly accessible alternative asset class and newcomers can now obtain investment-grade casks. And unlike with wine, there’s no obligation to purchase additional non-assets.
Furthermore, asset-worthy wines are often very expensive, with many Bordeaux’s and Burgundy’s costing more than £10,000 per case. For the same amount of money, you’d be able to purchase a fully mature cask of scotch whisky from a highly reputable distillery. And that could yield upwards of 500 bottles. Entry-level casks can cost as little as £1500.
Investors in fine wine are mainly limited to wine enthusiasts who often own cellarfulls of bottles. While whisky is an asset class open to anyone.
Whisky offers a unique security by a non-deterioration of the asset. Unlike wine, whisky can be saved from the ravages of time. A cask may have a lifespan of an excess of 50 years. That is quite a time frame if you buy malt under 8 or 10 years old. Even then, the whisky is only at the beginning of its true destiny; the bottle.
Unlike wine, whisky ceases to age in the bottle. Scotch that was distilled in the 19th century is still being opened and consumed to rapturous applause today. Furthermore, the risk of corking or poor storage is eliminated. Storage is provided in HMRC approved bonded warehouses. These are strictly governed and should offer complete peace of mind. Warehouses offer good rates for storage and insurance of casks. They are the same warehouses used by industry leading distillers. And ensuring the perfect, stable environment for maturation.
If you are looking to transition from the wine world into the whisky world, we’d love to chat about it!