Arming your investment portfolio with tangible, asset backed investments, like casks of Irish whiskey, is a great way to hedge against inflation, particularly in times of economic uncertainty. Intangible assets like stocks, bonds and crypto, valuation is heavily dependent on external environmental factors such as financial markets that can fluctuate exponentially. Whereas whiskey isn’t as heavily influenced by external environmental factors like these intangible assets. When beginning research into investing in Irish cask whiskey, it’s important to note that there are a few “building blocks’” that create an investment that will potentially yield high returns. Here is what to look out for when researching casks to invest in:
Distillery Reputation
The distillery that creates the whiskey plays a pivotal role in determining the value of the end investment. It’s important to take notes of media-coverage surrounding the distilleries, if and what awards/accolades they have been on the receiving end of and the quality of the products they already have available on the market. At the Whiskey Investment Club, we work closely with the Boann distillery when sourcing our clients’ casks. A quick google search into the media coverage surrounding the distillery’s winter and summer solstice release is a great glimpse into the bright future that lay ahead for this innovative powerhouse.
The Spirit That Fills The Cask
The whiskey that a cask creates is only as good as the spirit that fills the cask. If you buy a beautiful, high-quality cask yet fill the cask with low-grade spirit, the whiskey will still be of low quality. That’s why we specialise in Single Pot Still spirit, the quintessential Irish whiskey style. Single Pot Still is typically sought after by whiskey aficionados. Its recent surge in popularity has made it difficult for suppliers to keep up with demand. We partner with the Boann distillery to supply our clients with their casks. The Boann distillery has been awarded the world’s best new make spirit at the 2021 World Whiskey Awards. This ensures that every drop of spirit that fills our clients casks, is with the best quality spirit on the market.
Working With Industry Professionals
Working with drinks industry professionals is essential when investing in casks of Irish whiskey. This way you can ensure that the casks you have purchased are in-demand and will command a premium when the time to exit the investment comes along.
Our long-standing experience in the drinks industry and knowledge of the whiskey market allows us to offer our clients bespoke services. We work diligently to ensure our clients are satisfied with their investment. We are committed to the whiskey industry and will be on hand to answer any questions you may have.
The Type Of Cask You Choose
It is estimated that up to 80% of the flavour present in whiskey is influenced by the cask it is stored in, meaning that the cask you select for your investment plays a pivotal role in deciding the flavour profile of a whiskey. The most common casks we provide our clients with are either an ex-bourbon (Jack Daniels) cask or an ex-sherry (fortified wine) cask. Both cask types add their own distinctive notes to the whiskey as well as having different costs associated with them.
It is also important to note whether the cask is a first-fill cask, or is a refill cask i.e. is this their first time housing Irish whiskey or have held Irish whiskey before? At the Whiskey Investment Club, all of our casks are first-fill. This means it is the first time the cask will be used to make Irish Whiskey so the best possible flavour profile will be achieved.
The Age of the Spirit
It is common knowledge that the longer a whiskey is aged, the higher its perceived value is. However, the length of time you mature your cask for is completely dependent on you and your investment goals. As our speciality is Single Pot Still spirit, we recommend that you hold your cask for a minimum of 5 years to round out the flavour profile of the spirit. As we hold this recommendation, we provide the first 5 years of storage and insurance to all of our clients free of charge. For clients looking to hold onto their cask for longer than 5 years, it is a seamless process that our team can organise for you.
Potential Risks
As with any investment, it’s important to note that there is an element of risk involved as the value of the investment may fluctuate. At the Whiskey Investment Club, we urge all of our clients to acquaint themselves with the possible risks associated with this investment, and to seek independent financial advice. The figures we provide clients with are based on historical return, definitive returns cannot be guaranteed as we mention to all of our clients. Potentials risks involved in this investment may include:
- Government regulations changing with regards to cask ownership.
- Major conflicts/world events changing the environments in which whiskey may be sold/exported to.
- An oversupplied market.
- Government regulations changing with regards to cask ownership.
At the Whiskey Investment Club, transparency is instrumental to the way we conduct business. We welcome all clients and potential clients alike to visit our offices, put a face to a name and to tour the distillery and its facilities. Our team of drinks industry experts will work diligently to ensure your experience with The Whiskey Investment Club is an enjoyable and professional one. As we mentioned previously, it is imperative to evaluate the potential risks involved in any investment journey, however, with this said, we encourage our clients to take in and enjoy the entire, exciting process.