Whisky Investment Outlook 2023: Trends and Risks

Whisky Investment Outlook 2023: Trends and Risks
Balvenie 40 Year Old, Source - Christie's.

Whisky investments have shown a 12-month price growth of 40% and a 10-year rise of 582%. This article offers an in-depth analysis of the whisky market, covering trends, risks, and expert insights.

The 'Knight Frank Luxury Investment Report 2023' indicates the whisky market is bullish, with a 12-month price growth of 40% and a 10-year rise of 582%. However, these figures may not fully represent the broader market, including casks. High-value bottles (over £5,000) have retraced recently due to geopolitical, social, and economic factors. Clynelish and Balvenie have been standout brands, with their indices rising 3.9% and 22% respectively over the past twelve months.

Investment Funds

Exercise caution with whisky investment funds. Partner with trusted advisors who have deep industry knowledge for a more secure and informed investment. Come prepared with the right questions to evaluate the fund's approach thoroughly.

New-Make Spirit

Investing in new-make spirits carries high risk due to market unpredictability. These spirits require at least three years in a cask to mature. The first few years for any new business can be challenging, and often these distilleries lack credentials.

Avoiding Fakes

Ensure the bottle's integrity and provenance by acquiring distillery-letterheaded paperwork. This minimizes the risk of acquiring fakes or forgeries. New collectors and investors need to undertake rigorous due diligence on any high-value bottles.

Expert Insights

Charles Beamish, a global whisky advisor, recommends direct-to-distillery acquisitions for end-to-end client management, pricing transparency, and guaranteed provenance. Beamish International is the program sponsor for the second edition of The Distillers One of One auction.

Market Leaders and Losses

The market leader, Macallan, has seen particularly punishing losses, with its index retracing 11.7% over the past twelve months. Despite this, certain brands have still performed well.

Conclusion

For experienced investors and collectors, whisky offers a high-growth, high-return market. Due diligence, expert consultation, and awareness of market nuances are key to maximizing returns.

Sources

Knight Frank (2023), The Wealth Report Luxury Investments 2023. https://content.knightfrank.com/resources/knightfrank.com/wealthreport/2023/the-wealth-report-luxury-investments-2023.pdf

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