Guide To Whiskey Investment: 10 Best Bottles, Expert Tips

Whiskey is an attractive alternative investment asset, just like gold, wine, and real estate. This golden spirit can preserve and even increase in value during economic instabilities, inflationary periods, and recessions. Whisky investing has gained a lot of popularity in recent years, and now might be just the perfect time to ride the wave! The demand and prices of whiskey have grown steadily even during the pandemic. In 2020, the market exceeded $60 billion and is projected to grow at a 5.9% annual rate between 2021 and 2027. And, rare whiskey bottles often sell for hundreds of thousands of dollars.

Let’s explore everything about the whiskey investment opportunities, factors to consider before investing, and how you can invest in this age-worthy drink. We will also cover the 10 best whiskey bottles to invest in and take a peek at how Vinovest can help you invest in collectible drinks.

Why Invest in Whiskey? (4 Compelling Reasons)

Here are four reasons why whiskey makes a great investment in 2023:

1. Historical Performace
2. Market Growth
3. Returns on Investment
4. Accessibility

1. Historical Performace

Historical data shows that the whiskey industry has experienced stable growth in the past decade. There’s a good chance that this trend will continue, meaning you can expect good profits from your whiskey investment in the future. 

Here’s an overview of the whiskey market growth for the period 2012-2022:

• The Rare Whiskey Apex 1000 Index (tracking the performance of 1000 rare whiskey bottles) has shown a steady growth of over 416%.
• The Rare Whisky Icon 100 Index (tracking the performance of 100 collector’s bottles) has grown by 391%.
• The Rare Whisky Vintage 50 Index (tracking the performance of 50 of the oldest bottles) has grown by 301%.
• According to the Knight Frank wealth report, the Knight Frank index of rare Scottish single malts has increased by 586%.

2. Market Growth

In recent years whiskey has grown in popularity both as a drink and an investment opportunity. 

In 2021, the whiskey market was valued at $79.6 billion and was predicted to grow to $109 billion by 2025. 

The demand for whiskey is almost equal in Asia, Europe, and North America. However, Asian investors show a special affinity to this alternative asset.

Also, investing in whiskey is a popular trend among younger investors attracted by its affordable price and potential for huge returns.

3. Returns on Investment

The average annual return on whiskey is about 10% for private investors. However, an exceptional, rare bottle can fetch much greater returns. 

For example:

• The price of the Bowmore 50 Year Old Single Malt Scotch Whisky rose from $24,869 in November 2021 to $49,760 in July 2023 — an amazing 100.1% increase.
• 2016 The Macallan 18-Year-Old Single Malt Scotch Whisky increased from $874 in December 2021 to $1,339 in December 2022 — a 53% jump.

Additionally, some of the rarest and oldest whiskey bottles can easily attract seven-figure price tags - a single bottle of Macallan 1926 sold for over $1 million at a Bonhams auction in 2018.

4. Accessibility

Intelligent online investing platforms like Vinovest have made whiskey investment accessible to both avid collectors and the average retail investor. You can even invest as little as a few hundred dollars and buy a few whiskey bottles right away.

Besides tracking the whiskey market trends, you should also consider whether you want to invest in bottles, casks, or stocks. Let’s take a look!

How to Invest in Whiskey 

Here are the three main ways in which you can start investing in whiskey:

1. Invest in Whiskey Bottles
2. Invest in Whiskey Barrels
3. Invest in Whiskey Stocks & Funds

1. Invest in Whiskey Bottles

One of the easiest ways to invest in whiskey is to buy bottles directly and store them until you decide to sell at a profit.

However, if you decide to buy bottled whiskey, there are a few things to consider. You should know:

• How to identify an authentic from a fake bottle
• The most promising collectible brands and where to find them
• The batches released and their characteristics
• The fair market value of the whiskey you want to buy and its anticipated appreciation
• How to store the bottles properly - you will need to secure a safe space with optimal storage conditions
• Whiskey investment is a long-term asset that will not give you returns immediately

2. Invest in Whiskey Barrels

Some distilleries sell whiskey in casks, allowing you to buy the spirit at wholesale prices and obtain full cask ownership.

Why Are Whiskey Casks an Attractive Investment Option?

Here's why:

• Unlike when bottled, whiskey casks improve in flavor and aroma with age.
• Whiskey casks are more liquid. When you wish to sell your cask, you could have them blended, bottled, or left alone for additional aging.
• They deliver bulk value. Suppose you buy a 53-gallon American whiskey cask for $1,500. (Each cask would hold around 266 bottles.) So, each bottle would be worth about $6. That means it has plenty of room to grow in value before you sell it.

What Are Some Other Things to Consider Before Investing in Whisky Casks?

• Holding Period: You should hold the whiskey barrels for a minimum of three years before you can bottle your product. Alternatively, you can sell the barrels to a distillery, which will then make a blend of your and other casks.
• Investment Guidelines: If you decide to go for cask trade, familiarize yourself with the cask investment guidelines (released by the Scotch Whisky Association.)
• Whiskey and Barrel Fees: You need to pay an upfront fee for the whiskey and the barrel it will be stored in. The different types of barrels are also priced differently. For example, European oak is rarer and more expensive than American oak.
• Storage: You need to pay the distillery or external storage service that will keep your whiskey cask barrels in a safe and secure location.
• Bottling: Moving the whiskey into bottles and labeling them also comes at an extra cost.
• Taxes: You will have to pay the VAT and Duty taxes as well.

What Are the Typical Returns From Whiskey Casks?

Historically, whiskey casks have returned 12%-15% annually for the past 15 years. However, keep in mind that the profit you make on your cask whiskey investment depends on both the whiskey and barrel quality (since the barrel is what gives cask whiskey its unique characteristics during the maturation period.) If all this seems too overwhelming, we’ve got good news for you! You can skip all the in-depth research and entrust your whiskey investment endeavors to a professional service instead.

Vinovest — one of the most well-established wine investment platforms, offers a full-stack whiskey investment platform. The site helps you buy some of the best Scotch, Japanese, American, and Irish whiskey casks.Additionally, Vinovest will take care of authenticating, storing, and insuring your whiskey casks. So all that’s left for you to do is kick back, relax, and enjoy your winning whiskey cask portfolio!

3. Invest in Whiskey Stocks & Funds

If you want to invest in whiskey but prefer sticking to traditional stocks, you can buy whiskey company stocks instead. Some of the public traded companies that own some of the most famous whiskey brands include:

• Diageo (Johnnie Walker, Buchanan's, Talisker)
• Brown-Forman (Jack Daniel’s, Old Forester, Slane)
• Pernod Rocard (Jameson)
• Constellation Brands (High West Whiskey)
• Remy Cointreau (Bruichladdich)

However, keep in mind that your stocks will be directly affected by the whiskey market fluctuations and the company's performance.

If you want to reduce the risk, you can also consider investing in whiskey funds like: 

• Platinum Whisky Investment Fund: The Platinum Whisky Investment Fund was one of the first whiskey funds ever created. However, you need to be an accredited investor or a high-net-worth individual to gain access to it. 
• Single Malt Fund: The Single Malt Fund is the first publicly traded whiskey fund. It is easily accessible by private investors, and the minimum investment is $1,245.

Such establishments usually raise capital to buy different collectible whiskeys, sell them later on at a profit, and pay dividends to their investors.

5 Factors to Consider Before Investing in Whiskey

Here are some of the factors you should consider before jumping into your whisky investment journey: 

1. Determine Your Budget
2. Understand That it’s a Long-term Investment
3. Be Aware of the Major Brand Names
4. Do Your Research
5. Find a Trustworthy Seller

1. Determine Your Budget

Decide how much you can invest initially. You can start with a few hundred dollars if you’re investing in bottles. However, if you are investing in casks, your initial investment will be around $20,000.

2. Understand That it’s a Long-term Investment

If you are searching for some short-term results, whisky investment might not be suitable for you. 

Generally, the annual whiskey returns are around 12-15%, but you need to consider what whiskey you’ll be investing in and its past performance. Once you do that, check whether the projected returns align with your investment purposes and goals.

3. Be Aware of the Major Brand Names

If you’re investing in bottles, look out for the brand names that have historically performed well in the whiskey investment market. For example:

• Macallan: If you’re looking for some of the best investment assets, The Macallan can be your best bet. Look for older vintages (18 years or older) since these usually give beyond satisfactory results at auction events.
• Yamazaki and Karuizawa: Investments in Japanese whisky are on the rise. Also, the Rare Whisky 101 Japanese Whisky Index gained by 11.75% in 2022. Yamazaki and Karuizawa are two of the well-known and sought-after Japanese investment whiskeys.

4. Do Your Research

Before you start investing in whiskey, make sure to do your research on the whiskey basics:

• Whiskey tastings: To know what to look for, you should be able to recognize the key characteristics of good whiskeys, such as color, smell, and flavor.
• Alcohol content: Generally, whiskeys with higher ABV have better aging potential and thus have a higher chance of increasing in value.
• Company background: Discover the whiskey company’s performance, financial reports, and future plans. For example, casks and bottles sold by companies that plan to close or rebrand can hold greater value.

5. Find a Trustworthy Seller

If you’re a whiskey enthusiast who’s just starting out on whiskey investing, make sure that you go to a reputable and trustworthy retailer. Established sellers guarantee authenticity and usually give good advice. 

If you’re buying casks, the retailer should give you a sample of the cask. Also, they should have all the licenses and ownership documents needed to sell casks.

10 Best Whiskey Bottles to Invest in Now

Here are 10 great whiskey bottles you can invest in right now:

1. Bowmore 'Black Bowmore' The Last Cask 50-Year-Old Single Malt Scotch Whisky
2. Old Rip Van Winkle 25-Year-Old Kentucky Straight Bourbon Whiskey
3. Karuizawa Ruby Geisha 38-Year-Old Single Malt Japanese Whisky
4. Murray McDavid Mission Macallan 36-Year-Old Single Malt Scotch Whisky
5. Rosebank 30-Year-Old Single Malt Scotch Whisky
6. Laphroaig The Ian Hunter Story 'Book 2 Building an Icon' 30-Year-Old Single Malt Scotch Whisky
7. The Hakushu 18-Year-Old Single Malt Whisky
8. Macallan 36 Year Old Single Malt Scotch Whisky Director’s Special
9. Johnnie Walker Blue Label Port Ellen 'Ghost and Rare' Blended Scotch Whisky
10. The Yamazaki 12-Year-Old Single Malt Whisky

1. Bowmore 'Black Bowmore' The Last Cask 50-Year-Old Single Malt Scotch Whisky ($111,322)

This single cask whisky bottle cost below $100 in 1993, but today it’s valued at over $100,000. This rare scotch whisky takes its black color from aging for decades in sherry whisky cask barrels. 

The nose reveals black cherry aromas, while the palate is enriched with silky mango, acacia, and chocolate flavors.

2. Old Rip Van Winkle 25-Year-Old Kentucky Straight Bourbon Whiskey ($55,221)

This rare whiskey is produced in only 710 bottles and has an alcohol content of 50%. The soft palate reveals pronounced oak flavors and sweet sugars that balance out the high ABV. It’s a refined American whiskey and an incredible addition to any whiskey collector’s portfolio. 

3. Karuizawa Ruby Geisha 38-Year-Old Single Malt Japanese Whisky ($47,083)

This Japanese whisky hails from the Karuizawa ghost distillery. This is an extremely rare whiskey with an ABV of 54% and well-balanced sweet, savory, and spicy notes.

4. Murray McDavid Mission Macallan 36-Year-Old Single Malt Scotch Whisky ($3,090)

This great Macallan scotch whisky was created in 1969 and bottled in 2006. There are just 900 bottles of this fine spirit. The fine whisky bottle exudes smokey aromas with pear hints and a peppery palate. 

5. Rosebank 30-Year-Old Single Malt Scotch Whisky ($3,116)

Here we have a rare scotch whisky that has been aged for 30 years in a cask. The bottled whiskey can age many more years, thanks to its high ABV of 48.6%. 

This rare bottle of cask whisky reveals a soft and creamy palate with vanilla, caramel, and oak spice flavors. It’s a great aged whiskey for both celebrations and investing. 

6. Laphroaig The Ian Hunter Story 'Book 2 Building an Icon' 30-Year-Old Single Malt Scotch Whisky ($1,670)

This fine whisky was aged 30 years in Spanish Oak Oloroso Sherry barrels. The sensual palate presents your taste buds with delicate peatiness, flavor notes of toffee and dried fruit, and head-spinning tobacco and chocolate aromas. 

7. The Hakushu 18-Year-Old Single Malt Whisky ($852)

Hakushu is one of the most sought-after Japanese whisky brands. It has won several prestigious awards (including the International Spirits Challenge Gold award in 2017 and 2016.) 

This single malt whiskey has a golden color, honey and citrus aroma notes, and a flavorful yellow fruit palate.

8. Macallan 36 Year Old Single Malt Scotch Whisky Director’s Special ($3,090)

Here we have an aged whisky bottle - a unique spin-off of the more traditional sherry oak-aged Macallans.

This scotch whisky is aged in a single oak barrel and is bottled under the Director’s Special label. It offers rich orchard fruit flavors with subtle vanilla and spice underlayers. The texture is silky and reveals lingering buttery and nutty hints.

9. Johnnie Walker Blue Label Port Ellen 'Ghost and Rare' Blended Scotch Whisky ($699)

This fine drink is a superb blend of rare reserve whiskeys with Islay single malt from the ghost distillery Port Ellen (closed officially in 1983.) This unique label offers a sweet vanilla nose intertwined with subtle citrus flavors and a long seductive finish with smoke hints.

10. The Yamazaki 12-Year-Old Single Malt Whisky ($209)

This elegant and smooth whiskey hails from Kyoto, Japan. It is an award-winning spirit with peach and candied orange aromas, followed by a spicy palate that features clove, cinnamon, and ginger notes.

Let’s see how you can invest in Whiskey casks through Vinovest!

Diversify Your Portfolio With Whiskey Cask Investment Through Vinovest

Investing in whiskey casks through Vinovest gives you a few impressive benefits:

• Hassle-Free Ownership: Vinovest authenticates, stores, and insures your whiskey casks. The interesting part is that you can sample your whiskey once per year.
• Spend Less for More: By investing through Vinovest, you can avoid intermediaries and extra commissions.
• Expert Assistance: Vinovest's expert advisers guide you toward creating a successful investment portfolio.

Once you’ve signed up on the platform, all you need to do is sit back, relax, and watch the value of your collection grow!

Investing in Whiskey & Fine Wine: Diversify Your Portfolio Today!

Whiskey presents a great alternative investment opportunity, and it’s especially attractive to investors who have a passion for fine spirits. 

Your best bet would be to invest in whiskey casks through an intelligent investment platform like Vinovest. All you need to do is just sign up to reserve your rare cask today!