Specialists from Braeburn Whisky and Cask 88 hope to provide prospective investors with metrics that offer “never-before-seen insight” into the industry.
Whisky is one of Scotland’s largest, and certainly its most recognisable, exports. According to industry body Scotland Food & Drink, 39 bottles are shipped overseas every second.
However, whisky cask ownership by private collectors is a new direction for the sector, and the findings from Braeburn Whisky and Cask 88’s exploration of casks sales data over five years indicate that returns from investment in Scotland’s most famous tipple have outstripped the S&P 500, Bitcoin and gold.
With some 22 million casks maturing in warehouses across Scotland, waiting to be discovered, Braeburn Whisky and Cask 88 expect the scope for these trades to surge in numbers and value.
Samuel Gordon, managing director of Braeburn Whisky, said: “The whisky cask market is experiencing continued positive and stable growth despite the Covid-19 pandemic that has captivated global markets this year.
“With the uncertainty in the world today, it’s more important than ever to create a portfolio of wealth that performs independent of outside forces and is safeguarded from the volatility in the global economy.
“Investment in whole casks of whisky is a strategy that helps investors both build, and safeguard their wealth, whilst providing a diversified approach to investing.”
The BC20 Whisky Cask Index, said to be the first index of its kind, shows robust annual growth of just over 13 per cent in the whisky cask market.
Investors who select casks from the most popular distilleries can be projected to double their initial investment over the course of five-plus years, the analysts note. However, even casks from a most modest distillery like Ardmore, which showed the least growth out of all distilleries monitored, have a projected capital growth of 5.13 per cent per annum.
When mapped against other popular investment indices, the BC20 Whisky Cask Index shows that if an investor had pumped cash in July 2018 into whisky casks, S&P 500, Bitcoin and gold, the projected value of their portfolio would be highest if they had invested in whisky casks, followed by gold, Bitcoin and lastly the S&P 500 index.
The results also indicate the stable upward growth of whisky casks versus other investment classes.
Patrick Costello, managing director of Cask 88, said: “We have been guiding our clients through the exciting world of cask investment since the early days of the market.
“The research conducted explores the weighting of the distillery, region and cask type on the growth of the index, and our report will likely prove a handbook for any whisky enthusiast who wants to learn more about the industry and direction it is moving in.”
Laphroaig tops the distillery league table for casks, showing an average of 19.88 per cent projected annual capital growth, followed closely by Bunnahabhain and Staoisha. A sharp increase in value of casks over the age of 20 years is evident.