Whisky Investors Discussion

📊 Investing
1

Who else out there invests in whisky - either in shares of companies that produce the drink, or the liquid variety?

If so what do you own and why?

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2

I don’t know enough about the stuff to invest in it directly.

I could persuade myself to buy some sort of drinks stock though. It’s always seemed a relatively good, easy to understand business.

Which stocks are worth considering?

Diageo’s the one that jumps to mind. It’s share price has taken a battering. Anybody know why? I haven’t been following it that closely.

Would Pernod Ricard and Brown-Forman be the main alternatives?

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I read an article some months ago that made me curious, but I haven’t followed up in any ways yet. Next on my list, after putting on hold the physical gold idea.

4

I thought about buying a barrel some time ago , but they need to be stored in a customs and excise warehouse and tested regularly which can cost a lot in fees.

5

You might be interested in this then, but it’s not for my level of investment:

Essentially you can by a share of a barrel.

Personally, I like to buy bottles, and I track their value over time. Not just the ones I buy, but the release the years before and after.

Currently I own a set of Macallan Classic Cuts. The 2023 is starting to run out in the shops but can still be had for around £130. For reference the 2017 bottle can be had for around £600 in auction if you are lucky.

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6

I never even considered buying bottles. :thinking:

Whats the temptation to drink it like?

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7

I know Jonathan Ross invested in Whisky.

He found it too wisky though…

I won’t even bother getting my coat, I will just leave.

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The other thing to consider i guess, is that a bottle of 10 year old whisky will always be 10 years old, regardless of how long you keep it, so i suppose if you invest in bottles you are investing in the brand. As long as its in a barrel it still ages.

Is an unknown 20 year old whisky from your barrel worth more than a 10 year old bottle of a popular brand after 20 year years?

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Not sure what is happening with my other post, but this is not strictly true. Ingredients change over time - the quality of barley and water can change year on year based on weather, composition of soil, harvest time, and then the casks used.

Some distilleries blend casks, but they will be slightly different from one bottling to the next.

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10

I compile value from whiskystock auctions.

Buying fees all in are 18% on top of winning bid plus postage, I live near a shop so £7 for me.

Seller fees are £19 plus vat if you put on a limit. Expensive!

11

Quite low actually. I rarely drink at home. The bottles I purchase are an investment but double as a nice gift, when they’re no longer in the shops.

There are different ways to invest in whisky.

  1. Buy a cask - the downside to this is the high entry cost, then ongoing fees for storage, insurance and eventually bottling fees.
  2. Buy a share of a cask - cheaper than above, but you have all the same fees, and additional fees for someone to manage the ‘shares’ in each cask.
  3. Buy bottles of whisky - you need to store them, make sure you don’t drink them, and if you come to sell, fees can be as high as 8-10%.
  4. Buy shares in companies that profit from whisky sales. Diageo is probably the one most will think of, but there is also the Artisanal Spirits Company, that own as part of their group the Scottish Malt Whisky Society, that buy their own barrels, test them and bottle them when they decide they are at their ‘best’, and not just the ‘40yo’ whatever, so every bottle is unique.
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I’m going to keep my eyes open and wait for a good deal on a bottle.

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Not convinced this would be a good investment for me, so I’m out .
I can’t even see how the average 11-12% return per annum can be generated, all so very foggy and exoteric.

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A colleague of mine invests through WhiskyPartners. Note this link is tied to his account so if you were to use it to invest he’d likely receive some sort of referral bonus. I don’t think it gives you anything extra though…

He’s got a half dozen barrels of whisky and one of rum. You buy at whatever age you want and you’re given a guide selling price. There’s obviously storage fees and if you do intend to bottle it yourself there’s a decent tax bill. Most people buy newer casks and sell after a couple of years. There seems to be a decent enough market for it, am assuming most of the purchasers of older casks are independent bottlers and the like.

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