For two decades now, I’ve been at the forefront of alternative investing, helping my clients secure holdings in everything from diamonds to art. But it wasn’t until I got involved in the thriving and exciting whiskey business that I really discovered my passion: merging my love of spirits with my established background in finances and investment. And what a great time to be working with whiskey!
As you surely know by now, bourbon and whiskey are experiencing an incredible boom and have become the go-to spirit all around the world. Just take a look at our recent market report on the CaskX website.
Here in the U.S., bourbon is king, and while 95% of it is made in Kentucky, every state is currently making bourbon to add to the incredible growth of America’s only native spirit. It’s amazing — and sometimes overwhelming — when you’re standing at your favorite liquor outlet in the Bourbon/Whiskey aisle pondering which bottle to purchase.
Of course I have my tried-and-true favorites like Buffalo Trace, Russell’s Reserve and Jefferson’s Ocean, but every now and then I like to venture out and try something new, like maybe the latest release from Bardstown Bourbon Co. or one of those tasty Jack Daniel’s single barrels.
According to a recent report by IWSR, a great source for beverage alcohol trends in the world, whiskey sales in 2022 surpassed vodka for the first time in 20 years. It reads: “US whiskey holds the largest share of total whisky volumes, as well as percentage growth (+4%), with value increases led by bourbon which increased by +8%.”
Also worth mentioning is the uptick in the premium whiskey category throughout the last few years. While the entire spirits category is up 2% from 2021 despite the supply chain issues we’ve been dealing with, the premium category (higher-priced bottles) is up a whopping 13%, according to IWSR.
“Despite industry-wide price increases, premiumization (or trading up to higher-priced, often higher-quality products) is still driving all segments of beverage alcohol,” the report states. “Premiumization is occurring most notably in spirits. Overall, 33% of Americans said they had spent $50 or more on a bottle of alcohol in 2022, against just 24% in 2021. Furthermore, six in 10 online shoppers say they spend more on alcohol online than in-store.”
So where does whiskey barrel investment fit into all of this? As you know, CaskX specializes in the sale of whiskey barrel portfolios to investors in the U.S. and beyond — and we were one of the first to do so. We give accredited investors and bourbon enthusiasts a chance to own barrels from some of the industry’s rising stars and established distilleries. While that whiskey ages, it increases in value year after year (CaskX pays up to eight years for storage and insurance), and when the investor is ready, he or she can decide to sell, trade or even bottle their bourbon for a new brand.
If you’re as excited as I am to be a part of this thriving industry, reach out to me and I can give you all the nerdy details.