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Investing in Irish Whiskey
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Curious about Investing in Irish Whiskey? Here’s a Step by Step Guide

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The team at the Whiskey Investment Club have created a step-by-step guide for anyone curious about investing in Irish Whiskey. The Whiskey Investment Club was founded on the principle of making Irish Whiskey Cask Investments easy and accessible to private investors and institutions. They specialise in Single Pot Still, the quintessential Irish Whiskey style, and they have long-standing experience in the drinks industry which allows them to offer clients a bespoke services and expert advice. 

Investing in Irish Whiskey

Irish whiskey is so much more than a tipple to be enjoyed on the weekend or a special occasion, it’s an economic force to be reckoned with. Irish whiskey is currently one of the fastest-growing spirit categories in the world. Recent years have seen record numbers for export growth, especially in the US market. In fact, 2022 saw Irish whiskey exports exceed €1 billion for the first time. Johan Radojewski, the vice president of marketing at Pernod Ricard USA, encapsulates the reasoning behind this growth perfectly; “Irish whiskey is grounded in heritage, craftsmanship, passion, and community. It’s steeped in traditions that make it one of the best categories the spirits industry has to offer.” 

While the Irish whiskey industry enjoys year-on-year growth, one of the greatest challenges that this industry faces is that Irish whiskey by law, must be aged for a minimum of three years before it can legally be called whiskey. Before then, it is simply a triple distilled spirit. The process of producing Irish whiskey is time and capital-intensive. To financially bridge the large gap in the process, distilleries turn to private investors to ensure that their books balance during this gap. 

Investing in Irish Whiskey

So, why has this alternative asset gained so much attention in recent years? Global economic uncertainty brought about by the Covid-19 pandemic and the stark fluctuation of stock markets highlighted the importance of diverse investment portfolios. The reason investors are diversifying their portfolio with alternative assets is that the value of these alternative assets, especially Irish Whiskey, is different from traditional stocks and shares as their value only appreciates with age!

Investing in Irish Whiskey casks is the process of buying casks of whiskey from the distillery and holding ownership of the casks throughout the casks maturation period. There are no additional steps needed during this process, simply sit back and watch your casks of whiskey mellow and round out. Once you decide the time to take the casks of whiskey out of the maturation process comes, there are a number of exit strategies available. But first, let’s go over the process of how investing in Irish whiskey casks works. 

Investing in Irish Whiskey

Step 1: Wholesale 

Once the distillery produces the spirit and fills the cask to begin the maturation process, they sell a portion of their stock to investors and cask wholesalers alike. Cask wholesalers, like the Whiskey Investment Club, sell the casks to private investors, fund managers, and family offices. 

Step 2: Consultation Process 

This is typically where you come in! If you’re looking to learn more about Irish Whiskey cask investments and what they can do for you, you can reach out to the team at The Whiskey Investment Club. In this step, you can outline the goals you have for this portfolio, receive the answers to any questions you may have, and receive advice from their team based on your wants and goals. The team will then create a portfolio for you based on this consultative stage and the requirements you set out. 

Step 3: Visit the Distillery 

Prefer face-to-face meetings? You’re more than welcome to visit the team at the Boann Distillery in Drogheda (20 minutes from Dublin Airport) where they are based, to put a face to a name, view the whiskey production process firsthand, and of course, enjoy a dram (or two) of whiskey.

Step 4: Certification 

Once all the necessary documentation has been received and “know your customer” checks are finalized, you will receive the certification confirming your ownership of the casks of whiskey (as well as your welcome package) and confirmation from the bonded warehouse where your casks are being stored. 

Step 5: Sit Back & Wait 

Once the bonded warehouse has received your casks, all there’s left to do is sit back and let your whiskey appreciate! The first 5 years of storage in the bonded warehouse and insurance is covered by the Whiskey Investment Club. But, if you want to let your casks appreciate further after the 5-year mark, the process of extending this maturation period is seamless. 

Step 6: Selecting an Exit Strategy 

Once the maturation length of your choice has come to an end, it is time to select an exit strategy that suits you. While whiskey appreciates in value every-year, there is currently a demand for Irish whiskey at any age, especially Single Pot Still. Exit strategy options typically include (but are not limited to) selling the casks to Whiskey brand owners, other distilleries seeking mature stock, or bottling your own bottles of whiskey to enjoy! 

The future of Irish Whiskey is bright. The Irish Whiskey Association published a report, (The Irish Whiskey Global Report 2022), that highlights that strong growth in non-traditional markets like New Zealand, South Korea, and India is on the horizon. Additionally, the report focuses on trends such as market diversification, the growth of eCommerce, and the popularity of Irish whiskey amongst younger generations, factors which are driving growth in the industry and are here to stay. 

Thirsty for more information? Request an Irish whiskey cask brochure, email info@whiskeyinvest.com or visit www.whiskeyinvest.com

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