ccording to business experts, around 500 million cases of American whiskey are sold annually, and the US drinking population has increased to about 50%. In the UK, whiskey makes up about 25% of its overseas food and drink market. Although the demand for whiskey has doubled since the 70s, interest in this vibrant distilled spirit has increased since 2010, especially in India which makes up 50% of the world’s whiskey drinking population.
One of the reasons for increasing demand is the decrease and removal of the tariff on whiskey in other countries. In fact, because of the demand, it was reported that there might be a shortage of whiskey in the United States in the future. In Tennessee alone, annual sales increased by 10.2% from 2013 to 2014.
Collecting whiskey started in the early 1900s. Whiskey (whisky) is one of many kinds of distilled alcoholic drinks made of fermented grains. There are different types, such as malt and blended, as well as various flavors like honey and cinnamon. Its many variations in flavor have made it more appealing to a wider range of people.
Whiskeys vary depending on where they are made. One of the most popular kinds is Scotch. The Scottish call it “water of life.” Jack Daniels, Johnnie Walker, and Chivas Regal are some of the most famous brands of whiskey there are.
The difference between whiskey and other types of alcohol is that, once you open the bottle, whiskey begins to lose its flavor, so it doesn’t have a very long shelf life once opened. If unopened, though, it can be kept longer than any other kind of alcohol.
But why do people drink whiskey? Aside from good company and a decent buzz, whiskey is low in carbohydrates and fat free. It also has health benefits such as lowering the risk of cancer, stroke, and heart disease when consumed in moderation.
Why Invest in Whiskey
$1.8 billion worth of Scotch is sold every year and the market in general is increasing by 2% annually. There is a global demand for aged whiskey, the value of which is expected to rise. As people continue to consume whiskey, the supply decreases, making prices rise.
Unlike the stock market, no matter what the economic situation is, the value of your whiskey is retained and the market is predictable.
Costs and Returns
The most valuable whiskey was made pre-WWII and in the 60s and 70s. $30,000 to $60,000 bottles of whiskey are collectible.
A 62-year old Dalmore single malt is considered the most expensive whiskey, partially because only 12 bottles were manufactured. In 2001, a bottle was purchased for $51,000 and sold again ten years later for $195,000. That means there was a 282% price increase. However, the Guinness Book of Records states that the most expensive bottle ever sold was a 64-year old Macallan sold for $460,000 in New York.
American whiskeys sell for $2,000 to $3,000. Other whiskeys such as Irish whiskey, Canadian whiskey, single malt Scotch, bourbon, Tennessee whiskey, and rye whiskey range in price from under $20 to more than $100 depending on brand and age. A 1960 blended Scotch is worth $50. The average price of whiskey and Scotch is $88. The World Whiskey Index predicts an annual return of 12%.