Whisky Investment Strategies and Insights

Jul 22, 2024

Whisky Investment Seminar: Speaker Lorey

Personal Experience

  • Enjoyed drinking at bars when young, mixing champagne with green tea with friends
  • Accidentally collected two worthless bottles (Johnny Walker and Chivas) and was mocked
  • Became interested in various types of alcohol as an adult
    • Wine, white spirits, whisky etc.
    • Particularly fond of whisky, easy to preserve and appreciates annually

Attraction of Investing in Whisky

  • Whisky is easy to preserve, high alcohol content
  • Large market with low entry barriers
  • Selecting the right bottle can potentially increase value tenfold and become an auction item

Book Recommendation: "Savoring Investment Whisky"

  • Author: Tiga Chan 陈永錚
  • Certified by the Institute of Brewing and Distilling (IBD) in the UK
  • Holds professional qualifications from the Japan Whisky Culture Research Institute

2020 Hong Kong Auction

  • Auction item: Ichio Akuto series of 54 bottles "Playing Cards" from Hanyu Distillery
  • Transaction price: HKD 11.89 million
  • The colored Joker alone appreciated to over HKD 10 million in two years

Brands and Value of Whisky

  • Brand effect influences price, such as Hibiki, Hakushu, Yamazaki, Yoichi, etc.
  • Key Factors: Ingredients, age, casks, distillery, release volume
  • Whisky brands with high investment potential: Hibiki, Hakushu, Yamazaki, Macallan, etc.

Ingredients

  • Whisky ingredients: barley, wheat, corn, etc.
  • Important categories:
    • Single Malt: Malted barley from a single distillery, highest investment value
    • Blended Malt: 100% barley from different distilleries, relatively lower value
    • Single Grain: Non-barley from a single distillery, no investment value
    • Blended Whisky: Mixed malt and grains from different distilleries, no investment value

Alcohol Content

  • Higher content is more valuable, indicates undiluted
  • Example: Talisker 18 years vs 8 years, the 8 years is more expensive due to cask strength

Age

  • Generally, whisky has to be aged over three years
  • Different ages in the same cask, can only label the youngest age when selling
  • Flavor more important than age

Casks

  • Different casks impart different flavors
    • Bourbon cask: vanilla, almond notes
    • Peat cask: smoky flavor
    • Port cask: dark chocolate, orange peel aroma
  • Beginners recommended to choose Sherry casks, high in value retention, like Macallan uses Sherry casks

Distillery

  • Strong brand effect, top-tier distilleries like Macallan, Hibiki, etc.
  • OB (Official Bottler) more valuable than IB (Independent Bottler)

Release Volume

  • Large release volume, low investment value
  • Special releases and festival editions have the highest investment potential

Special Releases and Festival Editions

  • Special release and cross-over editions are valuable investments
  • Festival editions are the most scarce and appreciate the fastest

Conclusion

  • Investing in whisky requires selecting the right brand, age, cask, etc.
  • The whisky market is interesting and challenging, requires continuous learning
  • Watch VIP member videos to learn more technical knowledge

End

  • Support joining VIP membership or watching free ads
  • Recommend e-book "Savoring Investment Whisky"