The scarcity & value of whisky as an alternative investment
The value of whisky is the first step in investing in whisky. Did you know that Scotch single malt whisky older than 25 years represents only 0.7% of total whisky production? This makes it a scarce product. The Scotch Whisky Association regulates and monitors the Scotch whisky market, ensuring high-quality standards and a thorough benchmark.
- 1 How is the value of scotch single malt whisky determined?
- 2 Scarcity creates value
- 3 Yield of Scotch single malt whisky: 6.6%
Region of origin. Some regions have more distilleries than others. This means that a whisky may be scarcer due to the geographical location of the distillery.
Bottles from prominent brands. The name recognition and image of the distillery or bottler factor into the valuation.
The quality of the whisky based on the whiskybase score. For investors, whiskies with a score of 80 points or more are particularly interesting.
Marketability. There is a larger group of buyers for bottles below €2,500 than for bottles above this amount.
Maturation time. The longer the whisky has been in cask, the more exclusive it is.
Of all whisky produced in Scotland, 88% is blended whisky and 12% is single malt whisky. Only 0.7% of single malt whiskies are older than 25 years. This scarcity will continue in the coming years, because while global demand is rising, production capacity in Scotland has already been maximised. In addition, bottles aged 25 years and above are regularly consumed, further increasing scarcity.
Research* shows that the average value development of Scotch single malt whisky was 6.6% per year over the period 1936 to 2008. Since THE SWEX made whisky accessible as an investment product in 2007, the annual value development was on average 15.2%.
*Research by Scotch Whisky Investments
Region of origin. Some regions have more distilleries than others. This means that a whisky may be scarcer due to the geographical location of the distillery.
Bottles from prominent brands. The name recognition and image of the distillery or bottler factor into the valuation.
The quality of the whisky based on the whiskybase score. For investors, whiskies with a score of 80 points or more are particularly interesting.
Marketability. There is a larger group of buyers for bottles below €2,500 than for bottles above this amount.
Maturation time. The longer the whisky has been in cask, the more exclusive it is.
Quality control
The quality of the products offered on THE SWEX is monitored by expert and experienced whisky analysts from Scotch Whisky Investments. These whisky analysts deal with, among other things:
Tasting and evaluating whiskies
Quality controls to ensure that whiskies meet specific standards and regulations. This involves analysing samples, conducting laboratory tests and monitoring production processes.
Market research and trend analysis: Whisky analysts monitor market trends, consumer preferences and competitor activities. They provide insight into emerging markets, consumer needs and potential opportunities for the whisky industry.
Product development: Whisky analysts may be involved in the development of new whisky products, working closely with distillers and blenders to create unique flavour profiles and variations.
Industry expertise: Whisky analysts stay informed about industry developments, technological advances and changes in regulations. Analysts may contribute to industry publications, participate in conferences, or provide advisory services to distilleries or whisky brands.
