Neither cryptocurrencies, nor art, nor financial markets, you can invest in whiskey barrels if you want to protect yourself from inflation. Investments in this asset surpass traditional investment and other alternative options in 2022It’s like gold, according to a report by financial advisory firm Braeburn Whiskey to the media. Also, according to a recent report from Noble & Co., auctions of specialty bottles of this Scottish malt beverage rose 23% in trade volume and 21% in value last year.
2022 whiskey barrel market report by Braeburn Whiskey, An average growth of 14.95% is projected for whiskey barrels, representing an increase of 1.7% compared to 2021. Meanwhile, the value of the BC20 index, which uses an algorithm that analyzes the value evolution of a particular selection of 20 casks from some of the best distilleries in different parts of Scotland, allowing it to predict how a particular malt cask will gain in value. Unique on an annual basis, it grew 15.86% last year.
“Our report shows that despite a year in which inflation skyrocketed and markets fluctuated in the aftermath of the coronavirus and the war in Ukraine, the overall performance of the barrel investment market was maintainedNiall Brown, CEO of Braeburn Whiskey, said in a statement gathered in a press release sent to the media, “As gold fell and markets were struggling, the value of the BC20 index grew by double digits. This means more investors are using whiskey as a tool to protect their wealth in times of inflation and stock market instability. coming,” Brown explains.
The market with the highest barrel investment was Europe with 74.78%, followed by Asia with 18.35%. The United Kingdom is the country where it invests the most in these assets and monopolizes it with 74.34%.. Spain overthrew Germany for the first time and became the second country to invest the most in whiskey barrels in Europe with 103 barrels of sales. Young people are also showing interest in this market. 36.49% of barrel buyers are millennials and Generation Z.
good prospects
The opening of new distilleries is driving the dynamism of the Scotch whiskey barrel market as a whole. According to figures reviewed by the Scotch Whiskey Association, Scotch whiskey exports reach £6 billion in 2022It accounts for 77% of Scotland’s food and beverage exports and 25% of all UK food and beverage exports.
Other positive factors for this industry are, Lifting tariffs on Scotch whiskey imports to the USand the progress of trade negotiations in other international markets such as India, which has driven the growth of whiskey in both countries.
profitability per barrel
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Regarding the barrel return on investment, report reflects zero to three year old ‘new’ barrels offering a higher percentage of return for investorsWith an average increase of 38.31% in both cost and valuation in 2022. However, it should be noted that part of this increase is due to raw material inflation and related production costs.
Legacy barrel options, on the other hand, require a larger initial investment as they are in their prime and Due to its rarity, its yield is 9.81%., a feature that intensifies with each passing year as we bottle stocks. It is also expected that these increases will have a significant impact on the aging of Scotch whiskey stocks as starting barrel prices rise.
Methodology
The data in the Braeburn Whiskey report comes from sales of more than 6,000 barrels at more than 80 distilleries. This is the largest data sample available to date. Comprising a selection of 20 kegs from some of the best distilleries in Scotland, the Braeburn Whiskey BC20 index is based on a data modeling algorithm that uses data to measure returns on keg investments and compare kegs with others. investments. Calculated using a matrix of real and predicted data points for different distilleries, the algorithm not only predicts how a particular cask of Scotch whiskey will gain in value on a yearly basis, but also controls these predictions.