Exports of Scotch whisky continued to increase yet again in both volume and value in 2018, HMRC data shows, and this booming British industry shows no sign of any slowing down.
The export value rose to almost £2 billion in the first half of 2018 and continued to climb. The largest export destination by value was the United States, followed by France and Singapore, demonstrating the cross-continental strength of the market and just how much of a global appeal Scotch has. These facts alone show that now is the perfect time to invest in Scotch whisky. In addition to this, investing in whisky means your money is in a physical asset, something that cannot crash financially in the way stocks and shares have the potential to. Scotch whisky is a sensible investment that allows you to combine a passion for this timeless drink with financial profit, making it a truly enjoyable investment experience.
Investing in Whisky
There are two main ways to invest in whisky. One of these is by buying rare bottles at auctions in the hope that they increase in value over the years as they become scarcer. The main disadvantage with investing in bottled whisky is that once the liquid is bottled, it no longer ages, so the whisky itself would not increase in value as time goes on. Only the scarcity of the bottle could potentially increase its price. The other option is to invest in new make whisky. New make whisky is kept in casks and stored in bonded warehouses ready to be matured into beautiful, flavoursome single malt Scotch. Either way, Scotch whisky is an investment that requires time, patience and care, but the returns can be extraordinary.
Buying casks of new make whisky for maturation means that generally the up front costs per LPA (litre of pure alcohol) are much lower. Tax on whisky in casks is generally much lower than that in bottles, and there is no duty paid on whisky while it is stored in a bonded warehouse. This makes whisky casks an extremely attractive investment to those looking to make a good financial return on their assets.
The popularity of single malts is continuing to rise; they now make up 28% of the value of all Scotch that is shipped overseas as interest in premium products increases across the globe. Single malt is regarded as much more of a luxurious item than blended whisky, and the fact that it takes much longer to make and it must be made in smaller batches means it will continue to be a sought after product in years to come.
What do industry experts say
Karen Betts, the chief of Scotch Whisky Association, recently set out her plans for the industry over the next 30 years at the SWA annual conference. She focused on ensuring the drink stayed the leading spirit in the international market and looked to a more sustainable future with net-zero emissions.
She stated after the conference that: “Looking to 2050, our ambition is to secure Scotch whisky’s position as the world’s number one internationally traded spirit.”
The industry is determined to achieve this growth in a sustainable way. We will continue to work hard to ensure our environmental sustainability and play our full part in Scotland’s efforts to tackle climate change.
Our industry depends on natural resources and our distilleries are set in some of Scotland’s most beautiful landscapes. So we are investing significant time, energy and money in moving our industry towards net-zero.
The Scotch Whisky industry’s passionate efforts to protect the environment that is so vital in its production are just another reason why also Whisky Cask Company feels Scotch Whisky is a great investment for the future. Scotch whisky respects its traditional heritage and environment, and the care and craftsmanship that is so vital to the industry is evident in every drop of single malt.
When you buy a cask of single malt Scotch Whisky you are buying a piece of heritage, investing a craft with a worldwide reputation for care passion and patience. With an investment into Scotch whisky, you really are buying liquid gold.