Member Article

Could whiskey be the next big alternative investment?

Alternative investment company Whiskey & Wealth Club has targeted €24m in revenue within the coming years.

The Richmond based business offers investors the chance to buy into cask Irish whiskey and Scotch whisky at cheaper prices than directly from distillers themselves.

The company bulk buys casks from distillers at a reduced cost before offering them to investors.

In its opening seven months, the company has recorded €5m in sales through its offers with West Cork Distillers, Drogheda-based Boann Distillery and Craft Irish Whiskey Company.

Co-founder and CEO Scott Sciberras said that the business operates much like any other wholesale model.

“We’ve seen a great deal of interest from investors looking to diversify their portfolios. There is a real demand from people wanting to invest in whiskey.”

As a result we’re investing in our staffing too. We now have 19 staff, up from four in January. We’ll continue to expand as we open up the Scotch market.“

August was the company’s most successful month to date taking on 66 new clients and achieving revenue of just over €1 million. The company is well on target to exceed that this month.

Whiskey & Wealth Club now also have seven resellers, including four independent financial advisors who are recommending whiskey as an alternative investment for their clients.

“We’re in this for the long haul and we see a huge future in the whiskey investment market.

Irish whiskey is the fastest growing spirit in the world with exports growing 300% over the last decade, according to Irish food board, Bord Bia. Making it a huge opportunity for investors.

The Scotch market is much more established but there is still a huge unwavering demand for aged whisky.“ Sciberras said.

Whiskey distillers often hold their own cask programmes that offer investors the chance to back the brand at an early stage. The programmes are used to fund the capital-intensive business of producing whiskey, which takes at least three years.

Whiskey & Wealth Club don’t simply provide a list of casks for sale to investors. But instead deal directly with the distillery, negotiating heavily discounted rates through bulk purchase. Passing that directly onto their clients.

“Some people are even using our offering to add a different flavour to their pension plans, as cask whiskey has been approved for use by some self-invested personal pension schemes.

There are exciting times ahead for the whiskey market and those choosing to invest.“

This was posted in Bdaily's Members' News section by Rachel .