What is the Best Whisky to Invest in?

Whisky has seen a surge in interest as an alternative investment in recent years. In a similar sense to fine wines, rare stamps and art, whiskies can appreciate in value over time, and rare or collectable whiskey bottles can fetch astronomical prices at auction.

The following whisky investment tips provide insight into choosing the best whisky to invest in, whether you are looking to diversify your investment portfolio or are a whisky enthusiast looking to combine your passion with investing.

What are the Best Whiskies to Consider for Investment?

Many brands of whisky release limited editions that are highly sought after by collectors, such as Macallan, Glenfiddich, and Bowmore. Recent years have seen an impressive appreciation for Japanese whiskies such as Yamazaki and Hibiki. Because of their finite quantity, whisky from distilleries that have closed (such as Port Ellen or Brora) can be of significant value.

The Yamazaki 55-year-old Single Malt Whisky (7) is a prime example of a highly sought-after Japanese whisky. Produced at the Yamazaki Distillery, this extremely rare and exquisite whisky from Japan has a unique and complex flavour profile that can only be achieved with decades of maturation. It is finished in charred oak barrels, adding depth and richness to its taste.

There can be a spike in demand for whisky that wins major awards too, but keep an eye out for trends that pass quickly. If the whisky comes from a renowned distillery, old and rare whiskies can add value.

Closed Distilleries Add Value to the Whisky Industry

One of the most fascinating dynamics in whisky investment is closed distilleries. In the aftermath of a distillery ceasing to operate, whiskies produced by the distillery gain a unique charm. Each bottle consumed reduces the global stock of these whiskies, making them rarer and more expensive since they are no longer being produced. When it comes to retail prices, purchasing a bottle through direct purchase from a distillery or authorized distributor rarely offers a better deal or a better assurance that bottles are well-preserved. When finding the best whisky to invest in, casks or bottles from closed distilleries are great option to target as an investment option.

Two Examples of Closed Scotch Distilleries Within the UK are:

The Port Ellen Distillery on the Isle of Islay

Port Ellen (1) on the Isle of Islay was established in the 1820s and has had a varied history of closures and reopenings. This distillery closed permanently in 1983, making it a legend of closed distilleries. Port Ellen was in operation for 58 years, from 1825 to 1983. The closure of Port Ellen was due to the declining demand for Scotch whisky in the early 1980s, as well as the increasing popularity of blended whisky. It was decided that the distillery would be permanently closed in order to preserve its legacy.

There has been a great deal of interest in Port Ellen bottles since then. With its peaty character, maritime influences, and age, it has become a popular choice.

The Brora Distillery in the Highlands

The history of Brora (2), which was established in the Highlands in the early 19th century, is closely linked to the history of Clynelish, an adjacent distillery. When a new distillery was built next to Clynelish in the late 1960s, it was renamed Brora. A unique feature of the distillery's malt was its waxy, smoky character. The Brora was mothballed in 1983 and some of its releases, especially those from the 1970s, are regarded as artifacts of whisky history due to their quality and complexity.

On 9 October 2017 Diageo announced that it was re-opening the Brora distillery with production resuming in 2020. On 19 May 2021 it was announced the reopening was complete and the first new cask of spirit had been filled.

Closed distilleries tell stories of history, craftsmanship, and time in the world of whisky. Having become scarcer over time, these distilleries only add to the mystique of whisky, making them pivotal chapters in its history.

The Prestige of Rare Whisky: An Inside Look at Limited Editions and Special Releases

There is no denying the allure of limited editions and special releases in the whisky world. In the same way that rare art pieces or limited edition luxury items appeal to both collectors and enthusiasts, these bottles appeal to both. They stand out in the crowded whisky market because they are rare, unique, and often intricately presented.

What are the benefits of limited editions and special releases?

This limited bottling is often a result of experimentation or a special cask finish. Some distilleries use unusual wood types for maturation, use different distillation methods, or blend rare stocks.
It is not uncommon for these bottles to be accompanied by a narrative. You may tell the story of a distillery's heritage, or tell the story of a historical event, or pay homage to an important figure in the history of whisky.
Packaging and Presentation: More than just the liquid inside, limited editions often boast intricate design, high-quality materials, and detailed artwork. Presentation boxes, detailed booklets, or bespoke accessories can accompany the bottle.

Highlighting Prominent Examples of Limited Releases & Special Collections:

Macallan's Limited Releases:

Known as one of the titans in the whisky industry, The Macallan's limited releases are events unto themselves. Their older age statements, especially, are revered. Macallan’s commitment to exceptional wood management, from selecting the oak trees to overseeing the cask production and seasoning, shines through in these releases. For instance, their "Fine & Rare" collection, showcasing vintages spanning several decades, has been the highlight of many auctions. Some of these bottles have broken records in terms of prices fetched, demonstrating both the quality of the spirit and the brand's unparalleled reputation (3).

Diageo's Special Releases Collection:

As one of the largest spirits companies globally, Diageo has an extensive portfolio of whisky distilleries, and their annual Special Releases collection is eagerly anticipated. This collection is a showcase of the diversity and depth of Diageo's whisky stocks. From lesser-known distilleries to old and rare expressions of popular brands, these releases often highlight unique age statements, cask types, or unusual profiles. They offer enthusiasts a chance to taste and own something distinct from the regular lineup of available whiskies.

In essence, limited editions and special releases, including those from independent bottlers, represent the pinnacle of a distillery's art and the industry's broader tapestry. They provide enthusiasts and collectors with an opportunity to delve deeper into their passion, exploring nuances, stories, and profiles that might otherwise remain hidden. When deciding the best whisky to invest in, such as those from independent bottlers, is not just about potential monetary appreciation but also about owning a piece of whisky history.

The Allure of Aged/Vintage Whisky

Whisky, unlike many other spirits, has a unique relationship with time. The years it spends maturing in oak casks, including cask strength, are not just about adding character but also about evolution, transformation, and the interplay of spirit and wood. As a bottle's age statement climbs, so does its aura of rarity and prestige. Whiskies aged 30 years or more, such as the GlenAllachie 30-Year Old Batch 1, represent a category where patience, craft, and time converge, producing spirits that tell tales spanning decades.

Why Does Age Matter in Cask Whiskey?

The chemical reactions in whisky mature as it matures, adding complexity and depth. As a result of these reactions and the movement of the spirit into the oak cask, the flavour and aroma of the spirit are broader. Long-term aging can produce layers of depth not achievable in young spirits.
It is risky and expensive to age whisky for three decades or more. There will be a portion of the spirit that evaporates during this time (also referred to as the 'angel's share'). As a result of this evaporation, spirits lose a significant amount of their original volume after 30 years, making the remaining liquid more valuable.
Often, older whiskies reflect historical production methods in their packaging. Depending on their style of distillation, type of barley, or cask management practice, they can offer an experience unlike any other.

Spotlight on Iconic Brands:

With a reputation for producing some of the world's most sought-after whiskies, Macallan is synonymous with luxury and aged statements. Their meticulous selection of oak casks and commitment to sherry-seasoned oak barrels produces a rich, opulent flavour profile that only gets better with age. When deciding the best whisky to invest in, take a look at previous auction sales. For instance, a bottle of 1926 Macallan once fetched $1.5 million at auction (5).

Having pioneered single malt whiskies, Glenfiddich's history has been intertwined with innovation. As a brand committed to age and craft, Glenfiddich's 40-year-old and other older expressions are testaments to their commitment. Often, these bottles have a harmonious balance between fruitiness, oak, and subtle spice characteristics Glenfiddich is known for. In an auction, a 1937 Glenfiddich bottle sold for £68,500 - nearly double the high estimate it had before the auction (6).

Incredibly peaty and elegant, Bowmore is a whisky from Islay. Maritime and fruit notes are interwoven with intense smoky notes as their whiskies age. A symphony of flavours is created in the Bowmore 30-year-old, which has tropical fruits, smoke, and salt flavours.

The magic of maturation and patience play a vital role in whisky making, even though age is but a number in many contexts. A bottle of whisky aged 30 years or more is not just a beverage; it's a journey through time, narrated by the distillers, blenders, and craftsmen who ensured its legacy. In the world of whisky production, the use of a copper pot still is crucial. This traditional batch process is employed at a single distillery to create the premium and traditional style of whisky known as single malt. When bottled as single malt, it accounts for 8% by volume and 18% by value of Scotch whisky production.

When finding the best whisky to invest in, investment decisions should be based on a number of factors, including the age, rarity, distillery from which it came, the distillation process, and reviews from whisky experts. To determine which whiskies are gaining value, you should also pay attention to the whisky market.

Article Roundup: How to Decide on the Best Whisky to Invest in

The rarity of the whisky often affects its value. Look for limited editions or discontinued whiskies that are difficult to find.
A strong track record of producing high-quality whiskies is a sign of a reputable distillery.
Due to their maturity, older whiskies tend to be more valuable, so they have higher investment potential.
A well-established brand with a global reputation is more likely to hold its value over time.
Expert Opinions: Get insights and recommendations from whisky experts or investment advisors who specialize in whisky.
Identify emerging trends and popular distilleries that have loyal followings. Analyse current and future market demand for certain whisky brands or types.
Limited Edition Releases: Look out for limited edition releases from reputable distilleries, as these often attract collectors and can increase in value significantly.
Whiskeys in pristine condition with original packaging are more desirable to collectors, thereby increasing their investment value.
Find out which brands and expressions are highly valued by collectors and investors by researching past auction results.
The value of whisky may not appreciate for several years when you invest in it, so prepare for a long-term investment horizon.

You should conduct thorough research, consult a professional if necessary, and make informed decisions based on these factors when investing in whisky.