Let’s delve into investing in whiskey and see the opportunity in this Waterford whisky review.
If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (advice@adamfayed.com) or WhatsApp (+44-7393-450-837).
Before we get to the details of the investment opportunity, let’s first get to know who Waterford is.
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Waterford Distillery Background
Mark Reynier established the Irish distillery Waterford in 2015. Reynier was former CEO and co-owner of the famous Scotch whisky distillery Bruichladdich.
Waterford distillery’s primary goal is to create single malt whiskey with homegrown barley. They aim to highlight the influence of terroir on the finished spirit. Introduced in 2020, Single Farm Origin is Waterford’s take on single malt whiskey that is the result of tight collaboration with local farms.
Organic barley and a dedication to time-honored whiskey-making techniques are other hallmarks of this distillery. When it comes to whiskey, Waterford Distillery is known for its creative methods and focus on how terroir and raw materials affect the whiskey’s character.
Waterford Distillery has the potential to generate three million liters of alcohol annually using just two stills, while their initial production capability is closer to a million. In order to create their many whiskey flavors, the distillery uses various grain types.
Waterford whisky investment
Investments in Waterford Distillery’s expansion and production of single malt Irish whiskey have been substantial. Among the many investors who have put money into the distillery’s growth and export plan is HSBC UK (€45 million).
One reason for the distillery’s unique position in the whiskey industry is its dedication to organic and biodynamic techniques, which place a focus on terroir. These fresh investments will help the distillery grow, enter new markets, and build its premium whiskey brand.
In particular, the distillery hopes to use the money from HSBC to break into the American market. The sustainability efforts and emphasis on terroir-driven flavors for Waterford whisky have helped to establish the company as a trailblazer in the whiskey business.
How much does it cost to invest in whiskey?
Investing in whisky can be expensive, but how much depends on factors including the kind of investment, the product itself, and any additional expenses like storage facilities, insurance, or management costs.
For Waterford whisky, the investment minimum is 50,000 euros.
How safe is whisky investment in Ireland?
Not many people associate Ireland with high-quality whisky, yet Waterford was responsible for making and selling Bruichladdich. If the company fails to achieve its sales targets, Waterford’s shares will be placed in escrow (third party) and may be pledged as collateral, potentially incurring a 15% annual fee. The fact that Waterford has experience in the scotch distillery industry is an added bonus.
Now let’s consider the more general benefits and risks of whisky investment options.
Investing in whiskey pros
- Whisky kept in a bonded warehouse is an investment that incurs no taxation until its sale. During the holding term, the investment is not subject to taxes; nevertheless, the exact nature of these taxes could differ from one country to another.
- You can protect your initial investment in whiskey barrels from any loss, theft, fire, or damage by purchasing insurance. Legal options contracts offered by certain firms, such as The Whiskey & Wealth Club, can yield an annual return of 12.3% on average.
- The Irish Revenue Commissioners keep track of every barrel, and investors get a certificate that proves their investment for tax and legal reasons.
- Investors can easily sell or liquidate their interests in Irish whiskey due to the market’s high liquidity.
- Due to its mature industry and relatively constant demand, whisky is typically seen as a low-risk investment. External economic factors like recessions, currency changes, and other market pressures are less likely to impact it.
Investing in whiskey cons
- The cost of storage increases since you can’t influence the barrels’ quality. A number of factors, including the potential for cask leakage and the relative youth of the whisky investment sector, might skew pricing, trends, and business strategies.
- A potential threat to the worth of your investment is the prevalence of counterfeit whisky on the market.
- Whilst whisky is often seen of as a low-risk investment, the value of your investment could be impacted by market movements.
- Investors may struggle to make educated choices due to a lack of details provided by certain organizations regarding the particular whisky casks they are offering for investment.
Related content:
Best whisky cask investments in 2023
What you should know about whisky casks as alternative investments
Bottom Line
When it comes to whisky, there are a lot of elements that might affect its value. These include the whisky’s inherent qualities, the demand, macroeconomic circumstances, and the risks and expenses related to storage and legitimacy.
Before putting money into Waterford whisky, investors should think about these things and get some expert guidance.
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Adam is an internationally recognised author on financial matters, with over 760.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.
