Investing in consumable assets isn’t a new concept—consider the wine industry, where collectors have long purchased cases of rare vintages, sipping a few and selling the rest at a premium. This same principle applies to whiskey, though whiskey investment is a more recent trend. As the popularity of whiskey has soared, the scarcity of certain highly-rated and sought-after bottles has become a key factor driving their investment potential.
The Growing Whiskey Market
Over the past decade, the U.S. whiskey market has experienced over 150% growth in production, a direct response to the surge in sales and consumer interest. This growth has fueled demand for collectible and limited-edition releases, attracting both seasoned enthusiasts and newcomers eager to explore rare finds. In just the last four years, the appetite for these bottles has skyrocketed, leading many collectors to hold onto their purchases as valuable investments rather than consuming them.
In this post, we’ll delve into some of the most coveted bottles starting from 2016 and assess their acquisition cost growth to the present day.
The Data: Whiskey Investment Performance
We tracked eight exceptional bottles, analyzing their acquisition costs from 2016 through legal markets up to the present day. Although distilleries release suggested retail pricing (SRP) for all their products, securing these bottles at SRP is often only possible in controlled allocation states. The eight bottles examined are:
- Pappy Van Winkle 23 Year – A prestigious annual release from Buffalo Trace, featuring a 23-year-aged wheated bourbon.
- Pappy Van Winkle 20 Year – Another top-tier wheated bourbon from Buffalo Trace, aged 20 years and released annually.
- William Larue Weller 2016 – Part of Buffalo Trace’s Antique Collection, this wheated bourbon is bottled at cask strength.
- Colonel E.H. Taylor Sour Mash – A limited release designed to replicate the sour mash process originally used by Colonel E.H. Taylor.
- Colonel E.H. Taylor Tornado Surviving Warehouse C – A unique release from barrels exposed to natural elements after a tornado hit Warehouse C.
- Colonel E.H. Taylor Cured Oak – Bottled from barrels made with staves cured for 12 months, double the typical time.
- Michter’s 20 Year 2016 – A limited release containing 20-year-old whiskey from an undisclosed source.
- Booker’s Rye – The first rye whiskey released under the Booker’s brand, launched in 2016.
Whiskey as a Lucrative Investment
For those who purchased these bottles in 2016 with the intent of consumption, the value has since surged so dramatically that they now represent a compelling investment, potentially outperforming traditional investment vehicles over the same period. Across all eight bottles, the average value increase stands at an astounding 448%. According to experts at The Bourbon Concierge, this upward trend shows no signs of slowing.
Key drivers of this growth include:
- Reputation and Brand Recognition: These bottles hail from highly respected distilleries with strong brand recognition among both modern collectors and historical enthusiasts.
- Demand and Scarcity: The brands themselves are well-known and sought after by collectors, enthusiasts, and casual drinkers alike. Even annual releases are produced in limited quantities, driving demand and heightening scarcity.
- Quality and Appeal: The whiskey inside these bottles is crafted with exceptional care, often representing the distillery’s finest work. This quality attracts both collectors and whiskey drinkers, further straining supply.
- Ongoing Limited Releases: Each brand continues to release new limited-edition bottlings or variations on annual releases, maintaining interest and ensuring older versions continue to appreciate in value.
Conclusion: To Sip or to Save?
While this post is not intended as investment advice, the data speaks volumes: If asked to recommend whiskies worth drinking or holding as investments, the bottles on this list would top the recommendation. Many other whiskies share similar characteristics and have only recently begun to appreciate, making them prime candidates for future growth. Upcoming releases like the E.H. Taylor Warehouse C, A.H. Hirsch bottlings, Stitzel-Weller releases, and other vintage offerings from shuttered distilleries also show great potential.
If your financial advisor suggested that by simply not drinking a whiskey you could achieve a 448% return in four years, you might find it difficult to uncork that bottle. But whether you choose to sip or save, whiskey clearly holds a unique place as both a consumable delight and a savvy investment.