Savour the Profits: How to Invest in Whiskey
According to one recent poll, 63% of U.S. adults drink alcohol. Of those, 30% favor liquor over wine or beer. If you're thinking about starting a business, is this a market you'd like to reach?
While there are many different types of products and services you could offer, it's important to choose one that will appeal to a range of buyers. In this case, it may be smart to invest in whiskey!
How does that work, and what would your business model look like? Today, we're sharing all of the details you need to know.
Understanding the Basics
Before we dive into how to kickstart your whiskey investment, let's take a step back. What is this drink in the first place, and why is it profitable? As a prospective investor, you'll need to know these answers.
In short, whiskey is a type of spirit made from grains, such as corn, barley, or rye. Unlike beer and wine, which are fermented, spirits are distilled.
Once the distillation process is complete, whiskey is usually aged in wooden barrels. This step can take a few months up to a few years. By the time it's ready to bottle, the whiskey is infused with many different flavors from each step of its journey, including:
- The grains used in fermentation
- Ingredients added during distillation
- The wood grains from the barrel
Due to its intricate creation process, whiskey is considered one of the most refined and renowned spirits around. This is what makes investing in whiskey such a smart idea! Let's take a look at how you can do so.
Buying Individual Bottles
If you're interested in collecting whiskey as an investment, start by purchasing bottles directly from the distilleries you love. While it can take a while to determine the best whiskey to invest in, you need to make sure the one you choose will sell.
Then, the main strategy is to collect bottles that you know will appreciate in value over time. Typically, the two factors that determine how well and quickly a bottle will sell include:
- Quality
- Age
The goal is to choose bottles that will maintain their flavor, appeal, and cultural value, even if they sit in your home or office for years. Then, you can mark the up and resell them for a profit. You can learn more about how to successfully collect wine by checking out this homepage.
Purchasing Barrels
While it's not as common, another strategy is to purchase individual barrels from a distillery. Call to see if the distillery you're eyeing allows this option. Most will let investors stake their claim on a barrel or flask right as its entering the aging process.
Two of the main reasons to try this option include:
- The ability to get in on the ground floor with a new type of whiskey
- The ability to buy whiskey in bulk
While you're earning potential is obviously higher with this option, keep in mind that it will also require a larger initial investment.
Invest in Whiskey the Right Way
What if you could turn one of your favorite pastimes into a lucrative business venture? When you invest in whiskey, you can.
The beauty of this business model is that you're free to scale and expand at any time. If you want to start small, buy a few bottles and let them appreciate. If you have the bandwidth to go big, purchase an entire flask!
Along the way, we're here to share all of the tips and advice you need. Check out our "Food" section to learn more about which entrees to recommend with the whiskey you sell!
