How to Invest in Whisky and Rum

Investment in spirits is a tricky business. So many bottles are released, and not all of us can afford rare editions of Macallan. There are bottles however which don’t cost the earth and are definitely worth looking out for, a few of which I will mention below.

What to think about when investing in whisky

Research is key, for example, finding out when a new distillery might be releasing its very first bottling. Or entering ballots, for example for Daftmill which is sold through Berry Bros & Rudd. Limited editions from new, popular distilleries like the distillery special from Raasay released recently, or single casks from distilleries that have new ownership like GlenAllachie are all great choices. You should be able to find these types of bottles for under £100 or depending on any age statements, along the lines one would expect for their age. These new bottlings are exciting as we see different distilleries bear fruit and some become new cult distilleries.

Which Whisky is Best to Invest in?

Looking back to the old world of whisky, there is a collection of whiskies that may not continue for much longer. It’s just a rumour, but the Flora and Fauna range from Diageo may not be around forever.

The bottles were produced in fairly large numbers for limited editions, but they were delicious and priced very well, so everyone drinks them. I certainly do. My favourites are the Benrinnes 15 year old and Dailuaine 16 year old.

The interesting thing about this range is that there are many distilleries, that other than being in this range, have no other official bottlings. For example, Authroisk, Glenlossie, Stathmill, Glen Spey, Teaninich, Inchgower, Mannochmore, and my aforementioned favourites are all exclusive to this range.

There are two previous distilleries that used to be part of the range which now have to be found at auction. Mortlach produced a cult 16 year old. I bought my last bottles in the Cost Cutter in Dufftown quite a few years ago now for £36 each on a special offer. They now command well over £200 at auction. I drank mine some time ago though! And for a very short time, Speyburn was released, until the distillery was sold to Inverhouse distillers in 1991. These bottles sell for well over £2000.

Now, I’m not saying the remaining distillery bottles will reach those heights, but the range is known and will become sought after if discontinued. And if not, then you’ll have some very good, interesting and delicious whisky to drink.

Which Rum is Best to Invest in?

Away from the world of whisky, there is rum. Like whisky, closed rum distilleries are becoming very popular. Caroni for example is booming at auction and is now difficult to find. If you have any, I’d hang onto it. Then there are high-ester rums which seem to be popular. Like (dare I say it), my namesake Hampden. The ester levels in Hampden rum have designated letters associated with names and ester levels. Hampden marks are:

OWH               Outram W. Hussey                                       40-80 esters
LFCH               Lawrence Francis Close Hussey              85 – 120 esters
LROK               Light Rum Owen Kelly                                   200-400 esters
HLFC               Hampden Light Continental Flavoured 500-700 esters
<>H                  Hampden                                                         900-1000 esters
HCML              Hampden George MacFarquhar Lawson  1000-1100 esters
C<>H               Conintental Hampden                                   1300-1400 esters
DOK                 Dermnot Kelly-Lawson                                   1500-1600 esters

The highest ester numbers are used as blending components in rum and are not usually meant to be bottled as a single mark, however in recent years, some are bottled. The rum aficionados seem to love them, and they tend to do well at auction. Rums with tropical aging rather than continental aging (unless for a very long time), also do well.

All of the above, are ideal for collecting at a more affordable level. The above are only pointers. though, not prophecies, and values, like with all investments and collections can always go down as well as up. Like any collection or portfolio, breadth is the key. It’ll be interesting to see what happens in 2023. Times are certainly uncertain.

Flora and Fauna

Berry Brothers & Rudd Daftmill

Raasay

GlenAllachie

If you’d like to read more about our recommended bottles of whisky and rum then click here.

Words by Colin Hampden-White

Blockchain, NFTs and Wine: Crurated’s Fine Wine Revolution

Listen to Helena’s chat with Paolo Sforza above.

Crurated is a forward-thinking company that has captured our attention since launching in the spring of 2021. The first of their kind, they’re a membership-based community of fine wine lovers and collectors, where NFT and blockchain technology is used to ensure security, authenticity and provenance.

Some of the most highly rated producers in the world are on board, and members can enjoy a range of benefits but at the centre of it all is Crurated’s fractional barrel offering. If any of this sounds a bit confusing at first, don’t worry because it’s actually very simple. Let us explain!

What are fractional barrel offerings?

First up, Crurated are the first membership-based wine company to use fractional barrel offerings using blockchain and NFT technology. Whilst the tech might be new, the concept itself is actually very traditional. For many years in France, wine lovers have teamed up to buy and share a barrel, so this is simply a rejuvenation of an old tradition in a modern way.

Prestigious barrel offerings from some of the finest producers in Burgundy, Piedmont, Tuscany and beyond go live on the website, and members can bid for the litres that they want. Then, when the time comes to bottle, the members pick which size of bottle they would like, and the wine is stored in Crurated’s warehouse in Burgundy for as long as they like.

Producers know exactly how many bottles of each size to produce, and consumers can pick whatever size they want, including much larger bottles that are usually extremely rare or even unavailable altogether. Win-win!

Absolutely anyone (providing they’re of legal age of course) can sign up, making fine wine accessible to everyone. This hasn’t always been the case as the fine wine community can be quite insular, complicated and generally difficult to break into as an outsider. For many high-end allocations, it can even be impossible to get the opportunity to buy some.

What is blockchain and NFT technology?

You might have heard of blockchain technology in connection with cryptocurrencies like Bitcoin. In a nutshell, the blockchain is a decentralised network that facilitates the process of making transactions and tracking assets - a digital ledger of sorts. All the information stays entirely within the network and crucially, the data cannot be edited retroactively.

An NFT is a more recent innovation and it stands for non-fungible token. These tokens are used to purchase digital assets, then the blockchain technology is used to assign and claim ownerships of these. In short, it’s a secure contract that says you own the digital asset, which in the case of Crurated, is also linked to a real asset: the wine. So, if you own the NFT, you own the bottle. This isn’t the same for all NFTs by the way; sometimes you really do just own a cartoon picture online and nothing in the ‘real world’.

Safe to say it’s a complicated area, but the brains behind Crurated know a lot more than us and are putting it to good use! But how?

How does Crurated use blockchain and NFT technology?

In the world of fine wine, there are conventionally a lot of middlemen and hoops to jump through. Everyone takes their cut, there can be questions over provenance and care taken over the wine at each stage. All in all, getting your hands on a reputable new release is very complicated.

Crurated remove those barriers to entry, democratising the distribution of fine wine. Anyone can sign up and despite the sound of the technology used, the process is user friendly and very easy to navigate.

The blockchain and NFT involvement means transparency and authenticity at every stage. Think of it as a digital contract; a modern way to keep track of orders, accounts and contracts, where every bottle is tracked directly from the producer to storage, and absolutely everything is recorded so that you are assured of your bottle’s authenticity. Provenance is one of the most important concepts in the fine wine market, and refers to whether the wine really was made by the producer on the label as well as what kind of storage the wine has been kept in.

With everything being so specifically tracked and checked, there can be no doubts over any of this. The final stop for the wine is the warehouse in Burgundy, which is fully insured and kept in optimal condition so members can enjoy peace of mind until the time comes to ship it. It’s fine wine being treated as fine wine should, which is not always the case!

How do you become a Crurated member?

Signing up is simple via the Crurated website. Currently, there are four different memberships, starting from free explorer options and increasing to various levels of paid membership. These come with additional benefits like being able to store hundreds more bottles, access to rare vintages, invitation-only events and bespoke service. Once your account is up and running, you can take advantage of all the great information and materials available and start bidding on any barrels that take your fancy.

What else can members get access to?

Crurated is about more than transactions. They have recently launched experiences, where members can visit the vineyards of top producers, have dinner with them and discover more about the products they love. This enables producers to communicate directly with their top clients to find out what people love about their products and offers members a uniquely tangible connection to the wine they’re involved with.

The producers involved are already wide-ranging across Italy and France, and the network is consistently expanding. It’s also worth mentioning that at events like these, it is clear how the ‘old boys club’ image of fine wine is something Crurated are changing.

There is a diverse membership base, with more younger people and women attending and signing up. This trend is mirrored in the workforce too, with a 50/50 male and female split and full-remote working enabling people from all over the world to build the Crurated community.

The other really cool feature on offer is personalised labelling. Many of the producers allow custom labelling for specific and special occasions, which is something you just don’t see from high-end producers. Once your bid is accepted and your NFT is secure, you’ll often have the option to put whatever you want on the label, making that special bottle of wine even more special.

Crurated has an active social media presence showing what their winemakers do, what the events they run are like and keeping members up to date with new features, offerings and opportunities. Even if you don’t sign up, it’s also a great way to stay up to date with all things fine wine!

Instagram – @cruratedofficial
Facebook – @crurated
YouTube - CRURATED

What kind of barrel offerings does Crurated have available?

Crurated tends to focus on a different barrel each week, so here are the offerings for the remainder of 2022:

Domaine Gerorges Mugneret-Gibourg — November 7-13
Vosne-Romanée “La Colombière" 2021
Chambolle-Musigny 1er Cru “Les Feusselottes” Cuvée Augustin 2021
Ruchottes-Chambertin Grand Cru 2021

Domaine Pierre Girardin — November 14-20
Échezeaux Grand Cru 2021
Bonnes-Mares Grand Cru 2021
Griotte-Chambertin Grand Cru 2021
Richebourg Grand Cru 2021

Montevertine — November 21-27
Le Pergole Torte 2020

Domaine Y. Clerget — December 5-11
Clos de Vougeot Grand Cru  2021
Volnay 1er Cru Clos du Verseuil 2021
Pommard 1er Cru Les Rugiens 2021

Domaine Hubert Lignier — December 12-18
Clos de la Roche Grand Cru Bio 2021
Morey Saint-Denis 1er Cru Vieilles Vignes Bio 2021
Morey-Saint-Denis Trilogie Bio 2021
Bourgogne Pinot Noir Grand Chaliot 2021

Domaine Bruno Colin — December 19-25
Corton-Charlemagne Grand Cru 2021

How to Invest in Whisky

Written by Colin Hampden-White

The king is just about hanging onto the crown, but it is closer than it has been for many months. Macallan has risen a little and Springbank remains strong. As predicted, Ardbeg has risen up a little and may well rise further but these percentages tell only half the story. The big change over the last few months is the value of the bottles being traded. In the past the big-ticket items, commanding high retail prices were the ones to invest in, but it seems they have had their day and the retail prices, even for very rare whiskies are no longer lower than the secondary market prices. My advice, for now, would be to stay clear of bottles over 5K and find the sweet spot which seems to be around £250 to £1500. I don’t think it matters much about the ranking at this level, and one is best to think long term. As with all investment portfolios, diversify. If you can collect a number of bottles in the top 10 from different distilleries within the sweet spot of £250 to £1500, and hang onto them for at least five years, you shouldn’t do badly.

The Dalmore 2%
Bowmore 3%
Macallan 1%
Springbank 1%
Clynelish 5%
Karuizawa 1.5%
Rosebank Official Bottlings 2%
Yamazaki 0.5%
Ardbeg 2%
Bunnahabhain

Bottles to Watch

As a pointer this month I am going to suggest Springbank as one to concentrate on. Some of these limited releases have different ABVs depending on release and are not listed here.

Springbank 16 year old Local Barley

The local barley release sells out in seconds, so if you see one you’re very lucky! Always sought after and very collectable. Also, absolutely delicious!

Springbank 9 year old Gaja cask

This is a bit of a sleeper for me. It’s not expensive, but it will be limited and lovely. I reckon this will rise quickly despite its young age.

Springbank 19 year old Sherry Cask

19 years old is unusual for Springbank, which singles this expression out. Being in sherry will also help its appeal, and will be looked for by collectors. At this price, for Springbank it’s a great deal.

Springbank 21 years old 1990’s

This is a rare find, and already has some age to it. Only one bottle here shows how rare these things are at retail. Bottled I the 1990’s, the distillate will be 1970’s and a wonderful look back in time.

Find here

Springbank 15 years old 1990’s

Another 1990’s bottling giving a view into the late 1970’s or early 1980’s. Again, a rare bottle and one worth hanging onto.

Find here

As with March, April and May’s Whisky Investment Indexes, any bottles mentioned are just suggestions, I don’t pretend to have a crystal ball, but it will point you in the right direction to do your own research and start you on your journey in whisky investment.

Which Whiskies to Invest in - March Whisky Investment Index

By Colin Hampden-White 

Which whiskies should I invest in?

Once you have decided you would like to invest in whisky, the biggest question is going to be which distillery’s whiskies to invest in. Like the stock market, distilleries’ value and popularity go up and down, and this on-going set of articles aims to make the decision a little easier.

I am not a financial advisor, and I strongly suggest you also do your own research. That research may differ from mine and have a different result. There are also other rankings available and they will use a different formula from mine in determining a ranking.

I sort our ranking by looking at a few of the most popular whisky auction sites in the UK. Most whisky which is invested in is bought at auction and the results of auctions can tell us a great deal about the popularity and desirability of certain whiskies and brands. I look at the volume of whisky being sold from any particular distillery and also the average value from that distillery. Taking both these sets of data into account I then create a ranking which I will update once a month, as whisky auctions are generally held monthly.

For example, the most traded may be Macallan and at the highest prices. However, if the price increase is marginal over time, giving not much rise in price, then it will be lower down the ranking. I am looking for whiskies which are rising in price. It may be that a rarely traded distillery, which has had recent high increases in value, could be at the top of the rankings.

How can I invest in whisky?

In my experience whisky is a great investment and, like any investment portfolio, it should be varied. Rather than investing in one expensive bottle, I would suggest buying a few less expensive bottles from different distilleries and at different ages. This can make the process less daunting and a lot more fun. Some people collect certain vintages, or distilleries or regions, By doing this a portfolio can have a definite direction and hold more meaning.

I am including Japanese whisky in the rankings as the investment value in the right Japanese whiskies has become evident. I am not including bourbon, but lookout for a forthcoming article on bourbon about which are regularly the best to invest in. Bourbon has its own following, especially in America and some bottles rise in price quickly after release.

I think it is not useful to include expressions that are regular bottlings but are being auctioned as part of a collection, house clearance, and generally don’t fetch their retail price as they are very widely available. I understand this is subjective, but with my experience, I decided to cut off at around the £100 mark on most distilleries.

The rates below relate to how much of a percentage higher a distillery has been trading above the next. In the future, as we now have this index base mark, I will track the increase of each distillery over time as well as increase over each other.

Distillery Index

The Dalmore 9%
Rosebank Official Bottlings 4%
Bowmore 1%
Yamazaki 0.5%
Clynelish 5%
Springbank 1%
Karuizawa 1.5%
Bunnahabhain 1.5%
Glendronach (base)

To reiterate I am not a financial advisor, and please do your own research. I cannot be responsible for gains or losses. This is simply a guide that hopefully helps people in their whisky investment journey.

I would advise getting other expert advice and, if you are looking to invest in excess of £2,000, then looking at cask investment may be a good way to invest in whisky, and we suggest Cask Trade Ltd. Cask Trade helped us with sourcing for our 17 year old blended malt, and we know them to be a very professional outfit.

And always remember. At the end of the day, you can always drink it!

Bottles to Watch:

Bowmore Mizunara Cask Finish

Mostly sold out around the world.

Size: 70cl
ABV: 53.9%
Find here: UK £2250

Bowmore 25 year old 1969

Already historic and produced in tiny numbers.

Size: 70cl
ABV: 43%
Find here: UK £2750

Springbank 21

As an annual release, these become historic and collectable.

Size: 70cl
ABV: 46%
Find here: UK £439.99 // US $499.99

Springbank 21 That Boutique-ey Whisky Company

Small batch and from a collectable brand

Size: 50cl
ABV: 47.5%
Find here: UK £339.95

Dalmore 40 year old 2018

Top of the tree, and a vintage 2018

Size: 70cl
ABV: 42%
Find here: £6,736.50

Dalmore 40 year old 2017

From top of the tree Damore as above, but from the sold out 2017 vintage.

Size: 70cl
ABV: 42%
Find here: UK £6750

8 Year old Clynelish from Simply Whisky

If you’d like to invest at a lower level, then good independent bottlings are a good choice.

Size: 70cl
ABV: 51.6%
Find here: UK £58.95

If you want to find out more about Scotch whisky then don’t forget to watch The Three Drinkers do Scotch Whisky on Amazon Prime now!