Australian (ASX) Stock Market Forum

Whisky Investment

Yes i believe this story is going to be on Landline on ABC today also
 
Hi , I'm considering buying a barrel of whiskey from a local Tasmanian distiller (NANT) as an investment. Do any other forum members have any experience in this sort of investment ?
Cheers IJN

I can see it working if you are buying something rare.

Something like the Johnny Walker Diamond Jubilee would fit the bill. Only 60 made worldwide. At 200K a bottle you can understand why.

I'm sure there's limited editions, or some already rare / vintages bottles out there. it'd be a bit like buying grange or top notch champagne to store away.
 
In the article they're talking about increasing supply up to 200,000..wouldn't this make your investment somewhat diminishing? - Or is it because you're buying it, then letting it sit for X years, it's becoming worth more, to them anyway.
 
In the article they're talking about increasing supply up to 200,000..wouldn't this make your investment somewhat diminishing? - Or is it because you're buying it, then letting it sit for X years, it's becoming worth more, to them anyway.

If supply is increasing due to demand then it could make it worth the same, or more, depending on how much the demand is increasing
 
If supply is increasing due to demand then it could make it worth the same, or more, depending on how much the demand is increasing

I was also thinking that, and surely they wouldn't just go increasing supply for the point of it unless the demand is there.
 
I'm a bit confused, are you interested in buying "Whisky" of the Scottish type, or "Whiskey" of the Irish type.

Actually, it of the Tasmanian type which is winning awards and is a variant of the Scottish type. There are some very good single malt whiskies being produced in Tasmania which even the Scots say are excellent. NANT is one of them. You should try some.

With their growing reputation and increasing sales the NANT deal seems a reasonable investment.

Cheers
Country Lad
 
The Landline story made it look like a good investment...here's the iview link.

With their growing reputation and increasing sales the NANT deal seems a reasonable investment.

Yeh i think the LandLine story answered a few concerns i would have. Biggest issue is still if the distillery goes bust and you are left having to transport the barrel to another storage facility.
 
Well don't have any idea about investment on Whiskey because never invest on food items. Because their price fluctuate very quickly. but have ideas on other short term investments which can give you enough returns.
 
I had an idea the other day watching a new ABC story on the Tassie Whiskey industry...it reported that the quality of the barrels has a lot to do with the quality of the end product, so that got me thinking that perhaps it was possible for someone to set themselves up as a whiskey maturer.

Someone that buys good young single malts and blends and then barrels them under perfect conditions to mature and therefore increase in value, so after say 10 years the whiskey that you barrelled 10 years ago at a cost of $30 per litre would (10 years in the future) be worth $70 or $80 per litre?

Just an idea.
 
Well don't have any idea about investment on Whiskey because never invest on food items. Because their price fluctuate very quickly. but have ideas on other short term investments which can give you enough returns.

To me this scheme is more of a financing scheme than a commodity play, distillers have to have large amounts of capital tied up in stock which has to sit and age for years, I think this scheme is just a way for the distillery to free up their working capital by having an investor buy their stock, and they can then buy it back when its ready to sell. They are guaranteeing the buy back price so your not taking commodity price risk, your just basically earning interest on your money.

The position of the investor is more of a bond holder than a commodity owner, your bond is however secured by a barrel of whiskey,
 

Well I looked at them 4 years ago, you can see my posts on the previous page. Its nice to get it right for the right reasons sometimes! Sorry to those who were invested.

I thought a bit more about the risks with either investing in the barrels or the notes and I dont think the returns are enough to offset the risks.
 
It's great to see some follow-up after several years. In this case it's completely negative, but it has educational value.
 
Yeah I felt compelled to register and share the news on Nant in case it hadn't crossed your radar. Interesting to get updates on old topics in my experience. Hindsight etc.
 
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