In partnership with CaskX
In recent years, cryptocurrency and NFTs have risen to prominence as alternative investments that promise investors new ways to diversify their portfolios and protect their wealth. But you can’t hold an NFT in your hand, and you sure as hell can’t savor a smooth, smoky sip of one. Do you know what you can do that with — while enjoying consistent capital appreciation? Whiskey.
Owning full barrels of Scotch and bourbon might just be the new frontier of alternative investment, and the Los Angeles-based company CaskX is leading the wagon train. Jeremy Kasler and a team of experienced investors founded the platform in 2010 when they learned that individuals could actually purchase and own entire casks of whiskey. Despite more than 30 years of tangible assets experience amongst them, the founding team was just as shocked by this finding as you might be right now. Enticed by the prospect of an investment that, by definition, gets better over time (as opposed to other tangible assets like gold bars that can sit in a safe and be exactly the same when you pull them out years later), Kasler and his partners set out to provide an avenue for investors to capitalize on this dynamic opportunity.
The way it works is surprisingly simple. CaskX sources barrels of Scotch and bourbon from top-tier distilleries in Scotland, Kentucky and Tennessee, sells those barrels to private investors and then ages them to perfection in secure, government-regulated warehouses. While the oak is working its magic, individuals can purchase full ownership of these fully insured barrels through the CaskX platform. Investors can track their barrel’s progress online for complete transparency and control over their investment, and can even visit the distillery to learn about their batch and participate in the process. Try doing that with cars or diamonds.
The bourbon ages for a period of four to 10 years, gaining complexity, depth of flavor and, most importantly, rarity and value with each passing day. Once an investor decides the time is right to exit their holdings, CaskX helps investors to monetize their investments by selling the barrels to bottlers and distilleries in need of the prolific liquid.
While this sort of investment might be especially appealing to bourbon lovers, the opportunity presented by CaskX should entice pretty much any accredited investor. For one thing, the bourbon market is surging. In 2022, according to the Distilled Spirits Council, American Whiskey grew at 10.5%, making it the third fastest-growing spirits category in terms of total revenue when compared to 2021. According to leading alcohol market analysts IWSR, bourbon represents 8.7% of the total spirits volume in the United States (by revenue), with sales predicted to grow at a rate of at least 8% or more per year over the next five years. That’s all to say, demand is high, and supply — at least of the rare, well-aged variety — is limited. It doesn’t take a Ph.D. in economics to know who makes money in that scenario.
Secondly, bourbon barrels are tangible investments, untethered to markets and their attendant, unpredictable forces the way stocks and bonds are. They’re a way to diversify an investment portfolio that can be seen, touched and tasted. So investors are protected from market volatility and feel a greater sense of ownership over their assets, along with a connection to the craft and tradition of distilling.
Third, it’s a relatively low-risk investment. Bourbon barrels tend to appreciate in value steadily over time; even if there’s an economic downturn, barrels are likely to at worst hold their value. As mentioned above, this steady appreciation is somewhat rare for a tangible, physical asset. But such is the nature of bourbon — it literally gets more valuable the longer it ages and becomes more complex and flavorful, which offers a greater potential return on investment for barrel owners. Though there are never any guarantees in investing, some barrels have sold for hundreds of thousands of dollars.
Finally, CaskX is committed to sustainability and environmentally friendly practices, and only partners with distilleries that share their ethos. Investing in bourbon barrels through CaskX helps support this movement and proves it’s possible to make money investing while remaining socially responsible.
Every investment comes with some risks, but the potential benefits of investing in bourbon barrels make it easy to understand why the guys behind CaskX are so bullish on bringing this new alternative to everyone. If you’re interested in learning more, you can request a consultation or an invitation for access to their new offerings here. It’s a brave new world of wild, uncharted investment opportunities out there. In this new frontier, money still won’t grow on trees, but thanks to CaskX, it just might flow from oak barrels.
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