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May 13, 2021

Investing in expensive drinks – a passing fashion or good business?

Investing in expensive drinks – a passing fashion or good business?

Alcohol has been with us since the dawn of time – the first information about brewing beer comes from 6,000 years ago. Centuries have passed and we still love him. Not only that – today it is not only a way to celebrate important celebrations and evening relaxation, but it can also bring considerable profits. Investing in expensive drinks turns out to be not only the domain of collectors and wine and whiskey lovers, but also conscious businessmen. Is this really a way to earn money that will not result in hiccups?

An investment in alcohol? Only the top shelf!

If you want to invest in alcohol, you cannot choose the drinks that can be found on any of the store shelves. Only expensive, properly selected wines, whiskey and cognacs bring profit, which are not available to everyone. This applies to all exclusive products – only those for which demand exceeds supply bring high revenues. Everything that is limited and available in limited quantities is more desirable – sometimes it takes a bit of patience, but often, as with Ardbeg Kelpie whiskey, you can double your capital in a month. Until recently, a bottle of this noble drink cost PLN 400 – today we are unlikely to get it for less than PLN 800.

The numbers prove that it is worth investing in expensive alcohol. In the case of whiskey, we have been dealing with an uninterrupted increase in prices for 10 years, and the annual global turnover on the investment wine market has already exceeded $ 3 billion! Little? The widest price index on the whiskey market (Rare Whiskey Apex) has increased by as much as 140 percent in the last 5 years.

When choosing the drinks you want to invest in, you need to pay attention to their country of origin and brand. The safest options are, of course, French wines and cognacs, as well as Irish and Scottish whiskey – investing in them is recommended for less experienced people who do not want to put their money wrong at the start. By gaining knowledge and observing the alcohol market, you can take a bit more courageous steps – an example of how valuable investing in what is less popular is Japanese whiskey, the popularity of which – despite its small traditions – has grown significantly in recent years.

The trend of investing in expensive drinks is very visible among celebrities. Some, like Brad Pitt and Angelina Jolie, offer it at relatively low prices (their Miraval Rosé pink wine can be purchased for PLN 100-200), but Armand de Brignac champagne from Jaz-Z costs PLN 1300-1400 per bottle!

How to buy and store alcohol?

The liquors can be purchased in various forms – in the case of wine, investors very often decide to buy it in maturing barrels. However, it should be remembered that it has not yet been assessed and classified, and before that, it is necessary to store it under appropriate conditions. The best solution in this case is your own cellar, in which there is no access to external light and whose temperature and humidity are properly adapted to the needs of this drink. 12-14 degrees Celsius and 70-75% humidity are optimal values. Despite this, we are not 100% sure that such alcohol will achieve a sufficiently high quality, therefore the alternative is to buy wine in crates – it has been subject to prior assessment and classification.

In the case of whiskey, it is possible to purchase barrels in distilleries where the liquor is stored or controlled, or to purchase shares in companies that are listed on the stock exchange. In the latter case, however, the investment may be more risky, because the profit depends on the increase in the value of the enterprise and the subsequent sale of shares.

Is it worth it?

Everyone has to answer this question for himself. The advantages of investing in expensive alcoholic beverages include independence from fluctuations in the capital markets, the aforementioned regular increase in alcohol prices and exemption from income tax (when selling the drink at least six months after its purchase). The problem may be the need for considerable financial resources, and the risk that the alcohol you invest in will not be of sufficient quality.

Therefore, it is worth treating, at least at the beginning, investing in alcoholic beverages as a secondary way of investing money. Then the risk that the investment will bear will turn out to be much lower.


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