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Fine and rare whisky value surges 21% as investors look for safe havens

Whisky casks stacked up in warehouse.
Trend continuing of fine and rare whisky bottles being one of best performing alternative investments available. Image: LVMH.

Global demand for fine and rare single malt Scotch whisky has continued to drive up both the volume and value of auction sales, according to a new report by investment bank Noble & Co.

The strong growth continues a multi-year trend of fine and rare whisky bottles being one of the best performing alternative investments available, as investors spooked by turmoil in financial markets have been turning to tangible assets and safe haven investments.

Fastest-growing whisky brands by volume in the secondary market are GlenAllachie, Springbank, Balvenie, Daftmill, Bowmore, Arran and Ardbeg.

But The Macallan, produced by Famous Grouse owner Edrington, has maintained its number one position for both volume and value in the secondary market, the report said.

Bottles of Macallan Red with labels painted by Javi Aznarez lat auction at Sotheby's
The Macallan is still the most in-demand whisky at auction including this lot at Sotheby’s. Image: Saltire News and Sport</p> <p>

Much of the growth in auction sales in 2022 was driven by demand for whisky costing between £100 and £1,000, which is typically popular for younger investors as well as gift buyers.

Volumes in this category were already up by 30% to the end of September, and value had increased by 40% compared to the same timescale last year – with the Christmas period still to come.

The Noble & Co analysis also found the volume of bottles of Scotch sold for between £10,000 and £100,000 is up 28% compared to 2021.

Over half a million transactions

Noble & Co worked with data science business Brainnwave to collect and analyse 5.2 million data points from more than 580,000 transactions in the whisky auction market during the last decade.

The results reveal a 21% increase in the value of fine and rare single malts this year, with the volume of bottles sold increasing by 23%.

Glass of whisky by cask
Investors have turned to tangible assets such as whisky. Image: Getty Images/iStockphoto

Noble & Co head of food and drink Duncan McFadzean said: “The secondary market for fine and rare whisky has remained exceptionally strong. With impressive value growth in the last three years, it is hard to argue against the financial returns of a rare whisky at the moment.

“However, economic headwinds are increasing and we will be watching to see if a tighter fiscal environment leads to a slowdown in collectibles as it has for many financial assets.”

Investment bank perspective ‘useful’

Whisky consultant Blair Bowman said: “An investment bank’s perspective on the secondary whisky market is highly useful for collectors.

“This level of scrutiny and sheer volume of data is exactly what the market needs as it matures and diversifies.

“Increasing numbers of people are attracted to fine and rare whisky so the more clarity on the market we can bring, the better.”

Whisky adviser and broker Blair Bowman said ‘increasing numbers of people are attracted to fine and rare whisky’. Image:  Spirit of Speyside Whisky Festival

Mr McFadzean added: “While The Macallan continues to maintain its number one position for both volume and value in the secondary market, there has been wider growth of the fine and rare whisky market.

“As this happens, there is increasing headroom in the market for most types of investor, from the casual enthusiast to the dedicated, high net worth collector.”

Economic headwinds are increasing and we will be watching to see if a tighter fiscal environment leads to a slowdown.”

 

Noble & Co head of Food and Drink Duncan McFadzean

The Noble Whisky Intelligence report data was collated up to early October 2022 and the majority of the analysis refers to the time from January 2022 to September 2022.

The recorded price includes the sale total, auction fees, and VAT. Data was secured from the main auction houses as well as a meaningful proportion of the auction sites.

Couple clinking The Macallan whisky glasses.
The Macallan continues to maintain its number one position for both volume and value in the secondary market. Image: Big Partnership.

The data was filtered by whisky type, geography, auction source, age, bottle size, region, brand, bottler, price of the auction, distillery, distillery status, date of the auction, edition, and number of items in the auction lot.

Single malt casks were not reviewed for the analysis.

Noble & Co is a Scottish investment banking company, advising corporates, funds and family offices in Scotland and around the world on major events including mergers and acquisitions, fundraising, succession planning, strategic reviews and restructuring.

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