Raise a glass to spirit that's proving a popular alternative asset

The company began working with United Kingdom investors, but has seen a huge interest from Asia, North America, Europe, and the Middle East in the past four years. It now has clients all over the world. Some companies are simply interested in the investment as whiskey’s value only increases with age and it’s not correlated to the markets.

Thom said the company has grown exponentially, doubling each year, and during COVID since investors have been looking at different options because of the stock market volatility and inflation. Whiskey has proven to be a great hedge against inflation, which has reached 11.1% in the United Kingdom.

“What we’ve noticed since we started,” said Thom, “is that people are becoming less inclined to look at traditional investments and more inclined to think outside of the box a little bit.”

VCL’s inquiries have tripled, but it’s also seeing younger investors, even as young as 18. Lancaster noted that, while people were aware of whiskey as an investment opportunity, COVID allowed them more time to explore alternatives. It also caused the cost of raw materials to increase, which impacted bottling. But, overall, the asset isn’t impacted by political or economic factors.

“It’s inflation proof in some ways,” he said, noting that also appeals to mass market investors. Thom said that, while the investment is stable, the company is experiencing supply chain issues. Lancaster said there isn’t enough whiskey in Scotland to supply India right now