How to Invest in Whisky and Rum

Investment in spirits is a tricky business. So many bottles are released, and not all of us can afford rare editions of Macallan. There are bottles however which don’t cost the earth and are definitely worth looking out for, a few of which I will mention below.

What to think about when investing in whisky

Research is key, for example, finding out when a new distillery might be releasing its very first bottling. Or entering ballots, for example for Daftmill which is sold through Berry Bros & Rudd. Limited editions from new, popular distilleries like the distillery special from Raasay released recently, or single casks from distilleries that have new ownership like GlenAllachie are all great choices. You should be able to find these types of bottles for under £100 or depending on any age statements, along the lines one would expect for their age. These new bottlings are exciting as we see different distilleries bear fruit and some become new cult distilleries.

Which Whisky is Best to Invest in?

Looking back to the old world of whisky, there is a collection of whiskies that may not continue for much longer. It’s just a rumour, but the Flora and Fauna range from Diageo may not be around forever.

The bottles were produced in fairly large numbers for limited editions, but they were delicious and priced very well, so everyone drinks them. I certainly do. My favourites are the Benrinnes 15 year old and Dailuaine 16 year old.

The interesting thing about this range is that there are many distilleries, that other than being in this range, have no other official bottlings. For example, Authroisk, Glenlossie, Stathmill, Glen Spey, Teaninich, Inchgower, Mannochmore, and my aforementioned favourites are all exclusive to this range.

There are two previous distilleries that used to be part of the range which now have to be found at auction. Mortlach produced a cult 16 year old. I bought my last bottles in the Cost Cutter in Dufftown quite a few years ago now for £36 each on a special offer. They now command well over £200 at auction. I drank mine some time ago though! And for a very short time, Speyburn was released, until the distillery was sold to Inverhouse distillers in 1991. These bottles sell for well over £2000.

Now, I’m not saying the remaining distillery bottles will reach those heights, but the range is known and will become sought after if discontinued. And if not, then you’ll have some very good, interesting and delicious whisky to drink.

Which Rum is Best to Invest in?

Away from the world of whisky, there is rum. Like whisky, closed rum distilleries are becoming very popular. Caroni for example is booming at auction and is now difficult to find. If you have any, I’d hang onto it. Then there are high-ester rums which seem to be popular. Like (dare I say it), my namesake Hampden. The ester levels in Hampden rum have designated letters associated with names and ester levels. Hampden marks are:

OWH               Outram W. Hussey                                       40-80 esters
LFCH               Lawrence Francis Close Hussey              85 – 120 esters
LROK               Light Rum Owen Kelly                                   200-400 esters
HLFC               Hampden Light Continental Flavoured 500-700 esters
<>H                  Hampden                                                         900-1000 esters
HCML              Hampden George MacFarquhar Lawson  1000-1100 esters
C<>H               Conintental Hampden                                   1300-1400 esters
DOK                 Dermnot Kelly-Lawson                                   1500-1600 esters

The highest ester numbers are used as blending components in rum and are not usually meant to be bottled as a single mark, however in recent years, some are bottled. The rum aficionados seem to love them, and they tend to do well at auction. Rums with tropical aging rather than continental aging (unless for a very long time), also do well.

All of the above, are ideal for collecting at a more affordable level. The above are only pointers. though, not prophecies, and values, like with all investments and collections can always go down as well as up. Like any collection or portfolio, breadth is the key. It’ll be interesting to see what happens in 2023. Times are certainly uncertain.

Flora and Fauna

Berry Brothers & Rudd Daftmill

Raasay

GlenAllachie

If you’d like to read more about our recommended bottles of whisky and rum then click here.

Words by Colin Hampden-White

How to Invest in Whisky

Written by Colin Hampden-White

The king is just about hanging onto the crown, but it is closer than it has been for many months. Macallan has risen a little and Springbank remains strong. As predicted, Ardbeg has risen up a little and may well rise further but these percentages tell only half the story. The big change over the last few months is the value of the bottles being traded. In the past the big-ticket items, commanding high retail prices were the ones to invest in, but it seems they have had their day and the retail prices, even for very rare whiskies are no longer lower than the secondary market prices. My advice, for now, would be to stay clear of bottles over 5K and find the sweet spot which seems to be around £250 to £1500. I don’t think it matters much about the ranking at this level, and one is best to think long term. As with all investment portfolios, diversify. If you can collect a number of bottles in the top 10 from different distilleries within the sweet spot of £250 to £1500, and hang onto them for at least five years, you shouldn’t do badly.

The Dalmore 2%
Bowmore 3%
Macallan 1%
Springbank 1%
Clynelish 5%
Karuizawa 1.5%
Rosebank Official Bottlings 2%
Yamazaki 0.5%
Ardbeg 2%
Bunnahabhain

Bottles to Watch

As a pointer this month I am going to suggest Springbank as one to concentrate on. Some of these limited releases have different ABVs depending on release and are not listed here.

Springbank 16 year old Local Barley

The local barley release sells out in seconds, so if you see one you’re very lucky! Always sought after and very collectable. Also, absolutely delicious!

Springbank 9 year old Gaja cask

This is a bit of a sleeper for me. It’s not expensive, but it will be limited and lovely. I reckon this will rise quickly despite its young age.

Springbank 19 year old Sherry Cask

19 years old is unusual for Springbank, which singles this expression out. Being in sherry will also help its appeal, and will be looked for by collectors. At this price, for Springbank it’s a great deal.

Springbank 21 years old 1990’s

This is a rare find, and already has some age to it. Only one bottle here shows how rare these things are at retail. Bottled I the 1990’s, the distillate will be 1970’s and a wonderful look back in time.

Find here

Springbank 15 years old 1990’s

Another 1990’s bottling giving a view into the late 1970’s or early 1980’s. Again, a rare bottle and one worth hanging onto.

Find here

As with March, April and May’s Whisky Investment Indexes, any bottles mentioned are just suggestions, I don’t pretend to have a crystal ball, but it will point you in the right direction to do your own research and start you on your journey in whisky investment.

Which Whiskies to Invest in - April Whisky Investment Index

By Colin Hampden-White

This month has seen quite a bit of change in the leaders in Scotch whisky and we have added a tenth position as the volume for Macallan has risen recently. Dalmore is still riding high with great values as well as volumes being achieved. Bowmore has had a good month and overtakes Springbank. In the mid field everything is still very tight with only small percentages separating the brands. Notably Macallan has joined the list and not in last place, having had good volumes at auction with older bottles gaining in value.

As always, if I were buying at auction, I would be looking for rare, limited editions and single cask bottlings from good independent bottlers or official bottlings. I would also take a look at some of the brands that have done well historically but might not be on the top list at the moment, like Ardbeg and Mortlach. These might be a good bet for the future.

This page is always a pointer, and in no way should be taken as a proven way to invest in whisky. Like all investments, they can go down as well as up. Please do your own research as well, and if this informs that research, I’m glad we are helping.

When I started collecting, I bought nearly every release from the English Whisky Company, which were around £50 to £200 a bottle. They released quite a few bottles in their first few years. Apparently, the market thought too many, and I would have lost 50% of what I spent had I sold them. Luckily, they tasted great! On the converse side, I bought a bottle of Hanyu Joker from the card series for £215 which is now sold at auction for around £3,000. I have many examples of bad and good investments. The trick, like any investment portfolio, is to be diverse. Have a broad portfolio and hopefully the winners will outweigh the losers.

Dalmore 8%
Bowmore 3%
Rosebank 1.5%
Clynelish 0.5%
Yamazaki 1%
Springbank 1.5%
Karuizawa 2%
Glendronach 1.5%
Macallan 1%
Bunnahabain (base)

Above all, when I invest in whisky, I buy whisky I love. For example, if you don’t like peaty whisky, don’t buy Islay. At the end of the day, if it goes wrong, you can always drink it!

Bottles to Watch

Balvenie Tun 1509 Batch 6

Batch 7 has been released, so Batch 6 will become rarer and rarer and begin to go up in value in both the USA and UK.

Size: 700ml
ABV: 50.4%
Find here: UK £300 // US $599.99

Scapa 16

A discontinued whisky with very few bottles remaining.

Size: 700ml
ABV: 40%
Find here: £225

Invergordon 50 year old

At 50 years old this is very special and is only cheap because it is grain whisky. I reckon grain whisky is going to become more and more expensive and there were only 328 bottles of this one produced.

Size: 500ml
ABV: 47.5%
Find here: £349.95

Clynelish 23

With only 187 bottles produced from this well respected and well followed distillery. This should be a good bet.

Size: 500ml
ABV: 47.3%

To compare this list to last month’s click here and if you want to find out more about Scotch whisky then don’t forget to watch The Three Drinkers do Scotch Whisky on Amazon Prime now!