Investments are a great way to diversify your expenditures and reduce the amount of risk associated with where you put your money. And for those that have an interest in the spirits industry, there’s a way to combine your interests with your investments.
Investing in spirits can be a lucrative endeavor. “Many people don’t realize that there are actually a variety of ways to do this,” says Jeff Hopmayer, Managing Partner with Brindiamo Group; “The investor’s particular situation and interests will dictate which of these methods works for them and which ones do not.”
But with the variety of options, there’s sure to be something that fits your wants and needs from an investment opportunity.
Here are 6 ways to invest in the spirits industry:
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Invest Directly in a Startup
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Find a Crowdfunded Startup
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Stock Market
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Purchase a Barrell Directly From a Distillery
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Purchase a Rare Bottle
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Whiskey Maturation
1. Invest Directly in a Startup
The most direct way of investing in spirits is to find a startup company that is in need of extra funds. There is rarely a shortage of new businesses looking for the influx of money necessary to build out the infrastructure to get their business off the ground.
Brindiamo Group has been offering strategic introductions to connect those in need of funds with those looking for a new investment opportunity. This can be a lucrative and rewarding experience for an investor as they watch their investment grow and succeed as time moves on.
2. Find a Crowdfunded Startup
A direct investment might be a little too risky for some people. There’s a level of risk involved with every investment, and some people might wish to sacrifice a potentially larger gain for less risk.
A great method of investing in spirits while also mitigating this risk is to hop into a crowdfunding campaign. Craft distilleries and more frequently reach out to platforms such as Wefunder to find the capital they need to start or even grow their business.
Crowdfunding options are a nice middle ground between investing directly into a startup company and searching available stocks on the stock market.
Visit Brindiamo Group to learn more about investing in spirits!
3. Stock Market
The stock market has always been — and still is — one of the most popular methods of investing in spirits. The metrics are easy to find and easy to track. It’s become easier and easier through the help of various apps to find, buy, and trade stocks without the help of a broker.
Aside from the history and ease of using the stock market, spirits stocks have been growing over the recent decade. We’re in the midst of what’s known as the “Bourbon Boom” and it’s helped many businesses in the spirits industry to grow their cost per share on the stock market.
4. Purchase a Barrel Directly From a Distillery
There are also some more hands-on approaches to investing in spirits. One such method is to purchase a barrel at wholesale cost directly from a distillery. A new distillery, for instance, might offer a full barrel of their whiskey for purchase to bring in some funds while waiting for the rest of their whiskey to age.
Restaurants and bars are able to make great use of this option. This allows them to offer a unique option that isn’t available anywhere else. It also allows them to age the liquor as much as they want. This level of control as well as the wholesale pricing make it a great option for those who can use it.
5. Purchase a Rare Bottle
Individuals have the option of collecting rare bottles of liquor and selling them at a later date. Whiskey tends to get better as time goes on. And there will always be bottles from revered distillers that are produced from small batches that will grow a cult following.
For instance, Pappy Old Van Winkle became quite popular over the last decade or so. At one point, this rare bourbon cost $315 for a one-ounce shot.
The trick is to look for limited edition productions from notable distillers. These bottles will grow in notoriety which will drive up their individual cost. And then once the market reaches a price that seems fair, it shouldn’t be difficult to find a buyer.
6. Whiskey Maturation
Investing in spirits can take a lot of different forms, and this form is the most hands-on approach. This is very similar to what we discussed earlier about purchasing entire barrels from a distillery. The only difference here, is that the barrel stays at the distillery.
Various distilleries offer the ability to purchase an entire barrel. It is then stored at the distillery (for a fee) until you decide it is time to bottle it. At that time, the distillery will bottle it for you, giving you the option of selling the subsequent bottles of whiskey to a local store, bar, or restaurant.
Are you interested in investing in spirits? Brindiamo Group has the connections you need to get the most from your efforts.