Investing your money in a new or previously established business is a big decision. The goal is obviously to get a return on your investment. So how do you know where to put your money? Which industries have a potential for growth? What businesses are worth your time and attention?
The answers to these questions aren’t absolute. There’s always a bit of guesswork when it comes to investing. We are attempting to tell the future, after all. What’s going to happen over the next year? How about the next five years? We are forced to make assumptions based on previous trends and projected growth.
Bourbon has been an American staple for centuries. The roots go back to the pioneer days and interest in the spirit continues to this day. But what do we know about buying bourbon as an investment?
Let’s look into what this actually means. Could buying bourbon as an investment lead to a great return?
Past Ten Years
The last decade has seen a huge increase in public interest in bourbon. In fact, we’re currently experiencing what’s been called the “Bourbon Boom.” There are a few reasons for this.
The European and Asian markets recently found their taste for bourbon. This has led to a much higher demand. American distilleries have risen to meet this demand by producing much larger stock. And an increased market being met with a larger stock provides a great opportunity for great sales figures.
Increased productions and a widening interest in bourbon has created a huge demand. There has been an increased interest in craft cocktails. This has created a more focused attention on specialty bars and interesting recipes. And bourbon is frequently used in these recipes.
Anthony Bourdain, famous for his traveling food and spirits programs, touted the superiority of Pappy Van Winkle’s Family Reserve on one of his programs. This started an intensified interest in the brand.
Those who got in the market of buying bourbon as an investment during this time have enjoyed great success. But how does that translate to what’s happening right now?
Visit the Brindiamo Group to learn more about the spirits industry!
Current State of the Market
Global interest in bourbon is at an all-time high. In fact, there are over 2,000 distilleries in America, alone. The ramping up of interest in bourbon over the last decade has created a great place for bourbon companies and those interested in buying bourbon as an investment. The craft cocktail trend that has been ramping up since the early 2000’s has only continued to grow. This has created a perfect backdrop for those that are interested in using bourbon in new and exciting ways to connect with an audience.
There continues to be an interest in tasting bourbon and appreciating the differences in approaches. Various companies are trying new things with the ways in which the spirit is aged, distilled, and filtered. This has created an industry that is evolving which engages new and old consumers.
Future Projections
This extensive and explosive interest in bourbon over the recent decade has caused many to refer to the Bourbon Boom as more of a bubble. There have been predictions that the interest will wane and the increased production will leave the bourbon industry with an ample amount of stock without any demand to buy it up.
However, they have been predicting this for years. The bourbon market not only refuses to slow down, it continues to grow. One of the best metrics we can use to predict where the bourbon industry will go in the future is to look to a similar industry.
The craft beer market has shown incredible growth over the past couple decades. It went from being a small, niche community to a point where America currently has over 7,000 craft breweries. Consumers have shown a continued willingness to expand their knowledge of craft beers and try new and interesting beverages.
The continued growth of the craft beer industry bodes well for continued growth in the bourbon industry. People have been predicting a downturn in bourbon for years, but it simply hasn’t happened. If anything, the market is likely to plateau at a high level. This means that the expansive growth might eventually slow, but the market will operate at a much higher baseline than it has in the past.
Visit the Brindiamo Group
Buying bourbon as an investment can be as simple as connecting with the right distiller or brand. These connections can be hard to make if you don’t have previous industry experience. The Brindiamo Group has been working in the bulk spirits trade for years. They know how to connect investors with bourbon companies, and vice versa, to help create a mutually beneficial partnership.