Traditionally, investments have not been a topic that elicits much excitement around the dinner table. While you might have been around the odd relative who enjoys talking about his latest stock picks, he’s more of the exception than the rule. Talking ticker symbols and earnings
reports will lull most people to sleep. However, in today’s modern era of investing a new trend has emerged in which people are getting back to the roots of where investment started: putting money into what you believe in.
For many Americans today one of the most passionate pursuits is what’s inside their glass, the spirits that they enjoy. This is leading a community of enthusiasts to seek out spirits investment, a way to align passion with financial goals. And while bourbon enthusiasts may think of a bottle of Pappy Van Winkle as being a compelling investment, a far greater opportunity is now accessible to individuals across the United States. Astute investors are looking beyond bottles and instead investing in full barrels, or casks, from distinguished distilleries across the country.
The advantage to investing in barrels of bourbon is quite simple, bourbon only matures while it is inside the barrel. Bourbon only becomes bourbon through the interaction between the liquid and the wood walls of the barrel, with a longer aging period typically corresponding to a more complex flavor profile. Once bourbon is bottled the aging process stops, meaning that a bottle of 10 year old bourbon will still be the same age no matter how long it might sit on a shelf.
This aging process presents an interesting dynamic for investors in that bourbon is an asset that gets better with time, transforming into a more prestigious expression with each year it is left inside the barrel. Unlike precious metals that remain unchanged or other tangible assets, like property, which might depreciate, bourbon barrels only require nature to quietly transition from
commodity to top shelf. Every "unicorn" bottle on the market today started out as white dog placed into a barrel, only rising to cult-like status as a result of maturation.
From the distillery perspective the time required to mature bourbon presents a difficult challenge. They must invest large amounts of capital to produce barrels that won’t be bottled for years to come, constraining cash flows and making the accounting department squirm. Distilleries have been forced to balance trying to keep the lights on today against producing sufficient volume to meet future demand. If only there was a way to connect these distilleries in need of capital with investors who could capitalize on the aging process…
Enter CaskX.
Founded in 2019, CaskX is an innovative platform that simplifies bourbon barrel investment by connecting investors with offerings sourced directly from distilleries on the rise. Investors benefit from acquiring barrels which mature over time and, historically, have increased in value with age. Distilleries also benefit from generating immediate cash flow from the sale of new fill barrels. And, consumers will benefit in the future from finding a broader selection of products which have been aged for longer periods on store shelves. It’s a win-win-win.
CaskX has grown exponentially over the past 5 years as investors have been drawn to the simple and transparent approach to investment. After purchasing a portfolio of barrels investors receive full documentation including ownership certificates, confirmation of filled barrels and all details provided directly from the distillery. During the time that an investor holds the barrels, CaskX manages storage and insurance of barrels on behalf of investors at distillery warehouses in order to make it a completely hands-off investment. Investors can simply login to an online portal or mobile app to view the status of their holdings and even initiate a sale when the time is right. Exits can be facilitated through a CaskX network of prospective buyers which includes NDPs (Non-Distilling Producers), distilleries, retailers and corporate buyers. CaskX simplifies the entire process from start to finish, making cask investment nearly as easy as mainstream financial assets.
In addition to the financial benefits of investing in barrels through CaskX, investors also have the ability to get hands-on with their investment by joining exclusive VIP tours. These trips give every investor the opportunity to meet the distilling team, tour facilities and taste bourbon right from the barrel. They are an outstanding experience that give even greater perspective on the state of the industry today and the important role that investors are playing in the next generation of fine bourbon.
With the investment prospects and the benefits to the industry, now might be the time for you to look at bourbon beyond the glass. If you’d like to learn more about how you can start investing in bourbon barrels with CaskX, visit CaskX.com or click here to request access to current bourbon investment offerings.