Since early 2021, with post-pandemic demand at an all-time high, and wood barrel shortages, the lack of new fill availability drove up costs, as well as values.
The good news is that we continued to roll out Bourbon Bond funds with new fill when we could, along with younger already filled barrels of bourbon not impacted by cost increases.
Inside these American charred oak barrels, high-quality bourbon is maturing and gaining value for the investors who financed it through our program.
Many barrels from 2020 and 2021 funds have already been sold delivering distributions, while we hold additional barrels for release at full maturity.
Beginning later this year and into 2024 and 2025 we have significant volumes of new fill from distillers in Kentucky, Tennessee, Indiana, and North Carolina.
New Upcoming Funds
- Bourbon Bond quarterly series to finance up to 6,000 barrels of KY new fill Bourbon multiple mash bills from Green River and Bardstown Bourbon Co. (est. 1500 barrels per quarter). Opens 9/15/23.
- Bourbon Bond series to finance barrels of TN new fill. (Opens 12/1/2023)
- Bourbon Bond Private series (ongoing) to seize opportunities for young well-priced whiskeys in smaller quantities as they become available. (Watch emails for ongoing opportunities)
All funds are $25,000 per unit minimum investment unless otherwise stated in individual PPM.
The Distilled Spirits Council of the United States Annual Impact Report released in February 2023 points to continued growth of spirits for the 13th consecutive year, driven by premiumization in the American whiskey category–led by Bourbon, as well as tequila, ready to drink and the roaring return of the on-premise business..
Demand for sourced American whiskey continues to increase, and consolidation has eliminated previously endless availability. New production is ramping up, but not enough to meet demand for at least the next 4 years.
Strong returns and growing demand for contract produced barrel aged whiskeys continue to provide investor opportunities with ROI projections beginning at +60% for two year funds, and up to 150% for 4 year funds.
Due to the closings and/or conversion to hand sanitizer production of many smaller distilleries, the forecast demand for sourced bulk barrel-aged bourbon and American whiskeys has significantly increased in recent weeks. Compounding this, the shutdown of large and small cooperages, meaning that those still producing, may not be able to secure the barrels needed for new fill production.
Our expanded network of trusted producers is enabling Victory Spirits to introduce our wholesale Spirits Marketplace to serve the needs of brands and smaller producers. Many of these customers will opt to purchase the barrels that we finance when they are mature.
A significantly increased potential return
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How does this investment compare with 4-year stock, real estate and commodities performance?
That's the question we posed to economics forecast students at the University of Kansas. The 4 year gain comparisons (2017-2020) are compared to the cost and estimated appreciation of the Bourbon Bond 2 of Kentucky new fill bourbon funds for 2021. CLICK HERE TO DOWNLOAD THEIR ANALYSIS
Demand Is High
and Getting Higher.
These are the market trends that reflect a decade of growth as well as another good 8 years of increasing demand for Bourbon and Rye in the United States.
Who has invested in the Bourbon Bond Fund?
I personally think this is a good way to slightly move away from the stock market and into an investment which is recession proof. In fact, if the economy turns south more bourbon will be consumed! It is also an avenue to move assets forward. As I am seventy-seven it is comforting to know the future is more secure for my family.
Now, I need a drink!
I’m a producer myself. So I know that this makes sense for the industry. I am investing in this to generate a good return, while helping to fund a financing solution that will help a lot of smaller distillers satisfy the demand for good aged whiskeys under their local brands.
I know that there is increasing demand for dependable, consistent supply of good aged bourbons, and it’s been tough for smaller brands to lock in future supply. I know because I am VP of Sales of for one of them, and since I don’t own the company, I can’t take advantage of the appreciating value of the aged whiskeys I sell as they reach their mature potential. Now I can!
I am a long-time investor in real estate. That’s what I know. I don’t know spirits or bourbon. I prefer to invest in wines to stock my cellar! But when I saw this, I was intrigued and asked a lot of questions, and then asked a colleague who I served with on a bank board who is a skilled investor if this was worth investing in. He said, “I think it is.” So I am in and trusting that this is just the beginning.