A barrel that cost less than $1000 as new fill Bourbon or Rye whiskey is today worth more than $2500 as 2 Yo and nearly $4000 as 4 year old.
For Investors this represents a solid appreciating asset class that is delivering 4 year IROI of well over 100%.
Inside these new fill American charred oak barrels, high-quality bourbon is maturing and gaining value for the investors who financed it through our program.
Until now, it has not been possible for investors to participate in this appreciation unless they owned the distillery itself.
This year there has been a severe a lack of new fill capacity across Kentucky and Indiana. We have agreements for significant volumes of new fill from distillers in Kentucky, Indiana and North Carolina for 2023 and 2024.
New fill KY Funds open for reservation in September 2020, to close in Q1 2023.
The Distilled Spirits Council of the United States Annual Impact Report points to increased pressure of smaller producers, as well as continued year over year growth in Bourbon/American Whiskey revenues and volumes despite the shutdowns at bars and restaurants.
Craft Distiller Shutdowns will increase dependence on sourced bulk-barreled whiskeys.
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.