INVESTMENTS IN ALCOHOL – A WAY TO BUSINESS

Alcohol has been with us since the dawn of time – the first records of beer brewing date back 6,000 years. Centuries have passed, and we still love it. What's more, it's not just a way to celebrate important occasions and unwind in the evenings; it can also generate considerable profits. Investing in alcohol is proving to be not only the domain of collectors and wine or whisky enthusiasts, but also savvy businessmen. Is this really a way to make money without backfires?

Investing in alcohol? Only top-shelf ones!

If you want to invest in alcohol, you can't just choose the ones you find on any store shelf. Profit is only generated by expensive, carefully selected wines, whiskies, and cognacs, which aren't affordable for everyone. This applies to all exclusive products – significant profits are generated only by those for which demand exceeds supply. Anything limited and available in limited quantities is more desirable – sometimes a bit of patience is required, but often, as with Ardbeg Kelpie, you can even double your capital in a month. Until recently, a bottle of this fine beverage cost 400 złoty – today, it's unlikely to be found for less than 800 złoty.

Investing in alcohol is profitable, and the numbers prove it. Whisky has seen a 10-year continuous price increase, and the annual global turnover in the investment wine market has already exceeded $3 billion! Isn't that enough? The broadest price index for the whisky market (Rare Whisky Apex) has increased by a staggering 140 percent over the past five years.

When choosing spirits to invest in, you should pay attention to their country of origin and brand. The safest options are, of course, French wines and cognacs, as well as Irish and Scottish whiskies – investing in them is recommended for less experienced individuals who don't want to misplace their money right from the start. By gaining knowledge and observing the spirits market, you can take slightly bolder steps – an example of how valuable investing in less popular things can be is Japanese whisky, whose popularity – despite its limited tradition – has grown significantly in recent years.

The trend of investing in expensive spirits is very visible among celebrities. Some, like Brad Pitt and Angelina Jolie, offer them at relatively low prices (their Miraval Rosé can be purchased for 100-200 PLN), but Jaz-Z's Armand de Brignac champagne costs around 1300-1400 PLN per bottle!

How to buy and store alcohol?

Liquors can be purchased in various forms – in the case of wine, investors often choose to purchase it in barrels. However, it's important to remember that wine hasn't yet been assessed and classified, and until this happens, it must be stored in appropriate conditions. The best solution is a private cellar, protected from outside light and with a temperature and humidity appropriate to the needs of the drink. 12-14 degrees Celsius and 70-75% humidity are optimal. Despite this, there's no 100% guarantee that such alcohol will reach the required quality, so an alternative is to buy wine in cases – it has been previously assessed and classified.

In the case of whisky, it's possible to purchase barrels from distillerieswhere the spirit is stored or controlled, or to purchase shares in companieslisted on the stock exchange. However, the latter investment can be riskier, as profit depends on the growth of the company's value and the subsequent sale of the shares.

Is it worth it?

This is a question everyone must answer for themselves. The advantages of investing in expensive alcohol include independence from capital market fluctuations and the aforementioned regular price increases . The challenge may be the need for significant financial resources, as well as the risk that the alcohol you invest in will not be of sufficient quality.

Therefore, it's worth treating investing in alcohol as a secondary investment option, at least initially. This will significantly reduce the risk involved.

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