Is Bourbon a Good Investment?

Deciding where to invest your money in a new or established business is a significant decision. The ultimate aim is to see a return on your investment. So, how do you determine where to allocate your funds? Which industries show potential for growth? What businesses deserve your focus and consideration?

The answers to these questions are not set in stone. Investing always involves a bit of speculation. We are essentially trying to predict the future, after all. What might unfold in the next year? And how about in the next five years? We are compelled to make educated guesses based on past trends and anticipated growth.

Bourbon has a long history as an American staple, dating back to pioneer days. The enduring interest in this spirit prompts the question: What should you consider when looking at 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. 

Recently, the European and Asian markets have developed a taste for bourbon, resulting in a significant increase in demand. American distilleries have responded by ramping up production to meet this growing interest. The expanded market, coupled with increased stock levels, presents a lucrative opportunity for impressive sales figures.

The surge in bourbon production and growing interest has led to a significant increase in demand. This has sparked a rise in the popularity of craft cocktails, resulting in a heightened focus on specialty bars and innovative recipes where bourbon is often a key ingredient.

Anthony Bourdain, famous for his traveling food and spirits programs, touted the superiority of Pappy Van Winkle’s Family Reserve in one of his programs. This started an intensified interest in the brand.

Those who got into the market by buying bourbon as an investment during this time have enjoyed great success. But how does that translate to what’s happening right now?

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Current State of the Market

The current surge in global interest in bourbon has reached unprecedented levels, with over 2,000 distilleries in America alone. This heightened fascination with bourbon over the past decade has provided a thriving environment for bourbon companies and potential investors. The ongoing popularity of craft cocktails, which has been steadily increasing since the early 2000s, has further fueled this trend. It offers a perfect opportunity for those looking to explore innovative ways to incorporate bourbon into their offerings and engage with their audience.

There is a growing fascination with tasting bourbon and appreciating the diverse approaches in the industry. Many companies are exploring innovative techniques for aging, distilling, and filtering the spirit. This evolution has fostered an industry that captivates both new and seasoned consumers.

Future Projections

Many have speculated that the current surge in bourbon interest, often referred to as the Bourbon Boom, may be seen as a bubble. Predictions of a potential decrease in interest and an oversupply of stock in the bourbon industry have been circulating.

However, despite long-standing predictions, the bourbon market shows no signs of slowing down; in fact, it continues to thrive. To gauge where the bourbon industry may head in the future, a valuable approach is to examine a related industry with similar growth patterns.

The craft beer market has experienced remarkable growth in the past couple of decades, transitioning from a small, niche community to a landscape where America now boasts over 7,000 craft breweries. Consumers have exhibited a consistent eagerness to broaden their understanding of craft beers and sample unique and enticing beverages.

The ongoing success of the craft beer industry indicates promising prospects for the bourbon market. Despite past predictions of a decline, bourbon has shown resilience and is likely to maintain a strong position. While the rapid growth may eventually stabilize, the market is expected to operate at a consistently high level moving forward.

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.

Contact the Brindiamo Group today!