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CaskX Investment In Bourbon Is A Hands-On Experience

This article is sponsored by CaskX.

CaskX is the global pioneer in the field of investing in bourbon and Scotch from leading distilleries across the whisk(e)y world.

They are investing heavily in Kentucky whiskey, buying the liquid gold before it even reaches the barrel, in this new bourbon boom.

CaskX CEO Jeremy Kasler discussed the whiskey and bourbon investment plan, which focuses on distillery-direct relationships.

CaskX
CaskX is the global pioneer in the field of investing in bourbon and Scotch from leading distilleries across the whisk(e)y world. They are investing heavily in Kentucky whiskey, buying the liquid gold before it even reaches the barrel, in this new bourbon boom. (image via CaskX)

“In our opinion, this is the perfect time to invest in bourbon. We are seeing all the indicators that quality-aged bourbon will fetch great prices for many years to come,” Kasler said. “We are seeing increased demand for quality bourbon not just in the U.S. but globally. Markets like China, India and Asia can’t get enough of it.”

The experts at CaskX say they are seeing bourbon prices growing exponentially, and by building strong, long-term relationships with bourbon distilleries across the United States, CaskX is creating a cornerstone of their investment platform.

The investment company is hands on, visiting and securing bourbon and whiskey all along the Kentucky Bourbon Trail. How do they do it?

“CaskX helps to manage the investments so that we store them over a period of time, up to eight years and at the end of the eight years, you can either, if you wish to, bottle the bourbon yourself or normally, trade the barrels for a profit,” Kasler explained.

The company sells only to accredited investors, he said, and the minimum purchase is 12 barrels, costing around $2,000 each.

When visiting Louisville’s Kentucky Artisan Distillery, Kasler got to see how their bourbon is made, start to finish in just four days. And there were several more years to come for aging.

That distillery makes bourbon for more than 30 clients, and with the bourbon boom, they have doubled production every year for the last five years. A warehouse holding 12,000 barrels is the fourth the business has built in four years.

They’re able to pay for an expansion, thanks in part to CaskX, which distillery officials say was a boon to business, purchasing more than 1,100 barrels of unaged bourbon to sell to investors.

“We use their mash bill and produce the bourbons they want,” said Kentucky Artisan Founder Chris Miller. “We produce it here, then we take it, we put it in our warehouse, we age it for five years.”

Miller said that not only do distilleries that CaskX works with get the benefit of being paid in full years before the bourbon is ready, it’s more cost effective for the investor.

“Generally speaking, when our clients place the order, the corn’s still in the field, the barley’s still being processed, the water’s still being shipped over, so you’re right at the beginning of the process and the entry level is a fraction of what it would be if you had to wait four years for it to be aged,” Kasler said.

CaskX, with one of its offices in Louisville, Kentucky, is able to visit and speak with many distilleries big and small, making connections and securing investments like those at Kentucky Artisan.

In Kentucky alone, there are more than 9.3 million barrels of bourbon aging throughout the state, which comes to about two barrels per resident, making Kentucky the bourbon capital of the world.

When Kasler and the CaskX team recently visited the Kentucky Bourbon Trail, they were able to experience first-hand what makes the spirit so special.

“If you take a visit along the Bourbon Trail, the growth can be seen as distilleries are investing big in expanded production and warehousing facilities,” Kasler said. “Investors who recognize the growth of the market naturally want to find a way to capitalize themselves and investing in bourbon and Scotch barrels offers them this opportunity.”

An example of a typical visit, one summer day Kasler met with Kentucky Artisan’s Distillery Director Chris Miller and Master Distiller Jade Peterson for a tour of the craft distillery located just outside of Louisville.

Peterson was distilling what would be CaskX’s latest bourbon distillate, a wheated mash bill that is currently for sale to CaskX’s clients.

They all sampled the un-aged bourbon, or “white dog,” that was coming off the still.

The quality impressed the lot, as the tasty distillate drew comparisons of a warm bowl of oatmeal at breakfast. Some said you could taste the sweetness of the corn mingling with the smoothness of the wheat, a marriage made in bourbon heaven.

Miller described the bourbon-making process at Kentucky Artisan, and explained that the distillery began in 2013 as one of the state’s first contract distillers and has grown to producing more than 3,000 barrels a year.

This hands-on approach to investing becomes a more personal experience all the way through the process. Relationships are forged and the end result is a much more rich bourbon environment for clients.

CaskX purchases barrels in bulk from many of the rising stars in the whisk(e)y industry in order to secure the best deals at the best prices for its clients. The spirit is aged in a licensed warehouse, increasing its value as it matures. When it comes of age, CaskX helps its clients resell, bottle, or distribute their whisk(e)y portfolio.

“This process is really a win-win for the distilleries and the investors,” Kasler said. “By selling barrels into our system, it keeps the lights on for some distilleries while allowing investors to gain entry to a category that historically has done well, even in economic uncertainty. Not to mention this process allows the whiskey to mature to its full potential in a market where distillers are often forced to bottle early in order to turn profits.”

CaskX currently has offices in Los Angeles, Louisville, Sydney and Hong Kong. And Kasler said they are excited to help people invest in and profit from a product they know and love.

“Of course there’s also a huge benefit for the distilleries, as we help them monetize their production from Day 1 rather than having to wait four to eight years,” Kasler said. “We hope to expand our portfolio to encompass many types of whiskey, and we intend to partner with some of the best distilleries in the U.S. and around the globe.”

Investors can get qualified in order to take part in CaskX, and begin investing at www.caskX.com.

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