CaskX Partners with Two Kentucky Distilleries to Broaden Investment Base


April 4, 2022

CaskX, a pioneer and market leader in the sale of barreled bourbon investments, announced partnerships with two Kentucky distilleries in order to offer new opportunities to the company’s growing investor base.

To date, offerings from the partnerships with Kentucky Artisan Distillery and Jackson Purchase Distillery have facilitated the acquisition of more than 3,000 barrels of American Bourbon by investors around the globe. The firm has also opened offices in Beverly Hills, Calif., and Louisville, Ky., to support its U.S. operations.

CaskX begins by working with clients to build a portfolio of barrels, also known as casks, based on the investors’ desired objectives. By selecting barrels from specific regions, distilleries and vintages an investor can achieve the right combination that manages risk, offers the desired holding period and is projected to achieve target returns.

Upon purchasing a suitable portfolio, investors receive certificates for each of the barrels which prove their ownership rights and can be used to transfer the barrels in the event of a future sale. All barrel investments are then stored at a government regulated warehousing facility at either the distillery or a third-party storage provider until the barrels are either bottled or sold to another party. Investments are also fully insured to protect investors from an unforeseen disaster or loss.

Additionally, by investing in whiskey barrels investors are able to help the industry grow by providing cash flow to distilleries in advance of the whiskey being of adequate age for release as bottles.

“Investors are always looking for ways to diversify their portfolios, especially in uncertain times and during stock market volatility, so creating an alternative investment business that’s capitalizing on the growing market value of high-end bourbon has essentially turned into a win-win strategy for both the distillery and the investor,” Jeremy Kasler, CEO and founder of CaskX, said in a news release. “What’s unique about CaskX is that we benefit the distillery by purchasing directly from them a set amount of un-aged bourbon barrels, while on the flip side we’re the first to offer individual accredited investors the ability to strengthen their overall investment strategy by investing in a consumer good that has a solid history of appreciating over time.”

Why Investors Are Turning to Bourbon

Per the announcement, with growing concerns facing financial markets, from rising inflation to high stock valuations to turbulence in Ukraine, the CaskX investment platform has grown in popularity among investors as a means to leverage barreled bourbon as a powerful diversification strategy. By purchasing a portfolio of bourbon barrels investors can decrease dependence on traditional financial instruments, choosing instead a tangible asset class with a combination of unique characteristics; the most powerful of which is maturation. Whereas most tangible asset classes remain the same, with the underlying value driven exclusively by supply and demand, barreled bourbon continues to grow in flavor and complexity with time.

Maturation is a very powerful aspect for barreled spirit investors as it moves the investment away from reliance solely on economics. Older expressions have historically sold for higher price points than less aged spirits, so investors stand to capitalize on both increases in the market price due to rising demand and increases as a result of the liquid aging. For a quick tutorial on how CaskX works, please watch a short, company-produced video.

“CaskX has played a pivotal role in helping Kentucky Artisan Distillery continue to expand in order to meet the growing demand for bourbon both within the United States and abroad,” said Chris Miller, President of Kentucky Artisan Distillery. “The partnership allows us to generate instant cash flow to fund operations and capital improvements without waiting years for the bourbon to reach maturity. The business model is unique to the industry in allowing private investors to play a role in the future of the distillery and the broader industry by allowing production increases that would not otherwise be possible. And, if growth continues as we expect, those same investors stand to reap significant gains from the appreciation of the bourbon as it ages.”

Riding The Bourbon Boom

Since the turn of the century Bourbon has enjoyed a renaissance of historic proportions, with no signs of slowing down. According to the Distilled Spirits Council, in the past 10 years the volume of bourbon sold has increased more than 85% in the United States alone with the average price for a bottle of bourbon surging 18.50%.

Even more pronounced growth has come in the super premium category as spirits consumers look for higher end expressions to grace their shelves. Sales volumes in the super premium segment have increased even more significantly, rising by more than 400%. Demand has risen to the point that nearly 2 million barrels will be bottled this year, yet supply of older age bourbon remains low.

In fact, according to the Kentucky Distillers Association there are currently less than 550,000 barrels which are of 6 years of age or older. As consumer demand for premium well-aged bourbon continues to grow and supplies shrink, the prices for bourbon are likely to rise even more.