Employees are busy between the huge barrels, watching for the slightest sign of escape. There is at least 30 million pounds (nearly 35 million euros) of whisky "at the filling price", says the chief executive, David Ashton-Hyde.

In reality their value increases over time and "the vast majority of barrels are sold for double the filling price after 5 years, and triple after 10 years".

Investment in whisky, sometimes referred to as "liquid gold", is gaining popularity, raising hopes of high returns to counter inflation. But some call for caution in the face of disappointments, scams and counterfeits.

Ashton-Hyde says he is sometimes approached by concerned investors, who want to make sure their whisky is there, in their name, in his secure warehouses. "The world of whisky investment is sometimes a bit murky. It took us a long time to find the right partners," he confirms.

At the Annandale distillery, in the south of Scotland, on April 21, 2023 © Andy Buchanan / AFP

"High risk"

The sector has seen its popularity boosted by some record announcements in recent years - the Ardbeg distillery (LVMH), for example, sold a barrel last year for an unprecedented price of 16 million pounds (some 18 million euros).

The market for rare whisky bottles has seen annual price increases of about 20% per year on average, according to Bordeaux Index.

"Whisky has always been an asset class that has had good results" but where it was previously reserved for a few connoisseurs, it has become democratized, summarizes Benjamin Lancaster, co-founder of VCL Vintners. This London firm specializing in investment in whisky barrels markets in particular those of Annandale.

Investment in whisky benefited from the comparison with stock markets "suffering from waves of volatility" with inflation and interest rate hikes, adds Susannah Streeter, analyst at Hargreaves Lansdown.

At the Annandale distillery, in the south of Scotland, on April 21, 2023 © Andy Buchanan / AFP

But spectacular yields "are often specific to a rare type of whisky," she warns. And because of a "lack of transparency and regulation" and because proof of ownership of casks "often proves difficult", investment in whisky is according to her "high risk".

Limited offer

Annandale, a distillery established in 1836, once operated by Johnnie Walker, closed for nearly 100 years before restarting in 2014. In refurbished buildings, the last brew began to ferment in a wood-paneled tank. After three or four days, the golden liquid will be distilled in a copper still.

Every week, Annandale produces about 48 barrels, which can be sold for at least 3,000 pounds (nearly 3,500 euros), and whose value increases with age.

"The main attraction of old whisky (...) is that the supply is limited. Most of the products were created decades ago," says Tommy Keeling, head of spirits at London-based IWSR Drinks Market Analysis.

At the Annandale distillery, in the south of Scotland, on April 21, 2023 © Andy Buchanan / AFP

The increase in wealth in Asia, access to credit for a long time easy or lockdowns during the pandemic (which gave consumers time to develop their whisky culture) have also boosted demand, according to him.

The firm estimates that the global whisky market in 2022 was worth $ 87 billion, and that it should reach $ 105 billion by 2027, driven mainly by Scotch whisky, but also other producing regions such as the United States or Japan.

Keeling sees growing interest from Chinese and Indian investors, while VCL Vintners says the industry attracts customers of all ages and budgets.

According to a study by Knight Frank, investments in bottles of rare whisky have seen their growth slow, but they have been much more profitable over ten years than fine wines, watches or luxury cars.

Empty barrels stored at the Annandale distillery site, April 21, 2023 © Andy Buchanan / AFP

VCL Vintners, which saw potential customer requests jump by more than 40% last year, informs them that the return on investment for kegs fluctuates between 8 and 12% per year.

Annandale does not promise any return. "It's not our job," says Ashton-Hyde, who says he wants to focus on making the "wonderful spirit".

© 2023 AFP