Investing in the industry
When I decided to expand my whiskey barrel investment company to the United States in 2020, I knew bourbon had the potential to help launch CaskX as a market leader in alternative investments. Thankfully it did do that, but the biggest reward, to me, has been in fostering the symbiotic partnership between distilleries and CaskX.
Every distillery starts with passion. Just like the whiskey that will eventually flow from the still and into a new charred oak barrel to age for many years, it takes time and money to bring a passion project to light. The hardworking dreamers of the distilling industry are inspiring, to say the least. And their amazing spirits speak for themselves, don’t they? The bourbon and whiskey I’ve tasted in my travels to Kentucky and Tennessee are superb, and if my company can help move that momentum forward even the slightest, I am all for it.
What is CaskX?
CaskX specializes in building investment portfolios of barreled bourbon and whiskey for investors around the world. Capitalizing on the underserved market niche of alternative investing in the barreled spirits market, we work directly with distilleries to purchase and store new-make barrels. While those barrels age at the distillery, we offer them to accredited investors who purchase a portfolio of barreled whiskey to hold for future resale or bottling. We maintain all licenses necessary to comply with government regulations pertaining to the sale of spirits as an investment.
So how does a distillery benefit from us purchasing some of their new-make? First of all, we pay the distilleries up front when we place an order each year. As you can imagine, distillery infrastructure and expansion are expensive, but with this extra income coming in, it can be put toward building more rickhouses, purchasing more distilling equipment, expanding the distillery footprint, or even adding more staff.
CaskX also pays the distillery for storing our barrels while they age and also for insurance each month. We want to make sure our barrels are as protected, treasured and cared for just as well as the other 12 million barrels aging in Kentucky and beyond.
Another benefit for distilleries in partnering with CaskX is having your brand marketed to high-end investors all over the world. Every day our dedicated sales team reaches out to hundreds of potential and current investors to talk about our latest distillery partner and the products they make. According to SEC regulations in the United States, our clients must be accredited investors, so they are both influential and affluent bourbon aficionados eager to invest in the industry.
Which distilleries does CaskX work with?
We like to work with distilleries that have a great story and, most importantly, make great whiskey. Our first partner distillery was Kentucky Artisan out of Crestwood, Ky., and they definitely have both a rich history in the business and make incredible bourbons and whiskeys. Started in 2013 by bourbon legend Steve Thompson and his cohorts Chris Miller and Mike Loring, Kentucky Artisan was Kentucky’s first contract distilling operation.
We also secured some bourbon from the prominent MGP Ingredients in Lawrenceburg, Ind. MGP is known for being the largest whiskey contract distiller in the world and is the leading supplier of premium spirits in the United States, producing whiskey for more than 50 top brands on the market today. After that, we added the newly opened Jackson Purchase Distillery to our portfolio. Located in western Kentucky, Jackson Purchase is a contract distillery run by a dream team in the industry: Craig Beam (formerly of Heaven Hill) and Terry Ballard (formerly of Willett).
There’s no doubt that Kentucky is the epicenter of bourbon production, but just across the Kentucky state line, we found a whiskey category quickly giving bourbon a run for its money. Tennessee Whiskey is rising in popularity, so we partnered with three distilleries making a name for themselves: Nashville Craft, Old Glory Distilling and Corsair Distillery. Their bourbon and whiskey are up there with some of the best, and we’re proud to include that in our portfolio.
This year we’ve added several more distilleries inside and outside of Kentucky including the renowned Sagamore Spirit in Baltimore, Md., and the burgeoning Silverback Distillery in Afton, Va. Plus, we found another Kentucky distillery with a great space to grow in the western part of the state, called Coal Pick Distillery. Their wheated bourbon is quicky making a name for itself, and it’s only a matter of time before bourbon aficionados catch on.
And, of course, we have a few more surprises up our sleeves, so be sure to sign up with us and stay tuned.
How can you invest in bourbon with CaskX?
nterested in learning more about CaskX and starting your own barrel portfolio? Our team can help you understand every part of the process from purchasing to selling. If you’re interested, just head to our website and open an account today.
