July 25, 2022 SVC 0

Monthly newsletter for July 2022

Dear All,

Last month we held our ‘22 AGM for our current members of the Collective, where we shared some information on how the whisky category has been performing over the last year, as well as what we expect coming up in the next 12 months. We would love to share some of these insights with you today…

The secondary whisky market continues to grow exponentially, where we saw a +25% increase in bottles sold on auction and +40% spike in value sold between ‘20 and ‘21. We don’t see the market slowing down at all due to removal of US tariffs on whisky, and bearish equity markets resulting in physical assets being favoured (luxury goods sales are at all time highs across cars, wine, art). This has provided us with solid tailwinds as we go into ‘22 and ‘23.

The whisky market continues to draw eye-popping figures, with the recent announcement of a 1975 Ardberg cask recently changing hands for £16M and a Karuizawa 50 year old currently on auction at a starting bid of US$75,000 (likely to close much higher by 18th July). This continues to bode well for those of us invested in tangible whisky assets, especially in this current economic environment, and there continues to be no shortage of interest in whisky investments again in this climate.

From a business perspective at SVC we will continue to build our capabilities to maximise investor value by going direct-to-consumer (to ultimately minimise auction fees when liquidating inventory). We now also have the capability to retail directly in the UK (through our partnership with WhiskyBrother which has now expanded to the UK), and we will continue to bottle the casks at our disposal that are ready to go. We are also getting ready to tactically dispose of some of the bottles that we feel have reached maximum value based on our analysis.

As mentioned, with the auction market continuing to be so robust, our own portfolio saw strong increases just over the last quarter. Our Yamazaki 35 year old is up again two months ago, this time by +28% to £67,0000; and the Macallan 1988 Exceptional Cask #08 is up +46% to £8,500. We also saw some significant jumps last month with our Macallan Fine & Rare 1978 #13810 up +64.4% and the Yoichi 26 year old SMWS 116.16 up by +106%.

For those of you that are taking some well deserved time out over the northern hemisphere summer, we wish you a great couple of weeks rest and recovery!

Marek, Marc, Neil, Gary

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