This is a great time to invest in fine Rum
Conventional assets such as bonds and stocks, real estate, precious metals, and even arts and antiques have long been considered reliable investment vehicles. But in the past two decades, alternative asset classes have gained prominence too.
Whisky is a notable example. It has evolved into a legitimate alternative asset class with unique appeal, given its performance is uncorrelated with traditional financial markets.
Despite its attractiveness, returns in the whisky market are displaying signs of weakening. According to the Knight Frank Luxury Investment Index, whisky emerged as one of last year's weakest luxury investment performers, experiencing a modest growth of just 3%.[1]
Furthermore, today, investing in the finest whiskies may still offer returns, but it comes with a considerable entry cost, potentially limiting long-term profit potential. The essence of sound investment often lies in choices with lower initial expenses, as they can pave the way for more favourable returns over time after all.
So, what about Rum?
Rum, as an investment, remains relatively undiscovered, presenting a compelling alternative poised to meet unmet demand. It stands out as an asset class with significant potential for substantial price increases, offering the prospect of higher profits at a more accessible entry cost when compared to whisky.
The global market for premium- and super-premium Rum has demonstrated robust growth, with volumes experiencing a compound annual growth rate (CAGR) of +8% from 2014 to 2019. Concurrently, these Rums’ value increased at a CAGR of +9% during the same period. Following a solid recovery post-Covid in 2021, the category’s volumes are projected to continue their ascent, with an anticipated CAGR of +6% between 2021 and 2026. The corresponding value is expected to rise too, at an even higher CAGR of +6.5%.
To make things more interesting to potential investors, the trend isn’t confined to a specific region. Premium- and super-premium Rum are enjoying success in North America, but also across much of Western Europe – particularly in countries like France, the UK, Germany, Italy, Spain, Belgium, and Luxembourg – and in Australia.[2]
The remarkable growth of Rum as a whole can be attributed to several factors. When it comes to the exceptional super-premium expressions we like to imbibe on at House of Rum, this surge is a result of the evolving image of the category, now garnering serious consideration as a high-quality spirit akin to the greatest Cognacs and single malt Scotch whiskies. For the world’s finest Rums, the journey from recognition by connoisseurs to acceptance among a broader audience has been a gradual process. Legendary producers such as Foursquare, the globally respected artisan distillery responsible for our Barbados 2010 release, have played a pivotal role in reshaping Rum’s perception. They’ve transformed it from a straightforward mixer for cocktails to a distinguished, premium spirit with depth and character in the eyes of drinks enthusiasts.
In a category where the norm has often been sweetened spirits flavoured with additives, enthusiasts have finally been given the opportunity to appreciate unadulterated expressions that encapsulate the essence of true, exceptional Rum, which House of Rum’s bottlings represent the ultimate expression of. All our releases are undiluted, single-cask, non-chill-filtered, single-vintage, cask-strength, and, of course, unsweetened.
Fine Rums are indeed increasingly available, but the staggering diversity of the category – with countless producers across different countries and continents, utilising multiple ingredients and techniques – makes it a rather challenging one to navigate for both novices and professionals alike.
This is where House of Rum's bottlings provide, once again, an exceptional opportunity to investors. Not only do they offer a means to acquire outstanding liquids, they can also represent a guide through this intricate universe, allowing investors to diversify their portfolio, thus avoiding the risk of concentrating their Rum assets in one basket. A well-diversified collection, for instance, would benefit from the legendary status of Barbados’ Foursquare [1] Distillery, the reputation of Venezuela's Corporation Alcohols del Caribe, and the exclusivity of Trinidad Distillers Limited, currently the sole Rum distillery in Trinidad.
Each House of Rum bottling is an unrepeatable single-cask and single-vintage expression. Released in limited runs of just a few hundred bottles, they embody exclusivity and rarity, the very definition of highly desirable collectibles. This means they offer an unmatched drinking experience now of course, but they are poised to increase in value over time too.
Start building your Rum portfolio by checking out our latest releases[