In the last 15 years, bourbon has emerged as more than a popular drink, with the value of whiskey casks jumping 12% to 15% annually. In 2023, a single bottle of Old Rip Van Winkle 25-Year-Old Kentucky Straight Bourbon Whiskey was valued at an average price of $53,712.
Once playing second fiddle to Scotch among high-end whiskeys, bourbon is now a viable investment option. Take a closer look at what you can expect from the bourbon market and the types of bourbons that are likely to increase in value.
Why Investing in Bourbons Can Be Lucrative
Bourbon’s boom is projected to continue. Bourbon is considered more than just a drink because of its U.S. history and culture. By law, to be called a bourbon, a whiskey must be produced in the U.S.
Bourbon is distilled from a corn-based mash and matured in oak barrels. Requirements for 51% of the mash to be corn and only new oak barrels to be used are what distinguishes bourbon from other whiskeys.
Millennials are driving the sale of reasonably priced bourbons, but there’s an exclusive class of bourbons that has grown the market of bourbon as an investment asset. The age, rarity and existence of limited editions influence a bourbon’s value.
10 Best Bourbon Investments
Investing in bourbon can be lucrative when you find bourbons that are likely to increase in value. Here are ten.
1. Old Rip Van Winkle 25-Year-Old Kentucky Straight Bourbon Whiskey
From the Pappy Van Winkle family, this bourbon sold for nearly $54,000 in 2023. It’s a rare bourbon many connoisseurs seek and is one of the top bourbons that are likely to increase in value. Distilled in just 11 barrels in 1989, it produced 710 bottles.
2. Colonel E.H. Taylor Old-Fashioned Sour Mash
Colonel Taylor was considered an innovator in the bourbon industry, known for his unique sour mash process. This limited, sour mash bourbon goes for about $26,000.
3. Last Drop Buffalo Trace Kentucky Straight Bourbon
The Last Drop was distilled in 1980 and aged for 41 years. Just 240 bottles of this bourbon with its amber hue are available worldwide. It can be had for just over $16,000.
4. Redemption 36-Year-Old Barrel Proof Straight Bourbon Whiskey
A penny from 1978 — when the bourbon was distilled — is embedded in the cork stopper. The Redemption is hard to find and has an average price of $36,566.
5. Eagle Rare “Double Eagle Very Rare” Kentucky Straight Bourbon 20-Year-Old
Aged 20 years, just 400 bottles were released after its 2019 debut. You can find it on the market at an average price of $17,000.
6. Old Rip Van Winkle Handmade Family Reserve 16-Year-Old
Buffalo Trace continues to distill the old Pappy Family Reserve. The old bottles are rare finds. The average price of an old distillation of the Family Reserve is about $15,000.
7. Old Rip Van Winkle Family Edition 23-Year-Old Kentucky Straight Bourbon Whiskey With Glasses and Decanter
This bourbon once sold for $52,000 at a New York Sotheby’s auction in December 2022. A bourbon with high wheat content, it was released in 2008 and has an average price of $35,155.
8. Michter’s Celebration Batch 1 Sour Mash
The Michter’s Celebration Sour Mash collection was released in 2013. A blend from bourbons aged 30 and 20 years, this bourbon had a limited release of 273 bottles. You’ll find it on the market for about $24,000.
9. Willett Family Estate Bottled Single-Barrel 24-Year-Old Straight Bourbon Whiskey
Releases of this bourbon are sporadic, making bottles hard to come by. The bourbon is bottled from different barrels, giving each release a distinct taste. If you can find it, the average price is about $15,500.
10. Old Rip Van Winkle Family Edition 17-Year-Old Kentucky Straight Bourbon Whiskey
At 101 proof with a complex flavor, this bourbon is rare and highly sought after and goes for an average price of about $30,000.
Understanding the Factors Influencing Bourbon Values
The value of bourbon is influenced by many factors. Here are a few you’ll want to keep in mind:
- Reputation and brand: A known and reliable quality bourbon with an interesting history adds value for enthusiasts.
- Age and aging process: Long aging and the aging process give bourbon distinct tastes. Often, the older, the better — and the more expensive.
- Limited supply: Single barrel, small batch, commemorative production and special blends create rare, sought-after bourbon.
- Rarity and scarcity: High demand and low supply of older bourbons, specially aged bourbons or discontinued variants continue to drive prices up.
- Signed bottles: A bottle signed by a master distiller adds to the value. Keep an eye out for signings or hit the Kentucky Bourbon Trail.
- Awards and recognitions: Awards set benchmarks for taste, design, innovation and quality, driving prices and reputations. Some of the most prestigious competitions are the World Whiskies Award, the San Francisco World Spirits Competition, the International Wine and Spirit Competition and the American Whiskey Masters.
The value of bourbon doesn’t always rise, but enthusiasts are generally willing to pay a premium price for certain bourbon.
Historical Examples of Bourbons That Have Increased in Value
A brand like Pappy Van Winkle dominates the market for collectors and investors, but other brands such as Michter’s and Willett Family Estate are brands that have increased in value during the bourbon boom.
Michter’s traces its roots to 1700s Pennsylvania. The distillery went bankrupt in 1989 and was revived in 2004 in Kentucky. Its bourbon is produced in custom-made barrels and a special aging process in small batches.
The average price of Michter's 10-Year-Old Single Barrel Bourbon Whiskey increased from $344 in February 2022 to $436 in January 2024, a 27% increase.
The Willett Family Estate Bottled bourbon was introduced in 2008, but the family distilling goes back to the early 1840s. It is an unusual bourbon that is chill-filtered and bottled at barrel-proof strength.
The Willett Family Estate Bottled Single Barrel 23-Year-Old Straight Bourbon Whiskey increased 825% from December 2022 ($2,485) to January 2024 ($22,978).
Tips for Investing in Bourbons
As an asset, bourbon is not liquid. But rising demand and prices can give you a good return on this alternative investment in time.
If you’re investing by the bottle, buy at retail prices, instead of the secondary market. Rare and premium bourbons are found on the secondary market but at higher prices. The secondary market is risky because you’re often buying from unknown sources, making authenticity and quality hard to verify. You also could overpay for a bottle.
Find reputable retailers and build relationships with them. They can help you stay on top of new releases. Look to in-person and online auctions for rare and premium bourbons.
As an investor, storage and preservation are big issues to maintain the bourbon’s value. This is important in two ways: buying and holding.
When you’re buying, look for corks and packaging that are well-preserved. Once you have your bottle, store it upright at room temperature and out of the light, turning it on its side every three months or so to keep the cork from drying out.
Where to Invest in Bourbon
If you’re looking to invest in bourbon, consider starting with these brokers.
Bourbon Can Be a Smart Investment
Investing in bourbon can be risky, but you also could realize a high return on investment. Just like other types of investing, you need to do your research, gain knowledge and experience and stay on top of the market to succeed.
Frequently Asked Questions
Do bourbons increase in value?
Yes, bourbons can increase in value. Age, rarity, brand reputation, commemorative packaging, signed bottles and discontinued series can raise a bourbon’s value.
What is the best way to invest in bourbon?
It depends on your risk tolerance, but you can buy bottles at auction or through a fund; buy stock in distilleries; or buy ownership in casks, barrels and bottles through brokerages.
Why are some bourbons so expensive?
Expensive bourbons typically are rare, from a limited or discontinued series, in high demand and from a highly respected distillery.