Client Update - March 2025

Dear WhiskyInvestDirect client,

Spring is here, and while flowers are in bloom across the northern hemisphere, the global markets are seeing more muted growth. With fluctuations in other industries, and that nasty word ‘tariffs’ being bandied about, the general impression we are hearing from the Scotch whisky industry is optimistic caution.

The positive is that most players in the industry feel that the dip of 2023 & 2024 has fully levelled off, and they can start to plan for growth in the future. However, with key questions like ‘will the USA impose tariffs on Scotch whisky?’ and ‘will this round of trade talks with India finally result in a deal?’ currently unanswered, no-one wants to be the one to commit too soon.

January’s export figures, just released by HMRC, showed 10% growth against the same month last year. A single month is not enough to go on, but it is certainly a promising sign. We are also seeing a few Bulk Trade Bids returning to the platform. With more sellers than buyers in the market at the moment, some industry bidders have been placing relatively low offers – however, most of our clients are holding out for better prices, and Bulk Trade Bids have failed where the offer has been below our valuations.

This is a sign that both industry buyers and many of our clients feel that stock is well-valued or undervalued, but clients, like the wider whisky industry, are cautious about investing too early. Our primary challenge at the moment is to create opportunities for sellers to realise their investment while acknowledging that many potential buyers are waiting for clear signs of growth before becoming active. One step in this process was the removal of the lower trading threshold, and we will be bringing more functionality to the platform in future to help increase trading activity.

We are still seeing demand from the whisky industry, but this is mostly taking the form of trade purchases and withdrawals, smaller volumes sourced from the Live Order Board or stock directly owned by WhiskyInvestDirect. As the wider whisky market returns to growth, we hope to bring more Bulk Trade Bids to the platform.

As we have discussed in the past, a key part of the cycle on WhiskyInvestDirect is using the proceeds from selling stock to reinvest in new liquid from our distilling partners. With the demand for new whisky currently more muted, we will be reducing the frequency of pre-orders – however, we are constantly exploring new ways to bring stock to the platform, and once the cycle of the whisky industry begins its upward turn again, we are ready to go.

I would like to thank you for your continued support and feedback. As always, please feel free to get in touch directly with any questions to you have. We are always pleased to hear from you.

Kind regards,

Ben Challen,

Commercial Director, WhiskyInvestDirect