Around the world, most high and ultra-high net worth individuals are devoting between four and six percent of their overall asset allocation into alternative investments such as private equity, hedge funds, managed futures, real estate commodities and derivatives contracts. For investors seeking out alcoholic alternative assets, Reda Bedjaoui, CEO of Redbed Investments, recently discussed two new options: whisky and tequila.
Platinum Whisky Investment Fund believes the sipping liquor has an advantage over other common alcohol commodities. Unlike wine, which can be perishable, whisky stops aging once it has been bottled, making it possible to hold the investment longer. The fund launched in June 2014 with an initial round of $10 million, focusing primarily on single malt aged whisky. Today they also have a small portion in Japanese whiskies, Irish whiskies, and even some American bourbon. In addition to iconic brands such as Dalmore and Macallan, the fund also targets “silent stills” which closed in the 1980s, as well as rare vintages that date back as far as World War I. Values of many of the labels have skyrocketed in recent years, and a growing supply of well funded collectors from Asia could continue to drive prices higher. Since Platinum Whisky’s launch, prices of the top 1,000 single malts have climbed 100 percent in U.K auctions and the top 100 brands jumped 230 percent, according to the Whisky Highland Index. In one high profile deal, a rare six-liter bottle of Macallan ‘M’ in a crystal decanter set a world record for the most expensive single malt whisky when it sold at $628,205 at the Sotheby’s auction in Hong Kong, beating the previous record of $460,000.
Reda Bedjaoui also discussed a pair of high end tequila brands, Casa Dragones and Casamigos. MTV creator and iHeartMedia CEO Bob Pittman and industry expert Bertha Gonzalez Nieves founded the former, which has grown to include a board of strategic investors featuring Jeff Bezos of Amazon, MTV and VH1 cofounder John Sykes, former CEO of Viacom Tom Freston, and Ryan Seacrest. George Clooney and entertainment mogul Rande Gerber, who is also the husband of retired supermodel Cindy Crawford, created Casamigos in 2011 to enjoy at their vacation homes in Cabo San Lucas. When the pair brought the company to the public in 2013, it immediately took off as a private label tequila. In June, Gerber announced that the Diageo, the world’s largest producer of spirits, is purchasing the business for as much as $1 billion.
Reda Bedjaoui is an expert investor with over a decade’s experience of anticipating trends, pricing and demands in commodity training. Bedjaoui’s mastery of investment, real estate, governance, risk management and compliance allowed him to found Redbed Investments, a leading firm that specializes in multi-sector international investment strategies. His business acumen, particularly in relation to start-ups and joint ventures, has resulted in successful enterprises in sectors ranging from the beverage to the technology industry.