Cognac Cask - Bons Bois - Lot 44, 1944

Valuation Summary 📝

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To ensure the competitiveness of this investment, we conducted a thorough market analysis by reviewing recent transactions of comparable Cognac casks and evaluating the current market value of similar Cognac casks. The offered purchase price, inclusive of associated fees, remains highly competitive within the whisky investment market. We used the historical performance data of vintage Cognac prices. For our conservative scenario, we assumed the value of the cask would grow at the rate of Swiss inflation, reflecting a defensive approach. In the balanced scenario, we used the average annual price increases of vintage casks over the last 10 years. Finally, in the ambitious scenario, we used the average annual price increases of vintage casks over the last 10 years and added an expected additional price increase of 5% due to high price discrepancy compared to vintage whisky.

Exit Options at Maturity 🚪

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At maturity, we will handle the exit strategy on behalf of investors, seeking to maximize returns based on prevailing market conditions. We will carefully assess market conditions and choose the option that ensures the best possible outcome for investors.

Why Invest in This Category? 🍇

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Vintage cognac casks offer a unique investment opportunity by combining historical prestige, quality, and the proven appeal of aged spirits in limited supply. Cognac’s strict geographical and production standards enhance its authenticity and collectible value, while demand from key markets like the U.S. and China has spurred global appreciation. This limited production and appreciation potential make vintage cognac casks a compelling addition to a diversified alternative investment portfolio.

Why Invest in This Asset? 💎

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Investing in LOT44—a cognac cask from the 1940s—presents a rare chance to own a piece of liquid history from an era marked by World War II disruptions. Cognac production during this time faced strict resource limitations, making these surviving casks both historically significant and scarce. This particular cask has developed an exceptionally rich flavor profile, featuring stewed fruits, apricots, and subtle vanilla, along with green apple notes on the palate—a testament to 70 years of careful maturation. The high global demand for premium, artisan liquors, especially in markets such as China and the U.S., further underscores its value potential, with anticipated returns between 15-18% over a 5-7 year horizon.

Context in Time ⏳

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The 1940s was a pivotal decade for cognac production, marked by the impact of World War II, which severely constrained resources and disrupted traditional manufacturing. Many distilleries struggled to maintain production, and limited access to materials meant fewer casks were created and preserved. Cognacs from this period are rare relics, embodying both the resilience of the industry and the distinct character of their era. The long aging of these casks, under unique post-war conditions, has resulted in extraordinarily complex flavors that reflect the period’s scarcity and craftsmanship, making 1940s cognac casks highly sought after by collectors and investors today.

Conclusion 🎯

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In summary, our valuation indicates that this 1940s cognac cask represents a compelling, competitively priced opportunity within the alternative asset landscape. By leveraging historical performance data and market analysis, we have developed a conservative, balanced, and ambitious outlook, each highlighting the cask’s substantial appreciation potential. The unique historical significance and high-quality aging of LOT44, paired with rising global demand for vintage cognac, position this asset for notable returns. Upon maturity, we will implement a strategically timed exit, ensuring the best possible returns for investors in this rare and prestigious asset class.