The concept of Proof° Equity was born out of our time working with an amazing team of American Heroes. Together we worked to build one of the fastest growing bourbon brands in the country. We learned many things in that incredible journey, One of the most powerful was understanding the value of bourbon aging in barrels. In particular, the barrels of bourbon sitting in rick houses across Kentucky.
Spirits, bourbon specifically, have great value the minute they hit the barrel. A critical component to increasing the value of those barrels even more is age. This cannot be created synthetically. Whether they are limited in production capacity or their sales teams outpaced forecasts, the problem is the same—they need aged, quality bourbon to fill their bottles. Add all of these factors into the consistently growing bourbon market, especially the high-end segment of that market, and the value of aging barrels of bourbon grows faster than just about any other asset you can hold.
Watching all of this happen made us, and the rest of the Proof° Equity team, realize that there was a way to capitalize on this market without all of the crazy expense tied to launching a brand. We knew that the relationships we built within the spirits industry might give us access to barrels of bourbon. We were able to work with partners distilling great spirits to secure a significant number of these barrels. Our hope is to share these with our friends, families and customers. Members of our team have been holding barrels of bourbon and thought it could be lucrative for others. We saw a few companies doing it… we knew we could do it better.
Take a few minutes to look at what we have created, and let us know how we can help you capitalize on this growing market.
Spirits are distilled across the globe in many different expressions. Scotch production dates back over 800 years in Scotland. In the United States, Bourbon has been distilled since the late 1700’s and originated in Kentucky. Bourbon is now produced across the United States by hundreds of distillers. The market for these products, especially Kentucky bourbon, continue to grow at an amazing pace. The last 2 decades have seen the industry grow at a rate unmatched. Ten years ago there were a handful of bourbons on the shelf in any store. Today, there are hundreds of brands, and they often take up the largest footprint in any liquor store.
This has created two powerful components in the market, growth and rarity. The market for bourbon sat at roughly $7.8 billion in 2021 and is projected to hit 12.8 billion by 2031 according to Allied Market Research. Distillers can’t go back in time to produce the bourbon needed to fulfill this growth and that has created rarity in aged bourbon.
Proof° Equity is working with distillers to secure as much bourbon as we can. The concept is to acquire this bourbon at the best prices possible, share the bourbon with our clients, and hold the product as values rise. Bourbon barrels typically increase in value by more than 20% per year.
Our first offering will be 2,500+ barrels of true Kentucky Bourbon to be distilled in early 2024. We have signed agreements with distillers to secure that bourbon. You now have the chance to purchase that product at a fair market price. We have also worked to secure storage in Kentucky, and have rick houses being built specifically for our barrels. As our clients purchase these barrels, they can hold them and watch the value increase.
In time, those clients can choose to sell or hold the bourbon based on their personal view of investing in this market. Proof° Equity will handle everything. Our team will help you setup all that is needed to participate. We can help you establish an entity to hold these barrels and assist in securing you the required government permits to do so. Proof° Equity handles it all. Then when you are ready to sell, just let us know, we can assist you.
Many corporate leaders believe this market could double Min the next few years. This is reinforced by the billions of dollars being invested in production capacity and storage facilities (rick houses). Much of that production growth is 2-3 years away from completion. This creates the opportunity to jump in now and hold product that distilleries will need to meet demand in years to come. Thus increasing the value of that product. Supply and Demand!
The Kentucky Distillers Association has stated the bourbon industry, in that state alone, is north of $9 billion. In 2022, the total whiskey market in the United States generated roughly 77,000,000 9L cases.
“The bourbon boom shows no signs of slowing down. With a $5.2 billion building boom now underway, Kentucky Bourbon is driving a slew of new projects that have the construction industry buzzing. This means the demand for Bourbon is not just good for our distillers, it’s creating jobs and opportunities for contractors throughout the Commonwealth.” While distilleries struggle to catch up with demand, Proof° Equity and our clients will have what they need. As these distilleries come to us to share their product, we will share this with our clients, giving them an opportunity to sell their barrels profitably.
The European and Asian markets have developed a taste for American Whiskey. Bourbon exports fell $170 million in 2020 to a low of $319 million due to EU and Chinese tariffs. Those markets are back open and making up for lost time. Leading importers of Kentucky whiskey in 2022 were Japan, Spain, Australia, UK, Canada and Germany. Large established brands often can’t send enough supply overseas due to the fear of harming their domestic market inventories. The Proof° Equity program will work with partners in these markets to capitalize on this demand.
The Proof° Equity team knows what quality bourbon is, and where to find it. We have chosen to work with smaller craft distillers for our initial offering. We know the care these artisan distillers take to produce some of the best juice on the planet. By not mass producing their bourbons, these craftsmen can affect every step of the distilling process. They pick the barrels by hand, they know the farmers producing their corn and grains, and they are often family run distilleries. We believe this relates to the highest quality bourbon available.
Nothing can replace time in the barrel, or “aging”. Young bourbons are often described as “hot”, but they soften and gain incredible smoothness through the aging process. The Proof° Equity program manages the storing and aging process for you. Thus resulting in the best quality, aged bourbon to bring to market. The primary gain is that the barrels increase in value over time and maturity.
The Proof° Equity team has uncovered a significant supply of wheated and high-rye bourbons. The distillers we are working with are using the best Kentucky corn, the highest quality local grains, and only Kentucky water. In time, we will offer a wide range of mash bills.
Our team will walk you through each step. We know
the process of acquiring, storing and managing assets like this can be very intimidating. We will take care of everything for you.
Legal Our legal team will assist you in establishing the appropriate entity to hold these assets and handle any questions you might have.
The Proof° Equity legal team will help you walk through the steps of securing all required permits and licenses needed for the purchasing, holding, and selling of spirits.
Once all the appropriate legal steps are taken, you will be given a breakdown of the products available. In partnership with the Proof° Equity team, you will have the opportunity to select the spirits you think will gain the most value in time.
Proof° Equity has established a powerful relationship with a distillery in Western Kentucky that has dedicated significant space in several new rick houses. Based on our agreement, it is projected that they will build an additional rick house in 2024. That construction will now give us the ability to store more than 15,000 barrels for our clients. As we grow, more rick houses will be built so that we always have a place to store these valuable assets in the heart of Kentucky. All storage fees and insurance for purchased barrels are included in the price for the first 4 years.
We know that many factors will define when you are ready to sell your barrels. You have control over this process, but the Proof° Equity team will manage every step of it for you. We only ask that you store your barrels with us for at least two years, but you can sell at any time. We know that the two year mark is when the bourbon truly starts to mature, and the values jump in the market. You can hold the barrels with us for as long as you want. At any time you can sell some or all of your barrels. We will help you find buyers or we may decide to purchase it from you at market value. Again, we are there to handle everything you need.
The industry has seen growth in the last decade or two that is unmatched. Through following the trends of the past, we can share where we believe the market will go.
Wholesale barrel prices are selling at an incredible rate with a wide range of prices. We have seen bourbon not produced in Kentucky selling north of $2,000 for new make barrels (less than 1 year), 2 year-old barrels for $2,100+, 3 year-old barrels for $2,600+, 4 year-old barrels for $3,000+ and 4-5 year- old barrels for $5,500+. When you factor in bourbon being distilled in Kentucky, and aged there, pricing can go above $4,000 for 4 year-old bourbon at wholesale. These prices were pulled directly from wholesalers, brokers, and contract distillers.
The global bourbon market has experienced tremendous growth over the last 10-15 years. This constant growth has seen the birth of many new brands hitting the market. The bourbon aisle has become the biggest in any liquor store. Many of these brands don’t produce their own bourbon, or can’t produce enough to keep up with the demand. Even some of the mid-sized brands need bridge juice to get through shortages. Add in the fact that many brands outperformed their sales targets, and this creates incredible demand for quality bourbon aging in barrels. Proof° Equity has access to barrels that can help fill this demand in a highly profitable manner for our clients.
Experts see continued growth in bourbon industry with potential for the market to double by 2028. This view is reinforced by the billions of dollars being invested in construction projects to expand production. These facilities will not be completed for several years, they then need time to ramp up production. We see this as a huge opportunity to hold barrels that will only increase in value as demand continues. With international markets opening up for more favorable trade terms, this creates even larger sales opportunities. The future is very bright for the buying, holding, and selling of premium bourbon barrels.
Our distillery partner for this initial offering is located in Western Kentucky on one of the most beautiful properties in the Commonwealth. Located on over 3,000 acres of land with a distilling operation and two large rick houses, you will be invited to come take a tour and meet the Master Distiller and owners. There is incredible natural landscape and some beautiful wildlife that the distillery protects and helps thrive.
All of the barrels in this offering will be produced at the same distillery and will be completed in 2024. We will offer wheated bourbon along with a high-rye bourbon, the choice is yours. All barrels are 53 gallons and will be new American Oak with a char level of 4. This is a high-char barrel that our distillery partner believes creates the best, smoothest, and most flavorful bourbon.
Our initial offering will provide barrels of bourbon at current market rates for the launch on November 15. Your Client Ambassador will be happy to disclose these rates to you upon sign up. We welcome the opportunity to sell you as many barrels of bourbon as you feel are right for you, your Client Ambassador will walk you through all of your options.
Our initial offering will make available 2,500+ barrels of Kentucky Bourbon produced in 1H of 2024. All production will be guaranteed and is available on a first-come basis. These barrels will officially be made available on the open market on November 15, 2023 .
Anyone at least 21 years of age, that finds this opportunity
attractive and is looking to invest funds.
Talk with one of the Proof° Equity Client Ambassadors to get the
process started. We have had significant interest in this program
and recommend reaching out soon.
Proof° Equity will build a profile for you within our client portal.
Within your profile, you will see an inventory of all the barrels you
own, where they are located, the distillery, the date of production
and mash bill. As you take advantage of additional offerings, this
information will be added. Ownership will also be listed with the
Commonwealth of Kentucky
All barrels are held in rick houses in Western Kentucky. The
storage fees and insurance for up to 4 years will be included in
your price. A copy of the insurance documents will be included
with your paperwork.
We ask that you keep the barrels in our rick houses for at least
2 years. We also understand that things happen, so we can help
you manage the sale of your barrels if the need arises. We may
buy the barrels from you at fair-market prices, or assist in finding
you a buyer. Part of our program will be to keep you informed on
the estimated value of your barrels in the market. Third party
entities may approach Proof° Equity to purchase barrels of
bourbon. When this occurs we will post an offer to our clients
and you may choose to sell all or part of your inventory. This
allows you to make the best financial decisions for these
assets.
To sign up with Proof° Equity as a client, we collect
a $1,500 setup fee. This includes working with
our legal team to establish an entity to purchase/
hold these assets and securing the required
government permits. Once established as a
Proof° Equity Client, the costs are determined
by you. You decide how much product you
would like to purchase and which offerings you
want to participate in. The amount of money is
totally up to you with a minimum purchase of 25
barrels.
We understand that programs like this are not for everyone. If you believe this is a great way for you to grow wealth, then we will walk you through the sign up process. To get started all we need is a simple “yes”. We will get things rolling for you right away. Once you have signed up, we will release all of our current offerings and pricing to you.
Your Proof° Equity Client Ambassador will meet with you and our legal team. We will explain all of your options, so you can make the best decisions on how to manage the acquisition of these assets.
Your Proof° Equity Client Ambassador will help you setup payments for this acquisition. We will make the process as simple as possible and make sure that the best method for you to finance this acquisition is in place.
If you are ready to begin investing in bourbon or want to learn more about Proof° Equity, please send us a message. A Client Ambassador will reach out to you within 24 hours.
