As CEO of GORDON PWC, I’m frequently asked whether fixed returns are achievable in cask investments, particularly in tequila. The answer is yes, and the tequila market presents a unique opportunity to do so, thanks to the rising demand for aged tequila like Extra Añejo (age 3+ years).
The tequila industry is facing a supply challenge. Distilleries (NOMs) often focus on producing Blanco (new make spirit) to maintain cash flow, while the demand for aged tequila grows. With over 3,000 brands and only 75 licensed distilleries, many brands struggle to store and age their tequila. This is where GORDON PWC steps in—we purchase Blanco tequila and resell the aged product to brands, acting as a bridge between distilleries and brands.
To ensure price stability, we establish long-term contracts with brands to lock in future prices for aged tequila. This structure allows us to offer fixed-return products, like our recent 3-year, 8.5% annual return product with TROMBA Tequila. TROMBA will buy back the casks in three years at a fixed price, providing our investors with predictable returns.
Most of our investors build balanced portfolios consisting of both fixed-return products and free-market products. The latter offers higher expected returns of around 15% per annum, providing a balance of risk and reward. By combining these two types of investments, investors can enjoy steady returns while also taking advantage of higher-growth opportunities.
Tequila cask investments offer a great way to achieve stable returns in a growing market. At GORDON PWC, we are committed to providing our investors with a range of options, ensuring they have a well-rounded, risk-adjusted portfolio. If you’re interested in exploring this unique investment opportunity, we’d be happy to help you navigate it.
