Analysis of Storage fee changes
As we announced recently, from 1st March the storage fees we charge to hold maturing whisky will be increasing from £0.192 per LPA per annum to £0.208. We have explained here why we feel this change is necessary given the general increases in cost of storage that the industry has seen over the past year. However, the other factor that we must consider is how greatly these changes affect investors.
Our considered opinion is that the change will not be too harmful to returns on investment, and we hope to present some analysis here to inform your own view.
A key resource we use to analyse the performance of whisky on the platform is our analysis accounts. These are theoretical accounts which look at whisky purchased on the platform in each year from 2016 to 2022, using data from actual deals, and analyse what their current value and profit would be. You can find more information on how we performed this analysis here.
We have very simply gone back and historically adjusted the storage fees to give a side-by-side comparison of how those accounts would perform with both the current storage costs and the new rate. As you can see, while the difference is material, it does not notably change the profitability of the accounts: