NFTs and the Digital Ownership of Luxury Spirits
Two trailblazers are partnering to bring consumers an ultra-rare Single Malt Scotch Whisky via the world’s first direct-to-consumer NFT platform for wine and spirits products.
Glenfiddich, the world’s most awarded Single Malt Scotch Whisky brand, has partnered with BlockBar, the premier non-fungible token (NFT) marketplace for luxury wine and spirits products, to launch a series of 15 limited edition liquor NFTs. Each NFT corresponds to a physical, exceptional bottle of a 1973 46-year-old Armagnac cask finish Single Malt Scotch Whisky that is sold by Glenfiddich.
On October 19, 2021, Glenfiddich went live with their first series of minted NFTs, offering them on a first-come, first-served basis. The NFTs are offered exclusively on Blockbar’s marketplace platform where they are sold directly to consumers, whether for personal consumption, collecting, or investment purposes.
Upon purchasing the NFT, the buyer becomes the owner of the physical product represented by the NFT, with the NFT serving as a digital receipt that verifies the buyer’s ownership and the authenticity of the product.
The buyer has the choice at any time to resell or transfer the NFT through the BlockBar platform or to redeem it for the physical version. BlockBar is also responsible for storing the product and, upon request, delivering it to the buyer.
Glenfiddich Scotch Whisky – The Perfect Inaugural Partner
Whisky market size for consumption and as a collectable has been increasing year after year at an astounding rate:
According to Whisky Investor, The Knight Frank Wealth Report, a flagship annual publication which offers unique perspectives on global wealth, prime property and investments, named whisky as the best performing collectable investment of the decade.
The Knight Frank Rare Whisky Index, which tracks auction results of a basket of rare Scottish single malts, noted a staggering rise of 586% over ten years. Whisky market revenue is projected to surpass $85 billion by 2027, as reported by Global Market Insights Inc. And, with respect to market performance, looking at the projected return for a $100,000 portfolio from January 2018 through April 2020, high-end spirit investments outperformed Gold and the S&P500.
Aside from all the evidence supporting the popularity of rare whisky, Glenfiddich makes for an ideal inaugural partner for Blockbar for another reason. As the Maverick Whisky Makers of Dufftown, Glenfiddich rests on this motto: “For 128 years we’ve strived to do things our own way.” Chief Commercial Officer, Doug Bagley, of the distiller William Grant & Sons shares his sentiments:
“Glenfiddich continues to push boundaries in whisky innovation and this mindset transcends to those we partner with. We are proud to be the first luxury spirits brand to be available on BlockBar at the time of the launch. BlockBar brings a heightened level of authenticity to our brand via its proprietary NFT platform and creates an elite club of distinguished collectors with whom we’re excited to build long-term relationships.”
Ultra-Exclusive & Rare
The initial list price for this “never previously publicly released, extremely rare” Single Malt NFT/Bottle combination was $18,000. Since going live, the NFTs for each of the 15 numbered bottles has been purchased from Glenfiddich.
“This is an exceptionally rare example of 1973 Glenfiddich, a 46-year-old whisky which has spent more than two decades in an Armagnac cask and is a fitting spirit for the launch of Glenfiddich’s first and exclusive NFT release on BlockBar,” comments Glenfiddich Malt Master, Brian Kinsman.
It is one of only two Glenfiddich Armagnac Cask Finish malts in existence, which is part of the Malt Masters' visionary pursuit of extraordinary flavour profiles.
Becoming a Partner Brand
Blockbar was founded by experts in the liquor field, who sought to offer a unique way for brands of wine and spirits to reach new collectors and make it easier to resell or transfer rare products by trading the NFT anytime using the Blockbar marketplace.
Blockbar helps brands create a digital wallet and then works with them to identify their unique offering most likely to appreciate in value. Brands mint their own NFTs using BlockBar’s proprietary smart contract.
Once the NFT is created, ownership is on the Ethereum blockchain, and ownership can be tracked all the way back to the distillery itself, which proves its authenticity. As NFTs are minted, brands ship bottles to Blockbar’s secure warehouse in Singapore, which is bonded, temperature controlled, and insured.
At a specified time, the bottles are released, and acquisition of ownership is via an auction, on a first-come, first-served basis, or a random drawing. Winners receive the bottles in their Ethereum wallet and on their Blockbar profile once payment is received. If the recipient doesn’t have an Ethereum wallet connected, Blockbar will securely hold the NFTs until the recipient transfers it from My Collection.
Users can list, bid, and purchase bottles from the marketplace. Owners of the NFTs set the price in either Ethereum or US Dollars. Non-owners can purchase the NFTs at the list price or make an offer that is valid for 3 days.
The digital NFTs are backed by the actual physical bottles, so at any point, the owner of the digital NFT can redeem their digital asset for the physical bottle. This process removes the digital NFT from the ecosystem making the remaining NFT’s rarer. Users receive a separate receipt NFT and will have their bottle delivered to the address of their choice.
Utilizing BlockBar’s state-of-the-art NFT platform to purchase Glenfiddich’s whisky, buyers can be assured that their accounts won’t be compromised and their NFT’s won’t be stolen, because the tokens are protected by FireBlocks’ digital asset custody infrastructure and Chainalysis’ compliance technology.