Cask Whisky Investment UK | Invest in Whisky for High Returns

Investing in Whisky

Simplifying Whisky Cask Ownership

As an alcohol product, the warehousing and movement of whisky casks is strictly controlled by HMRC, and all Scotch whisky casks must be kept in a government bonded warehouse in Scotland until the time at which they are bottled. This extensive oversight ensures the provenance of the assets can be verified to uphold the integrity and quality of the entire Scotch whisky industry

Due to these restrictions, any individual or entity who wishes to purchase a cask has previously been required to first establish an account with a government bonded warehouse before they would be allowed to hold casks in their name. Additionally, if the party was deemed to be acting as a commercial entity due to bottling casks or acquiring a significant quantity of casks, then the purchaser was also required to become WOWGR registered.

However, Cask Spirits has simplified the process by which individual investors can purchase whisky casks by pioneering the first portfolio management service which allows investment in whisky casks without the traditional complexity

Background

Whisky has blossomed into an enormous industry that generates more than £7 billion in annual sales volume. Many manufacturers, distilleries and investors have managed to make great fortunes as the spirit has proliferated around the globe. Now, you have the opportunity to add whisky investments to your portfolio.

What Is Whisky Investment?

Once the whisky is removed from the cask and bottled, the aging process stops. Bottled whisky does not mature with age, its characteristics will remain the same indefinitely and any appreciation in value will be solely dictated by changes in demand for the particular release. For this reason, the purchase of casks offers a far more compelling investment opportunity. By holding whisky casks, investors can realize dual channels of price appreciation in order to achieve maximum returns.

The Power Of Maturation

Whisky in the cask remains active. Though the minimum period of maturation by law in Scotland is three years in oak casks, many whiskies mature for much longer. The more time the spirit spends in the cask, the more it mellows and draws both colour and flavour from the wood. Whether it’s in a first fill ex-bourbon barrel or a venerable old sherry butt, whisky continues to improve and increase in value over decades.

Full Service Portfolio Management

With access to the largest whisky cask investment platform, Cask Spirits is uniquely positioned to help you successfully navigate every aspect of your whisky cask investment journey by offering full-service portfolio management. From initial cask selection and storage, to monitoring your holdings and maximizing profit when it comes time to sell; you will be supported throughout the full lifecycle of your investments.

RETURN

High historical return rate

Whisky is one the most profitable investment class of alternative assets. For many years, rates of return on investment in whisky have been very high, beating other alternative investments, such as rare coins, wine, art and watches. One of the indexes tracking the price of whisky at auctions – Knight Frank Rare Whisky Index gained as much as 478% in a 10-year perspective. Another indicator, the Rare Whisky Icon 100 Index, examining the price of one hundred most desirable whisky bottles, achieved an increase of over 13% over the last 12 months

SUPPLY

Limited whisky supply

All available data indicate that the supply of Scotch whisky is not keeping pace with growing demand. Despite the growing number of distilleries and the plans of many distilleries to increase production, it seems that this trend is not endangered in the long run.

Investors from Asia have an undoubted impact on the market – according to Scotch Whisky Association, sales to Taiwan, India and Japan in the first half of 2019 increased by 22, 19.7 and 16.1% respectively. At the same time, single malt whisky deliveries to these countries account for almost 30% of total export

SUPPLY

Purchase of physical assets

By investing in a cask of Scotch whisky, you become the owner of physical assets. Investors receive a full description, along with information about the number and storage location of specific casks. The casks are insured and stored in a distillery in Scotland.

At any time, investors can see their assets with their own eyes. The experience of Scottish distilleries guarantees storage under ideal conditions that ensure the safety and proper aging process of the distillate. The customer can finish the investment at any time and sell their assets.

HOW IT WORKS

How cask spirits investment works

A MARKET IN NUMBERS

£7.1BN

Annual Export Value

43

Bottles Exported Every Second

200

Markets Whisky Is Shipped To Around The World

22%

Accounts To The UK Food And Drink Exports