Cask Investment Guide

"Top Luxury Investment" - Knight Frank

"Top Luxury Investment" - Knight Frank

DOWNLOAD THIS GUIDE

You can also download a longer version of this guide (PDF, about 3MB)

TOP PERFORMING ASSET

Whisky is 2019's top performing luxury investment. An increase of 40% on rare bottle values in the last 12 months far outstrips the more established alternative asset investments such as art, wine and cars.

The previous year also saw a record-breaking fee achieved for a bottle at auction, a Macallan 1926 selling for an extraordinary £1.5m at Sotheby's this October. Over £40m worth of rare whisky was sold at auction during 2018 alone. This month a cask of Macallan distilled in 1989 sold for $572,000, a new world record for a maturing cask of whisky. The four-year growth from December 2014 in rare whisky has increased over 160%, compared to just 2.47% for the FTSE 100.

Scotch Whisky is exported to 180 markets worldwide. In 2017 alone, exports of Scotch rose 9% to a record £4.36 billion; in 2018 it hit £4.7 billion. In the first half of 2018, the value of exports was over 10% greater than in 2017. There are currently 20 million casks of whisky maturing in Scottish bonded warehouses, with Scotch accounting for 20% of the United Kingdom’s entire food and drinks exports.

Within 3 years, over thirty new distilleries have been founded and several legendary closed distilleries restored to full working condition. Recently these distilleries have seen cask sales as a source of early revenue. Un-aged casks of new-make spirit can cost in excess of £6000. Our starting price for casks is £1,500 for three-year-old whisky.

TOP PERFORMING ASSET

SECURITY & PROTECTION

Casks of Scotch are by law stored in HMRC approved warehouses in Scotland, commonly at the distillery they were distilled. Records of every cask must be kept and movement from the warehouse is licensed. As part of this process, each cask has a unique paper trail known as a delivery order.

A NOTE ON FRACTIONAL OWNERSHIP

At Cask Trade we only sell entire casks. We strongly believe purchasing a portion heightens the risk of the investment. Should you wish to purchase a cask as a group we will require one main holder.

REASONS TO BUY A CASK

Excellent Returns
The best performing alternative asset class, with estimated accumulative short-term returns of 40%, medium term of 80%, and long term 140%.

Unique and Limited
Each cask is unique, and it's definitely not something you could by online! No two casks will ever be the same.

Maturating in Value
Time is on your side. Whisky only matures in the cask. The older and more mature a whisky, the greater the value.

Safe and Secure
Casks can only be held in government bonded warehouses and cannot be faked or fabricated.

Delicious Asset
Whisky casks are a physical, tangible asset that you own. You can sample them, trade them or even bottle them!

Investment Realisation
Our multiple exit strategies and global client base ensures a hassle-free exit from your investment.

FREQUENTLY ASKED QUESTIONS

Can I visit my cask?
Yes. Some bonded warehouses allow you to visit your cask, and where this is not possible, we can arrange for your cask to be moved.

Can I request samples?
Yes! You can request samples of your whisky cask. You can also request a regauge to give an update on your cask's maturation.

What are the storage charges?
Not much. Storage costs between 20 and 30 pence a week, but may vary depending on the warehouse.

How can I insure my cask?
Some warehouses provide insurance against fire and theft. We can introduce you to insurance companies that can insure your whisky cask.

Can I Bottle My Cask?
Yes! Please bear in mind that duty and VAT are payable before your bottles leave a bonded warehouse.

How Do I Know it's Real?
Due to strict government control, each cask has a paper trail known as a 'Delivery Order' and a unique cask number.

DOWNLOAD THIS GUIDE

You can also download a longer version of this guide (PDF, about 3MB)