One thing that differentiates Whisky 1901 from its competitors is the ability for investors to visit their cask in situ at the warehouse.
Since my early days with the company, this impressed me and helps to elevate the company’s proposition above many of its contemporaries.
I have subsequently been part of several such trips with clients to the two main warehousing facilities – Craigton and Lowland Bond – that Whisky 1901’s casks are stored at. They are always fun and interactive days.
One such visit happened recently with client Adrian Hill, a whisky drinker and collector with a portfolio of investment casks. I was accompanied by Ryan from Whisky 1901 and our group was under the guidance of Sean from Lowland Bond for our time there.
“I had the good fortune to be born into a family of Scotch malt whisky drinkers and have been imbibing since my mid-teens,” says Adrian. “I quickly became fascinated by the world of malt whisky and built up a collection of bottles for drinking. Over time I have visited all the distilleries whose whisky I favour.”
“Then several years ago I began to build a portfolio of casks. Initially this was purely for investment purposes. But more recently I have been attracted by the opportunity to disgorge a modest number of bottles offered by Whisky 1901.”
“My plan is to disgorge a dozen bottles from selected casks at strategic intervals and build up a library of bottles. The idea is to track the development and maturation of a whisky from a particular cask over time. The cask chosen was my Caol Ila, which was distilled and filled in 2015.”
“This process began at the extremely impressive Lowland Bond facility used by Whisky 1901. Ryan and Matt kindly hosted the event, and I was accompanied by three friends.”
It was this Caol Ila cask that we were visiting. We began with a tour of the facility with Sean explaining the safety and quality control procedures in place to ensure maximum security for each cask. Lowland has the highest racked whisky warehouse in Europe with a twelve-high rack system stretching up to the ceiling.
As Sean talked through the state-of-the-art system that allows them to locate and pick any cask in the warehouse efficiently, he introduced the custom-built forklift – this gives access to any cask no matter how deep or high it is stored in the racking.
Cue one of the most exciting moments of the day. Not only did Sean demonstrate the capabilities of the forklift but then took Adrian and one of his friends up to the very top of the warehouse on it. My dislike of heights prevented me from taking up the offer.
“The specialised forklift is an incredibly impressive machine,” says Adrian’s friend Craig Brownhill. “The cab and forks could be raised to the very top of the racks such that any cask in the warehouse can be reached with ease. If the machine didn’t impress, then the view at the top certainly did.“
“It is a far cry from the romanticised dunnage warehouses that a lot of collectors yearn for, but the advantages speak for themselves. Lowland Bond can take any cask in their warehouse from the racks within an hour or two – something that might take weeks in a dunnage warehouse.”
Then it was on to Adrian’s Caol Ila 2015 ex-bourbon cask. This was located easily using the aforementioned system and opened using traditional tools. Adrian then disgorged some of the liquid for tasting under Sean’s supervision. It is this moment that always elevates the experience on every visit – the client enjoying the moment as they see and touch their cask for the first time, taking a smell of the precious whisky inside and finally a taste.
Due to bottling scheduling, Adrian’s 12 bottles had already been decanted and bottled in preparation for his visit. In hindsight, this could have detracted from the experience, but the news did little dampen spirits. Instead, we took that very sample he had pulled from his cask and returned to Lowland’s tasting lab for a sampling session.
I led this session, which was a joy to host. Adrian’s friend Craig came up with a fabulous tasting note of “undiluted intense smoky bacon and bonfire ash at a lip smacking 60% ABV. Just a few drops of water tempered the fire and a lovely malty, biscuity sweetness shone through.” The whisky felt like a delicious treat.
Inevitably the talk then moved to what Adrian was going to do with the 12 bottles and the remainder of his cask. His original plan was to bottle a dozen every couple of years and track the progress of the whisky as it matures in the cask – how does the colour, nose and flavour profile change over time.
But discussion evolved to talk about the possibility of moving it for a finishing period in another cask type, maybe ex-sherry or ex-red wine, which is something Lowland can instigate and offer. The future is full of possibilities it seems.
The next trip could be you visiting your cask and I look forward to sharing those moments with you. However, I will leave the last words on the day to Adrian …
“We were all hugely impressed by the leading-edge infrastructure and technology at Lowland Bond and by the genuine care and enthusiasm taken by staff in running the operation. It was fascinating to see my cask in the flesh and watch whisky being disgorged from it. All in all, a wonderful day and one that I am keen to repeat many times over the coming years.”
**Disclaimer**: Important information. Please read carefully before making any purchase. This communication is for informational purposes only and does not constitute financial or investment advice. Whisky 1901 Ltd is not a regulated financial institution and is not authorised by the Financial Conduct Authority (FCA). Any references to “investment,” “broker,” “adviser,” or similar terminology are used descriptively only and should not be interpreted as regulated financial services.
Whisky 1901 Ltd does not provide financial or investment advice, does not assess suitability, and does not make recommendations. Any decision to purchase whisky casks is made solely by the customer, based on their own judgment and, where appropriate, independent professional advice.
Whisky is sold as a physical, tangible asset and not as a financial product. Purchasing whisky carries risks that differ from regulated investments such as stocks or bonds, and customers should make purchase decisions independently and based on their own research.
Key Risks and Considerations:
1. Please be aware that whisky casks are unregulated in the UK and that the value is variable, meaning it can both increase and decrease.
2. Understand that you have 14 days to change your mind and request a full refund under our cooling-off period.
3. All Clients of Whisky 1901 Ltd must be aged 18 years or older to make a purchase, in accordance with UK law and regulations regarding the sale of alcohol to minors.
4. Please note that the volume of spirit will decrease over time due to evaporation, known as “the Angels’ share”.
5. Please be aware that “New Make” spirit must be matured for a minimum of 3 years, during which its alcoholic strength could be reduced. However, for the product to be classed as “Whisky”, it must retain a minimum strength of 40%.
6. Please understand that as a buyer you may get back less than the amount paid. Additionally, past performance is not necessarily indicative of future performance.
7. The sale price offered by Whisky 1901 Ltd includes a discretionary commercial markup. This markup is applied to the acquisition cost of the whisky and reflects both the costs incurred in connection with the provision of services including, but not limited to, storage, movement and maintenance of casks, insurance, and associated administrative and software infrastructure and a profit margin retained by Whisky 1901 Ltd in the ordinary course of business.
As a result of the markup applied, there is a material difference between the Company’s acquisition cost of a cask and the price at which it is sold to investors.
Investors should be aware that this markup creates a difference between the Company’s acquisition cost and the price at which the cask is sold. This spread may impact the potential for future returns and may affect the ability to achieve a profit on resale. Comparable casks may be available from other sources at different prices. Prospective purchasers should conduct their own due diligence and consider obtaining independent financial advice before making any investment decision.
8. Please recognise that the cask price can fluctuate and the price of casks can go down as well as up, neither of which are guaranteed.
9. Whisky casks are a long term maturing asset and therefore it is advised to be held for a minimum of 5 to 10 years.
10. Whisky casks are an illiquid asset. There is no guaranteed secondary market, no guaranteed timeframe for resale and no obligation on Whisky 1901 LTD to buy back or sell the cask on your behalf.
11. Please understand that the products and services we offer may not be suitable for all customers. If you have any doubts, we advise you to seek advice from an independent financial advisor.
12. Finally all whisky casks are stored in HMRC bonded warehouses in Scotland and are comprehensively insured against risks including fire, theft and accidental damage, insurance policy is updated annually. The customer understands that any cask investment can be physically verified via a company organised visits to warehouses where tastings can also be accommodated.
