“It’s only worth it if I invest a lot”
Investing in whisky doesn’t need to leave a big hole in your pocket. It’s more about making the right investment rather than how much you invest. According to the Knight Frank Wealth Report 2024, choosing the right whisky cask is critical as some whiskies are more valuable than others. That’s why we only work with Scotland’s top 10-20 distilleries to maximise potential for our clients.
Once a rare commodity limited to industry insiders, private and corporate investors can now easily add whisky casks to their investment portfolios. With cask investment prices starting at around £5,000, one of the world’s top performing luxury investments is accessible to many people today.
Although in our experience, investments typically range between £20,000 to £40,000, no matter what size investment you make, generally the longer you hold a cask the more the whisky in it improves and the greater the return. We recommend a minimum five-to-10-year investment.
“I can’t ‘enjoy’ my investment while it matures like I can with cars, jewellery or art”
While a luxury timepiece can be worn and appreciated for its aesthetics, and a piece of automotive history can be driven – how can you experience and enjoy your whisky cask investment?
We know that tangibility and accessibility are extremely important. That’s why we encourage investors to visit their cask/s and request a sample through our customer portal. Earlier this year, we took four of our investors to visit the Lowland Bond facility in Fife where the majority of our casks are stored, to ‘experience’ their investment.
There is also the option to bottle your cask whisky when the time is right. To enjoy the product yourself, add to a personal collection or sell on the retail market. This doesn’t need to be the whole cask but could be a proportion of the barrel. There are many reasons to consider bottling – such as marking an important milestone or celebrating a special occasion. We work with our clients to determine if it’s right for them. Then help them bottle their own whisky, through our bespoke bottling service.
“There’s no profit in whisky”
There are no guarantees – as with most investments – but figures from multiple sources show the returns that could be made.
While the Knight Frank Luxury Index showed a dip in value for rare whisky bottles in 2023, there was a 280% growth over a 10-year period, showing the huge potential for this asset in the long term. In 2022, a rare cask of Arberg was sold for over £16 million making it the most expensive whisky ever recorded to be sold globally.
While cases like these are exceptional, the potential is prevalent in other whisky cask investments, with the BC20 Whisky Cask Index highlighting that whisky casks have ‘significantly outperformed all the traditional investment options in recent years’ with the industry seeing a growth of 14.95% in 2022.
There are many factors which determine success and many questions to ask before deciding that whisky cask investment is right for you.
To find out more about how to invest in whisky, get in touch with one of our team.
**Disclaimer**
Whisky cask investments are unregulated in the UK. The value of investments is variable and can go down as well as up. You have 14 days to change your mind and request a full refund under our cooling-off period. The volume of spirit will decrease over time (known as “the Angels’ share”). “New Make” spirit has to be matured for 3 years, during which time its alcoholic strength could be reduced. However, for the product to be classed as “whisky”, it must retain a minimum strength of 40%.
Fees apply, see terms and conditions for details and terms around exiting your investment. An investor may get back less than the amount invested. Information on past performance, where given, is not necessarily a guide to future performance. The capital invested can fluctuate and the price of casks can go down as well as up and is not guaranteed. The investments and services offered by us may not be suitable for all investors. If you have any doubts as to the merits of an investment, you should seek advice from an independent financial advisor. The Whisky 1901 Ltd sale price includes a discretionary markup to cover the cost of services provided, including but not limited to, storage, movement and maintenance of casks, insurance, front and back-office software.
