Investor Spotlight: 'I invested £23k in Scotch and I don't even drink whisky'

Retired fire fighter looking to diversify investments

In 2021, after a 25-year career as a fire fighter, Nottingham-based, Martin Molloy, aged 54, retired in receipt of a pension and lump sum of £190,000. Martin wanted to invest his money wisely and was keen to explore alternative assets versus traditional investments like savings accounts and ISAs.

“I didn’t want my money sat in a bank account, not doing a great deal. I considered property and other investments, even Premium Bonds, but I’ve invested in property before and dabbled with stocks and shares many years ago but only ever broke even,” he explained.

Martin, who is married with two children (a 20-year-old daughter and a 15-year-old son), first became interested in investing in Scotch whisky after speaking to a friend who had already invested in a cask. “Although I’m not a big whisky drinker, it sounded really interesting, and I thought, I’m going to investigate this for myself. That’s where it all started,” said Martin.

Genuine investment

Martin recognised that with most alternative assets there is an element of risk. “Before I invested, I asked myself what I would be prepared to lose if anything went wrong. I understand that there’s no sure thing, and values can go up or down, but the most important consideration for me was that my money was safe in a genuine investment,” he explained.

With the above in mind, Martin began his whisky investment journey cautiously, initially purchasing one Scotch whisky cask – a Ben Nevis – in February 2022, via cask investment company Whisky 1901. As his confidence and trust in the company and his portfolio manager grew, he increased his investment to a total of three casks over the next few months. This included an Aultmore, purchased in March 2022, and a Benriach, purchased in May 2022, taking his total investment portfolio to £23,000.

Tracking financial performance

When it came to deciding which casks to buy, Martin explained, “I had no real preference for one distillery over another, aside from its financial performance. I recognised the distillery names, but didn’t know much else before investing. It was the good advice I was given by Whisky 1901 that informed my purchasing decisions.”

Armed with information such as the date the cask was distilled, alcohol by volume (ABV) and the average number of bottles per barrel, Martin was able to do some of his own research and due diligence. “With Ben Nevis, for example, the distillery sells bottles online from ten-year-old casks, so I was able to check what they were currently retailing for to ensure I was paying a sensible price for the cask based on bottle count”, he added.

Exit strategy

There are various exit strategies for whisky investment, including selling back to whisky brands as distillers often ‘run short’ of stock, or selling to independent bottlers or other cask investors. Some investors choose to place their casks in an auction, with a minimum reserve price, or bottle and brand their own whisky to sell on the retail market or simply enjoy it themselves.

“I invested in whisky casks with a view to selling. My plan was always to invest, resell and reinvest any profit in different casks,” explained Martin. “Although I’ve grown to like whisky more since I’ve invested in it, I never had any intention of bottling my casks for drinking.”

Martin also appreciated that while the spirit remains in the cask, and stored in Scottish warehouses, both Excise Duty and Value Added Tax (VAT) are suspended. These taxes only become payable after the whisky leaves the warehouse to be bottled.

High returns

Unfortunately, due to unexpected illness, Martin had to exit the whisky cask investment market earlier than anticipated in September 2024. “When I became unwell, I gave up all three casks and released the funds in case that money is needed for medical care in the future.”

Whisky is typically a long-term investment, i.e. ten years plus, where the value rises as the spirit matures in the cask. However, in just an 18-month period, Martin was fortunate to have seen a high return on his investment – an average of 40% across the three casks; with one cask – the 2018 Aultmore – realising a profit of 60%. “This was a massive surprise to me because I expected the other two casks to do better,” enthused Martin. “Aultmore was the cheapest and youngest cask of the three, but the timing was right.”

Swift exit

On releasing the funds, Martin commented, “To be honest, I was a little concerned around how that would play out, especially as I’d only held my casks for 18 months. I thought it might have been a lengthier process to get my money back, but I needn’t have worried – it really wasn’t. The whole process was very smooth. Within four or five weeks of speaking with my portfolio manager, I received my payment in full. Any delays were due to me being unwell.”

“My whole experience with Whisky 1901, from start to finish, has been a really good one. Their consultants are knowledgeable; I was always kept up to date on my investments and well informed about new opportunities. I received good advice and never felt pushed into investing. My portfolio manager would regularly approach me with opportunities, but he would just say, ‘This cask has come up. I’ll send you the information. Please just have a look’, without any pressure to purchase”, he added.

On whether he’d recommend whisky cask investment to others, Martin concluded, “It’s important to do your due diligence to make sure you’re working with a trusted company. The experience couldn’t have gone better for me, and it was also enjoyable, so much so I hope and expect to come back to it in the future.”

 

by Aaron Damiano Sparkes
Founder and CEO of Whisky 1901
03.04.2025

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**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.

 

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