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Back in the Spring, I paid my first visit to the Lowland Bond in Fife.

This large warehousing facility is where many casks owned by Whisky 1901 customers are stored.

To put this in context – this is not the norm for cask investment firms. Most have casks dotted around various bonded warehouses all over Scotland. Many of these belong to the big whisky companies, such as Diageo and Pernod Ricard, and therefore are inaccessible to the public.

Recently, I was invited back for another visit and jumped at the opportunity. The reason was that two clients, both who own several casks with Whisky 1901, were making the trip to see their investments in the flesh. Not only that, but to have the opportunity to meet the team at the facility and smell their whisky in the barrel before a tutored sampling with myself. Again, this is not the norm in terms of an immersive experience offered by cask investment companies.

The Lowland Bond sits on the outskirts of Glenrothes in Fife, about 45 minutes’ drive from Edinburgh. It is owned and operated by Edinburgh Whisky, an Edinburgh-based independent bottler that has now expanded to include whisky cask management at the warehouse. It has capacity to hold 20,000 casks and is currently home to just under 10,000, some of which are those belonging to Whisky 1901 investors.

The racking system at the Lowland Bond reaches up to the ceiling in the vast warehouse. It is 14 racks high, making it the tallest racked whisky warehouse in the world – this beats anything in America (the standard is 10-12 racks in Kentucky) and Scotland, where the tallest is at The Macallan with 11 racks. The system allows easy location, access, and management of all casks. There is state-of-the-art security and fireproofing also.

My new role as Whisky 1901’s Master of Whisky will see me more involved in everything non-investment and Scotch whisky related. This includes giving advice and background during your visit to Lowland Bond about what to expect from your cask and then lead a tutored tasting.

On this recent visit I was asked by the clients to select casks that we should sample. What a privilege. They were opened by the Lowland Bond team and a key and most enjoyable moment followed – nothing beats bending down to take that first sniff from a maturing cask. If you have never done it, then it you should. Your whisky, which has been sealed in its wooden home, is finally open to the world and will never smell as good as at that precise moment. It may have been years since it was last opened.

Small samples were drawn, and we moved to a warmer environment for a tutored tasting. The small lab area is perfect for this. Again, it felt like a huge privilege to share the first taste of their whiskies with the clients and give my thoughts and tasting notes, which I later wrote up and sent to the customers.

It cannot be stressed enough what a unique offering this is for any cask investor. In my line of work, I do not get access to casks like this let alone smell and taste the contents. The Lowland Bond seems an excellent and well-run facility that should supply peace of mind to any cask owner. If you get the opportunity to visit your cask, then take it. And I can be there to guide you through. Speak to your Whisky 1901 broker and see what happens.

by Matt Chambers
Master of Whisky at Whisky 1901
13/12/2024

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**Disclaimer**: Important Information Regarding Whisky as an Investment Please read the following carefully before making any purchase. This communication is for informational purposes only and does not constitute financial or investment advice. Whisky 1901 Limited is not a regulated financial institution, and any references to “investment,” “broker,” or “advice” are intended solely for descriptive purposes of our services and should not be interpreted as financial advice.

1. Not Financial Advice or Regulated Services: Whisky 1901 Limited is not authorised by the Financial Conduct Authority (FCA) and does not offer financial or investment advice. Whisky 1901 Limited is an investment platform that provides guidance to its customers. Guidance is in impartial service which will help our customer identify its options and narrow down its choices but will not tell what to do or which products to buy, the decision is yours. Any reference to “investment,” “brokers,” or “portfolio management” is for general informational use and should not be interpreted as FCA-regulated financial services. 

2. Whisky as a Tangible Asset: Whisky is sold as a physical, tangible asset, not a financial product or investment. It does not fall under FCA regulation, and purchasing whisky carries risks that differ from regulated investments like stocks or bonds. Any purchase decision should be made independently and based on personal research and judgment. 

3. No Guarantee of Financial Returns: The value of whisky may fluctuate based on market demand, age, rarity, and other factors. 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 Past performance is not an indication of future results, and Whisky 1901 Limited makes no guarantees regarding future returns, profit, or resale value. 

4. Market and Liquidity Risks: Reselling whisky can be complex and market-dependent. There is no assurance of quick resale or profit, and potential buyers should consider liquidity risks. References to “investment goals” or “client returns” are illustrative and do not imply guaranteed financial returns. 

5. No Advisory Role: Our representatives, sometimes referred to as “advisers,” “brokers,” or “portfolio managers,” are sales consultants specialising in whisky as a collectible asset and do not provide regulated financial or investment advice. Clients are encouraged to seek independent advice from qualified financial advisors for investment decisions. 

6. 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. By purchasing whisky through Whisky 1901 Limited, you acknowledge that you understand and accept these terms and are fully aware of the risks associated with purchasing whisky as a collectible asset. You have 14 days to change your mind and request a full refund under our cooling-off period.

 

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