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Whisky Casks

"Over a decade whisky investors would have quintupled their money. That is a far better return than on most assets. Needless to say, global equities are well behind at 2.5 times."

Lex, FT.com, 30th Jan 2021

"Over a decade whisky investors would have quintupled their money. That is a far better return than on most assets. Needless to say, global equities are well behind at 2.5 times."

Lex, FT.com, 30th Jan 2021

Introduction

Have you ever fancied owning a cask of whisky? If the answer is yes, then we can make that happen for you. If the answer is no, then perhaps you should consider it, as there is a great deal of synergy between buying wine to lay down and buying casks of whisky. A cask of whisky can be bought, stored and sold under bond, much in the same way as a case of wine. Taxes are only payable if the cask is bottled and delivered, again, the same as with a case of wine. Ultimately, the whisky can be either resold or bottled and enjoyed.

Whilst many in the market are guilty of overstating the potential returns, there is no doubt that, with a realistic timeframe, impressive profits can be realised.

Expertise

Colin Hampden-White
Colin Hampden-White

Farr Vintners is lucky enough to be great friends with one of the country's leading experts in whisky - Colin Hampden-White. You may have seen Colin on Amazon's The Three Drinkers. He is also chairman of the Circle of Wine Writers, having worked at The Scotsman, The Times, The FT and was the founding editor of Whisky Quarterly. In recognition of his services to the Scotch Whisky industry, he was also made a Keeper of the Quaich. Colin is our eyes and ears when it comes to finding the very best casks to put in front of our customers.

Why Buy Casks?

Liquid Gold
Liquid Gold

The cask market (and whisky in general) is going through a Golden Age. Bottles and casks of top distilleries are consistently breaking records at auction and a new article about whisky investment seems to appear almost daily in some publication or another. This explosion in popularity is understandable, given that whisky has been the top performing alternative asset class for the past two years. This success is not restricted just to the headline-grabbing top end of the market. As more and more people enter the market, drinkers and investors alike, the availability of casks at all levels decreases and therefore prices go up. It is a simple supply/demand scenario that has been tried and tested.

In a nutshell:

  • Age Begets Rewards - the more mature the whisky, the greater the value.
  • Consistency of Demand - casks are in demand when young, middle aged and fully mature.
  • Individuality - every cask is different and therefore very limited in supply.
  • An Easy Way Out - there are several very convenient, hassle-free ways to realise your investment.
  • The Price Is Right - casks range from £1500 to, well, the sky's the limit. Demand exists across all price-points meaning you don't need to spend a huge amount to get involved.

How Does It Work?

Casks lying at the distillery
Casks lying at the distillery

 

  • Choose your strategy - a budget, an investment period and, most importantly, exactly why you're buying (pure investment, drinking etc.)
  • Ask for advice - about which cask is best suited to your strategy. We have access to some truly wonderful whiskies and some unrivalled expertise.
  • Sit Tight - wait whilst your cask matures, under bond, in a Scottish bonded warehouse, overseen by HMRC.
  • Keep waiting - older whisky tends to command higher prices so theoretically, the longer you wait, the better the whisky becomes and the more the profit could be.
  • Sell - independent bottlers are always looking to buy casks of all ages and all quality levels. Other investors often take on casks from previous owners. Or you can bottle, drink and/or sell your cask (taxes and bottling costs apply).

Get Involved

Any customer of Farr Vintners can buy a cask from us. It will appear in your online portfolio along with your wines but will remain in a bonded warehouse in Scotland (a legal requirement). You will be invoiced per annum for storage and insurance, in the same way you're invoiced for your wines. When it comes to selling your cask, we can present you with the options and provide you with advice around the sale. 

Click here to read more about investing in casks

Please email us at casks@farrvintners.com if there is anything specific you are looking for.

Please note that whisky casks cannot be bought including taxes and must be bought under bond.

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