Whisky Investment & Whisky Cask Ownership, UK

Whisky Cask Ownership Guide

12% + annual average return*
580% decade performance
Stored in Government Bonded Warehouses

The Hot Alternative Investments to Watch in 2021

Spurred by rising demand from Asian investors, the value of rare whisky has soared 564% in the last decade, and the asset has outperformed not only fine wine but every other luxury asset, according to the Knight Frank 2020 Wealth Report. Knight Frank’s data shows rare whisky soaring despite the volatility in markets in recent years.

Single Malt Whisky Market to hit $3.43 Billion by 2025

The global single malt whisky market is dominated by Asia Pacific which accounted for nearly 30% of the Overall market revenue in 2018. China is estimated to be the single largest consumer of alcohol in the world with an increasing luxury consumer base enabling higher penetration opportunity for international spirits, Particularly for single malt whisky.

Whisky Cask Ownership Journey

Step One - Purchase

The journey begins with the purchase of a cask from a renowned Scottish Distillery. A “new ﬁll” cask contains the liquor which will eventually mature into a Scotch Whisky. At this stage the contents of a cask is as clear as water and extremely high in alcohol content. Because it has not matured yet it is not classed as a Scotch Whisky which makes this the lowest price point of a cask.

Step Two - Maturation

During the maturation process a cask will go through notable changes. The clear liquor will slowly absorb the colours from the oak cask it is stored in, overtime completely changing its appearance.

The “angels” will begin to take their share. Around 2% of the spirit will be lost to evaporation each year. Put simply, the older a cask is, the less whisky there is to be bottled. This explains why older bottled whiskies are signiﬁcantly more expensive.

Step Three - Realisation of Capital

A cask which initially contained the raw materials has now matured into a consumable Scotch Whisky and is ready for bottling. For a whisky to be deemed a Scotch, it must be distilled and matured entirely within Scotland. When the time comes to sell, we offer casks to Distilleries for bottling through our network. Often, the producer of a cask will insist on ﬁrst refusal on buying a cask back. This puts our customers in a strong position from the get go.

Whisky Cask Cost Analysis

Step One - Cask Purchase / Our Fees

Customer A purchases a Whisky Cask for £9,900 which includes a 10% brokerage fee. This fee covers our services for the duration of Customer A's hold, and because our fee is paid up front, when we eventually assist in the sale of this cask will not to charge a further fee.

Step Two - Storage / Maturation

Customer A stores and insures their cask for 5 years in a professional storage facility in Scotland, which Viticult will arrange. We also cover the first year of storage and insurance costs. After the first year it will cost Customer A £50 per year in storage and insurance.

Step Three - Time to sell / Taxation

The 10% fee fully covers our services for the entire duration of Customer A's hold. 5 years later Customer A sells the cask for £19,800 and receives this figure without any hidden fees or deductions.

Customer A's profits are potentially except of Capital Gain Tax due to the "wasting asset" definition of whisky.*

Breakdown:

Cask Price £9,000

10% Brokerage Fee: £900

Total £9,900

Cask Resale price: £19,800

Storage Fees: - £200

Profit: £9,700

*Always consult with an independent Tax Advisor

Viticult, Proud Sponsors of AFC Wimbledon

Thank you for taking the time to learn more about Viticult Ltd. We are a London based Whisky Cask Brokerage and Official Sponsor of AFC Wimbledon football club. We currently manage over 140,000 Whisky and Wine items. If you own an existing ﬁne wine or whisky portfolio we would be happy to assist you in the management or sale of your items. Contact us today, Tel 0203 595 3910 or Admin@viticult.co.uk.