Whisky Cask Ownership Insights

An Explanation of Whisky Cask Ownership, Market Performance and Future Predictions

 

Why is the concept of whisky cask ownership so appealing? With stock market fluctuations and poor interest rates from the banks, whisky ownership offers something very different and more stable.

 

During these turbulent times it has become clear to those involved in whisky, especially in the last ten years, that cask ownership offers stability and certainty. Knight Frank reported that in 2018 the whisky market increased by 40% and an impressive 582% in the last ten years.

What does the future of the market look like? Put simply, great! As you can see from the graph (left), each year for the last decade the whisky sector has risen. As you can see (above), the market is predicted to grow further over the next 5 years.

The one thing you can be sure of is that a whisky cask will only improve with age. And the more mature a cask is, the more expensive it becomes. It is a commodity where the only outcome is improvement. In uncertain times, such certainty is brings balance to a portfolio.

 

Why is the only outcome improvement? Whisky can only improve/mature whilst stored in the barrel, and completely stops maturing when bottled. By owning a whisky cask and holding it whilst it matures, you have science on your side. The longer it matures, the better it becomes, making it more expensive. Learn more about production and maturity here.

 

That is why we advise individuals who are new to this market to start with a young cask. At the earliest point of maturation, the contents of a cask is clear in appearance and high in alcoholic content. This clear 'liquor' develops into whisky over time.

 

Purchasing a whisky cask at this point presents an opportunity to purchase it at it's lowest possible value. It takes 3 years of maturation for a cask to be legally considered a Scotch Whisky. However, most scotch isn't bottled until it has matured for 5 years. 

 

5 years later you now own a scotch cask of scotch whisky that can be bottled by a distillery. At this point the cask is worth more than you paid. We help to dispose of your cask by selling it to one of the 120 Scottish distilleries who will use it in their production.