Scotch whisky now accounts for up to 70% of all Scottish food and drink fare, at an estimated £4.7bn per annum, with 41 containers traded every second.
The world of whisky
In the last 10 years, whisky has become an increasingly popular investment market for the savvy investor and a growing economy in its own right, but why? The main reason is that whisky investments are outperforming a huge range of more traditional assets in various markets. Knight Frank recently published data revealing that the best-performing whisky investments have yielded returns of 550% in over the last 10 years. Scotch whisky now accounts for up to 70% of all Scottish food and drink fare, at an estimated £4.7bn per annum, with 41 containers traded every second and normal returns of 12% per annum. Whisky is a particularly good long-term investment – historic price data indicates that holding a cask for at least five years will increase your return, and the longer you hold it the more profitable it becomes.
Investing in whisky also has tax benefits. With casked whisky, 0.2–0.5% is lost to evaporation annually – as such, HMRC considers it to be a ‘wasting asset’ and, as such, no capital gains tax is payable on profits. This is a huge benefit to an investment vehicle, making casked whisky a much more lucrative alternative to bottled whisky in terms of returns. There is also no VAT to pay, as duty is suspended.
A beverage of choice
Considering the returns that can be achieved and the level of demand, we recommend purchasing casks to achieve economies of scale. A whisky cask is like a goldmine and casks are extremely sought-after as a dependable investment that is not vulnerable to ups and downs in the financial market. Like gold, whisky casts are an extremely secure asset.
As your investment partner, we guarantee that you will own your individual casks outright, and that they will be stored in secure, government-bonded warehouses.
Education is an important and enjoyable part of whisky investing, as it’s a unique world with its own language and fundamentals. We are here to guide you through. See the glossary of terms and definitions:
Alcohol by Litre (ABL)
This is how the quantity of whisky is measured, by the litre.
Alcohol by Volume (ABV)
This is the measure of the strength of the spirit. A whisky must be at least 40% ABV to be considered such.
These is a whisky made from various wholegrains, rather than a single grain/malt.
This is a secure HMRC storage facility where whisky is stored whilst it is maturing.
This is the wooden barrel in which whisky is stored to mature.
Duty is a tax paid when you remove a cask from a bonded warehouse for bottling and onward sale to the retail market.
A cask that previously contained bourbon.
This is a whisky produced only from malted barley, yeast and water. Whisky is essentially just distilled beer.
New Make Spirit
This is whisky pre-maturing before it’s been cask-matured for at least 3 years – a clear, potent spirit.
This is a cask that has been flame-burned, which adds an additional flavour profile to the spirit.
This is a test carried out every three years, after the first five years has passed, to test the alcohol strength and volume.
Single Cask Malts
This is a whisky that comes from a single cask.
This is a whisky made from just a single malt, usually barley.
This is a distillery that has ceased production but still holds an inventory of casks.
Original litres of alcohol.
Re-gauged litres of alcohol.