What type of investment is this?
Whiskey investment is the purchasing of Irish whiskey, in casks, for the purpose of selling it on at a later date for a financial profit. It is an asset backed investment.
Is Whiskey a good investment?
Irish whiskey is the fastest growing spirits category of the past decade. Sales of Irish whiskey increased by 140% from 2010 to 2020, and experts predict this trend to continue to grow steadily.
Why buy Irish Whiskey casks?
Until recently, cask whiskey was difficult to purchase. As the global appetite for Irish whiskey continues to grow, so does the interest in casks of Irish Whiskey as an investment opportunity. The Whiskey Investment club offers an exciting opportunity to tap into the fast growing global whiskey market. Buying tangible assets gives you more financial security as products can’t go bust like organisations can. It makes buying a cask of whiskey a much more stable investment.
What is a cask?
A cask is the wood that whiskey is stored in while it matures and it plays a critical role in developing flavours. Casks can come in all different sizes and wood types, but the most common type used for whiskey is a 200l ex-bourbon barrel that was originally used to mature American Bourbon. However, whiskey is regularly matured in other types of casks including sherry, wine and tequila, all of which bring their own flavours to the spirit.
Why purchase casks over bottles?
Whiskey is unlike many stored goods and wines – Irish Whiskey develops and increases in value as it ages in the cask. Once Irish whiskey is removed from the casks and bottled, it no longer changes. Purchasing casks instead of bottles is a specialist approach but it’s much more profitable in the long term. The age statement on the bottle refers to the amount of time it has spent maturing in the cask. Its ‘age’ doesn’t change even if the bottle is kept for decades. A 10-year-old whiskey will always be a 10-year-old whiskey once bottled.
Generally, the longer that you leave the whiskey in the cask, the higher quality it’ll be. So, older whiskeys command higher prices. Purchasing casks means you’re receiving a product that will improve and develop over time. There’s no duty charged on the whiskey as it’s maturing under bond, any applicable duties and taxes are deferred until the goods leave the bonded warehouse.
What is a bonded warehouse?
A bonded warehouse is a secure storage facility with government licence to hold goods tax-free (or under Bond) until the goods are shipped out. This allows the warehousekeepers and managers to move goods between sites without incurring fees for each transfer. Instead, any applicable duties and taxes are deferred until the goods leave the warehouse for their final sale.
What does a first fill cask mean?
Casks can either be described as ‘first fill’ or ‘refill’. A cask that is being used to mature Irish Whiskey for the first time is referred to as ‘first fill’. It becomes a ‘refill’ cask when used for a second or subsequent time. At the Whiskey Investment Club, All our casks are first fill. This means it is the first time the cask will be used to make Irish Whiskey so the best possible flavour profile will be achieved.
How many casks can I buy?
You can buy as many casks as you want. We can quote you from a single cask upwards.
What is included?
Our cask sales are tailored to each client. The purchase price covers the cost of the 200 litre cask, the 200 litres of Whiskey spirit inside the cask and the remaining storage and insurance until the cask reaches a maturation of 5 years.
How long should I hold my investment?
Once you have received your certificate of ownership, you are the full owner of your casks and may sell at any time. Whiskey of all ages are in high demand and in general, the longer you leave your cask to mature, the better quality whiskey it will produce, New make spirit must age for three years before it can legally be called ‘Irish Whiskey,’ so we generally recommend holding your casks for a minimum of five years; however, when you choose to sell your casks is ultimately up to you.
What returns could I expect to achieve?
Based on historical performance, expected returns are approximately 8-12% per annum.
How do I exit this investment?
There are several exit strategies available to you when you wish to sell your casks. The Whiskey investment Club will be on hand to discuss and advise so you choose the most suitable one for you. Please contact us for further information on exit strategies.