How it works: The Irish Whiskey Cask Investment Process
Primary Stage – Production:
We source casks from innovative partner distilleries that specialise in Single Pot Still whiskey. All of our clients casks are first fill, this means it is the first time the cask will be used to make Irish whiskey. Ensuring the best possible flavour profile will be passed to the whiskey. Casks are handmade so each cask is individual and actual size may vary slightly.
The Whiskey Investment Club purchase this whiskey in bulk. We arrange insurance and storage in a bonded warehouse for a period of 5 years as the whiskey matures. These cask portfolios are then offered to a select group of investors. Our members will have the opportunity to tap into the burgeoning global whiskey market. Options include to purchase, store, resell at profit; or simply to bottle and enjoy. 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. The whiskey title and ownership are put in your name, making it an asset-backed investment. This also gives you the added security to exit your investment and sell the asset at any time.
All whiskey spirit will be laid down to mature for five years in premium barrels. During maturation alcohol evaporates from the cask at an average rate of 2%—2.5% per annum. This is known as the Angel’s Share and losses in excess of these rates may occur and will be individual to each cask. If you wish to leave your investment longer than 5 years and increase its value even further, maturation duration extensions are possible with warehouse owners upon request. At the end of the 5 years, your 200 litre cask of whiskey can yield between 270-285 70cl bottles of Irish Whiskey (at 46% ABV)
At the end of the 5 years maturation, you can choose whether to continue your whiskeys maturation or remove it from the bonded warehouse.
- If you choose to continue your whiskeys maturation, you will be responsible for the storage and insurance of your cask. While whiskey certainly increases in value each year, the current market shows that there is a demand for whiskey at any age. We would recommend that you leave your whiskey to mature for as long as possible, as the longer you age the whiskey, the more sought after and valuable it will become. This type of investment is working for you all the time, so you can relax, let it age and watch its value grow until you decide to sell it.
- If you wish to remove your whiskey from the bonded warehouse, this may incur additional charges. Your purchase price exclude Duty and VAT therefore you will be solely responsible for any customs, excise duty and other taxes incurred by removal from the bonded warehouse
- You can choose to have your whiskey bottled, either private or we can arrange bottling for you our facility in Boann. (This will be subject to a bottling fee and other charges). You then can decide whether to market & sell your whiskey on to private labels, retailers, or you may wish to keep and enjoy yourself.
- You also have the option to sell your whiskey at auction, or to other distilleries and brands.
Whatever option you decide, The Whiskey Investment club will be on hand to offer advice and assist in any way we can. Our goal is to ensure the Irish whiskey investment process is quick and easy.
Like all investments, returns can rise and fall depending on market conditions. We recommend all investors to seek independent financial advise.