Highland Cask Group
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Whisky Investment Guide
Our whisky cask investment guide include:
Investing in whisky casks in the UK is not subject to regulation.
The value of these investments fluctuates and may decrease or increase.
Applicable fees can be found in the terms and conditions.
Whisky Market Performance
Whisky assets are increasingly a topical conversation piece for broadsheets and investments gurus alike.
Prices have, in recent years, exploded and there are seemingly no signs of this pace receding. In fact, the number of consumers of whisky worldwide has recently breached the 500,000,000 mark and, with continued growth looking likely, it would appear that another blistering decade of performance is on the horizon.
Accessing this market, which is often new to investors, can be difficult owing to the extensive networks required when acquiring the best casks. Highland Cask Group have an exceptional track record in portfolio selection, asset management and client care.
Our Clients Say
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Perhaps the most important factor affecting the Scotch single malt market has been the Covid-19 pandemic.
Owing to it being a supply chain-based industry, whisky production for new fill came to a halt during 2020. However, with 20% of consumers drinking more and explosive retail sales, the stock levels have been further diminished and the supply/demand dynamic is now even more heavily geared towards profits within cask investment.
This demand has been supported by the influx of new investors to the market, migrating away from risky stocks and low interest bank-based products towards the safety of tangible treasured assets.
Consequently, billions of pounds are being ploughed into distillery expansion to allow for greater production and tourism (2m people visited distilleries during 2018)- at the heart of this, Diageo’s £150m investment programme including the Johnnie Walker global visitor experience. These conglomerate parent organisations expect consumption levels to continue to increase and are prepared to invest heavily to accommodate these bourgeoning levels. This sentiment was echoed by Mike Kempton-Smith, an associate director in asset-based loans at Barclays Corporate Banking in Scotland, stating “With exports continuing to grow in 2019 by 4.4 per cent, ever closer to the milestone £5bn figure, global demand continues to develop, with growth in 106 markets last year”.
It is a universally held opinion that the whisky industry is destined for significant growth over the coming decade and we believe that cask investment will increasingly become a more commonplace feature within commodity based portfolios.
Lifting the curtain on whisky investments
Whisky investments have proved to be a high performing asset class, with prices reaching new highs in recent years. For new investors looking to enter the whisky market, it can be a daunting proposition due to the relationship-based nature of acquiring sought after whiskies.
Highland Cask Group are uniquely positioned to guide clients new and experienced alike through the opportunities to invest in whisky, be that through individual & collectable bottles or entire casks.
How easy is it to exit the investment?
As a global market with 200 countries participating in its trade, the Scotch whisky investment market offers high liquidity through a multitude of exit strategies, both domestic and international. With trade levels for whisky growing year-on-year, demand for premium casks has increased significantly resulting in quick and efficient exits when required. Currently, the average execution time for clients cashing in their positions stands at 4 days, although this can vary depending on portfolio size. Commonly, Highland Cask Group will be able to make a cash bid on the day and clients can have the whole process wrapped up within 48 hours.
For portfolios being traded on the international market, Highland Cask Group have access to a diverse worldwide network of collectors, auction platforms and distilleries and take great care to ensure that all stock positions offered to clients are easily saleable. Such is the demand for high end whisky cask portfolios that clients can expect to receive acceptable offers on their portfolios prior to the conclusion of their intended investment duration.
Which Whiskies can I invest in?
At Highland Cask Group, we provide our clients with access to the highest-quality, best-return-on-investment whiskies available.
If you’d like to find out more about the inventory available for whisky investment, please click here.
What are the costs of investing in whisky?
Cask whisky investment is low cost, hassle free and very secure. Bound by a rigid set of HMRC rules, casks of single malt whisky have to remain within the boundaries of Scotland and in an HMRC bonded facility. There are literally hundreds of bonded warehouses in Scotland, providing vital income to many rural areas of Scotland. Many of our casks will be stored at the bonded facilities owned by the distillery that produced the cask, but not always. Often distilleries will spread their casks across a wide range of distilleries and warehouses ensuring that they mitigate any risk of fire damage, for example.
If you’d like to find out more on how the process works, then please visit our ‘How it Works’ page by clicking here.