February 4, 2022

Why Scotch Cask Investors Should Know About Whisky Regauging

Regauging is a vital part of the lifespan of a whisky, in this article we will examine what investors should know about regauging and what it means for their cask of scotch.

Written by

Sam

When you buy a cask of whisky for investing purposes one key concept that you should understand as an investor is regauging. This process is a vital part of the maturation process and is used to determine the value of your cask, alongside other factors. At its heart, regauging is a health check on the liquid inside the cask to ensure that it can still legally be considered scotch.


As we have mentioned in previous articles, the Angel’s Share is the natural evaporation of whisky while it matures inside the cask. This is caused by the temperature and the porous wood of the cask itself. Regauging is the method used to check how much liquid is left within the cask. 


Regauging tells you the number of litres of spirit within your cask as well as the alcohol by volume (ABV). This is done to ensure the liquid within the scotch cask does not fall below 40% ABV, otherwise the spirit cannot be considered whisky. Casks close to the 40% limit will not trade at as high a value. You can raise the ABV by adding further spirit to the cask, however this would devalue a single malt cask since it is now mixed with another whisky.  


The first step of any regauge is to remove a sample from the cask and test the ABV using a standard refractometer. Then the cask is weighed, emptied and then weighed again in order to see how much liquid is left in the cask. From these figures the Regauged Litres of Alcohol (RLA) can be calculated. 


It is generally recommended that any cask of scotch over five years old should be regauged every three years. If your cask is over fifteen, then a regauging should be carried out every year to ensure that your whisky doesn’t lose any of its value. 


While all of this does sound concerning, the strict measures and controls enacted by the scotch storage warehouses in order to safeguard your cask. Temperature controls and constant check ups protect investors from any losses associated with the Angel’s Share. In our experience, we have never had a client lose their investment to evaporation. 


If you wish to find out more about the regauging process and the importance of the process for scotch whisky investment, contact us using the form below. 


What our clients say

  1. You must be 18 years or older to purchase alcohol-based products from Hackstons.
  2. Hackstons is not authorised or regulated by the Financial Conduct Authority (FCA), and we do not offer any specific financial advice on the use of assets as investments.
  3. All information about asset purchases on our website and social media sites is for information purposes only. No information provided should be taken as financial advice on asset investment. If you wish to obtain financial advice on asset investments, you should seek the assistance of a qualified financial advisor before carrying out your purchase through Hackstons.
  4. Hackstons employees are not tax advisors and cannot advise on the tax benefits of asset investment. If you require tax advice on asset investment, you should seek the advice of a qualified tax advisor.
  5. Information provided by Hackstons is of a purely general nature, and it does not always relate to trades, sales or returns carried out or achieved by Hackstons.
  6. As with all investments, an asset's value can go up and down.
  7. If you are purchasing a whisky cask, it is advisable to perform regular health checks on your cask every three years. Cask services are chargeable to the client, including regauging, samples and photographs.
  8. All casks are stored within HMRC-bonded warehouses and are subject to strict rules and regulations set by HMRC. Hackstons may occasionally require certain information from you to comply with HMRC requirements.