Have you ever wanted to own a cask of your favourite whisky?
Would that be for pleasure or profit?
There are few objects in the world that evoke such a weight of prestige like a cask of whisky.
That feeling of absolute exhilarating ownership, of experiencing an object that carries both heavy cultural and financial value.
That’s the reason collectors the world over go wild for casks of whisky. Whether you want to save that cask for someone special, a present 18 years in the making? Or maybe you always wanted to give your family and friends a limited edition release of your own custom bottling?
But, did you know that whisky investing is also one of the most efficient asset classes? In the past few years whisky cask investors have increasingly seen higher and higher returns.
Whether you wish to own a cask as a hobby or treat it as an investment, Hackstons is here to help.
Owning a whisky cask opens up a world of possibilities. Due to their status as a gem of the collecting world there’s a wide variety of things you can do!
For instance maybe you wish to buy a whisky cask from a ghost distillery? These casks are from distilleries that are no longer operational meaning that they are extremely rare and sought after.
Maybe you’re looking for that perfect corporate gift to present to your clients?
Or perhaps you are interested in reaching new heights as a whisky hobbyist by working with an independent bottler to release your own branded scotch?
If you are motivated by profits, whisky investment has reached an enviable position among physical assets due to the average returns in previous years being substantial. This is powered by its stability and ever growing demand.
As Whisky’s primary function is CONSUMPTION, it is a perfect asset class for the modern investor to utilise and access above average, tax-free returns.
The value of whisky is the fact that it is made to be consumed. It is not tied to perceived value like more traditional investing assets such as stocks and bonds. This offers a certain dependability as whisky investing works on a simple principle:
The more people who drink scotch, the more valuable your cask is. Supply and demand in its plainest terms.
We are luxury asset managers that have personal experience in a multifarious range of collectibles, luxuries acquisition and alternative investment options.
Each member of our staff has their own specialisation in certain collectibles, whether that is cask whisky, luxury timepieces, gold coins and many more.
However, for even the wealthiest getting these items is extremely difficult. Most distilleries won’t open an account for you, most prestige watch dealerships have long waiting lists and luxury auctions can be prohibitively expensive. By drawing upon our extensive and exclusive network of contacts we have helped our clients to attain the tangible items for pleasure, profit or both!
The Scottish whisky investment market is seeing above average returns on certain brands, with total exports of whisky reaching £6.2 billion in 2022, at 37% rise since 2021.
Scotch Whisky is exported to 180 markets worldwide, and approximately 53 bottles are shipped every second.
Currently, 20 million casks of whisky are maturing in Scottish bonded warehouses, with Scotch accounting for 21% of the United Kingdom’s entire food and drinks exports.
This means that for investors who are already in the market, their casks are increasing in value. For hobbyists this makes filling their cask collection even more expensive. This is where we can help, whether you wish to become a collector or an investor.
For collectors we can help them to acquire some of the rarest casks on the market for reasonable prices due to the fact we acquire assets on an economy of scale.
Meanwhile for investors we can again lean on our contacts within the rare whisky ecosystem to find you a buyer for your cask, work with an independent bottler and help out with all the storage needs.
The high prices that rare Scottish whisky commands have made headlines in recent years on more than one occasion, and it only takes a Google search to find stories of whiskies selling for much more than they were bought for.
Such a level of ROI can give many cask whisky investors the financial freedom to retire early or plan a more comfortable life.
What is your objective? Have you always dreamed of owning a cask? Do you wish to use whisky as an investment to bulk out your pension? Or do you wish to protect your family’s financial future through careful inflation-proof investment? Our team of veteran luxuries managers work alongside people from all walks of life who wish to secure their wealth or expand their collection. Not all casks are created equally, and at Hackstons we only acquire the best collectible and investment grade whisky casks. All of our whisky cask investment options are tailored for your budget and ambitions. The choice is yours!
Once the strategy has been agreed and the package has been selected, the most important stage has begun, procurement. After going through our compliance procedures and anti-money laundering checks, the purchase will be finalised and full ownership of the casks will be transferred into your name. You will receive all the legally required documentation to ensure that you are the ultimate beneficiary owner of the cask. You can find out more about this process in our FAQ.
As per the legal requirements in the UK, all casks of whisky have to be stored in HMRC bonded warehouses. This is to ensure that detailed records are kept of your cask, and protect it from potential damage. We have relationships with many of the largest warehouses and insurance providers across Scotland, allowing our clients to receive the greatest levels of care within the whisky investment industry. From there you can sit back and allow the whisky to mature, meanwhile your portfolio manager and online portal will keep you up to date with your portfolio’s progress.
When it comes to exit strategy, we work with our clients to ensure their needs are met.
The most popular way to sell your cask is to sell to another client that wants to purchase your cask or build their portfolio. We can also arrange private and public auctions, help you independently bottle your cask, or even sell your cask back to the distiller.
We offer two different ownership models.
Direct Ownership and Ultimate Beneficial Ownership. Once you have purchased a cask from us, the cask is irrevocably and unquestionably yours, however, how it is stored determines which model you fall into.
Direct ownership means that you will have to independently open your own account with a warehouse and then we will transfer your cask to you and provide you with a delivery order upon receipt of the casks.
Other clients prefer to use the Ultimate Beneficial Ownership model as they might not be able to open an account with a warehouse.
We will store and manage the casks on behalf of the ultimate beneficial owner, which in this case, is you. We have a fiduciary responsibility to ensure your casks are kept safe whilst in our Trust.
So this includes but is not limited to, the storage and insurance of your cask. So we keep your casks in a company client account and then invoice you separately for storage and insurance.
All casks held under this model undergo an inspection by an independent auditor in order to ensure the casks are absolutely verifiable and provide reassurance to investors.
One of the key strengths of whisky investment is the wide range of options when you decide to exit. At Hackstons we will help you every step of the way to ensure you get the best possible returns on your whisky portfolio.
Upon deciding to cash in your cask investment, you can choose to sell via one of our seven exit routes:
As our objectives are intrinsically linked, we will always request that you allow us to present you with the best strategies; however, the final decision is always yours.
When you think of Whisky, you could be forgiven for solely imagining a dark brown liquid with a high alcohol content. You may even have the odd 10-year-old bottle that only makes an appearance on special occasions. However, when you consider Scotch Whisky, you now have to appreciate the over 500 years of history and tradition that have been put into each bottle, making it coveted as the pride of a nation.
As a result of this, single malt whisky casks have long been an asset that enjoys a highly desirable global demand. Recently, its limited supply has commanded the attention of private investors and hobbyists.
At Hackstons, we have access to an exclusive network of distilleries. This has given our clients the opportunity to purchase premium, branded single malt Scotch whisky of the highest quality. What was once esoteric and reserved only for a select few is now available to our investors who want to use the opportunity to invest in premium Whisky casks safely and effectively and thus add a different layer to their scotch portfolio.
If you are already a holder of whisky casks and would like to explore an additional exit strategy using our services, please contact us using the form above.
