The potential lifting of tariffs on Scotch whisky to India could mean a surge of interest in one of Scotland's most famous exports.
India is the world's greatest consumer of whisky, having consumed 212.7m cases of whiskey in 2018 alone.
Currently consumers generally stick to domestic brands, thanks to the 150 per cent import tariff levied on Scotch. But this could all be about to change as the UK looks to broaden its trade relationship with India and release tariffs on many UK goods – potentially unlocking this vast market.
Good news for investors
This is good news for savvy investors, according to Hackstons, a London-based multi-asset broker that helps clients acquire luxury goods for investment, as the deal could bring more than £1bn of export growth for Scotch whisky over the first five years*.
"This is excellent for the Scotch cask investors, since the value of their whisky portfolios will rise as the consumer demand for luxury Scotches explodes due to the removal of the tariffs creating cheaper prices for the average whisky consumer," says Ricki Faulkner, head of stock and logistics.
"This will increase the consumption of whisky, meaning that whisky cask investors will receive greater returns on their Scotch investments."
Hackstons offers investment opportunities in tangible goods from timepieces and art to luxury handbags, coins and wine, along with ownership of highly prized single malt whisky casks.
"As whisky’s primary function is consumption, it is a perfect asset class for the modern investor to utilise to access above-average, tax-free returns," he adds.
High demand for malts
With centuries of history and tradition, Scotland's whisky industry is a rightful source of pride for our nation. As a result, single malt whisky casks are an asset that enjoys a highly desirable global demand – with its recent limited supply catching the eye of canny private investors.
"At Hackstons, we have access to an exclusive network of 32 of the very best distilleries, including Macallan, Ardmore, Laphroaig and Bunnahabhain," says Ricki. "This has given our clients the opportunity to purchase premium, branded single malt Scotch whisky of the highest quality.
“What was once 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."
Approximately 42 bottles of Scotch are shipped every second to 180 markets worldwide, with the spirit accounting for 21 per cent of the United Kingdom’s entire food and drinks exports.
And there are real examples of some very impressive returns on investment, like the £3,200 cask of The Macallan single malt and a £1,500 cask of Tobermory bought in 1994 which sold this year for £225,000 – a staggering return of 4,700 per cent**.
"As we look at the steady growth of the whisky market and the prices of single malt casks, we believe whisky should be treated as a serious contender against other commodities.
"There are not many investments in today's world with such an affordable entry point and the potential to make good returns over the mid-term and exponential returns over the long term."
Contact Hackstons today on 020 3307 0410 or firstname.lastname@example.org to talk to a member of the sales team about the purchasing process.
They can recommend brands and take care of the storage of your investment, while providing you with all the necessary documentation for full ownership of your cask.
Read article on The Scotsman.
* Scottish Financial Review - Scotch Whisky Welcomes 50% Tax Cut In India
** Independent - Why whisky casks could be a better investment than you think