Risks to Consider Around Whisky Investment

We understand how important it is to understand all of the risks associated with investing, and at Hackstons we pride ourselves on our transparency. As such, below you will find the main risks to consider and the key considerations to understand when investing in cask whisky.

  1. Whisky cask-investments are unregulated in the UK
  2. Investment value can go down as well as up
  3. A whisky cask is not a regulated financial product carrying a cancellation-right for a cooling-off period following its purchase. However, every contract to purchase a cask with Hackstons is accompanied by a cancellation form which gives you the right to cancel your order within 14 days of purchase for no fee. NOTE: Outside of this 14 day cancellation period you are unable to cancel your purchase
  4. Cask-owners must arrange and pay for:

    i. bonded-warehouse storage of casks

         ii. services for periodic maintenance whether provided by Hackstons or another service-provider, including testing and regauging-services to identify the degree of decrease in spirit-volume caused by evaporation over time

          iii. insurance cover when taken out against the risk of damage to casks or contents

      5. Casks can be realised by re-sale for onward storage in bonded warehousing, or (subject to VAT and liquor duty becoming payable on the original purchase price) by removal for bottling or owner-retention/consumption;

      6. The time a cask can be retained as an investment with prospects of meaningful realisation may depend on market factors and on its retention of the minimum 40% spirit-volume required for classification as “scotch whisky”

Other industry-specific risks and factors to consider that could impact the value of your investment are:

  1. A slowdown of global demand for whisky.
  2. The oversupply of whisky.
  3. Changes to legislation involving the sale of whisky.
  4. Certain countries implementing a prohibition of alcohol.
  5. Outbreak of global conflict or a natural disaster catastrophic enough to shut down global supply chains.

These risks typically can be managed by working with a brokerage such as Hackstons.

The final 'risk' is to understand our disclaimer that outlines our terms of business with you. Below is our full disclaimer regarding cask whisky investment with Hackstons:

Full Disclaimer

  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 is not responsible (to the extent permitted by law) for (i) any loss or reduction in value of the investment, (ii) any costs of managing the investment or achieving an exit or (iii) achieving for the investor an exit on acceptable terms, or at all.
  5. 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.
  6. 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.
  7. 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.
  8. Hackstons do not represent or warrant the accuracy of the data which we quote from third party sources.
  9. All testimonials featured on our website, landing pages and marketing materials are just a sample of our Trustpilot reviews and it is worth noting all reviews can be found on our Trustpilot page.
  10. All references to tax-free or tax efficiency refers to the exemption of Capital Gains Tax on wasting assets, which includes whisky casks as they’re considered to have a predictable life not exceeding 50 years. This exemption only applies to whisky in casks, once bottled duty and VAT will need to be paid.
  11. Cask whisky investments are likely to be more recession-resilient than other types of more traditional investment, due to the fact that the whisky industry is led by consumer demand which tends to hold up better for numerous reasons, including but not limited to, the fact that the primary purpose of whisky is the consumption of the liquid, not the returns generated from the liquid.